Posts Tagged ‘small’

How to Know If You Are Making a Good Small Business Investment

November 11th, 2018

Making an investment is a very important thing to do if you are into the home based business industry. Some people see the value in investing while others think is a waste of time. Now the funny thing is that neither opinion is wrong because you will encounter certain promotional methods that will give you good results while you will come across others that don’t produce anything at all. This article will further instruct you on the best way to determined whether your investment was a good one or not.

The best way to determine if your small business investment was a good one or not is simply to follow the ROI formula. Now you are probably wondering what those that fancy word mean, well it is quite a simple term that stands for your Return On Investment. To understand what this is you must understand a little about business math, so here is a quick example lesson.

Lets pretend that the promotional method that you chose to use cost you 50 dollars for the month of promotion and in that month because of that promotional method you were able to make 200 dollars in your business. Now in order to get the ROI of this example you take your initial investment from the total amount you gain from that promotional method. In this case is 200 dollars minus 50 dollars, which equals to 150 dollars. Now the 150 dollars is your profit and your investment was 50 dollars. So if the promotional method follows the same pattern for every 50 dollars invested your ROI will be 200 dollars, which means 150 dollars profit.

Once you get the hang of this formula you will be able to tell if the investment is a good one or not by just calculating the ROI and the profit that you make from it.

Small Business Investment Ideas – Pool Cleaning Services

October 29th, 2018

I know a lot of people are looking for the best small business investment ideas. The best rule of thumb is to take a look at your community and see what is in need. A friend of mine who lives in Southern California noted that most of the people in his neighborhood had pools, but there simply weren’t enough pool cleaning service companies to service them all. That’s when he got his bright idea.

At first, he didn’t think he’d be able to pull it off because he only had a few thousand dollars to start with. The more he thought about it though, the more he realized that most pool owners already had the basic tools and chemicals needed to clean their pools. He started out by offering very basic pool cleaning. Friends and family quickly hired him and recommended him to their neighbors. Before he knew it, he had over a dozen clients.

As the time came to close the pools for the winter, he used his profits to invest in more specialized tools for deeper cleans and pool closings. He was also able to buy a van and have it professionally painted with his business name and logo. Before he knew it, he’d hired several employees to work with him.

The most successful small business ideas always focus on finding needs that people have and filling them. My friend is an example of starting with a very small investment and building it up until you have a thriving business.

$3,000 Small Business Investment – Make $25 an Hour With Promotional Buttons

October 23rd, 2018

Small Business Investment Companies

September 19th, 2018

SBIC’s are very viable alternatives to companies that are too big for individual investors to small for venture capitalists. As such, you should contemplate working with these private investment firms in lieu of working with an individual funding source. Angel investors love to work with businesses that are already profitable. The capital you receive does not require that you give any equity to a third-party investor. There are number of differences between working with angel investors versus working with SBICs. When seeking private investment, you will need a well developed cash flow analysis which is often more important than your profit and loss statement. If you’re seeking to acquire real estate may be in your best interest to work with the small business administration rather than a private funding source or SBIC.

If your business is not recession proof, then you may have a significant amount of trouble obtain the capital that you need from an angel investor or SBIC. You should sharpen your ability to convey your idea to any potential funding source so that they can clearly understand exactly what you intend to do with their capital, and this is especially true if you intend to work with a small business investment company.

Businesses that are economically you can use some recessions, such as medical businesses are particularly popular among angel investors. Before seeking outside capital, you should always consult with a certified public accountant. SBA loans, unlike equity, requires monthly repayments of principal, which may be a good alternative than selling a substantial equity stake in your business to a third party.

Preferred shares typically do not allow angel investors to have a say in the ongoing management of your business, but this type of financing is usually very expensive. SBICs may seek a provide you with both debt and equity capital. It should be noted that a private investment firm can fire you at anytime. Angel investors usually ask for less equity than a small business investment company. Your business plan, especially that’s going to be presented to an angel investor or SBIC, should be a scientific document that showcases why this is a good investment for the individual financier.

Your CPA will be able to provide you with all the necessary information related to the cost of the associate with the capital that you are seeking. Finally, it should be noted that small business investment companies are licensed and regulated by the Small Business Administration. As such, you will have a significant ability to negotiate with these firms on an ongoing basis.