Working From Home – The Online Business Reality

According to a recent Harris poll, 72% of American households are thinking about starting a home based business. This is quite frankly a staggering statistic. Almost three quarters of Americans are unsatisfied with their current employment situation for one reason or another. Many of these unsatisfied workers are turning to the Internet to fuel their work from home dream jobs.

Quitting the never ending rat race is a personal decision that many work from home entrepreneurs face. Their reasons for wanting to work from home vary. Some people find that they simply have no other choice but to work out of their home office. Perhaps they have to take care of their elderly parents or their children, or they themselves are house-bound. Some people are retired and find that finally having an opportunity to spend time in their own home is a huge comfort and joy. Even college kids, stay at home spouses, and those recently downsized are finding that the Internet is simply the best option for starting and running a profitable home based business.

Working from home is a serious commitment that all entrepreneurs should consider. However, they must be aware of the negatives and risks of the Internet. The Internet is fraught with get rich quick schemes. It is also overflowing with misleading business building hype and flat out work from home lies. Any program or opportunity that promises big bucks with little work is a fraud. Proper research and common sense should eliminate many frauds and scams. Developing a solid Internet business requires partnerships with strong and professional companies.

Building a real business, no matter what kind of business, requires hard work. That’s the bad news. The good news is there has never been a better time to start a business from home because the Internet makes it a low-cost and low-risk venture. Building an online business or work from home business does not require massive amounts of start up capital. With that said, it is possible to over spend on your business simply by neglecting the research.

Learning about web hosting companies and traffic building strategies in the beginning of your work from home business plan is a tremendous positive step. There are many web hosting companies that offer cheap domains and seemingly endless features. The problem many web entrepreneurs face is they invest in the wrong web hosting company at the start up phase of their business. They soon discover that they have not built an online business. They have simply built an online brochure that sits unvisited by the millions of web surfers. Now they must invest more and more money into building a bigger and better site, or paying a firm to optimize their web pages, or paying a search engine to display their ads.

A web business that sits unvisited is not a business at all. Online entrepreneurs know they need an income to be successful. They also realize that building an online business is a series of steps. They must rank well in the search engines by providing excellent content filled web pages. In return for ranking so well, the search engines send droves of targeted customers to the online business. Now that the online business has customers, it can begin to develop a relationship with them. It warms the customer by creating a welcoming and personal feel. All of the great information and the atmosphere of the website will build a trust between the business and its customer. It is this relationship of that leads to profitability.

Forget the long string of classic work at home dead-end jobs like envelope-stuffing and telemarketing. Use the Web to build something terrific that excites you, a business to be proud of, that you own, and that earns you substantial income. Working from home rewards entrepreneurs in so many ways. If you are interested in an online business or a work at home business, you must be smart enough to do the research. You may receive a free step-by-step guide to building your online and work at home business by visiting the author’s website.

Working Capital for Business

One of the greatest needs that small businesses have is the need for working capital. Working capital is the lifeblood of the business, the fuel that funds the daily operations and ability to pursue near-term growth opportunities for the business. Working capital is officially defined as “….”. The financial equation for determining working capital is as follows:

(Account receivables + inventory + cash on hand) – (Account payables + prepaids)

There are numerous sources of working capital for businesses. Looking at the equation, one way to obtain additional working capital is to increase account receivables (i.e., sell more) or convert the receivables to cash by getting customers to pay sooner. Continuing to examine the equation, another way is to increase inventory. When examining a company’s balance sheet for the purpose of acquiring that company, it is important to examine how these parameters fluctuate as part of the working capital. A company can increase inventory and receivables significantly, drastically increasing the amount of “working capital” denoted. However, those receivables could be essentially non-collectible and the inventory could be obsolete. Either of these would essentially nullify the advantages of a large “working capital”.

You can access cash by getting customers to prepay their orders by offering significant discounts for doing so. For example, if a customer buys a monthly service for $100, you can offer them a yearly pre-paid, discounted rate of $1,000. That’s roughly 20% off but when you factor in the time value of money, the discount drops by 5-8% (depending on your internal rate). If you sell much larger service contracts or products, the difference in actual cash can be profound with prepaids. On the other side of the equation, you can get your supplier(s) to extend terms. Instead of payment expected within 15-30 days you may be able to push payment out to 90 days. You never know unless you ask.

