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MISTAKES TO AVOID WHEN PITCHING ANGEL INVESTORS

Posted in: Blog, Business Start Ups, Cash Flow Strategies, Small Business Needs by harmony | No Comments Wednesday, January 18, 2012

Capture the Attention of an Angel Investor

You need to capture an Angel Investor’s attention immediately with either a great elevator pitch or Executive Summary. You only have one shot so spend the time perfecting your pitch. Make sure your pitch includes the basics; description of the market, what problem the business solves, a successful track record and a experienced management team.

Here are a few mistakes to avoid when pitching an Angel Investor

You don’t explain what problem your business solves

There has to be a problem in the marketplace that you are solving or customers will not beat a path to your door. If you can’t present a compelling reason why people will buy your product, then you have lost the investor as your partner. Don’t spend all the time talking about your product or service, talk about eliminating the problem they are facing. People buy solutions to problems. Don’t tell them how lawn fertilizer works, tell them how you will fix their lawn.

You don’t explain what/who your market is or how big it is.

Potential is what motivates Investors. They are looking at questions such as, how big a market share can I get and how big is the overall market. Do the work and make yourself knowledgeable about the size of the market. The investor may be new in this particular market and initially look to see how well you know the subject and have done your homework. If he knows the market then he will be looking for verification that you know what you are doing so he feels comfortable in investing.

Your presentation is too long and includes too many facts and numbers

The most important thing is to get your story across in a compelling manner. You have to capture the Investor’s attention. Make it personal or something that an Investor can relate to. “Have you ever been in a situation where….”

Many entrepreneurs will use statistics to sell their business. While revenue and profit figures are important, leave out the numerical proof of market size and back-up for your build up of revenue etc. Keep the presentation focused on the sizzle. The reams of facts can be saved for later once you have “landed the fish.”

Your projections are hockey stick forecasts

Start-up or early stage sales projections don’t carry a lot of weight with investors as they are not supported by real sales history. Sell the potential. To help make up for the fact that you might not have a long sales record, it’s better to explain the benefits the business will provide customers and how the company is different from the competition.

You are not flexible with the business plan

An entrepreneur who is too attached to their plan and does not listen is a huge red flag for an investor. An Investor wants to be a partner and make suggestions based on his own experience. If these are going to fall on “deaf” ears then it is his money and he will walk.
For example, if there’s a new way to consider packaging or selling a service, a true entrepreneur will seize the opportunity to make money. Being flexible and willing to accommodate customers when they want your service in a slightly different way than you already offer is good, The goal should be to make your product as sell able as possible.

You discuss potential contentious issues too early

While it might seem natural to explain how much ownership you’re willing to offer investors, don’t do itin the initial pitch. It is like the sticker price on a car, If it’s too high, you don’t even talk to the salesman,you just walk off the lot.

Details about who gets what percentage after an investment, generally come up after an investor has finished researching your company. If an investor asks about ownership terms early on just say you are flexible. Remember, your goal in the pitch is to build a relationship with the investor. Get them to fall in love with your idea first.

What is a SWOT Analysis?

Posted in: Blog, Business Plans, Business Start Ups by harmony | No Comments Sunday, December 18, 2011

SWOT analysis is a strategic planning method, used by companies, to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in the business or potential venture.

A SWOT specifies the objectives of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective.

Strengths: characteristics of the business, or venture that give it an advantage over others
Weaknesses: are characteristics or limitations that place the business at a disadvantage relative to others
Opportunities: chances to improve performance (e.g. make greater sales) in the operating environment
Threats: elements in the operating environment that could cause trouble for the business

Look at Both Sides: Internal and External Forces

To get a better look at the big picture, consider both internal and external forces when uncovering opportunities and threats.
Internal Analysis:

Examine the capabilities of your organization. This can be done by analyzing your organization’s strengths and weaknesses.

External Analysis:

Look at the main points in the operating environmental analysis, and identify those points that pose opportunities for your organization, and those that pose threats or obstacles to performance.

The SWOT analysis is a four-part approach to analyzing a Company’s overall strategy or the strategy of its business units. All four aspects must be considered to implement a long-range plan of action.
It cannot find the solution for you, but it will ensure that issues are: identified, classified and prioritized clearly, showing the problem in terms of key underlying issues. Decision makers can then determine the focus and direction.

