Purchase, Join or Start a Business

1. Purchase, Join or Start a Business

2. Purchase an Existing • Advantages • Already has the necessary equipment, suppliers and procedures in place • The seller of a business may train a new owner • There are prior records of revenues, expenses and profits • Financial arrangements can be easier

3. Purchase an Existing • Disadvantages of Buying an Existing Business • Many businesses are for sale because they are not making a profit • Serious problems may be inherited • Capital is required

4. Enter a Family Business • Enjoy the pride and sense of mission that comes from being part of a family enterprise • Enjoy working with family • Poor business decisions could be made because senior family hold senior positions and might not be the best choice • Family politics • Hard to maintain a work life balance

5. Locating a Retail Business • Downtown Areas • Neighbourhood Shopping Centers • Community Shopping Centers • Stand Alone Stores • Warehouses

6. Nonretail Business • Service Business • Industrial Businesses • Home-Based Businesses

7. Select your Site • Location Type and Availability • Evaluate the Location • Lease or Buy • Design the Layout of your Business

8. Types of BusinessesGoing into Business Eight Questions to Ask Before Going into Business • Why Start Your Own Business? People who desire to be the boss and take responsibility for making decisions often decide to run their own business. They believe it is the best way for them to achieve financial independence, to allow them to use their skills and knowledge, and to be creative. • What Different Types of Businesses Are There? service business retail business not-for-profit organization manufacturing business • What Are Your Skills and Interests? Different ideas, skills, and knowledge can be used to start a new business. Two popular ones are home-based or Web-based businesses.

9. Chapter 2: Types of BusinessesGoing into Business • Should Your Business Be Home-based? Technology has changed how SOHO (“small office, home-based”) businesses operate. Computers, scanners, and Internet access are a few of the tools that home office businesses use today to be successful. ii. Should Your Business be Web-based? E-commerce (“electronic commerce”) is a marketplace where consumers and sellers meet without face-to-face contact. In the “real world,” products are tangible. Products and services are sold to us by personal contact with the sellers. In cyberspace or online, we do not interact with products or come face-to-face with the sellers. Our experience with services is limited or non-existent. Consumers are often reluctant to purchase online due to unreliable or dishonest businesses and privacy issues.

10. Chapter 2: Types of BusinessesGoing into Business • Where Can You Find Information About a Business? Businesses require accurate and current information to make good decisions. Important resources to find information include • What Are the Start-up Costs? Capital resources to run a business are available through debt financing referred to as borrowing money to run the business. Using your savings or investor savings called equity financing is an alternative way to fund a business. • libraries • trade associations • the Internet • existing businesses • federal and provincial governments

11. Chapter 2: Types of BusinessesGoing into Business • What Level of Risk Can You Expect? Even with research and planning, business can be risky. Risks or threats beyond and within the owner’s control can put the business in financial difficulty. • What Steps Are Involved in Running This Business? Some types of businesses, such as manufacturing, are complex. A complex business requires many people with different skills to successfully start and operate it.

12. THE HOME BASED BUSINESS IS IT RIGHT FOR YOUR BUSINESS & YOU?

13. some themes for today • Why from home? • Assessing the fit for your business • Assessing the fit for you • Businesses that succeed from the house • The advantages • The disadvantages • Giving the appearance of being a player • Equipment you will need • Some tips • Additional resources

14. why out of the home? • Keep overhead down • Test the waters with your concept • Secondary income stream • Why not?

15. businesses that seem to operate well out of the home • Mail order operations (MOPS) • Bed and breakfast (Tranquility Base) • Light manufacturing (surgical instruments • Leasing (televisions, computers, helicopters, heavy equipment) • music industry promotion (R. Rapidi) • consulting services • Bookkeepers • Graphic/web design (Zapp Design) • Recording studio (Grant Avenue Studios) • Event planning (It’s ‘N Event)

16. very large businesses that started home based • Apple Computers • Microsoft • Ford Motor Company • Phillips Services Corp • Amblin Productions • MoeTion Productions • Michael G. DeGroote/Laidlaw Transport • Disney • Hewlett-Packard

17. What is tax deductible? • Any expense incurred for the purpose of gaining or producing income and • incurred with a reasonable expectation of resulting in future business and • is reasonable under the circumstances including: • House taxes • Mortgage payments • Utilities • Landscaping • House repairs (do not include improvements) • Snow removal

18. how much is tax deductible? • Revenue Canada (CCRA) allows the taxpayer to choose between • the number of rooms devoted to the business or • the proportional floor space • Whichever is to the advantage of the taxpayer

19. the benefits • So ‘traffic is building normally’, so what? • Can see your children off to school • Can see your children home from school • Can be home when children sick • Keeps costs down • Can deduct expenses that otherwise are “personal and living expenses” • Can work as hard as you want • Not in the mood, then do something else • Very flexible

20. assessing the fit for you • Do you have the discipline? • Can you stand the isolation? • Any by-laws restricting you from doing this?

21. giving the appearance of being a player • Separate phone/fax line for business • Having a post office box for address • Separate work/office area • Having an office that is all business (no toys, home theatre setup, no recreation room appearance, etc.) • Separate entrance for business • Receiving guests in office located at front of house • Serious outgoing phone message • Use a cell for business only • Hold meetings at clients only

22. equipment you will need • Separate room • Cell phone • Business telephone line • Ident-a-call fax line • Fax machine • Laptop • Scanner • Black and white laser printer • File cabinet • Desk • Good chair • Good lighting

23. some tips • Go to work as though you go to work • Remember that between 8 and 5 you are at work • Reward yourself after the completion of an ugly task • Blend mental with physical work • Get out (networking, coffee, your rounds, etc.) • Find a nice way to excuse yourself from telemarketing come on’s

24. some tips continued… • Turn your business fax telephone off at night • Answer the phone professionally • Practice good time management • Get dressed properly if it helps to provide the right frame of mind • Know if you are a morning or night person • If your quit time is 6:00, then that’s it for the day

25. watch out for these • Disturbing neighbours (no trucks, many visitors, bad hours, etc.) • Respecting local by-laws about soho’s • Getting distracted to the point you get nothing done • Getting insular and not networking or getting out • Getting lazy

26. 5:20 to knowing more • Video series in SBRC • http://www.bizoffice.com/ • http://www.business-at-home.us/ • http://www.aahbb.org/ • http://www.usahomebusiness.com/ • http://www.usahomebusiness.com/ • http://www.homebusinessmag.com/ • http://www.homebiztools.com/