Purchasing an existing business can be a great way to realise your dreams and supply you with a steady source of liquidity well into the future. As this is a very important event during one’s life, there are certain approaches to take that will minimise the risks involved and enable you to realise your dreams. Let us take a brief look at some critical considerations.
Biting Off More Than You Can Chew
One very common mistake that entrepreneurs make is that the potential business requires more managerial skills than they currently possess. This can ultimately lead to failure and a substantial amount of money may be lost. It is therefore important to analyse what type of knowledge you will bring into the enterprise and if you might require more training.
It is likely that you will require a small business loan before acquiring the existing enterprise. Be wary in regards to the provider. Not all are created equally and some will be less forgiving than others. Always be sure to perform an online search to uncover the top providers within your region (2). Other metrics to address include the payment period, the interest rates and the reputation of the firm.
There will normally be a substantial amount of time before a new business turns any type of meaningful profit. Although this can be frustrating in the beginning , always look at the “big picture”. As opposed to viewing profits and losses from a weekly perspective, interpret them from a quarterly, bi-annual and yearly standpoint. This will help you to avoid any undue stress while you will also be able to understand the long-term impacts of your approach.
Starting a business is a very serious venture. Prudence and foresight are the two key mentalities which should always be present. In the end, your dreams could very well be around the next corner!
Investing is an excellent way to secure a steady income stream while providing a sound future for your entire family. Unfortunately, there are many individuals who are wary to take this step; afraid that they may expose themselves to a massive amount of risk. Let us take a look at some of the most basic investing tips that will make certain you start off in the right direction.
There are many would-be investors who tend to overexpose themselves without learning how the markets function. To stay safe, only invest (at most) ten per cent of your income. Even if this is lost, you will not find yourself in a difficult position.
Playing it Safe
One of the best ways to begin investing is to become involved with commodity markets. Examples here are gold, silver, oil and other tangible assets. These tend to be less volatile than stocks and therefore, you are able to hedge against short-term instability.
Advice from Others
Remember to seek out advice from those who are more experienced. Join online forums and ask questions. This expert knowledge base is critical and you may even make a few friends along the way!
Investing is a very rewarding hobby if it is approached with a certain amount of prudence. These simple steps will enable you to make the most informed choices.
Let’s face it: the Internet has changed – even reinvigorated – how we all live. With Internet access at an all-time high throughout the world, and reaching areas it never could have before, it’s no surprise that many industries have become part and parcel of the Internet experience – and vice versa.
Rural communities and urban metropolises alike have made the Internet into not just a part of their culture, but into a part of their economy. Here are some of the biggest and best industries that are benefitting most of all from the long-lasting aftershocks of the “dot-com boom”!
Finding restaurants in your area is a miniature industry all to its own, starting with Yelp and continuing to growing delivery services. The biggest benefactor!
Candy stores, soda manufacturers and bulk goods stores can reach clients in different countries, or in rural areas where they might not be able to ship their goods to stores. Some shops manage to use e-commerce as their sole point of sale!
The automotive industry is one of the bigger beneficiaries of a world equipped with Internet. Although prospective buyers still have to visit dealerships and shop around in person, the proliferation of online directories (such as Google Maps) means that every dealer has many more prospective customers to sell to.
If you are starting up a business, one of the first questions that you are undoubtedly going to ask yourself is what form of legal identity you want to be classified under. Becoming a sole trader is one of the most common these days, and becoming self-employed in this rather uncertain economic climate is still attractive. However, there are a lot of advantages to setting up and running a company as a limited liability.
Although definitely more complicated than becoming a sole trader when setting up, once the financial and administrative hoops have been jumped through, you will enter a world that has many advantages.
Probably the number one benefit is taxation. Profits for larger organisation will be liable to Corporation Tax; smaller companies will pay at the ‘small profits rate’. Directors can mix their income between salary and dividend which ultimately means that they get to keep more of their earnings.
The owner and company are two separate entities. Company bank accounts and liquid and fixed assets are separate from the private assets of directors and shareholders. Company personnel are limited and protected by law, and as such will never be personally liable for losses.
Being a limited liability company has a more professional image when dealing with clients or customers. Once registered the company name is protected. As a limited liability, you can issue shares and have shareholders who can transfer the ownership of those shares.
Setting up costs
A limited liability company can be set up for a minimum cost of just £15.