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Is Starting a Business For Me?

Entrepreneurs start businesses at any time, regardless of the state of the economy or opinions of others. They are driven by a dream and desire to bring something of value to the market and society. And, are not afraid to experiment and fail along the way.

We are fascinated with people who make something out of nothing, invent products and show us new ways to use well-known stuff. There are individuals who are driven by grand ideas and have vision to do great things. Others are modest in their undertakings and have a simple desire to provide for their families.

Most of us have entrepreneurial qualities but for different reasons do not find ways to utilize them. The first question that comes to mind of any aspiring entrepreneur is “Is starting a business for me?”

This is a great question and deserves an honest answer. Most individuals can own and successfully operate a full-time or part-time business. Being a business owner is rewarding but a challenging endeavor.

The aspiring entrepreneur would like to know what it takes to start a business from the ground up and be a business owner. Business ownership offers many benefits such as being able to full fill a dream, seeing the fruits of your labor and directly benefiting from it, not being dependent on capricious bosses and the latest corporate restructuring. You have more control of you destiny by owning a business than working for someone else.

However, business is like a living thing and needs constant attention. In a start up stage it requires a lot of creativity, dedication and total commitment. It requires significant amount of energy to take off the ground and face the challenge and ambiguity. Even though people often are aware about the difficulties they may encounter still, tens of thousands of business are started every year in the US alone.

It is helpful to introduce some streetwise wisdom: It takes three to six months to test a business idea to find out if it is worth pursuing it and make it a business. After you successfully test your idea, it takes about three years to find out if you have a truly good business concept. And takes over ten years to become truly profitable.

Most start ups require full-time commitment. However, in many occasions a part-time business may be a better route to follow. Often family, career or civic commitments limit the time available for entrepreneurial ventures. In this situation individuals can embark in a start up as time permits. Part-time businesses it still require regular effort. For example, a hobby is suited become a part-time businesses. It requires minimum learning and can quickly produce results. However, usually would have limited market and is difficult to grow.

Another way to enter business ownership is to buy an existing business. It allows instant access to established operation, owner expertise, customers and income. However, you are buying someone’s dream. Each business reflects owner personality, desires and values. Buying an established business is less risky but, does not diminish the need for commitment, effort and dedication. There is no guarantee that you will enjoy higher rate return on investment than staring your own.

Only, one that absolutely loves to work for large organizations or for others and always avoids any form of risk should not try to start or own a business. Such individual may not be able to condition his mind to small business dynamics. It is better to look for a new job, not wasting time and resources starting or buying a business.

Starting a business from the ground up needs considerable effort and resources but, is exciting and potentially very rewarding endeavor. It attracts young and old, people who want to fulfill life long dreams and ones that are looking for income to support their families. Most start ups and small businesses fail but they always allow us to gain valuable experience and help us learn a great deal about ourselves. It is worth starting a business before you are restructures out of a job or being old and never tried to fulfill a dream.

Internet Business Or Traditional Brick & Mortar Business

During this economic down turn many people are looking for various ways of making money, and due to the recession people now realise that job security is a thing of the past and can not be relied upon as in recent decades where an individual would stay with the same company for 10 to 20 years or more.

When one opportunity is gone there is always another waiting to be realised. There is now a growing trend towards internet businesses which can come in many business models.

Generally it could be MLM or Net Work Marketing, Affiliate Marketing, Dropshipping, Brokerage, Advertising, Community and many more. There are countless opportunities springing up all the time, it is estimated that there are one and a half billion people using the internet globally and growing at an overall world wide rate of 23%.

With the recession in full flow and the banks reluctant to lend money with out security, it’s worth your time and effort to look at a internet business compared to a traditional bricks and mortar business before making any commitment.

Assessing a traditional business to begin with The first thing that is required to start a business is money or funding possibly business loan, loans in the current economic climate are almost non existent unless you are a using some form of security.

Let’s break it down, what type of business? This will involve acquiring a business premises of some description securing a lease agreement, Forming a new company, refurbishing cost’s new equipment, insurance, advertising, upfront fees for utilities, business cards etc, at a conservative estimate the cost for this small enterprise will be approximately to the tens of thousands, Then there is the hiring of staff to consider and many other hidden cost related to the specifics of a business.

You will require running capital to manage the business on a weekly basis this is specific to the individual and the type of business.

