Getting Off To A Good Start In Your Home Based Business

Many people assume that working from home is impossible. If you know the tricks on how to work from your home, it’s easier to run this type of business than you realize. Follow these tips to get the low-down on getting your home business off to a good start.

Sufficient help is important in any business, especially a home-based daycare. Being overrun by kids, because you are the only one taking care of them, is an unnecessary pain.

Understand all of the needs of your business before setting it up. Your home business needs to be considered from all sides.

Just because you are working from home does not mean you can have a less than professional attitude about what you are doing. The flexibility of running a home based business can be a blessing. However, you still need to take time for yourself. Continue to shower every morning, get regular exercise, and limit snacking. Apply these tips to boost your self esteem and you’ll find that others hold you in higher esteem as well.

Business trips are a very good idea. You should be able to deduct a portion of the expenses of your business trip from your taxes. Find a destination where there is a conference or seminar related to your business if you desire a vacation. Attend the event and enjoy the remaining time as a vacation. You can normally write the travel expenses off on your taxes.

Be certain that your home-based enterprise is compatible with your family’s lifestyle. If you believe that the business will have a negative impact on family life, it may be wise to reconsider.

Always keep excellent financial records of all your spending and the costs of running your home business. This will help clear up all of your problems with taxes.

When you are “knee-deep” in work, inform your friends and loved ones so that you are not bothered at that time. If friends or family members constantly pop in and interrupt your work, it is important to let them know that you are busy. If these people continue to insist on spending time with you while you work, have them wait quietly in a separate room until you are on break and ready to have company.

It’s always appealing to be nice about payments with customers when you first start out, but this is a bad business model. It is important to establish a clear payment system including proper invoicing and penalties for late payment.

A successful business venture will have a quality business plan. Even though you may not be planning for investors or applying for loans in order to raise capital, consider creating a business plan in any case. Doing so motivates you to specifically state what your objectives are both in the near future and down the road, making it easier to know the logical steps towards those objectives.

Find support for your home business through online forums with other home business owners and operators. You will learn that there are many online places to meet up with other home business owners. You will find others who have had comparable experiences and who will happily share ideas that they have market tested to keep you from having to reinvent the wheel.

Make sure that your home business has an objective or mission statement. However, do not make the description too long; you want to explain what your business does in a concise way. This way you have a ready response when someone asks what your business does. You’ll impress potential customers by being confident and informed about your business and its products.

A home business is a dream many people have in common. Sadly, too many people try and fail or just never try due to not really understanding the basics behind running a business. Use the advice in this article, and you will be on your way to running your successful home business.

Why A Fast Business Valuation Helps

The valuation field is littered with contradictory reports and calculations, as many experts will tell you it is an art as well as a science. The business valuation process is as much about uncovering the right information as well as doing the calculations. Getting agreement on the value of a business is as much about getting agreement on the facts and the appropriate interpretation of the facts as it is about following a defined process.

So the valuation process can often take time, and follow a rigorous path of:

  • Data collection.
  • Data analysis.
  • Financial projections.
  • Industry and market assessment.
  • Business strategy.
  • Value calculations.

The reason for the comlex process is that valuation is as much about discovery as it is about calculation. The business value must understand the numbers and the business drivers in terms of the client. This may be different whether the client is a vendor or a buyer.

Often the business valuer must interpret information that may be 1-3 years old or more and hence it is an iterative process with the client to understand how particular details impact the value of the business.

In many cases the business owner or buyer already has a value range in mind – what they need is their interpretation of business value cross-checked. This is where a fast business valuation helps.

So what is a fast business valuation?

A fast business valuation that has some detailed analysis will usually take 24-48 hours. Often a quick calculation can be completed in 1-2 hours, however the discovery process can take longer.

There are three key steps in a fast valuation:

  • Gather past and Year to Date financial information.
  • Ask some key questions about business profitability, growth, business processes, competitive advantage and industry issues.
  • Systemised process of calculation and reporting.

Once the basic calculations are complete, the business valuer needs to consider the outcome from different viewpoints. This is when time is needed, and hence a good valuation must take at least 1-2 days for the best outcome.

What are the limits of a fast business valuation?

A fast business valuation does not help when it is being relied upon in legal or commercial disputes. In these cases the valuation must be based on solid evidence and reasoning. The interpretation of financial statements, business and industry issues and other factors must be taken into account when producing a defendable report.

Other limitations include:

  • Lack of clear and credible financial reports available.
  • A business that has had dramatic changes in profit performance (such as going from large losses to profits or vice versa).
  • A business whose value significantly depends on intangible factors such as key owner relationships, intellectual property or goodwill.
  • Unavailability of the business owners to discuss the business.

What can a fast business valuation be used for?

At it’s simplest level, a fast valuation will confirm in the buyer or vendor’s mind that they are making the correct decision. This means negotiation can be swift and concise. It gives the client power to be able to definitively set the boundaries in negotiation, and can reduce the time taken to reach a decision.

But it will also uncover the opportunities for the business to increase its value. This is useful to the buyer in understanding what they bring to the table and will help make the vendor feel confident they are defending the value of the business with the right strengths and opportunities.

It can also help confirm the boundaries in settling disputes between business partners. Disputes are not always over a 5-10% difference. It is more likely they differ by several orders of magnitude. A fast business valuation can resolve this issue in less than 2 days. In fact, often putting shareholders through the valuation process helps resolve a dispute, as they come to a mutual understanding of the value and where each shareholder differs in arriving at a a valuation figure.

What about investing in a business?

This is one of the powerful areas of a fast business valuation – it can help indicate if an investment in an existing business will increase its value or not. The valuation can not only tell you what the business is worth now, but also what areas the investment will improve, and hence what the new value of the business will be.

It is crazy to invest $1M in a business but the value only increases by $750,000! A fast valuation can help identify the aspects about a project that will result in a loss of value rather than an increased value.