Profitable Archives - TODAY INDIA

The Secrets Of Starting A Profitable Flower Vending Business

I have sold in the retail market, millions of fresh roses and fresh flower bouquets successfully for 32 years. I bought a retail nursery and florist across the street for one of Connecticut’s largest cemeteries, on a busy route that had several thousand vehicles pass every day. I made deals with all the flower wholesalers at first and then I proceeded to undercut the price of all the flower shops in the state. My main objective was to create a customer base that would frequently buy flowers “just because”. My customer service was created with an over friendly staff of a great combination of super personalities and knowledge of the business, which was simply liking people and helping them to satisfy a feeling. My motto to my staff was to let them know that we not only sell roses and flowers but mostly, We sell Love, we sell feelings! My obsession with quality and consumer service was so successful that it spread through out the community and the state.

Wow, I can remember Valentines week with a staff of over 50 wonderful employees wrapping and boxing roses through out the day and nights, get ready the rush of the year. I was so careful with every dozen to prepare each like it was for my mom or wife. We dethroned all the roses, cut them under water, to hydrate them according to the “Chain of Life” procedure. They re-hydrated them in solutions to further guarantee and extend their vase life. Our 4,800 Dozen roses that we sold that week were our best advertising for the rest of the year. Heck, they lasted over 10 days which pleased amazed our dedicated customer’s recipients. What a great feeling to know how many people we made happy.

Selling flowers at strategic locations has become a highly profitable retail business for many enterprising individuals. These entrepreneurs are taking advantage of a market that is, for the most part, impulsive in nature. Many people buy flowers on the spur of the moment, and the presence of a flower vendor is usually their inspiration.

Very often, men on their way to a date will see a roadside flower vendor, and suddenly find the idea of taking flowers with him quite appealing. The same holds true for many men heading home from work. If they’re married, these men will often purchase flowers from roadside vendors for their wives. The flowers are fresh, attractive, and package to sell, not as nearly as expensive as an arrangement from a florist, and the buyer doesn’t even have to get out of his car. Women are also potential customers for flower vendors. A woman will buy flowers to add color and decoration to her house or apartment, or sometimes, just to cheer up a friend. In any case, the purchase is usually made on impulse, brought about by the availability of a flower vendor.

Starting a flower vending business is not difficult. No previous experience is necessary. There’s only a minimal initial investment required, and you won’t need a lot of equipment. What you will need is an adequate supply of fresh, attractive flowers, a good location for selling, and a cheerful disposition. After all, you will be dealing directly with people, so a good disposition is a necessity. You can begin as a home-based operation with an investment of as little as $300. If you live close enough to the market you want to reach, your own garage can serve as storage space as well as your preparation area. Your operating expenses will be minimal, and you’ll have the opportunity to realize a high margin of profits.

Depending on the size of your investment (both time and money) and the size of your trade area, a flower vending business could net anywhere from $20,000 to $175,000 per year. It can be an extremely high profit business, if you choose your selling locations wisely, and offer only fresh, attractive flowers.

BUSINESS OVERVIEW

Successful operation of any small business depends on several key factors. Perhaps the most important is the ability to be a good business manager. Although no experience is necessary to start-up a flower vending business, some small business management training could give you the edge needed to insure success. Most community colleges offer night school courses in small business management and, if you are unsure about your business knowledge and or management skills, enrollment in such a course would be a good idea.

Here are other basic steps involved in the successful operation of a flower vending business:

(1) Know your market. Proper knowledge of your market will enable you to set-up at the best locations. You’ll need to know the high-traffic areas as well as the time of day traffic is at its peak in order to take advantage of a roadside operation. You’ll also need to investigate other potential locations such as restaurants, malls, local festivals and flea markets.

(2) Obtain a dependable source for fresh flowers. Your business depends on the quality of your merchandise. And since you are selling flowers, they must be fresh and attractive. You should locate a quality wholesaler and establish a sound working relationship. You should also have some knowledge of the types of flowers people are most likely to purchase from a vendor.

(3) Establish a workable preparation area. Ideally, your preparation area should be centrally located within your sales territory. The space needed should be adequate for storing flowers and materials used for the preparation of bouquets, as well as for the preparation itself.

(4) Hire the right help. Unless you plan a one person operation you’ll need to hire some dependable helpers. The people you hire should be outgoing and trustworthy with the ability to deal with customers in a professional and courteous manner. If your flower vending business is to be successful and highly profitable, you’ll probably need to have other people helping you. One example is a successful flower vendor in Washington State who employs young people, pays them minimum wages, and enjoys a brisk business at several key locations.

(5) Advertise and promote your business. Effective advertising and promotion can help generate sales and profits. Knowing how to advertise and promote your business, especially in the beginning, is a key step in the success of any business operation.

All of these steps can be taken with a relatively small initial investment, and your flower vending business can be in operation, and realizing a profit, in just a few weeks. However, prospective entrepreneurs should also be aware of, and comply with, any rules and regulations that apply to this particular business in their area.

Depending on the location(s) of your flower vending business, you may need a license to operate. If you plan to set- up a flower vending stand on a city street, or any roadside operation within city limits, you’ll most likely need to get a permit. The best thing to do is consult a trusted attorney, or contact the business-license department in the city your market covers to find out what licensing requirements you must meet.

If you plan to sell flowers in restaurants and nightclubs, it is usually not necessary to have a license. Also, if your roadside operations fall outside the city limits, you probably won’t need a license because most counties don’t issue them. Again, you should check with your attorney, or the proper licensing authorities in your area before you start selling flowers.

Another consideration for a new business owner and employer is taxes. As an operator of a business you will be responsible for collecting and sending in various state and federal taxes, as well as certain taxes you will have to pay yourself. If you are not familiar with your tax responsibilities as a business owner, consult a qualified accountant or contact your local IRS office to get the information you need.

You should also consult with an accountant as to the type and arrangement of bookkeeping and record keeping best suited for your flower vending business. Records of your business operations are, of course, helpful in the successful management of the business. These records need to be as accurate and permanent as possible in order to ascertain any tax liabilities. They should include business income, deductions, credits, and any employee information. As well as any other information required by federal, state and local regulations.

