Real Estate Investing - Have A Plan

If you're going to venture into the world of real estate investing, you have to have a plan. Otherwise, you are just grasping at straws in the dark. There is really no one plan that is either right or wrong. As they say, there is more than one way to skin a catfish. But you have to have some plan, regardless of what it is. In this article, we'll point out a few things that you'll have to take into consideration and keep in mind when making your plan. Hopefully, this will keep you from floundering in a maze of confusion and failure.

The first thing you have to do with your plan is decide what it is that you want to accomplish and in what time frame, whether it be 30 days, 6 months or a year. It doesn't matter what the time frame is. Just pick one. Otherwise, you will be drifting aimlessly for months and possibly years without getting anywhere. So even if you make your plan as simple as to sell your first home in 30 days, fine. Make it and stick to it.

After you have decided on what you want to accomplish and the timeline you want to accomplish it in, the next step is to actually begin putting that plan into action. Let's say, for argument sake, that your plan is to buy a home for the purpose of fixing it up and reselling it at a later date, preferably within 6 months. The first thing you need to do is go out looking for a fixer upper. It's not going to come to you. You have to go out and find it. This means looking for homes that people are selling cheap that need work. That of course has to be part of your plan. How much work, in both time and dollars, are you going to put into this fixer upper? You have to have this firmly written down before you begin, otherwise you'll end up spending heaven knows what on the worst piece of property standing on this planet.

The important thing about making a plan before you even do anything is that it allows you to spend your time constructively. By having everything laid out as to how you want to proceed, you don't have to sit and think about what you're going to do next. Everything is laid out in step by step fashion, or at least it should be. Every minute that you spend thinking "What do I do next?" is another minute wasted. And time is money, any way you want to slice it. The reason that most people fail in real estate is because they don't have a plan.

At the very least, your monthly plan should include how much you want to make in total. This figure should be based on how many deals you plan to close each month, which in turn should be based on how many leads you expect to get each month. One thing affects the other. Without leads, you can't close deals and without deals there is no monthly income.

So if you're thinking of getting into real estate investing, have a plan.

Your bank account will be glad that you did.

The Expenses When Investing In Real Estate

When investing in real estate there are some expenses that come with the business. These expenses if you plan on renting properties out should be covered by the rent. One expense that comes when you're investing in real estate is the mortgage. The mortgage is the money you borrow from a bank to buy a house. If you are renting property out the best kind of mortgage to get is a fix rate mortgage. The mortgage is usually the largest expense when investing in real estate.

Another expense that comes when you're investing in real estate is property tax. Property tax is a
perpetual tax you have to pay even when you are done paying for the property. If you don't pay the property tax the government will take your property away. This is why there is no real right to property. If a property is truly yours no one have the right to take it away from you. The only way you can lose property lawfully is if you violate someone else's rights and for compensation for your violation they are awarded it in a court of law.

There are some ways you to get absolute ownership of your property with land patents. The only problem with this is if the government dose not follows its own laws they will take your property anyway. One last expense that comes when investing in real estate is water and sewage. If these bills are not paid a lien will be put on your home and the property can be taking away. When investing in real estate if you plan on renting it out it does have a lot of expenses. If you use the information you read here you will know how to overcome these expenses.

Panama City Beach Wedding

A Panama City Beach Wedding is so romantic and beautiful. The bride and groom will love having the Emerald Coast as the backdrop for their Wedding Photography, all Beach Wedding Photographers love the Panama City Beach area for the Sugar white sand and emerald color waters for photographs. Do a Google search for Panama City Beach Weddings to find a Wedding Company you can trust with your special Marriage on the Beach.

The Florida Marriage License is easy to obtain at the Bay County Courthouse, there is no waiting period in Florida and no blood test. Beach Wedding Coordinators for a Panama City Wedding will help take care of all the details, and Panama City Beach Florida has a lot of Condo's and Beach House Rentals to choose from. Panama City Weddings are being performed all along the 15 mile streatch of the Beach,most people don't realise how large a streatch the Panama City Beach area is.

The great thing about a Florida Wedding is that your already there for the Honeymoon. If you can not find the special shopping area's in Panama City, then you can drive a short 30 min's to Destin Florida, there is a huge mall in Destin,and there are also a lot of Destin Beach Weddings performed in Destin. The bottom line is that a Florida Beach Wedding is the most beautiful,so long as its a Beach Wedding! Look into a Officiant and a Minister to perform the Wedding Ceremony, There are Company's that only use Women Officiants. If you had rather have a Male Officiant, Remember to ask the Wedding Company you choose.

6 Simplest Steps to Successful Portfolio Management

Portfolio management is challenging, but it's also exciting. Some people prefer to have their portfolios managed by a professional. However, it's not impossible to manage your own portfolio. It just takes time and a basic understanding of the process.

Portfolio management involves 6 steps in an ongoing process.


1. Determine Objectives/Constraints


2. Formulate a Strategy


3. Design an Investment Policy


4. Implement Asset Allocation


5. Monitor Performance


6. Evaluate Performance

As an ongoing process, it is the responsibility of the portfolio manager (whether that's you or a professional) to go through the process (beginning at "Determine Objectives and Constraints") and upon reaching the "Evaluate Performance" stage, start again.

Why is it an ongoing process? Because life is not static. People move, they change jobs, they get married, they get divorced, they get remarried, they have children, they make large purchases, they make wise decisions, they make unwise decisions, they are faced with windfalls and tragedies. Each of those (and many, many other) events will affect how they manage their portfolio.

Every individual has different needs and wants. The first step to successfully manage your investment needs is to identify them by drafting an investment plan. This plan should state your goals. It is simply a mission statement of what you endeavor to achieve. Be as specific as you can, so that you can determine what to invest in, and how your portfolio will be structured to realise your dream.