People who start up a new business under estimate the true cost. That’s because they have no experience to fall back on, also there are all manner of other important points that need to be factored in before even starting. For example feasibility study, location, products, competition and the time scale it will take from acquiring your premises to your new business opening date this is a single most stressful period as there will no money coming in and plenty going out of your pocket.

An estimated 90% of small businesses fail with in their first year.

To start an Internet business, looking at the start up cost. As mentioned previously The search for the right business model that an individual may wish to sign up to is an obstacle in it’s self as the vast array of online opportunities can have opposite effect and confuse the prospective entrepreneur there are many business models to go by but the cost in comparison is minimal to a regular business, a website hosting and domain will set you back to the hundreds add to this specific software which you may need to run your particular business can also be a couple of hundred. For few hundred Dollars you are ready to go at a basic level. On the higher end of the scale a top tier programme can be in the thousand bracket, it’s all a matter of choice as to what you as an individual would like to pursue.

Once the initial set up in an internet business is complete the major cost in the running the business will be in promoting it. The various forms of advertising are wide-ranging whether it is paid or free.

Paid advertising or direct marketing can be quite costly although considered the most effective. But this is only to be attempted once the individual has a good grasp how pay per click works or you will lose money. There are other, free forms of advertising. Writing articles, participating in newsgroups, print advertising, and email marketing are other examples.

Statistics reveal that there is an astonishing 95% fail rate in starting out in online businesses.

• With the internet business you never have to stock anything
• No staff and staff salaries to worry about
• Be open for business 24/7 to a potentially global market
• No commuting involved therefore saving valuable time & money
• Potential to earn with very little start up capital is enormous
• Risk is kept to a minimal

Right now there has never been a better time to start an internet business!

Business Owners Insurance Protects Businesses From Unexpected Risks

Various businesses during their course of daily operations may face unexpected risks that affect efficient functioning and profitability of businesses. Business owners insurance indemnifies the owner of businesses from various risks to which the business are exposed and from business related liability exposures. It is in best interest of owners of companies to have this insurance as any damage or compensation claim can have a significant impact on the business.

It Protects:
The business owners insurance provides necessary protection against workplace theft, damage, accidents, and injury and third party compensation litigations.

Damage or Destruction of Business Material
Business owners insurance provides protection to owners of businesses in case of damage or destruction of business material, office equipments, inventory, vehicles etc during the course of operations. Even the loss of material, furniture, machinery and other structure due to fire is covered under this insurance. This insurance entitles the owners of business to receive an amount to compensate the cost of damage. This insurance also provides coverage to damage or destruction of cargo during transit or storage. Also, it provides coverage to loss or damage to business property or material due to employee theft, fraud, dishonesty, or any criminal act done by employee.

Loss of Income
Uneventful problems, damage, or fire may occur that can ruin the businesses and leaves them incapable to operate efficiently. The businesses as a result suffer from loss of profit and inability to make payments for expenses like taxes or debt payments that needs to be made even when the business is not operating. The business owners insurance provides protection against loss of income incurred due to closure of businesses due to fire, explosion, or similar incident that leaves business premises and vital business equipments unusable.

It enables the owners to cover the losses due to stoppage of business operations. Coverage is also provided for losses incurred by owners due to mechanical breakdowns or other machinery crucial for efficient running of businesses. This insurance helps owners to take care of expenses that the business would have earned in normal working conditions.

Theft or Loss of Tools or Equipment
A lot of machines, equipments, and tools are used and required for efficient running of business operations. These machines, equipments, and tools are sophisticated, expensive, and needs to be handled with care. Any damage or theft of these equipments or tools can significantly harm the productivity, efficiency, and profitability of businesses. Business owners insurance provides coverage to any form of damage or loss to tools or equipments due to theft, burglary, or robbery during the course of operations.

Crime Coverage
Business owners insurance provides coverage against loss or damage to business property, tools, equipments, and machinery due to crimes such as theft and damage due to employee dishonesty, embezzlement, and frauds. Web-based businesses are provided coverage for losses due to cyber crimes done by computer hackers and viruses.

Business owners insurance also provides for liability coverage arising due to bodily injury to workers, employees during the course of employment. Third party compensation litigations due to property damage, advertising injury, and personal injury due to slander, libel, invasion of privacy, and copyright infringement are also covered. This insurance covers all the legal costs that are incurred to defend the cases and the compensation amount, in case the business is sued.