Why use a SWOT Analysis?

In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a Company’s position versus its competitors and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have.

SWOT Analysis is a very effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. Carrying out an analysis using the SWOT framework will help you to focus your activities into areas where you are strong, and where the greatest opportunities lie.

Using a SWOT analysis in your organization will help you and your team reach the best solution by:

Helping decision makers share and compare ideas
Bringing about a clearer common purpose and understanding of factors for success
Organizing the important factors linked to success and failure in the business world.
Analyzing issues that have led to failure in the past
Providing linearity to the decision making process allowing complex ideas to be presented systematically.

When Your Done – Identify and Take Action

Once the SWOT analysis has been completed, mark each point with the following:

Things that MUST be addressed immediately.
Things that can be handled now.
Things that should be researched further.
Things that should be planned for the future.

Now that each point has been prioritized, set an action plan for each and assign it to a person, add a deadline.
Although the SWOT analysis will assist in identifying issues, the action plan will ensure that something is done about each one. With complicated issues, a further brainstorming session might be done to analyze it further and decide what action to take.

7 Common Business Start-up Mistakes to Avoid

Posted in: Blog, Business Start Ups by harmony | No Comments Saturday, November 19, 2011

Seven Common Business Mistakes to Avoid in a Business Start-up

You are not alone! It’s not unusual to be concerned about business mistakes in starting a new business. After all, there is a lot of talk about the rate of new business failures in Canada. However, just because some fail, doesn’t mean you need to. Here is a checklist of ideas to help you protect yourself and your investment of time and money.

Don’t worry about failing.

Not every decision you make will be correct but the ability to monitor those decisions and react fast to change the ones that are not working is the key to eventual success. Make sure you know the assumptions that have gone into those decisions and learn from those mini-setbacks. It’s a well known fact that entrepreneurs learn more from their failures than their successes.

Failing to plan

If you fail to plan, you are planning on failing. An idea is not a business plan, a marketing plan, or even just a goal. It is simply an idea. Although the planning and researching process may take a while, it will benefit you and give you a better chance of success. If something in your plan doesn’t fit just right, change it. Your business plan will never have a final draft.

Make your plan from reasonable assumptions and expectations

Keep your revenue projections reasonable with no Hockey Stick sales forecast. Make sure that each revenue category is supported by assumptions that can be easily monitored. i.e. restaurant revenue supported by daily sales forecasts built up from number of daily customers and average sale per customer. Steps can then be taken daily if these numbers are not hit. You don’t have to wait until the monthly financials are prepared.

Keep your costs and capital expenditures under control. Cash is king and is at a premium in the first year of business operation. Be realistic about the expenditures that are necessary coming out of the gate.

Hiring of staff

Hire the people with the skill set that you need, not the people that you like.
As tempting as it may be to staff your new business with friends and relatives, this is likely to be a serious mistake. Hire a core team of smart people who already know the industry and its inherent risks. Take full advantage of the talent pool you’ve created and when a problem comes up, remember that nobody has all the answers, including you.
One of your goals should be to find a manager who truly shares your vision, and to whom you can someday confidently hand the reins so that you can carry out the next step. Hire people that don’t always agree with your ideas. Be quick to fire and slow to hire.

Focus on your target

New entrepreneurs are pulled in a variety of directions at the start but to be a success, you have to follow the plan you put together and stay focused on those goals. Your goals should be clearly defined with strategies to accomplish and deadlines to hit. Also, don’t bite off more than you can chew. Keep the objectives and goals at a manageable level. If there are too many goals you will lose that focus. Be flexible, because just as lack of planning can be a problem, adhering blindly to your plan, without minor revisions along the way, is a sure fire way to steer your company off a cliff. A successful entrepreneur will constantly adjust course without losing sight of the final destination.

Recognize your own talents and weaknesses

You may make a successful start-up entrepreneur, a visionary but not be suited for managing a business once it hits a certain number in sales or employees. Recognize where your talents lie and make sure that you have the proper people in place to promote once that expertise is needed or those thresholds are reached.