Knowing yourself is critical to creating and managing a portfolio that will do what you want it to do. This knowledge will help you set realistic future financial goals and will help you to decide how much risk to include in your investment strategy

There are several constraints that may work against your desire to build up a healthy nest egg. These are all challenges of having money. Unfortunately, many of them are unavoidable… but that doesn't mean that they're not manageable. The best thing to do is know that they exist and develop strategies to help you over come them. Some of the considerations include evaluating your Risk & Return Profile, Investment Time Horizon, Liquidity Requirement, Legal and Taxation Structure, etc.

And also, do you remember the popular saying, "Don't put all your eggs in one basket" ? The reason why you should achieve diversification in your portfolio is that the value of different asset classes tends to behave and perform very differently. Some assets move in tandem or in a similar direction with each other, while others move in opposite directions. What may surprise you is that for the same rate of return, you can actually combine different asset classes to achieve this expected return. Thus the secret to successful portfolio management is to create a portfolio by investing in different types of asset classes, that generate the lowest risk factor to achieve your investment objectives.

As you manage your portfolio, different factors will have an effect on its performance. The economy, for example, may go up or down and cause the value of your holdings to rise or fall. Perhaps you followed some advice from a friend on a "can't lose" stock and ended up losing. Whatever the case may be, it is crucial to monitor the performance of your portfolio at all times so that you can react if something happens.

We will review the 6 steps in our upcoming series of articles and I really hope you will benefit from it.

Have the Right Mindset and Your Business Success Will Follow

Ask yourself a question. "What is the number 1 reason you started your own business and what do you want to achieve from it?"

Invariably the answer for ambitious business owners is to achieve financial freedom and in doing so create an independent life. For many, this is the key driving force apart from those who just want to have a lifestyle business. Generating a comfortable lifestyle is a fine goal however I believe it's much more exciting to create an independent life rather than just another job!

Well, the sad news is that most business owners only ever achieve a reasonable lifestyle not the financial freedom that many of them long for. Why is this? Having worked with business owners for over 20 years I have discovered several key reasons for this:

· Lack of a clear strategy

· Lack of true commitment to fulfil goals

· The short-term need just to earn money (to pay bills etc)

· Need to satisfy the immediate demands of customers and staff

· Ineffective marketing

· Poor implementation due to lack of appropriate systems

· Not able to rely on others to get work done consistently and to a high standard

From the business owners I have worked with I have also discovered that there are 7 elements that create success and produce financial freedom. I would like to share them with you over as series of articles. In this article I would like to cover "having a winning mindset" as this is probably the biggest single ingredient of success or failure.

Have a winning mindset You need to decide what defines you. These are your beliefs, your habits and who you spend time with. You need to truly believe with total mind, heart and soul conviction that you can achieve what you want in life. This can be achieved by helping others through the appropriate application of your knowledge and skills.

The fruits of our life are the result of cause and effect impacting on us. Some people make the mistake of concentrating on the fruit. They want the fruit (the effect – the success) but fruit doesn't come from fruit. Fruit comes from seed. It is cause. In order to create our success we need to focus on the cause.

For example, if we are at a well and we want water we will have to prime the pump first. If we are standing over a fire wanting heat we need to add fuel and light it first. We can shout and stamp for water and warmth to no effect. We have to take the appropriate action before we get the results. In our lives we have to give before we receive. These are all universal laws and as such they always work. Just like gravity always works.

We need to learn to manage challenges and use them as stepping stones not stopping signs. Every problem can be broken down. There are only 3 types of challenges we ever face. They are relationship based, financial or health related. We have to keep moving. There is no time for standing still. Throw out indecision and procrastination, the thieves of time and opportunity.

We all go through learning experiences. When we have a challenge this is a test for us to overcome and learn from. Everything happens for a reason and there is always a solution. We only receive challenges to the extent that we have the capability to solve them. As long as we are prepared to keep looking for solutions then we will find them. The solution is often at a higher level of thinking than that which created the problem. We therefore need to be creative and be prepared to change and adapt.

You may need to reinvent yourself before you become the person you need to be to reach the level of success you want. For example, consider the success of people like Madonna and Richard Branson. They are constantly evolving to attract more people to buy from them.

It takes time to change and produce fruit. Don't expect instant results. As well as time it takes:

· Vision (insight, deep understanding and foresight a clear view of the future)

· Passion (A blend of love & hate)

· Inspiration (Being totally driven from within)

· Perspiration (Back your goals with action)

· Enthusiasm (You have to sell yourself first before convincing others)

· Commitment (An unstoppable mindset)

By applying a winning mindset this will lead you on a path to the ultimate achievement of your goals.

If you would like a free, no obligation 40 minute telephone consultation (valued at £666) then call free in the UK on 0800 612 0618, email mail@brianjamesgroup.com or visit my website at http://www.brianjamesgroup.com/sales.html Brian James.

Autoresponders Review - What You Don't Know About Autoresponders Might Cost You Money And Headaches!

"Money's in the list!"


"Money's in the list!"


"Money's in the list!"


Of course money's in the list. There is an absolutely perfect explanation for this. First of all there is no way on earth somebody will voluntarily give you their name and e-mail address if they were not interested in your offer. The incentive could be a newsletter jam-packed with terrific hints and tips for your niche market, a contest, a free eBook etc. Secondly, they will not stay on your list if what you send them does not keep their interest. It's as simple as this.

If you do manage to come up with a great "bate" and develop decent skills in writing compelling e-mails it means you have gained your subscribers' TRUST in your knowledge and they are ready to buy your product or click through your affiliate links. So, yes, money is in the list!

Today I am not going to give you a lecture about how important it is to have an autoresponder to handle your newsletters/autoresponder series. In fact, I am not even sure you absolutely need one. If your list is not too big (about 20-30 subscribers) and you are sending out a monthly newsletter, that's not a huge deal. You can handle this task manually.

