Black Swan Management, LLC

Investments and Strategies for the Future of Business

Posts Tagged business

Starting a Real Estate Business

Oct 4

Posted by Bill Henthorn in real estate | No Comments

The real estate industry is very sensitive to economic changes like interest rates and the cost of materials in building houses. Interest rates in particular can easily swing the number of sales that are completed during any quarter of the year. Rising interest rates will slow down the sales and falling rates will aid the sales of real estate. This is an important fact in the real estate business as this can absolutely cause rapid changes in income from the sales that can be made.

With this in mind, the time to buy an agency that comes up for sale may be when the real estate business is in the doldrums. A hot real estate market will make an existing firm worth more, as their income will be higher during this period of time. Of course if you follow this course of action, you will have to wait out the slow down in the markets. Another factor in the purchase or start-up a real estate company is the state licensing requirements.

Most states have serious requirements for real estate agents and brokers. Brokers have a much stiffer requirement in most states than an agent. The requirements include passing exams and a fixed number of educational hours for both agents and brokers. There is also a requirement for continuing education. These state mandated steps to a career in the real estate business would have to be met before an agency could be purchased or started. Since this industry is regulated and has strong legal steps to comply with, this licensing plus experience would be an initial step to being an owner in this field. This is not a business that can be stepped into by just paying out some money.

An agent can have the goal of owning their own firm, but it will take planning and meeting the state rules to make this happen. Once a potential owner has these steps out of the way, finding an existing business to buy will be in order. A quick check of real estate business listings reveals that they are usually found in larger cities and the asking price is significant. There are also resales of franchise companies. Just typing into a search engine, “Real estate businesses for sale”, came up with this quick check. A buyer could also check with business brokers and real estate brokers in their city. Another source worth checking out would be a franchise connection. An in place real estate business is advantages as the name is already known and will get clients due to this. When you start a company from the ground up you do not have this advantage. An existing business with several locations will come with a higher price tag than what you could start your own business for.

Another way to gain ownership would be buying into an existing business. This could work if you have a solid relationship with the current owner. The problem is you will not have the final say in most decisions unless you are buying controlling interest.

Specialty real estate firms

Most people think about a firm that helps with the buying and selling a home. There are several other areas of specialization. A real estate firm could become expert in buying and selling commercial property, farmland and farms, farm product processing plants, rental properties and shopping centers. Actually a broker could cut out a niche market from many that are available in the real estate business. If you have an area of expertise, this could become something that could be marketable and cut out a lot of competition in certain situations. Some real estate firms have unique departments that handle certain types of real estate marketing. The decision you must make is what kind of a firm are you going to own. You may have to start your own in order to make it happen.

You could also get into real estate management and the buying and selling of these rental properties, which is a very unique part of the industry. Shopping center related firms could be in from the start of a project. They can help with the formation of the firm to build and own the property and then handle the rentals and day-to-day management of the center.

The point of all of this is there are areas of real estate specialization that lend themselves to a business that just works in this real estate category.

Finding the money to make your dream happen

You may not have the total purchase price for an existing business. The question is how do you come up with the balance to make the deal. Finding a source to lend you the money is one way to come up with the needed funds. There are businesses that offer loans to new owners of businesses. These can be found on the Internet by just doing a search. Family and friends could be another source of money. One way to get the needed money is to take in a partner for the business. If you have a friend in the business maybe they would be interested in owning part of the existing company. All of these possible money suppliers will have different requirements for paying the money back.

Make sure you can see your way clearly on how you will accomplish the pay back. This business can be adversely affected by interest rates so you would need a second way to make the payments. A person thinking about ownership in this field must remember that it can be feast or famine as far as sales and commissions go. This is not like being in the restaurant business or owning a printing company. Successful brokers can make considerable money in a good market. They can also have periods that are very tight as to sales. The brokers that succeed have a policy of putting away some of their earnings during good times to cover the less profitable times. Doing this just shows the broker has a realistic view of the business.

Conclusions

This business can be extremely profitable during low interest rate economies. The legal and state requirements make the ownership of a brokerage firm more difficult to own than is the case with other businesses. Buying and selling a real estate business is somewhat more difficult due to the restrictions that are placed on the owner of a real estate firm. You must have the appropriate licenses in place before you can begin operation. This is true whether you buy a company or start one up from scratch. Finding a firm you can afford will take some time and research on your part. Hiring a professional business broker may speed up the search.

Deciding early on if you want to be a specialist will set other decisions in place. Niche areas that you are an expert in will help cut the competition somewhat. A general real estate business will have the potential for more clients, but will need and ongoing advertising campaign to gain listings and clients looking to buy. The start-up is cheaper to open, but will have little cash flow like an existing firm. Money flow is the one huge advantage buying an existing business offers to the new owner.