EQUIPMENT AND INVENTORY

Since a flower vending business does not require an abundance of sophisticated equipment, start-up costs can be kept to a minimum. The basic equipment necessary should not cost more than $200 and can usually be found at a wholesale florist supply house. You can also get your supplies and equipment from several firms that cater to florists. You should be able to find a complete directory of such firms at your local library. You can also contact several florists (not necessarily in your market) and obtain this information.

For the preparation of your flowers and floral arrangements, you’ll need stem cutters and a supply of cellophane or florist’s tissue. You will also need several plastic buckets to keep the flowers in water and fresh while being transported as well as on your selling sites. To prepare the flowers for selling, you will need a preparation area. This area should be cool and shady to help keep your flowers as fresh as possible. As mentioned earlier, a location central to your area of sales is most desirable. If your own garage fits that description, you won’t have the added expense of renting space.

Your preparation area will require several storage containers and a table. Some refrigerated coolers may be necessary, but since most flower vending businesses pick up their flowers on a daily basis, and sell them as quickly as possible, that sort of storage requirement should not be excessive. However, during the summer and winter months, you may need an air-conditioner and portable heater to keep your flowers in salable condition. If you don’t already have these items, you can count them as a business expense and they are tax deductible.

Your inventory will consist of flowers. You can purchase these from wholesalers found in most major cities. You can find these suppliers by looking in the Yellow Pages of your area’s metropolitan phone directory. Look under ‘Florists, Wholesale.’

Since you will probably have some flowers left over after each day’s sales, it is essential that your inventory be fresh when purchased from the wholesaler. You can check the freshness of your flowers by examining the heads of roses to see if they are tight to your touch. Also, if the blossom appears purple around the edges, the flower is probably too old. When buying carnations, look to see if they are firm and heavy-stemmed. If carnations are somewhat discolored, don’t buy them, because they probably aren’t fresh.

The largest part of your inventory will most likely be roses. Roses are the most desired flower, and they are expensive. Prices will vary with the season and area of purchase. Carnations will also make up a substantial portion of your inventory. These flowers, while very attractive and popular, are much less expensive than roses.

Other flowers you may want to add to your inventory are gardenias, tulips, daffodils, and orchids. Some of these flowers are expensive and usually appeal to an older set of customers, so don’t go overboard when dealing with your supplier. Roses and carnations will be your best sellers. Your best sales months will be during the holidays so you will have to make sure you have an adequate supply of flowers. You’ll also want to have a supply of appropriate flowers to match the specific holiday, lilies for Easter, poinsettias for Christmas and so on.

CHOOSING A LOCATION

Once you have a marketable inventory, you will need to set- up in a good location. If you choose the wrong location your business will not be successful. For flower vending, the two best selling locations are restaurants and roadsides/street corners.

Restaurants are good selling locations if they attract large lunch and dinner crowds. Especially good restaurant locations are those with specific themes. French, Italian and Mexican restaurants are usually profitable locations for flower vendors. You’ll also find successful flower vendors in upscale lounges and taverns.

In general, restaurants and lounges with a quiet and romantic ambiance, are usually conducive to flower vending. Many restaurants are attracted to the idea of flower vending at their places of business because it offers an extra ‘romantic’ touch to their service. Usually, the management of a restaurant will charge the flower vendor only a nominal fee. In some cases, the fee may simply be a few flowers to arrange and display throughout the restaurant.

For street-selling locations, freeway exits and stoplights on main streets are preferred. These areas represent the highest amount of traffic therefore, the largest number of potential customers. Ideally, your locations should be along streets, highways and exits that feature a great deal of late afternoon and/or early evening rush hour traffic. These conditions are ideal if you can find an area where the traffic must come to a stop, or at least has to slow down. Your location must be plainly visible so that oncoming drivers will be able to see you in enough time to get out of traffic and pull off the road.

It is important that you stay away from roadside locations that could limit the ability, or desire, of your customers to reach you. Never set-up at dangerous intersections, along steep hills and other areas that could be hazardous. You could lose a lot of business if potential customers don’t stop because they fear getting struck by other traffic.

When selling on city streets the most desirable locations are those that take advantage of both automobile traffic and pedestrians. You should try to find a spot in an area of heavy pedestrian traffic as well as vehicle traffic. Business will usually be better when people are on their way home. If you know which side of the street is the ‘going-home’ side, that’s where you should set-up.

Operating a flower vending business allows you more flexibility than many other businesses have. You won’t have to stay in one location, if it proves unprofitable. You can move around as often as it takes to find the locations that afford you the most success.

You may have to experiment in the beginning. Simply keep a record of the number of flowers sold at each location and the number of hours at each spot. From these records you’ll be able to determine the most satisfactory locations for your business. You will also have a better idea as to the actual inventory you need so you can cut down on the amount of excess that results in spoilage.

HIRING PERSONNEL

In order to be successful in the flower vending business, it may be necessary to hire help. If that’s the case, not just anybody will do. As the owner/manager of the business you will have to hire people who are right for the job of selling flowers. Although this may seem difficult, there are some guidelines that many flower vending businesses follow quite successfully.

Students and people seeking part-time jobs are the most likely candidates for employment in the flower vending business. Your interviews with such prospective help should be designed to ascertain if they are trustworthy and dependable. You also need salespeople who are outgoing, enjoy interacting with other people, and who are well-motivated.

In most cases, if you are selling flowers in restaurants, attractive young women are the best salespeople. Usually these women are dressed in a costume that serves to identify your business. The most basic sort of identifying costume, or dress, would be a white blouse and dark skirt. As the business ‘blossoms’ you may want to invest in more elaborate costumes depending on the image you want for your business as well as the particular restaurant theme.

Usually, an employer can find adequate part-time help simply by placing a catchy ad in the help-wanted section of the classifieds of the local newspaper. The ad should allude to making ‘good money’ for ‘enjoyable’ part-time work. Response to the ad should be such that you can be selective in hiring the help you need. You should also get excellent response with an ad in college newspapers. And you can try placing the ads on school bulletin boards to elicit even more response.

Once you begin interviewing prospective employees, it is imperative that you have them fill out an application form and supply you with at least three references. And don’t just read the references — check them out. You should know as much as you can about your help before you hire them.