What I want to do is WARN YOU about few potential dangers you might encounter down the road if you do not choose the right autoresponders service or autoresponder software.

This is exactly why it is best to do a good research on everything that is involved in handling your subscription list and not get hooked up with all that marketing hype on autoresponders sales pages. Of course they will tell you they are the best.

But would they tell you ALL there is to know about what a good autoresponder should do for you? The answer is: NO, they won't. They won't because their technical capacity is restricting them. Or because they are trying to cut down their service price to stay ahead of the competition, their service development is severely crippled. But of course they won't tell you any of that. It's not in THEIR interest. If they will reveal you the truth, they will never get you to buy their product. And if you don't know the right questions to ask before you sign up, you will find out what these painful pitfalls are the hard way.

In my search for a reputable autoresponders services and software I've bumped info some really bad ones. I am not quite sure if you can a web site a "scam" if they deliberately hide some facts from their potential customers just to make another sale. All that resulted in time lost trying to work things out and quite a bit of potential sales I could of made if I chose the right autoresponder to handle my mailing lists. I am not even mentioning the legal trouble some people experience because they did not know few simple but very serious rules they have to follow.

If you would like to save yourself lots of time looking for a reliable service to handle your mailing lists you can take a look at my personal reviews of the ones that I would recommend myself: http://www.provenincomemagnet.com/pages/autoresponders.htm

Take a Business Plan Short-cut

Create and maintain a professional business plan using Microsoft's time-saving tools and templates. Whether you're starting up a new business or fine-tuning an existing one, the best way to think of a business plan is as a map to success. It can help guide your business and ensure that you still operating for years to come. And with some of the excellent templates and features in Microsoft Office, the task of creating one is just a little bit easier.

Traditionally, a business plan consists of a summary of the business you would like to start (or are running); details about the products or services you will sell; how you will market your products and services; what type of revenue you expect in return; and any costs associated with operating a business. New businesses may also want to include sections on personal finances, start-up costs and a detailed financial plan.

If you're already in business updating your initial business plan is the best way to check if you are on track. It can frequently pinpoint new opportunities or problem areas that need to be addressed. Existing businesses may also want to include the company's financial statements to give an indication of your financial position.

Why You Need a Business Plan

For start-up businesses, planning can make or break your business. As little as 20% of new businesses make it past their first year. A business plan will also help when you're seeking financing from banks, as it clearly demonstrates your plans and intent. If you have a good business plan and stick to it, it's hard to go wrong. For businesses that have been operating for a while, planning may not seem to be that important. Most business owners will have created some sort of business plan at the start but may not have updated it as the business has grown. By revisiting the plan you can incorporate new growth strategies and identify fresh opportunities. If nothing else, it's a good chance to sit down and spend some time thinking about your business and your personal goals.

Getting Started Using Templates

If creating a business plan seems daunting, don't worry. Microsoft has teamed up with a number of organisations to create lots of templates to help you get started. Visit Office Online to download a wide array of business templates for both new and existing businesses. Each template has of sections for you to complete, describing your company, products you will sell and so on. The majority of the content of a business plan is in narrative form. This is where you describe your business and plans, relying on Microsoft Word's features. For financial content, including cost and revenue calculations, expenses and so on, use Microsoft Excel to enter and calculate figures. If you are not sure where to get started on the financial side of things, the Template Gallery even has financial templates that will help you create all kinds of useful documents.

Inserting Financial Information

To make life easier, Microsoft Office has a few tricks to combine both the business plan narrative and financials. To start, open the Word document that contains your plan and scroll to the section where you want financial information to appear. Then, open your Excel spreadsheet and select the range of cells you would like to paste into the business plan and select Copy from the Edit menu. Then, back in your Word document, select Paste from the Edit menu to paste the financial information into your document. You'll notice that on the bottom right-hand side of the table of data you have pasted, there is an icon that looks like a clip board, with a drop-down menu. This is a 'smart tag'. Click on the down arrow to open the drop-down list and select the option for Keep Source Formatting and Link to Excel.

This option will link your spreadsheet to your Word document so whenever you change or update the spreadsheet, the changes will be reflected in the document as well. This will enable you to keep your business plan up-to-date. As your revenue and costs change, your business plan will reflect those amendments with a minimum of effort.

Other Useful Tips If you want to maintain your business plan over a number of versions, you may want to use the Track Changes feature found under the Tools menu. This will record any changes to your document. You can later view what information has been adjusted.

You might also want to save your business plan with a new name each time you update it (e.g. BusinessPlan2005.doc, BusinessPlan2006.doc, etc.) so you have a record of your planning and achievements.

Striking the Mother Lode

A colleague flew in to town for a visit. Being recovered coffee-holics we backslid and went searching for morning coffee. In days past we would instruct the waitress to leave the pot, bring two bowls of creamers and when she wasn't looking we'd swipe sugar-packs from adjacent tables because our packets always disappeared.

I will never forget the time I drank fourteen cups during a late dinner we had. I was trying to prove I could keep up with my colleague. On the way home, my car had a tough time keeping within the lanes.

This time it's a bit different. We're both more health-conscious. Our coffee-thon days are in the past.

So we drove by Marie Callender's but then he remembered they switched their coffee brand after the new corporate owners took over. It was too strong. There was a Denny's next door but their coffee was a bit too blah.

But that's when we discovered a goldmine...

We cruised into the next driveway and found a New York style deli/bakery/restaurant camouflaged within a mini strip mall. We entered D.Z. Akin's and found a bustling eatery reminiscent of San Francisco's busiest restaurants. The only item missing was the counter where you can sit up close and watch your servers pick up orders from the kitchen through an opening.

Autographed celebrity photos lined the walls, which added personality to the plain decor. But patrons don't return to DZ's for the ambiance. They come back for the gigantic, appetizing food portions served with East Coast flair.