Marketing.. Marketing.. Marketing … ad nauseam

Your business stopped marketing. This is probably the biggest mistake for a business start-up. The key to marketing is repetition. Make sure people think of your name for the solution to the problem they have. If they have only seen your name once, but your competitor just sent them a third flyer, your competitor will get their business. We’ve all heard that it takes more than one impression for a customer to buy, and it has never been more true. With the information available to your customers today, you want your name to be in front of them as much as possible. Use low cost or free Social Media to get in front of them regularly

The bottom line with a business start-up is to stay motivated. Starting a business is one of the hardest things anyone can ever do because of the uncertainty, the lack of a support structure, the complete and total disregard of your typical safety zone. It is all part of starting a business. But the rewards are far greater than the sacrifices. And in the end, when you are financially secure, and independent from the corporate world, it will be more gratifying than you could have ever dreamed.

10 Rules For Good Customer Service

Posted in: Blog, Small Business Needs by Denny Mee | No Comments Wednesday, October 5, 2011

Good Customer Service Made Simple

Customer Service is not a Department, it’s an Attitude

Retaining your existing customers is a lot cheaper and more profitable than beating the bushes for new ones. Good customer service is the lifeblood of any business. You can offer promotions and slash prices to bring in as many new customers as you want, but unless you can get some of those customers to come back, your business won’t be profitable for long.
Good customer service is all about bringing customers back. And about sending them away happy – happy enough to pass positive feedback about your business along to others, who may then try the product or service you offer for themselves and in their turn become repeat customers.

If you’re a good salesperson, you can sell anything to anyone once. But it will be your approach to customer service that determines whether or not you’ll ever be able to sell that person again. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue.

Sales makes the first sale, all other sales are made by Customer Service” ~ Anonymous

How do you go about forming such a relationship? You remember the one true secret of good customer service and act accordingly; “You will be judged by what you do, not what you say.” ~ Anonymous

If you truly want to have good customer service, all you have to do is ensure that your business consistently does these things:

Answer Your Phone

Make sure that someone is picking up the phone when someone calls your business. People who call want to talk to a live person, not a fake “recorded robot”. Make sure that person is trained, can speak properly, and ultimately has a customer service “mentality”

Listen to Your Customers and Deal with Complaints

Is there anything more exasperating than telling someone what you want or what your problem is and then discovering that that person hasn’t been paying attention and needs to have it explained again? From a customer’s point of view, I doubt it. Stop the sales pitches and the product babble. Let your customer talk and show him that you are listening by making the appropriate responses, such as suggesting how to solve the problem. You can’t please all the people all the time but maybe if you give the complaint your attention, you may be able to please this one person this one time – and position your business to reap the benefits of good customer service.

Don’t Make Promises Unless You Will Keep Them.

Not plan to keep them… Will keep them. Reliability is one of the keys to any good relationship, and good customer service is no exception. If you say, “Your order will be delivered on Tuesday”, make sure it is delivered on Tuesday. Otherwise, don’t say it. The same rule applies to client appointments, deadlines, etc.. Think before you give any promise – because nothing annoys customers more than a broken one.

Be Helpful – Even if There is no Apparent Benefit To You

The other day I popped into a local optical store because I had lost the screw that held the temple arm to the frame. The proprietor inserted a new screw, installed a new nose pad and cleaned my glasses. The Proprietor did not charge me. Last weekend I lost a pair of my reading glasses. Who do you think got my business to get them replaced?

Take the Extra Step.

For instance, if someone walks into your store and asks you to help them find something, don’t just say, “It’s in Aisle 3″. Lead the customer to the item. Better yet, wait and see if he has questions about it, or further needs. Whatever the extra step may be, if you want to provide good customer service, take it. They may not say so to you, but people notice when people make an extra effort and will tell other people.

Throw in Something Extra

Whether it’s a coupon for a future discount, additional information on how to use the product, or just a genuine smile, people love to get more than they thought they were getting. And don’t think that a gesture has to be large to be effective. The local art framer that attaches a package of picture hangers to every picture he frames. A small thing, but it is remembered.

Thank You

Say “Thank You” Nothing is more frustrating that making a purchase and not being thanked. It is as if the vendor does not realize that the consumer has choices.
Measurement

Measure Your Performance

What doesn’t get measured, doesn’t get done. Therefore, you must constantly measure customer service. One way to do this in depth is through regular or periodic mystery shopping. Every quarter just compare your business volume and numbers of customer retention; it will tell you the real truth.
Do positive surveys with your customers. Those employees that can overcome the daily grind of rude and demanding customers need to be recognized.