Once hired, make sure all employees know exactly what their duties and responsibilities are, as well as their salaries. You should also plan to review each employee’s performance on a regular basis. These reviews, or evaluations, should be shared with your employees so they will know how they are doing and how they can improve, if warranted.

DAY-TO-DAY OPERATIONS

Operating a flower vending business does not require hours of strenuous physical labor. However, that does not mean flower vendors lead a life of leisure. With any business there are demands that require time and effort. The flower vending business is no exception. You and/or your employees will need to be well organized from the time of preparation until the day’s selling is done.

Preparing flowers for sale is an essential part of a flower vendor’s work day. In order to be salable, your flowers must appear fresh and colorful. Also, every bouquet you plan to sell must be arranged in an appealing fashion. Therefore, you should allow enough time for preparation so that the job is done right. But, don’t overdo it. If you spend too much time on flower preparation, you could be cutting into valuable selling time.

The actual preparation phase should take as little time as possible without sacrificing quality of work. To be as efficient as possible with your preparation time you should organize the process. You can do this in a step-by-step manner.

First of all, you should plan to remove many of the thorns from each rose stem. About half of the thorns, beginning at the bottom of each stem, should be removed. Then, you will need to clip a small portion from the bottom of each stem. This will allow the flowers to absorb water and retain their freshness and color. You can do the clipping with a sharpened knife.

Once you have dethroned and clipped your roses, you will need to place them in relatively warm water. The water temperature should be about 105 degrees. You can leave them in the water for up to two hours and they will be refreshed and colorful when you are ready for the day’s vending. All your other flowers must also be properly cared for and prepared so that your entire inventory is appealing to your customers.

Your preparation process should not involve much ‘decoration.’ People buying single flowers usually won’t expect frills such as ribbons or bows. However, you should have such adornments on hand at your selling location in case some customers request them. It’s also a good idea to supply your sales team with pins, if corsages and/or short-stemmed flowers are part of your inventory.

Any bouquets you sell should be wrapped in tissue or green cellophane. Not only do the flowers keep better wrapped, they also appear more attractive and are more appealing as gifts. Unwrapped bouquets do not have a particularly neat appearance, and they probably won’t stay fresh and colorful as long as they would if wrapped.

How much time should all this preparation take? Well, most successful flower vending businesses spend no more than two to three hours a day buying and preparing flowers. It will probably take a new business a couple of months to become organized and experienced enough to cut buying and preparation time down to two hours per day. That will happen once you learn how to utilize the early morning hours, after the flowers have been purchased from the wholesaler, for preparation of the flowers and organizing your salespeople.

The best times to sell cut flowers, really depends on location. Street corner and roadside vending hours are most successful during the late afternoon and early evening hours when most workers are heading home. Most people are more apt to take the time to make such a purchase as flowers on their way from work than they are on their way to work. Weekends have also proven very successful for many flower vending businesses that operate all day on Saturdays and Sundays.

If you are selling in restaurants, the most profitable time will be during dinner hours. In some cases, lunch crowds will buy flowers, but usually the evening diners will be your best customers in a restaurant. Your salespeople should plan on up to three seating’s of diners each evening in a popular restaurant.

Between seating’s, your salespeople can canvass the immediate neighborhood for other potential customers, and then return for the next seating at the restaurant. This type of selling will take some practice and experience, but a good salesperson will soon learn how to make the most of his time and inventory.

It is important that you and your sales team be as poised and as professional as possible when selling at any location, especially in restaurants. In restaurants, a low-key approach is much better than an extremely aggressive sales pitch. Be polite and friendly, and utilize flattery as an effective tool. Approach the man in a couple and in a casual and friendly manner ask if he would like to compliment his lady companion with a beautiful flower. Most men will then buy a rose for their dining companions.

ADVERTISING

A flower vending business is unlike many small and part-time businesses in that the usual forms of advertising — newspaper, radio, TV, and so on — are not really effective. Since your selling locations may change from time to time, and since buying flowers from a flower vendor is usually done on impulse, you’ll need a more immediate form of advertising. It should be something that draws attention to your business as your customers approach your selling location.

For street corner and roadside vending, signs are the best form of advertising. All that’s needed is something to let potential customers know you are there, and that you are selling flowers. Seeing your sign, many people will act on impulse and stop to see what you have to offer.

The sign(s) should be hand-made rather than professionally painted. You don’t want to appear like a big business. And a hand-made sign will give the impression of a small, family-type operation which usually means more reasonable prices.

In some cases, a new business can get publicity from a local newspaper. If you are selling flowers at a restaurant, you can try getting such publicity by alerting the local newspaper. Most local newspapers use information of this sort as fill, and it could prove valuable to your business.

If, as part of a special promotion — a grand opening, or a special day such as Valentine’s Day — you will be selling flowers at a business location, send the information to the editor of your local newspaper. You may also want to include a picture of you and/or your sales people. The paper may not decide to run the story, but there’s a good chance they will. Either way, you have nothing to lose, and a bit of publicity to gain.

SUCCESS ANALYSIS

Eight contributing factors are measured on a 1 to 10 basis (with 10 being excellent) based on analysis of this opportunity.

1. Time Investment 7 2. Start-up Costs 9 3. Gross Income Potential 8 4. Net Income Potential 8 5. Income in Relation to Investment 10 6. Stability 8 7. Overall Risk 9 8. Potential for Growth 10 Overall Potential for Success 8.63

POTENTIAL EARNINGS

The profit you can realize from a flower vending business depends on several factors:

(1) The size of your market. Obviously larger metropolitan areas supply the greatest source of potential customers, therefore profits. However, your expenses in these larger markets will probably be greater, because of larger inventory needed and a bigger sales team to cover the market adequately.

(2) Good selling locations. Even if your market has a large selection of potential customers your profits will be, at best, minimal if you are not selling in the best locations to take advantage of impulse buying. You have something that practically everyone likes, flowers. But most everyone who buys flowers from a vendor does so on impulse. To be successful, a flower vending business must locate in areas of high-traffic, increasing the possibility of impulse buying.

(3) Consistently marketable inventory. If you try to sell flowers that are too old, wilted and faded, don’t expect to do much business. Make sure your entire inventory is always flower- garden fresh and attractive. Also, price your flowers at reasonable rates. That way, both you and your customers will be happy.