My eyes bulged out of their sockets when I saw some of the thickest deli sandwiches this side of the Mississippi making their way to the tables. The kind where the meat dwarfs the bread and the sandwich covers the entire plate. And if you don't squeeze tight on the bread—you're not going to fit it in your mouth. Certainly not a chain restaurant.

And the coffee was excellent. Light-bodied and smooth. The servers moved briskly and kept our mugs warm. And when you ask for more cream, they don't pretend there's a dairy shortage. You get about a dozen creamers in a bowl.

We struck gold.

As small business owners we often miss the golden nuggets that surround us. They're often within eyesight, but we're too focused on daily tasks to see them. And unfortunately, we pass up the chance to profit.

I remember the time I received a call from a prospect. The message came late in the afternoon on Thanksgiving Eve. I decided not to call until the following week. I took down the number and erased the message.

Guess what happened next?

The number disappeared. I must have thrown it away as I cleaned out my car. And there was no way to retrieve it.

Here's the lesson I learned:

Cleaning the car wasn't as important as a new prospect. Yet I was too busy with the minor stuff and lost focus on the major stuff. From that day on, I constantly remind myself not to major on minor things.

Tommy Yan helps business owners and entrepreneurs make more money through direct response marketing. He publishes Tommy's Tease weekly e-zine to inspire people to succeed in business and personal growth. Get your free subscription today at www.TommyYan.com.

Joint Venture Treasure

One summer night more than forty years after the sinking of the Titanic, the world was stunned as the impossible repeated itself. Unlike the Titanic however, the Andrea Doria sank due to human error, causing a whirlwind of rumors about sunken treasure and crew negligence. Was the treasure real? Why did she sink? The answers to these questions seemed forever-locked in mystery as the doomed liner settled in her watery grave. The day after her sinking though, young millionaire adventurer Peter Gimbel became the first person to dive to the wreck and returned to the site often over the next two decades to probe for answers.

Rika and I watched the Discovery Channel's presentation of Gimbel's final trip to the site in 1981 as he and his team explored submerged passageways and attempted to salvage the liner's safes. His 25-year obsession with the Andrea Doria unlocked the riddles surrounding its sinking and solve once and for all the mystery surrounding this tragedy. Gimble was a treasure hunter.

Hidden treasure has always captured our imagination. As a child, I would walk along the beach, fully expecting to the tip of a treasure chest sticking out of the hot sand at any moment, or to find a diamond ring. To my mind, finding a diamond ring would make me and my family instant millionaires and I would be like Richie Rich. Who of us hasn't read Treasure Island? It's a fascinating idea, isn't it?

"Somewhere over the rainbow" and Hidden Treasure are exciting, yet elusive, triggers to our imagination. We don't really believe we will find it. Many people buy lottery tickets yet most don't really believe they will win the lottery. What about finding out about REAL treasure, and then creating a way to discover it? Dreams are stories are great, but then Monday morning comes around and many of us slink reluctantly back to our boring jobs, grudgingly chain ourselves to our desks and wish it was home time. Like the manager of my building, a wonderful guy with massive potential. He freely admits that Monday is the worst day of his week, every week, and it gets progressively better as the weekend gets closer. Friday is his best day, and there is a visible transformation. He is happy, singing, excited and energetic. That lasts the whole day. And after two days, Monday finds him morose and dejected again.

I love working on my business. I look forward to Mondays. That's because my business is a treasure hunt! I know the treasure is out there, in the form of people who join our DollarMakers Joint Venture Forum. We discover a treasure regularly! We know it's there, and there's no risking of lives, decompression chambers, millions of dollars of costs or man-eating sharks. Unlike Mr. Gimble, we won't dredge up a safe with no treasure in it. That's why my business is so exciting. As we discover wonderful entrepreneurs, we discover treasure. We can make an unlimited amount of money using Joint Ventures. If you'd like to join my treasure hunting team, visit our website.

Why every Coach Needs a Business Plan

So why does every coach need a business plan? I can hear your objections ringing in my ears right now! 'Who me!' 'I don't need any outside financing, why would I bother with a business plan for my coaching practice'. 'I haven't got the time to write a coaching business plan'. 'It's all in my head, why would I want to go to the hassle of writing it down?' 'I already have a practice, I know where I'm going, I don't need a coaching business plan'. 'A waste of time, effort and money, a coaching business plan is not worth the paper it's written on'.

Sadly, you are wrong. You do need a plan for you coaching business. It doesn't necessarily need to be the 'all singing, all dancing' version but you do need some sort of plan so you (at the very least) know where you are going with your coaching business. Let me tell you why........
First of all let's get the horror stories out of the way. I'm sure you know by now that in excess of 50% of all small businesses will fail within their first 3 years. There are no corresponding figures for the coaching profession specifically but anecdotal evidence would suggest that the failure rate is certainly not better than the average, indeed many coaching businesses never get off the ground in the first place.

There has been much research into the causes of such high failure rates and it is true that a proportion of business failures are caused by factors outside the control of the owner. But in the majority of cases, failure is caused by factors that could have been foreseen and managed. Peter Cochrane (ConceptLabs) cheerily writes 'the question isn't why they fail so often, more by what miracle any survive!' He goes on to site the key reasons that businesses fold: failure to identify and quantify an opportunity;failure to identify the customer and market; failure to search out the competition and assess risk; failure to address funding and financials. And finally, failure to draw up a plan. And guess what, all of the aforementioned omissions could have been addressed by the last - if only there had been a business plan!

