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Archive for January, 2012

Buying an established business helps you avoid the fear factor

Buying an Established Business Helps you Avoid the Fear Factor

Many people dream about starting their own business, but only a few dare to make those dreams a reality. The fear of failure is often a factor behind their inaction. When you look at the numbers on new business success rates, it’s no wonder that people are scared. It’s tough to make a go with a new business–up to 60 percent fail in the first couple of years. Did you know that there’s a way to avoid failing with a new business? Buy an established business instead.

Business studies have proven that when new owners buy an established business, they are much less likely to fail. There is much less risk associated with buying a business compared to starting one from a bare bones beginning. Let’s review the advantages of buying an established business and discover why it’s such a good idea.

When you purchase a business that’s already operating, you can review real, actual results. You don’t have to base your purchase decision on estimates of the market or projections of profit. Whether or now there’s money to be made in a certain market sector or industry is something you can easily determine in a review of the financial statements.

When you start a new business from scratch, it may take quite a bit of time to start showing a profit. For at least several month, and more likely for a year or two, you’ll have to deal with negative cash flow and lean profits. You’ll be burdened by a shortage of cash and you may get tired of being creative with what you have. When you buy an established business, it should provide you with cash flow right away.

Unless it’s a one-person operation, starting a new business means finding and hiring employees to help out. You’ll need to train them in the procedures of your new business, and you’ll have to pay them of course. An established business will already have workers in place. Many new owners of existing companies often find that the employees are the best source of training and information.

Have you considered how difficult it might be to find honest and cost-effective suppliers when starting a business? Purchasing an existing company means you get to take advantage of all the previous owner’s work in finding and negotiating with business suppliers.

When you buy a business, not only do you get the existing supplier contracts, you also get a ready set of customers. An established business means established customers and referral business. These already existing sales will help to add to your positive cash flow and also reduce your need for immediate marketing.

Depending on the service or product your new business will provide, there are certain permits and licenses you have to get before you can do business. You’ll also have to reckon with federal, state and local regulations related to various issues. One of the biggest advantages of buying an existing company is avoiding the immediate need to deal with this red tape. Plus, pretty much everything you’ll need to renew the licenses and permits should already be in the files.

If you work things right, your purchase of an established business might come with a bonus. If the seller is available and willing to work with you as a consultant for a few months, you can get some valuable information on running the company. The previous owner is a great source on knowledge on finding opportunities and overcoming obstacles.

Are there any disadvantages to buying an established business? You might have to invest more money up front to cover the higher purchase price of a successful business. On the other hand, getting financing should be a snap. You’ll be able to show the bank or your investors a track record of profit and performance, as well as a fully-developed business plan.

When you’re shopping for an existing business, don’t limit yourself to companies that are currently for sale. You might be able to make an offer on an existing business that’s not officially on the market. Buying an established, well-performing business in a profitable market can help you avoid years of risk and put you in charge of a vital, growing company.

The real value of gold jewellery

The Real Value Of Gold Jewellery

Gold has long been the accepted international standard of wealth. Even in today’s market, with gold at record highs, there is a demand for gold jewellery. Gold is the standard for wedding rings, which are more stylish than ever in an attempt to reduce the amount of gold needed to make a ring. Of course solid gold bands are always in style, but so now are lighter designs with raised bridgework and small settings that make the most of less gold in order to be affordable. On the other hand, there is also a high demand for “bling” in gold jewellery, large and flashy pieces that simply can’t be missed. Often this gold jewellery is plated, but the high demand for quality and the soaring gold prices have also brought back to popularity vermeil jewellery, or gold plating over another precious metal like silver. Advances in plating have also created a market of higher quality, or gold filled, plated gold jewellery.

Gold jewellery used to often turn up at pawn shops or estate sales, with older pieces often being large, sometimes gaudy, but of higher quality. An unfortunate side effect of the ever rising price of gold is that a lot of this heirloom quality gold jewellery is being removed from the market and melted down. This makes gold jewellery of this quality even more expensive and attractive in the current market, due to it’s dwindling availability. There is also a resurgence of older designs, large and intricate pendants, even broaches, being made by designers looking for something different. In a culture that generally values smaller as better, these flashy “bling” items are gaining popularity as they offer a feeling of originality in a market full of tried and true standards.

With so many holidays and special events marked traditionally by gold jewellery, there will always be a demand for these timeless expressions of love. Birthstone jewellery, often making use of semi-precious stones rather than more expensive precious stones, is traditionally gold jewellery. And of course Valentine’s day is another traditional time for gold, when a diamond necklace or tennis bracelet might be an appropriate gift of jewellery. And no marriage proposal is complete without an engagement ring, possibly the most common gift of gold jewellery. This of course means anniversaries, which are also often marked by a gift of jewellery. Gold is generally hypo-allergenic, so for someone with sensitive ear piercings gold might not be just preferred but necessary as a setting for a pair of earrings. Even necklaces and bracelets made of less expensive metal may irritate, making gold jewellery the only option for some.

Gold jewellery means different things for different people, whether it’s a piece handed down over generations or an upcoming new purchase. Gold is often used to express love, or as a sign of status. It can lend a feeling of security, or remind one of good times. And in hard times, it may be the financial leverage that gets you through a rough patch. Regardless of what gold jewellery means to you there is little doubt as to it’s timeless value.