(4) A professional sales approach. Whether you are running a one-person flower business, with yourself as the only salesperson or have several salespeople, a friendly, low-key sales approach is essential. After all, you are selling flowers, not used cars. Most people who buy flowers from a vendor are buying them for a special person, and a friendly, non-aggressive salesperson has a good chance of making a sale.

(5) The size of your investment. This does not just apply to the amount of money you invest in the business. Your investment also includes the time and effort you expend on making it a success. As a weekend business, or operating on a daily basis, a flower vending business will require a certain amount of your time and effort above and beyond your monetary investment. The amount of success and profits you can realize depends, in large part, on how much you are willing to put into the business. Some flower vending businesses have reported netting as much as $175,000 a year. That kind of income usually requires a sales team of half-a-dozen or more people working in a large metropolitan area.

Smaller markets should expect a net profit of $10,000 to $20,000 per year. The thing to keep in mind is that there is always a large market for a flower vending business because flowers make personal gifts year-round. Obviously, some months featuring special days such as Valentine’s Day, Easter and Christmas will be better than others, but this is not a seasonal business. You should be able to realize a healthy profit every month.

Your initial investment can be as low as $300, or as much as $1,500, depending on what you can afford and the size of your operation. It will most likely take several months until you get adequately organized, and until you discover all the best selling locations. But within a year you should be realizing a nice profit with an efficiently operated flower vending business.

SUMMARY

A flower vending business is one of the best small businesses you can get into, if you are short on investment capital. Very little equipment is needed. You can use your own garage or utility room as a preparation area and for storage. And you can sell your inventory on location, from the back of your own car, van or pickup. You may want to invest in a business management course, if you are uncertain about your management knowledge. But no practical experience is necessary to get into this business.

The biggest expenses will be in inventory, which a good month’s sales will recover, any extra personnel you decide to hire, and in any licensing fees you encounter. Advertising costs for a flower vending business are extremely low.

Since flowers have universal appeal, there will always be a sizable market for a flower vending business. If you operate professionally, offering fresh, appealing flowers, establish a good business relationship with dependable wholesalers, find the best selling locations, and hire dependable, competent help, there’s every reason to be confident that a flower vending business can be highly profitable. Remember. You must “do what you love and love what you do!” I will let in to my other secret, my profitable “Rose-Express” drive up flower shops.

Profitable Ideas for Belly Dance Studio

After taking classes from other instructors, it is decided that the next step in your personal advancement is to become an instructor and start a belly dancing business.

The operation of a belly dance studio requires daily attention to students needs and desires.

In the beginning are the owner’s ideas of making money learned from previous experiences from other dance studios. There is nothing wrong with this, however; it will be temporary.

Immediate income is from students taking classes. A basic beginners course and different levels of classes to advance skills will keep students continuing the course to its completion. After the basic course students may leave.

What can you do to keep students attending and continuing an income?

Specialty classes – these classes may be taught by self or hire other instructors.
Props of sword, cane, tambourine, candelabra, candles, and veil. These classes may range from a couple of hours or taught as a weekend event.
Zills and drumming – these are the basic percussion instruments which belly dancers use. Learning about different zill patterns and drum rhythms will help students understand the various rhythms of Middle Eastern music.
Teach in-home private instruction and offer demonstrations at schools and other types of women’s organizations.
Hire self out for national and international seminars as an instructor and build your brand name.
Design a website page and keep it active with information. Include an application for attending classes or hiring a performer.
Teach basics, techniques, and psychology of entertaining at private parties, restaurant dancing, and stage performances to students who want to become professional performers.
Sell services of dancers for parties, conventions, and organizations for local, national, and international markets.
Teach costume and accessories construction. These classes not only help students to have custom-made outfits for their selves, but it serves to satisfy their creative and imaginative interest for arts and crafts.
Designing and assembling jewelry. Making jewelry which the dancer uses are beautiful and many dancers like their jewelry to compliment their costumes correctly.
There are many other styles of this art form. In the past there were two categories of dances. Today there are nine different styles of belly dancing. It is not possible for one person to teach the nine different styles; hire other instructors. It is critical to offer variety in the dance studio; do not depend on one style.
Teach or conduct workshops and seminars. Workshop classes are taught in one day. Seminars are conducted over a three-day weekend. Hire national or international instructors.
Mount a display wall or a mini-shop in the studio and sell all essential costumes, accessories, jewelry, props, and musical items which dancers need or wish to own. Include consignment opportunities.
Produce online videos and offer online classes.

These money-making ideas may be done one at a time or several may be incorporated

Buy and Sell Crude Oil – Most Profitable Way to Do It

There is a profitable way to buy and sell petroleum. There are four major things you will need in order to succeed from this business. They are namely:

1. Funds: you will need funds to buy petroleum. You will need a minimum of $100,000,000 US. The amount of money can get you up to 2 million barrels of petroleum. You will also need about 5 to 10 million USD for expenses.

2. Petroleum seller: you will need a crude oil seller or supplier where you can purchase the petroleum from. This one is not a major problem as long as you have the funds.

3. Tanker: you will need a tank where you will be able to store the crude oil. If you want to build a petroleum storage tank, then you may as well rent one. This one is going to be costly, so it is better for you to build your own tank and save cost.

4. Petroleum buyer: this one is also not a major problem. The reason is because they are many buyers of crude oil aggressively searching for available crude oil to buy mainly in USA and Europe. As long as cars and factories are concerned, crude oil will always be in high demand.

The idea to make lots of money from buying and selling crude oil is to buy crude when it is very cheap and sell it when it is expensive. That is you will buy it when the price is low and sell it when the price is high. You will need to buy a piece of land and build the crude oil storage tank that can be able to store as much crude oil as you want. The crude oil storage tank could be an underground tank or surface tank.

Once you have finished building a storage tank, the next step is to buy petroleum. If you have funds at hand building storage tanks that can store up to 2 million barrels of petroleum or as much as you want will not take more than 2 months. The next step is to find petroleum available for sale. This will be an easy process if you know where to look. You can start to source for crude oil available for purchase at oil producing countries. You will be able to buy them through this means for cheap rather than when you do so through resellers.