Enough of the doom and gloom! Now for the good news. Drawing up your coaching business plan need not be arduous, tedious and costly. It can actually be quite easy; you probably do have much of it in your head already, you just need to pull it all together. And you can do it yourself, now you have me to help you either by following the guidance that will be published in this blog or using me as a one-to-one business planning coach. Trust me on the 'easy' and the 'diy' for now (more in a moment), but if you need further convincing, just take a look at the benefits of having a coaching business plan:

• You get to see the big picture: your business with all its components, aligned with the rest of your life. You get the opportunity to stand back


• You clearly define your vision, your mission, your philosophy and your ethics and align these with your personal values and beliefs


• You focus right in on defining your product, your market, your client


• You set yourself measurable outcomes, for which you are accountable


• You have a step by step strategy along a timeline, for meeting those goals


• You now have a focus for your time and energy, which makes you more efficient


• You begin to address the risks, the 'what can go wrongs' and anticipate how you can overcome them, from limiting beliefs and skills gaps to lack of clients and financial issues


• You can see whether it is financially viable from the outset, and at milestones along the way


• You identify a business model that works for you: work life balance, nature of client, sales and marketing modes

Here's a thought. As coaches what do we get our clients to do fundamentally, at the start of the coaching process? Well - set goals, of course. And what do we encourage them to do as a key component of achieving their goals? Yep, write them down. (Remember the research: only 3% of the population write down their goals and those that do are five times more likely to achieve them). But back to coaching business plans. You'll see where I'm going on this. That's all a business plan really is: a set of goals, in writing, with more or less detail on the means of achieving. Are we coaches walking the talk here? How many of us have written down our business goals as a starter?

That's a very simple definition of a business plan. You can't get much more painless than that! Now to flesh it out a little, here are the fundamental features of a business plan :

• In writing


• Has a goal


• Has a plan to get you from where you are now to where you want to be


• Has some kind of performance measurement (likely to be the numbers bit)


• Its dynamic. To be useful it will change over time: as circumstances change, you will need to 'course correct'


• It will be unique to you

If you want the fully monty contents list for your coaching business plan, click here. But actually before you get hit by the overwhelm again, just take these 4 questions below and address them to give you the guts of your coaching business plan:



• Exactly what is your product


• Who are you selling it to


• How can you be sure that they want it


• How much will it cost you to provide. How much will you sell it for.. Will that make you enough money?

Remember this: having a business plan is a significant indicator of a successful business. Only 25% of small businesses will have a business plan. Which group do you want to be in?
If you want to learn more about drawing up your coaching business plan, watch this space or subscribe to my monthly newsletter. Alternatively, email me on info@yourcoachingbiz.com to find out how I can help you one-to-one.
You can read Peter Cochrane's full article in silicon. com
Other useful sources of information on business plans can be found at Business Link and is4profit

'The Concept of the 'Virtual Executive Office Space'

Some years ago, companies and small business owners began looking for ways to establish a commercial presence in a business community without actually having to set up office space. Executive suites, which normally offer more flexible arrangements than conventional lease office space, came up with the way to go. They call it the 'virtual office space'.

What are the Benefits of Having a Virtual Office Space You may ask:.

If you need to look like a local business, then an executive suites virtual office is your answer. Most plans offered by executive office space providers include a mailing address, several hours of conference room use per month, telephone answering, mail forwarding and other features. Plus, here's a special benefit, almost all virtual office plans are part of a network of executive office space providers all around the world. This will give you access to hundreds of meeting or conference rooms in other cities.

Are you relieved that no longer do you have to be concerned with renting a hotel room or conference facilities to meet with out of town prospects or customers. Nor do you have to hassle with making certain visual, audio or other important 'expected' meeting-room equipment that is now available. Almost every executive suite's meeting room is absolutely and professionally furnished with all that is needed for a successful meeting.

Would you like to have a business presence in a city without actually moving there? Then you need to contact an virtual executive suites provider.

The Wrong Business Structure Can Destroy Your Financial Future

When you run a business and sell a product or service as a sole proprietorship you will have a ton of liability. A sole proprietorship is the second worse form of asset protection after a general partnership.

A general partnership as a business structure is not good because when 8 physicians work together in a combined medical practice all 8 partners are liable for the misdeeds of any one of the partners.

The situation is not much better in a sole proprietorship because when you are sued and end up with a judgment for damages against you, you could lose your business and also your house, cars and everything else.

Business people use a C Corporation or an S Corporation for asset protection because when sued in the same situation (looking at a judgment), the owner of the judgment may get your business but may not get your personal assets.

The basic difference between a C Corp and an S Corp is that in an S Corp the tax consequences of the business pass through to your personal tax return.

When you are getting started in business, or operating a small business, achieving asset protection seldom works because lenders will not loan you money in a C Corp or S Corp without you personally guaranteeing the note.

So asset protection in a C Corp or S Corp is not automatic. The corporate veil (so to speak) is pierced much more than it protects.

I much prefer a Limited Liability Company (LLC) that is not a sole LLC but has other members (with an equity interest) attached, and you run the LLC as its Manager.

In this arrangement, you have much more liability protection than in a C Corp or an S Corp because payment of a judgment against you may not be automatic.

When you create your LLC with accompanying Articles of Formation your asset protection may increase if you insert a judgment creditor clause among your articles. In many states you will acquire more asset protection.

The last time I checked, about half of the states allow a judgment creditor clause, and half do not (California being one).

Adding a judgment creditor clause has no affect upon your being sued or receiving a judgment against you. What adding a judgment creditor clause does do is create a question about whether the LLC so formed has to pay the judgment timely.

If, in the unfettered discretion of the Manager of the LLC paying the judgment would cripple or destroy the LLC in its operation, then the judgment would not be paid until the LLC disbands, at which point the judgment would have to paid from the remaining assets.

Why? Because the other members of the LLC, the members with an equity interest who had nothing to do with being a party to the suit against any one member of the LLC, would be damaged by payment of the judgment, and their interests must be protected.

You may be interested to know that the Internal Revenue Service (IRS) does not recognize an LLC as a business structure in and of itself, they only recognize it as a corporation which is what it is.