And now I would like to offer you free access to information on a powerful integrated system of marketing, sales & advertising so you can thrive instead of survive in today’s economic environment.

Henthorn is president of Spiral Marketers, a marketing firm which includes a number of partnerships that range from cutting-edge software development, business and personal improvement coaching, online e-commerce businesses, and more.

He was formerly was president and principal broker of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.

Learn how to turn $1 into $6 all day long now:

Do you want your brokerage to be successful – regardless of “the economy”? Get tools for growing real estate brokerage sales, marketing, advertising, and public relations to boost brokerage success

Author: Bill Henthorn
Article Source: EzineArticles.com
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Renewable Energy The Energy Supply for the Future

Sep 27

Posted by admin in business, technology | No Comments

Renewable energy is really getting the attention it needs. Today fossil energy reserves are depleting and focus is shifting to others sources of energy that replace these traditional energy sources. The focus is on these energy sources and not without reason. It is environmentally friendly and an almost unlimited source of energy. International energy ministers and advocates together with different non-governmental organizations and environmentalists are joining efforts to promote utilization of this energy. All over the world governments are awarding grants and incentives for the development of renewable energy systems.

But what is it? How do we use it today and how can we use it better in the future? Will it solve our energy problems we experience today? What price do we have to pay to these new energy sources? All these questions and more are hot subjects that are discussed by many all over the world. Let’s start here with the simplest question and answer it for you.

What is Renewable Energy?

This energy source has been used in many ways, but it has been taking for granted many years now. We usually don’t stop and think about these daily little miracles happening all around us. For instance the sunlight does wonderful things us. Sunlight helps us to grow our plants, fruits and vegetables. You can dry your clothes outside in the sun and white clothes even become whiter with sun rays. Every one loves to have fun in the sun, Disney World and Universal studio’s are build on location where there is a lot of sunshine and not without reason. Simply lying on the beach in the sun is done by many of us. Sunlight keeps us happy and when deprived from it humans become depressed. But sunshine can be used otherwise as well. You can convert sunshine into electricity and use it to power you home and can even give you hot water and heat your pool. Converting sunshine into energy is one of the new sources of energy.

Not only sunshine is seen as one of new sources of energy. The water we use for recreational purposes like kayaking can be used otherwise. This flowing water can also be used to generate energy.
Wind can also be used and is already used by several countries. In England and Germany the wind generators are placed on the shore where there is plenty of wind. There are also smaller wind generators available for home owners that can be used in addition to the traditional grid system.

All these mentioned energy sources are free to use to every one. Sunlight is available during the day and wind is available day and night. Flowing water can be more difficult to make use of because it is not available for every one. The availability of these sources depends where you live. You have to make sure you use the source that is applicable for your personal situation and can even combine several sources together to make the most of it. Although the sources are free, the devices used to convert these energy sources into usable energy for our homes are not. But nearly for all budgets there is a solution.

How does it work?

The traditional fossil energy sources such as coal and oil produce energy by means of combustion or burning fossil fuels. These sources work by directly converting the energy into useful forms. Sunlight is directly converted into electricity which can be used instantly.

Why do we need it?

There are several reasons why we need alternatives for the traditional energy sources. The fossil fuels reserves are diminishing and the demand for energy is rising and will increase even more. The fossil energy sources will become harder to find and even more expensive. To fight these high prices we need alternatives that are in abundance and cheap. Precisely, what these sources are: cheap and in abundance.

The combustion in traditional energy sources results in emission of harmful gases in our atmosphere that causes drastic changes in our climate. These reasons also prompt different governments to prioritize the use of renewable energy to avoid energy shortage, economic, and environmental problems.

Thus, these energy sources can go a long way in helping us achieve a stable and reliable energy supply in the future. The energy sources will be available for all and will be cheaper than traditional energy sources. What is even more important is that we will live in a world that is a better place, for us today and for future generations to come.

About the Author
Bryan Wong is the owner of the renewable-energy information website www.GetEasyInfo.com/ renewable-energy > – A great website that shares quality Info, News and TIPS on Renewable energy.

Article source:
Renewable Energy The Energy Supply for the Future

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Investors in Your Business – Are They the Best Solution For Your Funding Problems?

Sep 20

Posted by Lee Lister in business startup, venture capital/funding | No Comments

When looking for investors in a new business – I usually suggest that you go first seek out any grants or government assistance that your state, county or country offer – as this money is often subsidized and easier to obtain for a new business.