Acknowledge Loyal Customers

It’s advisable to get the names of repeat clients and the products they consume. Then welcome them by their names; it builds a very strong emotional bond between the customer and the business. Customers patronize businesses where they are treated well.

If you apply these ten simple rules consistently, your business will become known for its good customer service. And the best part? The irony of good customer service is that over time it will bring in more new customers than promotions and price slashing ever did!

Raising Capital for Your Business

Posted in: Blog by Denny Mee | No Comments Monday, September 19, 2011

Finding the Cash Capital You Need for Your Business

You are starting a business and need some capital. This is your first business and you need some ideas in raising some capital.
The first thing to do is put together a business plan that makes some assumptions on revenues and costs along with a cash flow which will set out what your needs are for say the first year or two. Whatever that number is, double it and that is your target. Capital is the primary requirement for any business to start and you never have enough. Raising capital becomes the first and most important activity once the business plan is in place.

Building a capital pool to start the business requires raising this capital from multiple sources.

Some of the sources for funds include all or some of the following.

Your own savings or funds from the selling of unused or unproductive assets.
Friends and family round, these often provide low or interest free loans to the entrepreneur and are flexible in repayment terms.
Government programs also are a source of financing. Investigate all opportunities. There are grant and loan programs for young entrepreneurs, research based companies, manufacturing companies etc. Find out if you fit in any of these areas and maximize.
Banks also offer multiple options to borrow capital. These include term loans, lines of credit, business credit cards but in a start up mode, will be dependent upon your own credit rating.
A new source of funding has been spawned with the rise of the internet called crowd sourcing. There are several sites that are worth looking at to see if they are a fit for you. Kickstarter and Rocket Hub are 2 of several and charge a reasonable fee for money raised for use of their sites.
For higher margin businesses, Accounts receivable factoring is available and in some cases purchase order financing can also be arranged.
Boot strapping. This is the practice of controlling the growth of your business slowly out of profits. As long as you don’t lose any early market advantage, this is one of the best ways to proceed as by the time you go for equity financing or more institutional funding, you have a solid track record, a history of hitting targets and your business is worth more.

Giving away Equity

All of the above alternatives raise capital for your start-up without giving away any equity. This initially should be a goal that you try to achieve. If the money requirement is higher than can be comfortably raised then giving up some equity is the next step to your success.

If giving up some equity is the decision, then here is a list of alternatives for you to look at. For nearly all new entrepreneurs who are not familiar with this type of financing, make sure you are well represented at the negotiations with someone experienced in putting these type of deals together

Angel investors are individuals with funds available that they like to use to encourage a new business ventures or help an existing one expand. They for the most part will want a small piece of equity for typical investments of 50 to 100k here in Canada.
Venture capitalists are professionals who manage pooled funds and want to see income generated. They generally back winning ideas for business and help build the capital base. Typically they will invest more heavily than Angel Investors would and take a bigger % of equity. They may sit on your board but will also help in putting the business in contact with the right people. Venture Capitalists often specialize in certain industries, locations or level of development so some research who to approach must be done.
Selling stock privately is generally not an option for small businesses but it can be considered if the entrepreneur is open to diluting his ownership. He can opt for private placement and exercise control over who he wants to sell his shares to. This is a cumbersome process that requires approvals, audits and meeting a list of conditions set out by Regulatory agencies.

8 Ways to Increase your Business Profits

Posted in: Blog, Small Business Needs by Denny Mee | No Comments Monday, July 25, 2011

You can increase your business profits, even in a slagging economy.

How do you increase business profits? Follow these 8 points, and you’ll have a good start.

1. The first thing is to know your key indices. A restaurant has to monitor the number of daily customers, the average sale per customer along with the overall gross profit on food. These indices should be monitored daily and action taken if necessary to bring back into line. For example, if the average sale per customer is down, then salespeople should be trying to up-sell by asking do you want fries with that or would you like a drink. Each business will have its own set of indices that their budget is built from. Some others are % activity, retention of customers (frequency) etc.

2. Can you increase the selling price? Have you tested prices? Have you looked at what the competition is charging? Unless you are a Walmart, don’t try to compete on price. Compete on quality or the customerexperience. By raising prices slightly it is unlikely that you would lose customers if the other things are inplace.

