Legacy Foundation Business and Leadership

Archive for June, 2010

Are you thinking international? One of the most profitable ways to do business is to do it internationally. Anyway, it is nothing to run to. Unfortunately, today, if you are thinking of doing business abroad, then there are important factors that you will not ignore.

First, you must consider the current world economic crisis. There are big companies which were previously being doing good business abroad but have since closed or laid off majority of the workers. Nevertheless, this is not a concrete reason to stop your dream. Have in mind that the crisis is just about to end.

Secondly, you have to consider the value of the currency that the country you intend to invest in operates in against your own currency. You must ask yourself if the currency you will operate in will be favorable for your operations. You must put into consideration the fact that the value of currencies appreciate and depreciate within a very short time.

Thirdly, you must know the kind of business you want to engage in. There are businesses which do well regardless of the economic situations. I have written much on investing in the three basic needs. That is, food, clothing and shelter. Regardless of economic conditions, people will still eat, buy clothes and live in house. These are just a few examples of what you can comfortably invest in without much worry.

Fourthly, the country itself should have a good environment for business establishment and growth. There are countries where the political situation is so unpredictable. Do not invest in such countries unless you have direct links to supply the government. International investments can be very tricky sometimes but remember that trick business earns more. Remember that today; we not only need people who can think outside the box but those who can think without a box.

Are you working on your business plan for computer consulting?

If you’re like many others starting their own computer consulting businesses, you are probably used to doing a lot of generalist work.  Perhaps you’ve been doing some computer repairs, basic network installations, troubleshooting or answering help desk type questions.

So given that many have similar skills, what can you do in your business plan for computer consulting that will set you apart from the competition and bring you the best, steady, high-paying clients in your area?

Know What Being a Generalist Actually Means. Before you can set yourself apart from other generalists, you need to understand what exactly defines the term “generalist.”  As a generalist, you’ll probably be answering basic how-to questions; troubleshooting; designing networks; providing basic training; acting as a go-between with phone companies, Web hosts and ISP’s; making product recommendations; procuring hardware and software; managing IT assets; configuring and customizing; testing; integrating and planning big-picture IT strategy.  Basically as a generalist, you will do everything.  So writing a business plan that will make you unique, even when you are doing a lot of generalist work, is really about figuring out what you offer that no one else is providing.  In other words, what can you provide that’s of unique, compelling value?  And how can you play this up in a big-time way in your marketing messages? Show You Are Not a Commodity. If you want to set yourself apart from others that have just a flimsy or non-existent business plan for computer consulting, base your plan around making sure that you are not seen as a commodity by potential clients.  Therefore, make sure that you never to base the value of your services on price.  For example, you can’t base your uniqueness on something like, “We are different from everyone else because we offer the cheapest computer consulting services you can find.”  You need to find your real strengths and base your business on the problems that you solve for your clients and the benefits that you offer your clients.  This problem-solving, benefits-focused approach needs to come through loud and clear in all of your marketing materials.  And ultimately this goes a long way toward attracting less price-sensitive clients that are more value-oriented and willing to pay higher hourly billing rates for premium services and results-based, ROI-centric projects (return-on-investment). Focus Your Business Plan for Computer Consulting on Long-Term Clients. If you want to wonder where your business is going all the time, worry about your next pay check or scramble to make ends meet, by all means build your business around one-shot deal customers.  But if you really want profitability and longevity, focus on providing long-term solutions to steady, high-paying clients.  When approach with a well thought-out sales process sequence, most of these clients will ultimately sign on for ongoing service agreements and be with you for the long haul. So sell benefits that will appeal to those really looking for a long-term, technology-focused business improvement plan, and not just short-term quick-fixes.  As you’re thinking about the benefits you are going to offer, make sure you really consider how you can fulfill long-term needs and convince your target prospects, customers and clients of the importance of real technology planning to the health and success of their companies.

In this short article, we talked about 3 tips for building a powerful, long-term business plan for computer consulting that attracts great, steady, high-paying clients.  Learn more proven secrets about creating a strong, profitable business plan for computer consulting now at http://www.BusinessPlan4ComputerConsulting.com

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B2B Business Opportunities

Why Should You Buy a B2B Business?

Buying an existing business is often a simpler and safer alternative to starting your own business. There are more financing opportunities available for the purchase of a B2B business compared to buying a business that only sells products or services to consumers.

Advantages

Time, money, and energy are required to startup or purchase any business. If you start with a new service, concept or an invention, you should be prepared to self-finance the business costs and your living costs for two or three years. When you purchase a B2B business, you can finance 80% to 100% of the purchase price with commercial financing.

Cash flow will start immediately with existing inventory, accounts receivables, an existing staff, business clients, and customer goodwill. You can finance your growth.

Disadvantages

The initial purchase price requires a cash down payment. Additional operating capital may be required during the transition period as you establish and implement your new business plan. Since the customer base, brands, and other fundamental work have already been done, the down payment may be substantial. The purchase price may be excessive. Inventory may be over-valued and accounts receivables that are valued at the time of purchase may turn out to be not collectable. Business brokers and consultants can help to avoid these problems.

Opportunities for Growth

You should determine your target company’s readiness to expand its operations locally, nationally or internationally and ascertain its ability to increase production of a particular product or service. You should systematically and objectively identify your target company’s strengths and weaknesses concerning these issues.

Financing Opportunities

When you purchase a B2B business with commercial financing, a Financing Statement (Form UCC1) is filed to perfect a security interest in named collateral, such as accounts receivable, inventory and equipment. The UCC1 establishes priority for the lender in case of your default or bankruptcy. It is a first lien on the business assets.

Many banks offer SBA 7(a) loans for Long Term Financing of:

• 51% or more Owner-Occupied Commercial Real Estate Purchasing & Refinancing

• Construction or Improvements

• Debt Refinancing

• Working Capital

• Equipment Financing

• Purchasing a Business

• Partnership Buyout

The SBA 7(a) loans provide for fully amortized maturities up to 25 years. Through their partnership with the SBA, banks can provide up to 90% financing for the purchase of Commercial Real Estate and up to 90% financing for debt to finance the purchase of a business. A UCC1 is required as a first lien on the transaction.

Many commercial finance companies offer accounts receivable financing, inventory financing and equipment financing to help B2B businesses grow. A UCC1 is required as a first lien on the transaction.

Both types of financing are available with proper structuring and negotiation if you purchase a B2B business. The SBA 7A loan may be obtained to purchase a B2B business with a carve-out for the commercial finance company to have a UCC1 lien on their portion of the financing. With financing for growth combined with financing for the purchase of the business the opportunities for success of your business increase. The advantages are: you can market for new business; accelerate cash flow to meet payroll, supplier and tax obligations; and have the opportunity to negotiate larger contracts for your products and services. If you purchase a B2B business without the carve-out, you may have closed the door to financing for future growth.