Your next stop would be the bank. They will be seeking to lend you money that is secured on some kind of collateral. A business loan is more usually for 2 – 5 years. A bank will not generally want to get involved with your business – just some confirmation that they will get their money back with interest.

The next port of call is an investor. Now these people are totally different to banks – in that that are actually investing in you and your business and they often want to get involved with your business as well. So let’s analyze this a little more.

What are investors looking for?
* In your business: They want a sound business or business idea with some kind of unique concept that they believe will rapidly move to profitability. They want a well thought out and credible business plan with realistic financials.
* In you: They want a hard working entrepreneur with good experience in the business area. They will look at your personality, your abilities and your past resume to see if your are the kind of person that can make a success of this type of business. Similarly they will want to feel that they can work with you – because they will be.
* From the loan: Investors will only want to invest in your business for a few years, often a low as one year. They expect to be able to obtain a good rate of return on what they see as a risky investment. They will also often require a share of your business as their security. If you are seeking a large loan – they will often request a seat on the board of your company so that they can exercise some kind of control on the business activities.

What they will bring to your company:
* Experience and Guidance: Investors often invest in areas that they know a lot about. They are obviously keen for your business to be a success as their return on their investment is dependant upon this factor. This means that they will often offer guidance and help to you as part of the package.
* Cash Injection and Cash Flow: Some times you can request a staged investment from an investor, subject to you reaching agreed deadlines. This not only concentrates the mind in your business development, but also ensures that money is available when you need it. Suffice it to say that cash is always welcome in a business.

Your business plan is very important. You need to prove that you meet all the requirements above, but you also have to include what is called an Exit Strategy. This basically answers and lays out in detail, the four questions that every investor will ask:
* What’s in it for me?
* How soon do I get my money back?
* How risky is it?
* How much will I make from this investment?

One last suggestion for you – if you do not have the experience of every part of your new business, I would consider bringing such a person onto your team. Good luck with your new business.

Author: Lee Lister
Article Source: EzineArticles.com
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The CEO of Berkshire Hathaway – Warren Buffett

Sep 13

Posted by Shawna S. Ruppert in warren buffett, wealth | No Comments

There aren’t many people that can one can consider to have achieved true fame due to their investing acumen, but Warren Buffet is certainly among them. Warren Buffett Trivia will show that he was born to humble beginnings in Nebraska in 1930. Buffett seemed to be interested in business right from an early age. By the time he entered high school, he was already involved in a business venture involving placing pinball machines in local businesses.

A Warren Buffett quiz will show that he obtained a Masters in Economics from Columbia University, and from a very early age his goal was to make his living as an investor. He would begin working for Benjamin Graham in the fifties. Graham had been a man whose theories on investing and finance had been one of the major influences on Buffett’s early studies.

Buffett would steadily and quickly accumulate wealth over the next several years. Warren Buffett trivia will show that he is most commonly known as the CEO of Berkshire Hathaway, which was a company that he began to acquire in 1965. He would steadily acquire and trade other companies over the years. Some organizations in which he has been a major player include the Washington Post, the Buffalo Evening News, and ABC.

A Warren Buffett quiz will show that he has been among the Forbes 400 for many years now, but in 2008 he was the richest man in the world. He accomplished this by dethroning Microsoft founder Bill Gates who had been atop the list for many years by that point. He has since been pushed back to second place on the list, which is due to two reasons. First, he has donated millions of his fortune to charity. Secondly, as an active investor, the recession of 2008 affected his fortunes more than they did Gates.

After his investing, the philanthropy of Buffett must be addressed, as he is clearly established as one of the world’s most giving philanthropists. Buffett has publicly denounced the rich who will all of their money to their descendants. He has also discussed his will publicly. Although he wishes his children to be comfortable, and able to pursue any goals they wish, he always wanted them to pursue goals, rather than simply living off his wealth. Famously, he announced that 83% of his fortune would be given away to the Bill and Melinda Gates Foundation.

Author: Shawna S. Ruppert
Article Source: EzineArticles.com
Provided by: Benefits of electric pressure cooker

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What are Affiliate Programs?