“You need to build addiction. Once you get users hooked to a service, price sensitivity changes.” Tomi Ahonen

3. Build your brand awareness by being active in the local community that your business is in. If you are in the service business then become the “go to expert” in that area. Join social media groups and answer questions related to your area.

4. What is the least expensive way to obtain new customers? Make sure you are using social media to get your message out. It is a low cost alternative to reach your target demographic.

5. Use your data base of past customers and contact them to find out why they left and what it would take to get them back. Use this technique also on current customers. Stay in touch with existing customers and from time to time use customer surveys. Retention of customers is key to a successful business

6. Whatever medium you use for advertising, consistently measure the results. For every new customer ask how they heard of you and then evaluate the effectiveness of you advertising regularly.

7. What other products can you sell? There’s a reason stores have candy and magazines near the checkout. Impulse sales are a great way to increase business profits.

8. Check out the competition on a regular basis. See what they are doing that is successful. Stay in touch with what is going on not only in your locale but in other areas.

To succeed in Business you need the four C’s

Posted in: Blog, Business Start Ups, Small Business Needs by Denny Mee | No Comments Monday, June 13, 2011

The Four C’s to Help You Succeed in Business

Consistency – Do the right stuff again, again and again.

“In baseball my theory is to strive for consistency and not to worry about the numbers. If you dwell on statistics, you get short-sighted. If you aim for consistency the numbers will be there at the end.” ~ Tom Seaver

Consistency is taking action on a daily basis towards your goal. Consistency is about integrity and keeping promises to yourself and doing what you said you would do.

Commitment – Through the good the bad and the ugly.

There’s an old saying

“When it comes to putting bacon and eggs on your breakfast plate, the hen supports the cause, but the pig is truly committed.

Are you really committed to the success of your business? Are you ready to lay it all on the line? Are you the hen or the pig in your business?

Co-operation – Do you have a team (a circle of relationships) working with you?

“Co-operation is the thorough conviction that nobody can get there unless everybody gets there.” ~ Virginia Burden

“Teamwork divides the task and multiplies the success.” ~ Anonymous

We can’t do it all ourselves. We need the help of others in order to succeed. This is the reason for networking and building relationships.

Contribution-Let people contribute to your success

“You have to put in many, many, many tiny efforts that nobody sees or appreciates before you achieve anything worthwhile.’ ~ Brian Tracy

Everyone is part of making the success happen.

“Many hands makes light work.” ~ Anonymous

In order to make your business a success, you have to be doing all four. There are no shortcuts to making your business a success.

BUSINESS PLANS – Why Did Mine Fail?

Posted in: Blog, Business Plans by Denny Mee | No Comments Tuesday, May 17, 2011

Write a Successful Business Plan

What can go wrong when you write a business plan? Take a look and measure what you have so far against the success criteria:

1. Not writing the plan for the specific target audience: The bulk of the plan will remain the same but the target audience (Banks, Venture Capitalists, Angel Investors etc.) are all coming at it from a different perspective and looking for different things. Keep in mind who this plan is being presented to and tailor it accordingly to their interests.

2. Plan is not put together professionally: Make sure the final plan is proofread several times by other people for spelling, punctuation and grammar. A unprofessional business plan will send a message to the prospective funder that you are sloppy in your work. Make sure that the plan is also packaged up professionally with a binder or folder, index pages etc.

3. Length of Plan: Keep the entire plan to a maximum of 30 pages. The written part of the plan should approximate 20 -25 pages with Financial projections including P & L, Balance Sheets and Cash Flows totalling 5-10 pages. Additional information will be requested at further meetings or during the due diligence round. Don’t clutter up your sales document with unimportant facts and pages.

What are the key components of a successful business plan?

1. The Executive Summary should be the first section and make sure that it sells what you are doing in clear and concise language. How much you grab their interest with this section, will make or break your proposal. The Executive Summary should be approx 2 pages and never more than 3.

2. Operational Management Expertise and Board of Directors. Make sure you highlight the management expertise that your team brings to the table. The lender/Investor has to be comfortable with the talent that is on board and if vacancies exist in the management team, mention them as they will probably be able to help. Quality and experience of the management team is a “must have” factor for investors.