This is why when you set up an LLC as a solo LLC (single person corporation) you will be filing a different tax form than if you set up an LLC with members, in which case you would be filing a Form 1065.

If you create a solo LLC you will not have the same protection as if you create an LLC with members.

When I ask an attorney what is the best form of asset protection and he or she says to buy an insurance policy, I can not sprint away fast enough in the opposite direction. Their answer belies their knowledge of the subject.

I have found the vast majority of attorneys to be pretty useless as their understanding of asset protection issues is marginal at best.

It has been my experience that many attorneys today are so busy trying to make their second million, or simply trying to survive in practice, that they do not have the time or interest to keep current in their profession.

Professionals in this position are consumed by the need for profits to either pay their bills or create enough wealth to retire early.

If you want to have some fun, open up the yellow pages in your local phone book, and in the listings where the attorneys pay to be put under a certain category (such as business law or divorce actions), look up asset protection and see how many are listed.

I did this in an area of 500,000+ population, and there was not even a category for asset protection, much less a single listing. Asset protection is not an area of law that is widely practiced, much less understood by many attorneys.

If you understand the advantages of having an LLC with members as I do, you may wonder how to structure an LLC when you have more than one company. Many business people think that if they start another business they need to form another LLC.

I have had both a C Corp and an S Corp in traditional businesses, but I would never do it again as an LLC provides much more asset protection than either a C Corp or an S Corp. This could be a concern if you have assets to protect.

I advise my clients to form an umbrella company that is an LLC with members who have an equity interest in the corporation.

Two clients of mine each set up their own LLC with a 95% equity interest and another member with a 5% equity interest. They both became each other's 5% equity interest since neither was married, had no significant other nor children.

I used the creation of my LLC as an umbrella company. I have several businesses (actually money making activities) as part of my LLC and all of the revenue and expenses from each of these activities flows up to the LLC for tax and reporting purposes.

When I start another business activity I will not have to create another business structure. If I were a real estate investor I might create an LLC for each property, but I do not currently invest in real estate.

If the new business activity makes money I continue to build it, if it does not, I dump it and try something new. I am interested in building multiple streams of income, that is one reason why I started an Internet Marketing business.

Since the laws regarding limited liability companies vary from state to state, it never hurts to talk to an attorney. I simply do not take an attorney's advice unless he or she is willing to share the thought process and belief system, and is willing to answer any and all of my questions and concerns to my satisfaction.

Copyright © 2007 Ed Bagley

Top 7 Things to Include in Your Business Plan

If you're really serious about making money with your new business, you must take the time to write a good business plan. A business plan is a roadmap that covers all the aspects of your business, and is vital if you're planning on applying for a small business loan.

A business plan is also something which intimidates many new business owners who have no clue as to what to put in their business plan. Depending on the nature of your business, your business plan can be an elaborate write-up and analysis topping 100 pages, or it can be a narrative of 10 – 20 pages. What are 7 "must-haves" for your business plan?

1. Mission Statement

A mission statement is where you state your purpose for starting this business. Perhaps you're starting a dog-treat bakery to sell home-made dog treats because you feel there are too many harmful additives put in pet food. Or, perhaps you're starting a hypnotherapy practice because you strongly believe in the power of the mind to heal, change bad habits or increase motivation. Your mission statement doesn't have to be long, but it does have to reflect your reasons for starting your business. If all you can think of is "I need to make money somehow," then you might want to consider a different business.

2. Describe Your Business

This is where you describe in detail all the aspects of your business. Are you a service-oriented business (therapist, hair-stylist, consultant, etc.)? Do you sell products? Give a description of your products. Do you use a wholesaler or dropshipper? Do you manufacture the products yourself? What makes your business unique?

3. Short-term and Long-Term Goals

This is where you state your long- and short-term goals. For the short term you would list your goals for the next few months to a year. You might have as your goals finding a business name, applying for a business license, taking some SBA classes to learn more about running a business, securing office space, or whatever you might need to begin your business. You might also include the income you expect to earn in your first year of business. For your long-term goals you might want to pick a three-year to five-year goal. Your goals could include future product lines and any future marketing plans. It might include opening new stores, offices, or starting new websites.

4. Potential Customers

This is where you list who your customers will be. Who will buy your product? Who needs your services? What are they looking for? Why do they need your product? This helps you focus on the type of marketing you need for your customers.

5. Competition Analysis

This is where you analyze your competition. How can you know your chances for success if you don't know what you're facing in the way of competition? In the example of the hypnotherapy practice you would want to identify all the hypnotherapists in your area. You would also want to include psychotherapists or alternative-health professionals who may also appeal to your potential clients, as well as hypnosis CDs offered on the internet. This can help you spot the areas where the competition is less. For example, if you're a hypnotherapist and find the competition is stiff for weight-loss or smoking cessation programs, try to find a niche which is less competitive.

6. Financial Analysis

It's important you take a realistic look at your finances. You need to write down all the money you pay out each month for personal and expected business expenses, versus how much you realistically expect to bring in each month. Remember to list everything: ISP charges, computer upgrades, office rent, electricity, products to sell, housing, medical expenses, charge cards, etc. Make sure you will be able to afford the business and your current lifestyle. You may find that you will need a small business loan to cover your expenses until your business is able to pay all your expenses. Or, if your business is one you can start on a part-time basis, you may find it's smart to take on a part-time job while building up your business, with the hopes of making your business full time in the future.

7. Marketing

This is where you list all the places where you'll be able to advertise or market your new business. This could include a blog, website, articles in newspapers, articles in online article sites, press releases, appearance on cable-access television, offering free presentations at local groups and organizations. Don't overlook anything. You'd be amazed how much business you can get by giving a free presentation at a local homeowner's association meeting or local chamber of commerce. Take advantage of local Toastmaster's group for gaining experience in public speaking.