Sep 6

Posted by Amit Doda in business | No Comments

Affiliate programs, also called associate programs, are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic. These affiliate Web sites post links to the merchant site and are paid according to a particular agreement. This agreement is usually based on the number of people the affiliate sends to the merchant’s site, or the number of people they send who buy something or perform some other action. Some arrangements pay according to the number of people who visit the page containing their merchant site’s banner advertisement. Basically, if a link on an affiliate site brings the merchant site traffic or money, the merchant site pays the affiliate site according to their agreement. Recruiting affiliates is an excellent way to sell products online, but it can also be a cheap and effective marketing strategy; it’s a good way to get the word out about your site. There are at least three parties in an affiliate program transaction:

  • The customer
  • The affiliate site
  • The merchant sitePayment methods normally used in affiliate programs:
    There are five basic types of affiliate program payment arrangements:
  • Pay-per-sale (also called cost-per-sale): In this arrangement, the merchant site pays an affiliate when the affiliate sends them a customer who purchases something. Some merchant Web sites, like Amazon.com, pay the affiliate a percentage of the sale and others pay a fixed amount per sale.
  • Pay-per-click (cost-per-click): In these programs, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant’s site. They don’t have to buy anything, and it doesn’t matter to the affiliate what a visitor does once he gets to the merchant’s site.
  • Pay-per-lead (cost-per-lead): Companies with these programs pay their affiliates based on the number of visitors they refer who sign up as leads. This simply means the visitor fills out some requested information at the merchant site, which the merchant site may use as a sales lead or sell to another company as a sales lead.
  • Two-tier programs: These affiliate programs have a structure similar to multilevel marketing organizations (also known as “network marketing”).In addition to receiving commissions based on sales, clicks or leads stemming from their own site, affiliates in these programs also receive a commission based on the activity of affiliate sites they refer to the merchant site.
  • Residual Programs: Affiliates in these programs can keep making money off a visitor they send to the site if the visitor continues to purchase goods or services from the merchant site. Many online merchants who receive regular payments from their customers (such as monthly service fees) run this sort of affiliate program.Additionally, there are a few pay-per-impression affiliate programs. Companies running these programs, also called pay-per-view programs, pay affiliates based only on the number of visitors who see their banner ad.

    Affiliate networks, or “affiliate brokers,” act as mediators between affiliates and merchant Web sites with affiliate programs. They track all activity, arrange all payment, and help affiliates set up the necessary links on their Web site. Additionally, affiliate networks help recruit affiliates by including an online merchant’s affiliate program in their directory. Different affiliate networks offer different extra features, but most have a help-center and a place affiliates and merchants can go to view reports of their traffic. Affiliate networks are a real convenience for prospective affiliates because they present a wide variety of affiliate programs in one central location. They make it much easier to find a good program that is appropriate for your site.

    How to implement Affiliate Programs:

    If you are interested in getting involved in affiliate programs, the first thing you have to do is decide whether you want to become an affiliate, want to acquire affiliates, or both.

    Join as Affiliate: If you run a small content site as a hobby and would simply like to bring in a little money to cover production costs, you can join as an affiliate. Becoming an affiliate is relatively easy. Go to an affiliate network site and fill out an online application to become a member. The application will ask for some personal information (name, address, payment method) and information on your site (URL, name, and description of content) and will have you agree to a service agreement. Most affiliate networks are completely free for affiliates.

    If the affiliate network approves your application, you can begin picking affiliate programs that interest you. Once you’ve chosen some affiliate programs, the online merchants running these programs will have the opportunity to review your site. If they approve you, the affiliate network will walk you through the process of posting the appropriate links, which come directly from the network’s site. They will also establish payment arrangements with you. Because the amount of money you earn per action can be extremely small, most affiliate networks have a set minimum payout amount. This means you won’t receive a check until the total money owed you reaches a certain amount. After you have set all this up and the affiliate network has explained its system to you, you can get back to work on your Web site’s content and wait for your money to come in.

    Acquiring Affiliate: If you run an e-commerce site and would like to increase your sales, you might want to start your own affiliate program. Your best bet is probably joining an affiliate network. An affiliate network will help you set up an affiliate program and work to recruit affiliates for you. You’ll have to fill out an application describing the nature of your business and your Web site. You’ll also have to agree to the terms of the affiliate network and make a number of deposits. These will probably include a one time charge for becoming a member of the network as well as a deposit to be used to pay your affiliates. Some affiliate networks also charge a yearly fee for their services. To join one of the major affiliate networks you’ll probably have to put up between $1,000 and $5,000. You will also pay the affiliate network a percentage of every payout to an affiliate. In return, the affiliate network will help you set everything up, keep track of all the activity in your affiliate program, issue your affiliates checks and distribute your links to appropriate affiliates. They will give you the option of reviewing prospective affiliates, or you can choose to accept all interested affiliates automatically.