3. Industry Analysis: Make sure that you set out an Industry overview including past and future trends. If the industry is trending upward how will you differentiate yourself from the competition? If downward how will you grab market share? Why will you succeed? Is your business model and cost structure a profitable one? The time spent on analyzing and describing the competition will help their perception that you know the competitive environment and are on top of what needs to be done to be a success

4. Products and Brands: Be clear in your product or service that is being sold and once again why you are different and presumably better. The reader quickly needs to acknowledge the need and niche for this product. Remember the reader may not be familiar with your industry so set everything out in details and jargon that everyone will understand.

5. Marketing and Sales: Prove that the market opportunity is there at a pricing level that will sustain profitability. How are you going to attack the market? How is your pricing established?

6. SWOT Analysis: (Strengths, Weakness, Opportunities Threats) Not a “must have” but a “nice to have”. This shows once again an attention to detail and the analysis that will make this venture a success

7. Financial Proformas: Make it believable. Don’t be too aggressive in establishing revenue projections, you want credibility and hitting the targets set is a great way to start off. Financials should include P & L for 3-5 years along with proforma Balance Sheets and Cash Flows

Understanding Business Structures

Posted in: Blog, Business Start Ups, Small Business Needs by Denny Mee | No Comments Sunday, May 1, 2011

Business Structures are Key to Business Start Ups

In Canada there are 3 different type of business structures that you can use when you are setting up your business. Each has its’ own set of advantages and disadvantages. It is best to work with your accountant or lawyer to determine which is best for you.

1. Sole Proprietorship

2. Partnership

3. Incorporated Company

Sole Proprietorship

This is the easiest and cheapest route to go and therefore the most popular. There are no registration fees nor any annual reporting requirements. Depending upon your type of business, there may be a business licence requirement.

There are however downside risks which you should be aware of:

Personal assets are subject to lawsuits and creditors as you are responsible for all of the Company’s debts.
There may not be the tax breaks that exist for Corporations
Your Company name is not protected and may be used by another company incorporating under that name. So if you are building a brand you may want to think about incorporating in due course.

Partnerships

This is similar to a sole proprietorship except that it is for 2 or more people with some kind of agreement in place for sharing. There are no registration fees nor any annual reporting requirements. Depending upon your type of business, there may be a business licence requirement.

The downside risks are:

Personal assets of all of the partners are subject to lawsuits and creditors as each of you is responsible for all of the Company’s debts
There may not be the tax breaks that exist for Corporations
Your Company name is not protected and may be used by another company incorporating under that name. So if you are building a brand you may want to think about incorporating in due course.

As a partnership, you are also at a disadvantage when it comes to raising funds. For example, you cannot raise capital by selling stock, and private investors may be wary of investing in your company without personal liability protection. Finally, just as with sole proprietorships, your company name is not protected. This means any new or existing business could incorporate using your company name.

Corporations

This is the higher cost alternative but comes with lots of advantages. Incorporating a Company will cost money initially and then a smaller amount annually to maintain registration. Good recordkeeping is a must. With this registration however comes some benefits

It shields you and members of your family from personal liability.
Tax savings
Company name protection
Ability to attract other investors and raising capital

If the decision is to take the Corporation public at a later date there will be additional costs for shareholders meetings, audited statements, board of directors, compliance costs etc.

Starting A New Business

Posted in: Blog, Business Start Ups by Denny Mee | No Comments Sunday, April 10, 2011

Preliminary Steps in Starting a New Business

Initial thought process

Determine the product or service that you want to sell. Part of this process will involve what your skills and capabilities are, what you really enjoy doing and last of all what you have experience in.

The next step is determining the amount of time that you want to spend in the business. Will this be a part time commitment , at least initially, to get it off the ground or is this going to require your full time involvement?

The next step is to make a decision as to the business model that you will choose:

1. Home based business

2. E-Commerce based (Internet based)

3. Traditional bricks and mortar

4. Purchase of an existing business

5. Purchase of a franchise

6. Multi-Level

Evaluation of the home-based business model

Benefits

You can control costs and make the business react to sales without spending on real estate or some staffing. More than half of all businesses are home based and there is no longer any stigma attached to working out of your basement.

Easily scalable to the level of involvement that you have decided on and can bring in outside help as required.

Drawbacks

As you are working at home, you are always ” on call.”

Business activities at a residential address would be restricted by municipal bylaws.

Your Bottom Line is our Business