Be sure to refer to your business plan from time to time to make sure your business stays on track. It's okay to make changes along the way as you find what works and what doesn't work. If you are using your business plan for a business loan, you may want to hire a professional business plan writer who can review your plan before submitting to funding sources.

Why Is Vision So Important To Your Small Business!

What are you trying to achieve? Where are you going? What do you want your small business to look like in 5 years time? Answer these questions and your day to day decision making will change...

A small business vision can be compared to planning a holiday! People usually decide where they want to holiday based on the offerings of the destination.

If it's a relaxing holiday they are after, they may go to Fiji. But if it's for shopping, then Dubai may be their choice. If it's to climb the Sydney Harbour Bridge then they will go to Sydney, Australia.

Holiday destinations are determined by desires, with a few restrictions like budget and time available.

The same should apply to your small business. In 5 years time what do you want your small business to look and feel like?

Do you want a large street frontage or small office at home?

Do you want to be actively involved or have a manager controlling your employees?

How many employees do you want?

Do you want a business with excellent cash flow or a business that is worth a large sum of money when sold?

Answers to these questions and much more will help to provide a clear vision of your small business in 5 years time. And often this will completely shape your growth.

The majority of small business owners start a small business based on their trade or what they know. They never usually give much thought to their small business vision.

While it's comforting running a small business using the skills you have, sometimes this can be a recipe for disaster.

Business should be kept simple and always be fun. But business owners tend to make a simple thing into a complicated thing and let others control them.

Owning a small business should mean a better lifestyle - flexible and shorter working hours and more money. But this is hardly ever the case; it's more like working 60+ hours a week for about $4 an hour.

Why is this so?

Because small business owners have never sat down and thought about their vision. They don't know where they are heading, they have nothing to aim for. They have no idea what the finished product will look like, so the business eventually takes control.

Decisions are based on what happened that day, instead of the business vision you are working towards.

Take the time now and think of your small business vision.

What will your small business look like in 5 years?

Why should your customers remain loyal to your small business?

How will you beat your competitors?

What will make your small business attractive to any buyers?

What are all the potential risks?

Think carefully about these questions and then write your vision down. This will immediately tell you, the universe and anybody else, exactly what you are creating.

It gives you a defined target to aim for and achieve.

Starting Up Your Online Business

Working at home is one of the best options for people who would like to have more control over their time. Unlike when you are working in the office where you need to abide by the regular working hours set by the company, working at home on your own business will allow you some flexibility in your time. However, although working at home has many advantages, you should be prepared to put in considerable amount of efforts to get things started. An internet business start up could be very challenging so make sure that you are prepared for all the consequences of your decision to get up your own business.

The first thing that you will need to do during your internet business start up stage is to get a reliable computer with good internet connection. Since you will spend a lot of time online, you will need to get the best internet connections. Furthermore, your computer will be your virtual office, so make sure that you get a very reliable computer. You must always bear in mind that one of the keys to succeed especially when you are doing internet business start up is to have a fast internet connection and computer which can accommodate large files.

After you have your computer with internet connection, set up a small work space in a corner of your home. If you have kids in the house, choose a place where there will be minimal disturbances. If you cannot afford to get a spare room, which you can use as your office space, you can simply put a table and a filing cabinet in one corner and declare it as your office space. Let everyone know that this corner of the house is your work place so that nobody will disturb you when you sit in your corner.

Now, although the people in your house already know that you have workplace in your house, this may not stop your kids from rummaging through your table for something that they can play with. If you do not want to end up losing some important things, it would be a good idea to clear your desk and put all your things inside your filing cabinet and lock it. Do not leave any important things lying on your table if you do not want to lose them.

Once you have your workplace set up, you can now starting working on your online business. To be sure that you will not be disturbed while you are working, you can start working as soon as the kids are already in their rooms sleeping. If your kids go to bed early, you will have more time to work on your online business so make it a habit to put your kids to bed early.

Best Bosses Reveal Small Business' Concerns About Health Insurance

In a recent New York Times/CBS survey, access to affordable health care was identified as the primary issue on the public's domestic agenda. According to the Times, a majority of respondents favor a federal guarantee of health insurance for every American, and they voiced a willingness to pay as much as $500 in additional taxes a year and forgo future tax cuts to accomplish this. The Times added that "Americans remain divided, largely along party lines, over whether the government should require everyone to participate in a national health care plan, and over whether the government would do a better job than the private insurance industry in providing coverage."

Clearly, something needs to be done to streamline or overhaul health insurance coverage nationwide. The most current federal data notes that 44.8 million Americans are without health insurance. This is nothing short of a crisis, says Andy Stern, international president of Service Employees International Union (SEIU). SEIU is partnering with AARP and the Business Roundtable in a campaign called "Divided We Fail," which is pushing for fundamental change in the health care system using the influence of their combined 50 million members.

While the "Divided We Fail" partnership seeks bipartisan solutions to the health care debate, others see solutions emerging outside the political arena. In late March, Richard Berner, chief U.S. economist for Morgan Stanley, wrote in The Wall Street Journal that he believes the solution is to "get health-care financing out of the workplace and require coverage, more personal responsibility and market incentives." Berner believes that a consumer-driven health care model with universal mandated basic coverage would provide "a safety net for the disadvantaged."

We recently surveyed some of our Best Bosses to get their perspectives on this complicated issue. Of the 16 leaders we surveyed – encompassing a wide range of industries, with IT and telecommunications being most prevalent – 63 percent feel that employees are most responsible for ensuring that they receive adequate medical coverage. Thirty-eight percent feel this responsibility falls on the shoulders of the federal government, and 25 percent say it is up to insurance providers.

