internet business model

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Selling Your Business? How Will You Price It?

Saturday, October 3rd, 2009

Is this the right time to sell your small business? A recent report on CNN noted that median asking prices for small businesses in the first quarter of 2009 was $250,000, but the average sale price was $165,500.

Sellers used to base their asking price on three years worth of a company’s financials. That was a rule of thumb to determine how much cash the business would generate in the future. However, that equation is out the window right now. Current pricing is increasingly based on cash flow and revenues, which are depressed now because of the economy.

If income from selling your business is your nest egg, it may be time for you to consider putting off retirement for a few years while waiting for revenues to increase.

Another factor is that with unemployment at record levels, prospective buyers who are looking for immediate cash to cover their living expenses aren’t going to buy based on a business’ future potential. Buyer interest is up, but many don’t have the cash they had a year ago. In addition, the availability of capital from banks and other lenders is still significantly depressed.

The recession is hitting industries across the board, and industry observers don’t see prospects improving any time soon.

Instead of selling, small business owners may want to consider starting a second business, in a different industry than what they are operating in now. It is possible to create significant income without committing major funds to a new venture.

One such opportunity exists in a new internet business model. It has helped many current and former owners of brick-and-mortar businesses (including yours truly) start over in a new industry without the drawbacks of inventory, overhead, employees and location which limited their previous businesses.

For an initial cost which is less than the price of an average new car, small business owners have transitioned into a new business which has the capability of providing retirement income, and given them the option of waiting to sell their businesses or liquidating and devoting full attention to their new internet business.

To learn more about how this can work for you, sign in here.


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I Hate Small Sales and Cheezy Deals

Sunday, September 20th, 2009

When I closed the stores I had operated for seventeen years, I went looking online for a legitimate home based business. Something that would not be really hard to learn, and would give me money fast.

Well, what I found online was a lot of things that I really didn’t resonate with. There were a lot of low-end business out there promising quick returns and no learning curve.

Suddenly I realized that I was recoiling from the pain of closing my stores. I forgot that when I opened my stores it took three to five years for each to get into profitability mode. I forgot that one has to work, if one expects to get results. There is no fast and easy ride. At least there isn’t one in retail, so why would the internet be any different?

I realized that all the offerings I was seeing were simply not for me. I didn’t rally believe them, when they said that everything would be really easy and the money would just start coming in. I have to admit that I lost a few dollars by joining one or two small little deals which promised fast returns. I went into them thinking “If this works it will be great.”

Here’s the deal: What it comes down to is that I thought there must be something better, and I did a bit more looking. I kept looking until I saw something which pretty-much matched what I knew must be out there.

I found a new internet business model which is not a get-rich-quick scheme, and it doesn’t promise to be easy. It doesn’t promise anything – other than the same things which franchises promise – a standardized way of doing business, and great training in how to operate this particular business on the internet.

Those two things really resonated with me, and then I saw an aspect of the business which completely got my attention: They offer the option of selling high ticket items.

I like selling high ticket items. My paintings sell for thousands of dollars. The furniture I sold in my stores was also expensive, with an average ticket of around a thousand dollars per sale. At last I found something which would yield me that kind of return on the internet.

This business model changed everything for me. It had the capability of replacing the income that I had from all of my stores when business was great.

And what I gave me was the training on how to operate on the internet. Honestly, when I first considered doing business online, I knew how to write emails and do searches, and a few other modest things, but I was no wiz.

I knew that there was advertising online, and thought it must be like the advertising I was used to, magazines and newspapers. I quickly learned that some aspects of advertising are the same in all media, but without specific training in internet marketing, business owners are sunk.

This company that I found actually gave me great training in how to market online. It was the start of a great, liberating adventure.

To learn more about how this can work for you, sign in here.


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Starting Business Online When My Stores Went O.O.B. (Out Of Business)

Thursday, September 17th, 2009

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Have you ever had a business fail, gone out of business and been faced with starting over in a new industry? I have been faced with that situation many times, and have always found a great solution. Here’s my story:

I am an artist and an entrepreneur. When I graduated from art school (MFA, School of The Art Institute of Chicago) over twenty-five years ago, I had no marketable skills, so I went to work at a job. That lasted about two years, and I realized that I had I really had to be an entrepreneur and make my own way by having businesses of my own. I have not had a real job since then.

What I have done is start many brick-and-mortar stores and other traditional types of ventures. Some thrived, some tanked. Some went through the entire cycle from startup to success to expiration. The last ones were a small chain of art galleries and upscale decorative accessory stores which I operated in Southwest Michigan and Chicago for seventeen years.

Of course, the economy slowed down and with that my businesses slowed down. I slid deeper and deeper downhill into debt just trying to meet payroll and finance the inventory, and finally I was forced to close them.

I tried MLM (multi-level-marketing) and was extremely disappointed with the results. After years of dealing with upscale merchandise and professional clients, selling low-cost items to masses of people held no appeal.

I went online looking for another business to start, but ended up disappointed. What I found were new versions of old-style MLM.

Then I changed focus. I began to realize that there were successful online businesses which did not follow that model. They also were not new versions of inventory-based enterprises like online stores.

I discovered a new internet business model.

As soon as I found out about it, everything started to change. Of course it took re-adjusting my ideas about how to do business, because I was used to brick-and-mortar. I didn’t know how to operate on the internet. But what I found was a solution to all that. I found training which allowed me to learn how to market successfully on the internet, and how to thrive.

I found a business model which was capable of restoring, and even going beyond, the income I was getting from all of my stores when they were going at full-speed profitability.

This new business model allowed me to start again in business without prohibitive startup costs like a franchise, without the limitations of territorial restrictions, without the problems of overhead, employees, inventory and debt and expenses which had dragged my stores into the ground. The new internet business model got me started in business again.

Information on the new internet business model can be found by signing in here.


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