    The alternative to acquiring affiliates, maintaining an affiliate program yourself, is significantly more complicated. Among other things, you would have to screen and recruit all affiliates yourself, purchase and maintain some sort of tracking technology, instruct your affiliates on how to set up links to your site, set up an accounting system for paying all of your affiliates and set up a help line to assist all your affiliates. There are a number of traffic-tracking software applications that will probably cost between $100 and $500, significantly less than joining an affiliate network. Another option is to sign on to a company that keeps track of the traffic involved in your affiliate program by running it through their site on the way to yours. Using one of these companies costs about the same as tracking software, and they also only assist you in tracking. Maintaining the business end of an affiliate program is more than we can explore in this article, which is a good indicator it is also more than most Web sites would want to get into.

    To create your own affiliate program you can use the software too. Like AFFPLANT software of Affplanet.com which is available at there site at http://www.affplanet.com/?lid=f1f483a3&a_aid=4c7ff379&a_bid=0ad7b67d.
    Methods for linking: An affiliate (Publisher) can link to a merchant site in a number of ways. The best link choice depends on the nature of the affiliate and the nature of the merchant. Each kind of link is specially suited for particular purposes. Common types of links include:

  • Text links.
  • Banner links
  • Search box
    There are several ways affiliate programs use these links:
  • Link to the home page: This is a straight-forward link to the merchant’s home page.
  • Product-specific link: If an affiliate Web site wants to sell only a specific product, they can link to that product’s page on the merchant Web site.
  • Storefronts: If an affiliate Web site wants to expose visitors to a variety of products, they can link to a storefront.
  • Co-branding: In some affiliate programs, affiliates can maintain their Web site identity even after a customer links to the merchant Web site. Like in this URL the Howstuffworks.com links to top10affiliates.com and also contains its identity too. http://money.howstuffworks.com/framed.htm?parent=affiliate-program.htm&url=http://www.top10affiliates.com
  • Registration: An affiliate can link directly to a registration form on the merchant site.For affiliate (Advertisers): The affiliate programs increases the advertisers site traffic. By this he can get any/all of the following advantages:
  • To sell more of your product(s) or service(s).
  • To be able to notify buyers of your new product or service, or offer them a special deal/discount.
  • To spread your ideas about a certain topic.
  • To get people to remember your company’s name! (Incase they wish to have your products or services in the future!)
  • A third person takes cares about your ads etc. So you neednt to use specific (costly) software to calculate all this.
  • He could join as many as he wishes affiliate programs to increase his site traffic.In short advertising on the Web with banners means more sales and/or more influence!

    For Site owners (Publisher): By the affiliate programs the publisher has the following benefits:

  • He can make money using the high traffic of his/her site.
  • He could join as many as he wishes affiliate programs to increase his income.
  • He could select any of the plans from a huge plans list.For affiliate programmer (Middle man): He can get commission from the advertiser according to agreement. Thus larger no. of clients means more money.

    Author: Amit Doda
    Article Source: EzineArticles.com
    Provided by: Canada duty tariff

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    Obtaining Venture Capital For Business Startup

    Aug 30

    Posted by Rebecca Game in business | No Comments

    If you are an inventor or an entrepreneur, obtaining venture capital funding is most likely a major concern for you and your business. During the dot com boom, venture capitalists were fueling the growth, research, and ventures of many new companies. Now that the dot com boom has cooled, those worried about obtaining venture capital for business startup may have a more difficult time securing funding for their budding business.

    Venture capital money can come in many different forms. There are actually companies that specialize in researching new companies to invest in, in order to earn a modest return on their investors money. These companies receive thousands of requests for funding monthly and may decide to fund one to two small start-ups a month. Some venture capital companies specialize in specific projects such as real estate or a technology based company. Many large, corporate construction projects are funded via some sort of venture capital agreement.

    Another way to obtain venture capital for a business start up is through angel investors. An angel investor can be an individual or a group of investors that gather in order to decide which businesses have the most likely hood of succeeding. Once a business has been selected, the paperwork is drafted for the loan agreement and the business start up is funded by the individual or group angel investors. This method of obtaining venture capital for business startup may also be called hard money or hard money lending.

    Recently, obtaining venture capital for business startup has come to reality television. The reality show focused on inventors that had developed a product for introduction to the retail market. The investor was coached and given seed money in order to fully develop their product. This competition played out over several months on reality television with a winner being chosen at the end. The winner was chose based upon how the judges rated the potential retail market success of the inventors product. This reality show was a neat little twist to the venture capital process.

    If all of this has you a bit concerned or confused about obtaining venture capital for business startup, there is a bit of good news. The good news is that there is still capital available. If you have a solid business plan or product that you are seeking funding for, your chances are relatively high of getting the funding that you need. Venture capitalists may not be throwing money around like they once were but there is still money available for those that are deemed fit via a solid business plan.

    Author: Rebecca Game
    Article Source: EzineArticles.com
    Provided by: Canada duty rates

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