There are two ways to get petroleum from Nigeria. One is through getting oil allocation from NNPC. NNPC fully means Nigeria National Petroleum Corporation. It is a government agency responsible for selling and buying of crude oil. You will need:

1. Proof of up to $100,000,000

2. Performance bond of up to $1,000,000

3. You will be required to own a local oil refinery, international refinery and a major oil trader.

If you are not ready for these conditions, then you can buy from persons who have already gotten oil allocation. People who have got oil allocation from NNPC must always end up selling the petroleum they have purchased. You can buy from this set of people. Example of this type of oil trader to buy your crude oil from is Yamal Gas Progress etc.

Once you have found a seller, the next step is to negotiate and close a deal. There are four ways used for selling petroleum. They are namely FOB, TTT, TTO, and CIF. CIF means cost, insurance and freight. It is a method of selling petroleum where the seller does everything from loading and sending the crude oil to the place the buyer wants. This kind of method is usually hard to fit and most sellers do not like dealing this way. FOB fully means freight on board.

The most widely method used method for selling oil is TTO and TTT. TTO simply means tanker take over. In this method, the buyer takes over the vessel to his destination, offloads the crude oil and brings it back.

TTT simply means tanker to tanker. It requires the buyer to come with a tank while the oil is transshipped and everything is settled.

Payment for the product is usually through swift or wire transfer. This can either be done through bank to bank by means of MT799. Irrevocable of letter of credit may also be used for payment etc.

Once you have bought the product, transfer the crude to your storage tank and relax. Continue to monitor the price of oil to see when it will increase. Conflicts between Iran and USA, and USA and Iran, and the one between South Korea and North Korea, and North Korea and the rest of other countries can cause the price of petroleum to increase. Conflicts in Niger Delta of Nigeria and Middle East as a whole can also cause the price of crude to skyrocket. Disasters like Hurricane in the Gulf of Mexico and surrounding cities in USA along the gulf may also increase the price of oil.

Once the price of crude increases, it is time to sell it off. If the price of a barrel of crude was at $78 and it increased to $100 or more, I believe you know how much you would have gained. Let say all the expenses you made and the price of a barrel of petroleum stands at $70 per barrel, then crude oil increases to $100 and you sell it off. The amount you will gain becomes $30 times 2,000,000 which will give you $60,000,000. This is cool bucks to make in a day. The way to find buyers for your petroleum is to write a letter with your company letterhead and POP (proof of product) to oil refineries. State the price you want to sell per barrel and anything to convince the oil refineries to buy your petroleum. This is tested and proven to deliver profitable type of oil trading.

Turning Practical Buying Into a Profitable Purchase Model for SME

SME Finance

Practicable Buying to Profitable Purchase Model

In the economic fabric of India, Small and Medium Enterprises (SME) have a significant role to play. A sector with an assortment of 6,000 products, contributes to an approximate 8% of the GDP in India and facilitates 45% of industrial output and 40% of exports from the country. This seemingly small yet vibrant and dynamic sector holds the potential to accelerate industrial growth and is truly a facilitator and leading partner in the process of inclusive growth for India. But, somewhere down the line these enterprises face challenges that not merely stunt their growth but even clip their wings while on their road to success. India falls short in boosting the advancement of SME’s through financial aid. Why? One of the reasons we reckon is that mere 6% of these enterprises are registered with the Registrar of companies, while 94% fall under the category of unregistered enterprises.

Handling various processes such as bulk buying, circulation of working capital, handling finances, customer satisfaction, compliance related activities, handling purchases etc prove to be cumbersome for SMEs when all the activities have to be dealt with together. Typically these are businesses which run on low investments. A sound cash flow and good deal of working capital can encourage an entrepreneur to keep his firm afloat.

So how does an entrepreneur ensure his money is circulating well?

Dealing in Discounts

Reaping the most benefits from every penny invested helps gather the best profits. Creditors are the happiest when cash transactions are on the table and will go that extra mile to ensure the deal closes at the earliest. Here that extra mile refers to offering appealing discounts, deals like pay upfront and avail a 10% discount are common. In other credit scenarios, retailers are urged to reduce the credit duration through discount period offers. Here a creditor offers slab options, the earlier you pay off your debt the larger discount can be availed. Consider:

Pay immediately and get 5% cash discount

Pay within 10 days and get 2% discount

If a trader wishes to purchase goods worth Rs.100,000/-, then options available are:

Payment upfront availing cash discount: 100,000-5% discount = Rs.95,000/-

If paid after 15 days = Rs.100,000/-

If credit availed= 100,000-2% = Rs.98,000/-

Annual Savings due to upfront payments availing cash discount= 5000 per month*12 = Rs.60,000/-

Volume Game

Another powerful medium of keeping product costs at its lowest, is through bulk buying of inventory and goods used in production. If your business is stable and you have the foresight to plan ahead keeping in mind product pricing, seasonal requirements and ensuring product availability to meet demand constantly, then long-term contract with vendors is apt.

A retailer could crack a deal for constant supply of material for a couple of years at a competitive price. Payment terms could involve instalment options, either quarterly or half-yearly, ensuring your flow of funds are controlled. A well-planned and executed deal could garner excellent profits.

Another avenue to bulk buying is through middlemen or agencies who are linked to a multitude of SME’s. They group their specific requirements to crack volume based deals with wholesalers. This tie up and constant business results in cutthroat competition for business by wholesalers.

Today, with current access and connectivity online, a number of platforms have emerged which promote bulk buying through a group method. Couple of enterprises with a common requirement of material or goods, club together to strike a bulk deal with wholesalers. The outcome, elimination of middlemen, juicier deals for the retailer and higher sales turnover for wholesaler.

All the above scenarios do include blocking of working capital. And MSME’s as we know face difficulties in that zone. The only option that remains is to take a loan to increase their power of spending to derive its benefits. But then again, banks loans charge interest rates as high as 10-19% on business loans. This dilutes the value of the discount received, even if it the average discount is as high as 8-10% as in the scenarios above. The only medium to make the deal profitable for a MSME is the availability of loans at lower interest rates. This gap in demand was noticed by some FinTech start-ups who with their expertise in technology and varied allies in the lending space have made business loans beneficial. From availing loans in couple of days to lending interest rates as low as 1.5-3% per month, which is around 18% per annum. However after considering the negligible transaction costs and ease of obtaining loans within 48 hours, these FinTech companies have proved to be a boon to the MSME world. Getting such short term loans from banks without collateral is cumbersome to say the least. Now entrepreneurs can be unperturbed and confident when discussing large deals.

