Home Based Business Benefits That You Will Enjoy

People in corporate jobs are being let go after many faithful years of service due to downsizing and outsourcing. Companies are not in business to provide jobs. It is up to us as individuals to create our own financial safety nets.

Finding the home business plan or business start up idea that is right for you is a goal worth working toward. It will take time and effort but it will be worth it in the long run and you will enjoy your work life so much more than you ever did before. Best of all, you will sleep well at night knowing that you have control over your financial future.

It’s a great idea for stay at home moms, retirees, handicapped folks or anyone else who wants to control their financial situation. This also includes those of us who have been laid off by our former employers.

You don’t have to get up early and deal with traffic just to get to a job that you really don’t like. Many people are earning $50,000 and more a year working from the comfort of home.

A third of us are already working from home.

The number of home based businesses continues to grow rapidly, especially during recessions. Home based businesses have a higher chance of succeeding than those started elsewhere. It’s also much less expensive to start a business from home.

You don’t need any previous business experience. However, you do need to be excited about a particular idea and to be willing to invest your time to learn some new skills, and a little money to buy the tools that you need.

At home you’ll be able to set your own hours and be available when your family needs you. You’ll save money because you won’t have to pay for childcare, and you’ll enjoy the best commute ever!

There are many legitimate tax deductions available to home based business owners that could save you thousands of dollars a year. You can write off expenses related to a certain percentage of your home when that space is used exclusively for your business.

A lot of people find that they are much more productive working at home because they are motivated to work hard for themselves and their families.

Your own business will make you proud of your accomplishments. Your confidence in your own abilities will grow. Your self-esteem will become stronger as you make new decisions and gain experience.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Online Businesses – One Of The Best Low Cost Home Based Businesses

If you are looking for low cost home based businesses that will allow you to create a substantial income for yourself and to meet your financial needs, whether they be to create an additional stream of income for you, quit your current job or to dramatically improve your current lifestyle.You do not have to look any further than the internet to be able to find plenty of low cost home based businesses that will allow you to meet all of your financial goals.Prior to the invention and development of the internet, for someone to start their own business often meant that they had to save and wait for years until they had enough capital to put down as collateral.Or they had to borrow money from friends, family and other investors or get a bank loan, which was very difficult to do unless you used your home as collateral. And it would often require hundreds of thousands of dollars just to get the business started.In addition you often had to quit any other job you may have had that was proving you with regular income and take a leap of total faith that your business idea would work the very first time and with out fail. Well the sad truth is that rarely did things go as well as those new startup business owners may have expected.And unfortunately because they had everything that they owned and often borrowed money tied up in their failed business venture, they were unable to ever recover and try again with the benefit of hindsight or learning from their mistakes. Fortunately now with the growth of the internet, all of that has change.A person with a good idea or even just a strong enough desire to want to learn and do what it takes to create a successful online business can do so at a friction of what it would have costed in the past.And because your startup cost can often be well under $100.00 there is no need to mortgage your home, take out a small business loan or worry about borrowing money from your friends or family.In addition, because you can often start these low cost home based businesses in your spare time, there is no need for you to quit your current job, until you have reached the point where it is costing you money to keep that job.Some of the best low cost home based businesses also provide you with some of the same benefits as a traditional business and often with a lot less hassle. For example with an online business idea and a small investment of less than $10.00 a year you can a domain, which is considered your online real estate and as such it’s value can increase over time just like real property does.There are many people who make a full time online income just by purchasing the right kind of domains at the right price and then selling them to others. In some cases no additional changes or improvements are needed or made to the domain and it is sold as is.In other cases the content on the domain may need to be updated or replaced and the domain is then re-purposed and sold at a higher price.This is a pretty specialized online business model and does require more specialized knowledge, however here are some low cost home based businesses that almost anyone can start and operate with a budget of $25.00 or even less:1.) Affiliate Marketing – This is seen by many as one of the best first time business owner opportunities because it has such a low startup cost and such a high upside potential. In many cases you can get started by investing less than $10.00 per year to purchase a domain and then another $10.00 or less per month for hosting and you can start a business that has the potential to make you hundreds of thousands of dollars per year.2.) Freelancing Your Expertise – If you already have a skill or ability that you are good at or would like to be good at then you can get your own domain to host a blog or website and promote your services to others. This can be a very profitable and cost effect way to operate one of the best low cost home based businesses for you.3.) Fill A Gap In The Market Place – If you know of some product or service that people would love and that you could make money with, then getting your own website and promoting that product or service could lead to you making a lot of money in a very short period of time.These are just a few of the endless possibilities that are available to you as a result of investing in online low cost home based businesses. The best thing to do is to start by investing in one idea and keep learning and growing as you progress.


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