From the perspective of the company owner, the larger the proportion of working capital in cash, the better. Cash can be spent on anything – to pay suppliers, pay employees, pay rent, pay for geographic expansion or product line development. Receivables and inventory not quickly converted to cash through turnover must be converted to necessary cash via financing that uses either or both of these two as the collateral for loans.

Working capital for business is something many small business owners do not plan. They often do not think about it until they encounter a cash crunch. Or sometimes, not until they have encountered a number of cash crunches and are tired of the stress of not knowing how they’ll make payroll or pay irate suppliers.

Some of the myriad sources of financing working capital for business include short term asset-based lines of credit, term loans, equipment loans, signature credit lines, supplier financing or extended payment terms, economic development grants, and factoring. Typically loans against receivables and inventory are short-term lines of credit, renewable annually. Some banks and other financing institutions will extend a term loan for three to five years against high grade collateral. (i.e., Accounts receivables that typically pay within 30-45 days and are with highly credit worthy customers and inventory that is replaced within a similar time frame.)

The important thing is to continually keep in mind what “working capital” is and what goes into it. It is vitally important to track your business cash and how quickly your company converts its short-term assets to cash. Not doing so can result in a significant shortage in working capital and, in short order, a liquidity crisis. If your company qualifies for a line of credit, get one. You don’t have to use it but you should have it on hand to use in case of a crisis. I have had clients who have lost major customers to bankruptcy. That unfortunate scenario occurred more often in 2010 and 2009 than in previous years but it could happen anytime. If your customers have large outstanding receivables that are close to 90 days, your exposure to such a scenario is drastically high. Even if your risk is low, when a customer cannot or will not pay receivables in a timely manner, where will your cash to run the business come from while you deal with the problem? Plan for the future and track your working capital. Your business will thank you for it in the form of stronger financial health.

Ideas For a Home Based Business – Find Unclaimed Money Working From Home

The success or failure of a company would always depend on how competitive is its marketing program. Out in the business arena, the competition is really tough and you have to be aggressive when it comes to building your credibility. In reality, you can never really have a unique product. In one way or another, you would have business rivals that could either make your existence shaky or even more stable. This is why you have to come up with the finest ideas for a home based business so that you can get more profit from your investment.

The success of your offers would depend on the marketing tools that you utilize. You have to be aware that for each product, there would be different ideas for a home based business that could work. You have to evaluate which would be most appropriate in order to attract customers. The quality of your marketing campaign must be superior and advanced. It does not have to be expensive especially if you are just on the development stage of your business. However, you have to make sure that even if your small business marketing idea does not eat up a lot of your finances, it would still yield the desirable result that you are looking for.

Some of the most reliable tools that you can use to implement your small business marketing ideas are radio, print ads and television but these tools involve higher costs. Nonetheless, the high technological advancement provides all new tools that you can use for your ideas for a home based business. Below are top 5 of the most effective tools.

  1. Audio and Video CD’s of your Product

    If your prospective client is already interested in your product, you just need a little push so as to convert them into sale. To help them decide faster, it would be helpful to provide audio and video cd’s that will tell them everything that they need to know about the offer. You have to present it in a way that benefits are clearly stated so that they will realize the real worth of your products or services.

  2. Electronic Newsletters

    Sending an e-newsletter to your customers is an effective marketing tool. You will be able to entice them more and convince them to buy your products with the valuable information that you will provide. You have to make sure that the electronic newsletter that you will send is informative and entertaining. Remember to write your ideas with a personal voice. It would be more effective if you talk directly to the customers as if you are directly facing them.

  3. Pay Per Click Advertising

Pay per click or PPC is an advertising method that is widely used in the industry now. In this method, you will be allowed to bid a placement in the search engine result pages. The key is for you to get a high ranking so that if a surfer searches for certain keywords that match your keywords, your website will be pulled up. This will give you targeted and desirable traffic.

In order to effectively carry out your ideas for a home based business, it is important to have the best tools. The key is to maximize your resources and check out the most inexpensive and yet effective way of implementing your marketing strategies. By doing so, you will be able to make the most out of your finances and you can allocate your budget for other important expenses.

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