Conclusion

Today, there are numerous platforms that initiate bulk buying among wholesale and retail markets. The requirement still remains the same, need for a hefty working capital. SME’s continue to face challenges, both financial and otherwise, lengthens their path to success. Acknowledging this multiple FinTech start-ups have ventured into the lending space for MSME’s. Organizations like FlexiLoans, which provide working capital loans to these small enterprises, boasts of quick and easy disbursal of loans within barely 48 hours. It is refreshing to see the paradigm shift in the way entrepreneurs are now approaching business ideas, with certainty and confidence. Bearing in mind these advancements MSME’s now have a much brighter future and will be leading partners in the process of inclusive growth for India.

5 Profitable Businesses You Can Start From Home

Many people dream of starting their own business, but they simply don’t have the capital to invest in a bricks and mortar business. Thankfully, due to technology, there are many options that don’t cost a lot of money to get started.

1. Virtual Assistant

You may think there is too much competition out there to become a VA and that you can’t make a good wage. But the truth is, you can. You just need to think outside the box a little. Instead of joining a freelancer site and competing against others who can work for peanuts, think more locally. Decide the types of services you can offer virtually and start offering them locally.

2. Bookkeeper

You may need to get a license but it’s simple enough to do by studying and taking a test at a testing center. Once you get your license you can start marketing yourself to local small business owners. You may need to stop by their business on a weekly basis to pick up information, or there are remote online systems that you can use to get into their bookkeeping software.

3. Online Business Manager

Believe it or not, many people who run online businesses need online business managers. An online business manager does pretty much what a business manager for any job does. They just do it online. They manage resources and people to lead the business to the goals set by the owner. As an online business manager, you will likely be responsible for organizing, planning, and finding the team to implement the goals that the owner wants to meet.

4. Amazon FBA

FBA stands for Fulfillment by Amazon. There are many ways to enter into this business. There is a lot to know about this business, but there are courses that you can take to help you learn how to run an FBA business. It’s an amazing opportunity and can lead to a very profitable business from home where all you do is buy products, list, and send to Amazon, and they do the rest.

5. Affiliate Marketing

An affiliate marketer is someone who advertises and promotes someone else’s products or services, and when they make a sale they get a cut or a percentage of sales.

Affiliates for digital products usually make about 50% on sales, while physical products usually are lower than 10%. Having a mix of both types of products is a good way to offer your audience plenty of choices, but plenty of people make a lot of money doing either one – depending on how big their audience is and how good they are at reaching them.

How To Find A Profitable Niche Online

Regardless of what type of online business you are trying to develop, it’s a good idea to focus on one specific niche.

But picking out a profitable niche online can sometimes be like trying to find a needle in a haystack. The internet is a busy place and online business owners need to know that they are entering a worthwhile market before spending time, money and resources on building up a new internet based business.

Here are 7 tips on how to find a profitable niche online.

1. Google Suggests

When you type a word into Google, before you hit enter it displays a list of possible phrases that you may be looking for. This auto-complete feature draws on popular search requests from other users. Because an audience are searching for that item it is likely to be profitable online niche.

2. Amazon

When you’re looking for a profitable niche online business Amazon has already done a lot of the work for you. If a niche market is popular on the world’s largest retailer that will quickly tell you if you have a workable marketplace or not.

3. Magazines And Books

You can also use the offline world to search for a profitable niche online. The publishers of magazines and books do a lot of research before spending money on marketing and printing, so when you see a book or magazine for sale, it’s most likely based on a top niche market.

4. FAQFox.com

FAQFox.com scans online forums and scrapes keywords and phrases based on a word that you enter. It will list titles, links and questions that are relevant to your keyword. When you see a lot of people talking about the same problem, product or service, that shows there is a profitable niche online.

5. Udemy.com

This website shows markets where people are buying courses and education. You can use their information database to see a list of the most popular courses. This is a great way to find out what people are actually paying money for.

6. Ask Technorati

You can search for your niche subject matter on this website. If there are a good number of results, you are probably a profitable online niche.

7. The Competition

If there are lots of businesses in a market that is very competitive, it will be challenging for you to be successful. However, if there is no competition it shows that it is not a viable market. Type your niche name into Google. If there are ads related to the search that’s a good sign. That means companies are profitable enough to spend money advertising to your market. Now you need to focus your efforts on a well-defined segment of that market.

How to Create a Profitable Online Business Idea?

Creating a profitable online business Idea! This is the very first thing any internet entrepreneur should focus on to successfully make money online.

This is the make it or break it factor to be successful online or offline. You may spend a lot of time, effort and money chasing the wrong idea. This step is the most important step. Frankly there is no right or wrong way to brainstorm ideas, there are only best practices, common sense and of course some luck. Below I will present the best practises on how to develop profitable business ideas based on my own experience and the world best entrepreneurs. Now fast forward to the good stuff.

Create a profitable online business idea by inventing something new

This is rarest and the hardest of them all. Like Thomas Edison who developed many devices that greatly influenced our lives. From the motion picture camera to the long lasting electric light bulb.

If you can picture a certain product or service that would make people lives’ easier, then you are on business.

• Tim Ferris Did this. The Author of the world phenomenon “The Four Hour Work Week” Where he preached to live an awesome lifestyle while putting your business on autopilot! He is a master hacker and he managed to outsource his life and his business very cheaply. He has built a huge passionate follow who are ready to help him sell or promote his products and he gives them his mind, body and soul. He gives presents, free info and help as much as he can. His blog went to rank around 6000 most visited website -among millions- in SIX MONTHS!! If you have something special, unique and awesome please do it.

Create a profitable online business idea by fulfilling a personal need

If you needs a product or a service, be certain that there are other people who are searching for a solution for that exact same problem.

Personally when I was a project manager at one of the biggest engineering firms. I had to self-study every single day and night to be able to compete and sustain my edge at that level and to deliver projects on time, under budget and at the highest quality standards. Self-learning was not easy and taking courses and workshops were both time and money consuming.