The bosses' comments related to this issue appear split between wanting the government and insurance providers to take responsibility and provide real solutions. The president and CEO of a hosted VoIP phone system provider on the East Coast says he would "make transparent the crappy service of insurance providers." Meanwhile, the president of a New England-based custom publishing and creative services company says that "If the insurance and health care providers cannot solve the problem, then I do think it is the responsibility of government to do so on behalf of employers and employees alike."

Despite the fact that rising health care costs have hit small businesses especially hard, these leaders are doing what they can to offset costs and keep their health care benefits attractive enough to retain employees. Sixty-three percent of the bosses provide a PPO benefit for their employees, 21 percent provide an HMO benefit and 8 percent allow employees to choose between the two benefits.

To minimize health insurance rate increases, 63 percent of the leaders we surveyed have increased employee co-pays in the last two years. Twenty-four percent have created health savings accounts (HSAs) for this purpose. One leader who put HSAs in place at his Midwest-based staffing agency also increased deductibles. This has helped manage costs while mitigating out-of-pocket expenses for his 12 full-time and 300 part-time employees.

One link in the chain of providing health care coverage that bridges federal government- and insurer-provided solutions is state-mandated health insurance benefits. According to recent data by the Council for Affordable Health Insurance, the number of state-mandated benefits grew by 3 percent in the last year. There are now over 1,900 such benefits nationwide. While Initiatives in Illinois, Massachusetts and California have been most visible, these benefits are quietly influencing how insurance companies cover specific health care providers and patient populations in every state.

Yet, without universal oversight and communication, many business leaders are left wondering how their employees are affected by their state's mandates. Sixty percent of the Best Bosses said they were unsure as to the impact of state-mandated benefits on their business. One leader, the co-owner of a computer and peripheral sales firm in Vermont, says that "with greater enrollments better economies of scale would help with efficiencies overall." However, he admits that state-sponsored health care is "not the ideal solution ... since the burden of paying for this would in essence be a regressive tax on businesses." The leader of the staffing firm previously mentioned, on the other hand, says he has "zero confidence" in his state's ability to manage health insurance, since they have bankrupted their own unemployment insurance program.

One thing is clear: If state governments are unable to step up their efforts on the health care front, and if the federal government does not put forth universal direction, then the onus for providing adequate coverage for employees falls fist on employers, then on workers themselves. And considering that small organizations account for 99.7 percent of all employer firms (according to the latest Small Business Administration estimates), even if they remain partially responsible, it is an unduly large burden to carry.

"Health insurance is a basic right of every citizen and should not be affected by their current employment status," the business manager of a professional services firm on the East Coast tells us.

___________________________

By the Numbers:

16 Best Bosses surveyed

Most companies (56%) have 1-100 employees

A majority of respondents (63%) are both owner and leader of their business

31% of companies have offices in multiple U.S. states

Business Mentoring Resources for Small Business Owners

Many successful business owners have one thing in common - most of them utilize mentors. Having a mentor holds many benefits, including giving you the extra push you need to grow your business. However, finding a mentor who is willing to volunteer their time to provide guidance and advice is often difficult to do. Some mentors often charge outrageous consultation fees which many small business owners cannot afford. Fortunately, there are some ways to find mentors that won't cost anything but your time.

Clubs and Organizations

There are many local clubs and organizations that you can find by doing a little research. Most of these types of clubs are free to join. You are surrounded by like-minded individuals who are all interested in the same topic. While this doesn't provide one-on-one mentoring, you are still able to bounce ideas off of people, share experiences, and learn new things pertaining to your business.

Utilize SCORE

SCORE is an organization made up of retired business professionals in all types of industries who volunteer their expertise to small business owners. You can contact a SCORE counselor who specializes in your industry and they will provide mentoring at no cost to you. You can even meet up with a counselor if the service is provided in your area. This is a wonderful service that new small business owners should take advantage of. You can learn more by visiting their web site at www.score.org.

Take a Class

There are often free classes provided by community colleges, high schools, or adult learning programs. These types of classes range from learning how to run a business to learning how to use popular software programs. Enrolling in such free classes not only benefits education wise, but allows you to interact with others who may be knowledgeable in areas of business that you are seeking help in.

The above methods are not only beneficial because they are free and educational, but they also provide great networking opportunities to promote your services. You may even be able to find a great mentor or two in the process.

Learn more about online mentoring programs and other free resources by visiting Business Mentors for Small Business.

Can You Hire Your Children to Work for You in Your Daycare?

Can You really hire your children to help in your daycare?

This question is coming up more and more these days. The answer is a resounding Yes.

The IRS in Pub 13 (circular E) employer's tax guide, says under Family Employees. Child employed by Parents. Payments for the services of a child under age 18 who works for his or her parent in a trade or business are not subject to social security and Medicare taxes if the trade or business is a sole proprietorship. These wages are also not subject to Federal unemployment tax (FUTA). These wages may be subject to withholding taxes depending on how much you are paying. Will the child exceed the filing limit for filing an income tax return? The limit is $5150.00 for year 2006.

The real question is what you can pay them for and what records you need to keep to justify the deduction. Above it states very clearly that the payments must be for work performed. There must be an employee, your child, and an employer you the child care provider for the deduction to be valid.

I advocate treating your child like any other employee that you would hire. When you hire a new employee you need to fill out two forms, form W4 and form I9. You may also need to fill out certain state forms. Wisconsin has a new hire report that needs to be filed and submitted to the state. You need to keep a file for each of your children. The above forms should be in that file. You will be paying your child for work performed. When you hire other employees for work performed that employee fills out a time sheet and you pay that employee for those hours at an agreed upon rate. Paying your child is no different. You need to keep record of the hours that your child worked and a record of the payments that were made to that child. At the end of the year you will need to issue a W2 to your child.

If you have children under the age of 18 and they are helping out in your small business it makes a lot a sense to pay them out of your business when it come to your income tax return.. Theses wages are a deduction from you business tax return and can go towards setting up educational accounts or simply getting spending money out to your children.