• My first online business was an E-learning hub for professionals. filled with articles, audio and video training and discussion boards. I added more value by giving them assignments and research work to further solidify the learning experience and make it as practical and as close to real life as possible. I developed it further and created a membership area for different niches like: Project Management Professionals and Marketing professionals… etc. Professionals would post their most urgent questions and problems and collaborate with other on how to solve them. They would share their experience in their current projects pointing positives and well as negatives. And exploring alternative ways and solutions to try at their next project.

As you can see I took a simple E-learning portal and turned it into a thriving community filled with passionate professionals who are sharing their ideas, experiences and recommendation. They sat goals and worked hard to achieve them. And we congratulated each other for the completion of our goals.

We were such a beautiful little community.

Do you have a current need? Write it down. It maybe your next big thing.

Create a profitable online business idea by making people lives EASIER

We are in love with the easy way. We go to Google to find a quick answer and we ask a friend for a recommendation.

We want the easiest and the shortest route to our goals.

If you can develop an idea to make people lives easier! They will love you for that.

• Google made our lives easier and now we can find exactly what we need in a blink of an eye. And they are going that extra mile every single day from local search, blog search, Scholar search, image search, movie search, news search and every other kind of search you can think of.

• Mint Made our lives easier in terms of managing our personal finances. They develop free and premium software to help people control and manage their budgets more efficiently. They were one of the fastest growing companies in the world and they were featured in The New York Times, The Wall Street Journal and Money magazine as the best tool to manage your personal finances.

• Aweber when CEO and Founder Tom Kulzer was a sales leader for a computer hardware firm in mid 90′s he noticed that leads were falling due to lack of proper follow up from the sales agents. He went on his way and started Aweber the best email marketing solution I have ever used and the number one in the scene right now.

Create a profitable online business idea by upgrading a current idea and make it better

Not everyone has the vision to spot a growing trend or a specific need. So it’s easier to develop and upgrade a current business idea and make it better than the original one.

• Google did this. When they witnessed that search engines were merely displaying search with no clear standards. They developed a search engine that displays results based on user preferences and history by exploiting cookies. Try to search for any term and make your a friend search for the exact same term with different computer and you would find different results as Google scans your history and browsing behaviour by a very complex Algorithm and displays the most relevant results for you. They grew and became the number one search engine and the number one website on the internet today.

• Tumblr did this. When 21 years old David Karp saw the growing interest in Twitter and Blogs. He combined the best of both worlds. Many people loved to share on Twitter but the 140 characters and the limitations were an issue for some. Others wanted a platform to express themselves freely but Blogs were too technical or too serious for them. The young genius made it and established Tumblr where you can share easily like Twitter but with the powerful features that Blogs only have. Tumblr now is the 35 most visited website on the internet today. And the future looks awesome.

Create a profitable online business idea by offering unbelievable service

Sometimes we can’t figure out a new business idea or an upgrade to a current business model. Well the best thing to do is to choose a business model you like. Study it and differentiate yourself not by lowering prices -I am totally against this strategy btw- But by offering unbelievably good service.

• Zappos Did it. They started by offering great shoes for sales on their website like the hundreds of thousands of other websites. But they took the customer service to limits never seen before. They would occasionally send you flowers or a present or a voucher at your birthday. They may send your products by speed delivery at no additional costs to you and you would be happily surprised. Their customer service would speak with you on the phone as long as you need explaining every detail over and over. Actually there is a documented phone call that lasted for 8 hours! This is how far they took it. The Result? Now they are making over a billion dollar in sales each year! They are the biggest shoes retailer! And their huge customer base do all the promotion and advertising work for them because they were happy and impressed.

Create a profitable online business idea by entering a very specific niche

A niche is a group of people sharing a specific interest, hobby or career. You can take a large business idea and break it down to it’s niche components, study each one and build a business around one niche.

• LinkedIn Is the largest professional social network in the world. They took the Facebook concept and simplified things. They didn’t need millions of teens, housewives and TV stars. They chose professionals and entrepreneurs and they built a website specifically designed to serve them.

• Pat Flynn who is one of my favourite bloggers of all time did this when he first started with his LEED exam training website -It’s a certificate in the Architecture world- He targeted Architectures who want to take the exam and built the best study guides to help them understand the materials and pass the exam. He passed the exam himself first so he knew what does it take to pass it. Result was over 200.000 USD in gross sales in his first year and he is doing much better since then with his awesome SPI blog.

You can do this. Analysis the big businesses and break them down. Find what would be an interest for you and build a website around it. As an example I may consider analysing LinkedIn itself and see the small components inside. Well you may start a “young professional social network” or an “Executive level social network” or “project managers social network” Decide first. Brainstorm how can you provide an awesome fulfilling experience for your audience and then build a website to do this and more.

Create a profitable online business idea based on your passions and fears

Same concept here. If you are passionate about something. There is a good chance that others are in love with it too. If you are totally scared about something you may research and learn to figure a solution and build a website offering that solution. Or simply a website that offers some sort of support group for whoever suffering from that fear. Trust me it works.

Write down your passions, what you love to read about, listen to, or watch. Your dreams maybe? Or maybe your fears! Write them down. Then rewrite them again. Pin them and look at them everyday. Add or delete. I assure you would find something interesting.

Example: I love racing games! I may go and build a need for speed fans website offering latest news and game hacks. I may then offer a simple eBook selling my very best tricks to beat the boss in the game! Figure yours it maybe as simple as that.

I hate bugs! I completely hate it specially ants. I may build a website and post my latest solutions to get rid of them! Organic solutions maybe! Then present them in an ebook.

I love working out! I am a 14 years athlete and I practised everything. I DID start a website based on how to lose weight for the business professionals. I offered straight forward advice for people who can’t afford sever dieting or hours of training. And it worked out NICELY!

Create a profitable online business idea by being weird!

Yes this is not a typo. Although this is not my thing but some people are flooding their bank account with this

• Tucker Max Ps: Please note that his stories are NOT for everyone. They are uncomfortable for many. Please don’t read on his blog if you are easily offended. He is a playa and he wanted to document his adventures in a book. Well every publishing house refused to publish it. He didn’t give up and he built a website and published his stories for free so everyone can sees them. Within few months and with smart marketing his traffic went over the roof This captured the publishers attention and they contacted him offering generous contracts to publish what it seems to be unrealistically popular stories. He did it.

• Million Dollar Homepage If you have ever asked me if setting a website and inviting people to give you money just for putting their logo in a homepage! I would say this will never work! Where is the added value? Well I am wrong this home page collected payments to put brands on the home page “to own a piece of the internet”

Other ways to create a profitable online business idea

If your creativity let you down. Here are some other ways to earn an income by starting an online business.

• Website flipping: Similar to real estate. You build a website. Add content. Attract visitors and offer it for sale on website like Flippa.

• Web hosting reseller: With a fixed monthly fee you can start selling web hosting service. This can be a profitable business model If you can attract lot of traffic. Will cover this in future articles

• Review website: Review anything that you are interested in. And offer some Affiliate links. You earn commissions on sales made by your links. Will cover how to be a super affiliate in a future article.

• Content writing: If you are a good writer, set up a website and offer your services. You may join Elance or Odesk People are in a constant need for good writers

This is the only article you would need to find about your big idea! There is not right or wrong way. As you saw some unrealistic businesses made money. You will never know unless you try. Please stop reading about how to generate profitable ideas for your internet business and start doing what I have told you above.

Just grape a pen and a paper -No laptop please- and go through each method described above from inventing something to upgrading a current business idea to embrace your passions and fears or targeting a very specific niche.

Go through each one, brainstorm each one. Write it down. Pin it. Visualise it and you would find your answer. Sooner or later and this is my promise to you.

Some people would argue that they need to test the idea profitability before they start. Well some people agree and some disagree. I disagree personally. Simply because if you as a person needed something or facing a problem or a certain fear. Be certain that others feel that same way too.

If you are inventing something never done before this testing would do you little good. Ordinary people can’t visualize your idea, so their replies would never give you an accurate answer. Example is when they invented the phone. People never imagined this would be possible and thought their lives are perfect. They invested the mobile phones and now people can’t imagine how they lived without them and now they lives are perfect, now they can talk in the street! They invented the smart phones and now you are connected to your social network, your business and to everything.

Idea here is that people can’t imagine things. You educate them to accept the new technology. As long as it makes their lives easier they would be more than happy to listen.

I heard that the late Steve Jobs, the legendary founder of Apple, didn’t believe in market research. With his revolutionary ideas that redefined what technology is capable of. People were unable to keep up and give a clear thoughts about it.

YOU are the creator, Create and educate.

Hope that you enjoyed this article

Mohamed Anan

Profitable Business Ideas – How to Prepare a Solid Business Plan For Home Based Internet Business

Today, new Internet businesses are struggling to find a profitable business idea and niche. As per the recent study it is found that an estimated 90% of the new Internet businesses failed because of either lack of planning or improper business plans. If you have a solid business plan you can start earning in hours.Here I am going to tell you about the missing link in Home based business success that is Business plan for home based Internet businesses. In brief you have to be clear about the action and research part before starting any Internet business.

Your Home based business plan should contain the following elements.

Niche: The goal here is to find a profitable niche which has the potential to start bring sales in days for this you have to drill deep to find a hungry desperate niche,while selecting the niche the only formula is starting from Need moving to Want and then to Hobby. Need niche has a success rate of 80% but the competition is very high, want is the niches were in you required a killing sales letter to achieve success and the last is Hobby niche in which again the success rate is very high although the traffic is low but the sales conversion rate is more than 50% of per clicks.

Keyword: Building a good keyword list is an important element of business plan, there are multiple combinations and the guiding factors are Demand, Competition and All in title. The best combination is Demand >3000 per month, Competition

Finding the best product:The best affiliate product market places are click bank, pay dot com and e-junkie and the product should be based on your selected keywords.

Driving traffic to achieve: The best method to start traffic drive is Article marketing and no doubt Ezine article is the best place for submitting article and driving traffic, the advantage with article marketing is that it is free. Apart from the free method there are some paid methods and the quickest method to start earning is to use the pay per click engines which will submits your listing in a few hours or days, with Google Ad words being immediate. This requires an ongoing cost and you will need to monitor results and regulate your bids if necessary.

Action Plan: The actions plan to start with.

1) A hosting account.

2) A domain name.

3) A Squeeze page.

4) An auto responder account.

5) The link to your affiliate offer.

Hence the plan should contain detail analysis of Niche, Keywords, Product and methods for driving traffic.

10 Profitable Business Ideas

There are some universal 10 profitable business ideas which have been proved to work all over provided they are done in a professional way.

1. If your business is small, you must be thinking on how to make it grow bigger in terms of size, assets, revenues and profits. To do this you must develop excellent small business ideas which are aimed at ensuring frugal financial management, excellent customer service and innovation of new products.

2. Conduct frequent customer reviews on your products and act accordingly.

3. If you are doing business over the internet, you must develop online business ideas to survive the online competition. This may include affiliate, email or blog marketing; they should however be properly designed to look different from the may others online.

4. You should not always aim at applying the already existing business ideas because all the other entrepreneurs also want to utilize or have already utilized them. You should instead device profitable home based business ideas which suit the present state of your local market. The profitable business ideas developed elsewhere may not entirely work as such at your local market.

5. Be vigilant enough to see opportunities where others do not and utilize them for the success of your business.

6. Always aim to set up a profitable franchise: the internet is full of information on some of the most profitable franchises available at the moment. What you need is to do a lot of research online and you will be equipped with profitable business ideas on the same.

7. Always be vigilant to take advantage in any profitable business opportunities which may open up in the future. You should ensure that you have capital or assets which you can use as security to take advantage of any opportunity for investment in the future.

New investment opportunities are usually more profitable and rewarding but that may be for a short moment.

8. Redesign or brand your existing products and innovate new ones.

9. If you are operating online, ensure that your website has sufficient bandwidth and disk space to support a reasonable traffic of visitors at any given time. You should in addition top this develop profitable website ideas like setting a space for online Ads and affiliate marketing since you will be paid by those who want to use these services on your website and this is extra income for you and your business.

10. Study the past market trends, compare them with the present and use those findings to prepare for the future.