The World’s Greatest Business?Retail Sales Online
Retail sales online offer unparalleled opportunity for start-up businesses and for added growth for existing retail businesses.
But are online sales “the World’s Greatest?”
Check out some of these trends, then you decide.
Looking Ahead
Even in the midst of one of the toughest retail environments in decades, online retail business is poised for solid growth. Forrester Research says online retail business will grow 10 percent each year for the next 5 years. And experts expect online retail sales to hit a quarter of a trillion dollars by 2014.
At the same time, the National Retail Federation is expecting about 2.5 percent growth for all retail sales in 2010. With 4 times the expected overall growth, the online retail business looks strong.
Good Times Now
Predictions of what will occur in the future aside, what is happing right now in online retail is impressive.
Estimates are that in 2009, sales from online businesses hit 5.2 billion. During the holiday season alone, retail business on the Internet topped billion, a 17 percent increase over the previous year.
Watch the Hidden Trends
Whether you’re considering an Internet retail business start-up or you already own a retail business and are considering expanding to the Web, it will pay to look at the hidden trends.
By 2014, Forrester predicts that over half of all retail sales will be influenced by the Internet. That means if your retail business isn’t online, you could be missing out on the chance to attract 1 of every 2 potential customers.
Staying the Course
Some entrepreneurs grow frustrated if their online business doesn’t take off immediately.
But we caution against giving up too soon.
Just think of Amazon.com, the pioneer in online retail. Amazon made its first sale in 1995 and didn’t post a profit until 6 years later.
Your start-up Internet retail business won’t take that long to pay off. But the point is an online business is like other businesses in that they all require work and commitment.
The potential for great reward is there, but you need to understand that all your work is worth the effort.
Share the Wealth
It doesn’t really matter what segment of the retail business you are in.
Electronics? Sales grew 17 percent in 2009 to .6 billion. Clothing? The 2009 total of billion in sales was up 17 percent as well. Computers? They also posted billion in sales, up 7 percent.
Great Opportunity
The following figures might make the case as to why online retail business is the world’s greatest.
Just take a look at the room for growth. In electronics, for example, that .6 billion in sales only represented 14 percent of total electronic sales. For clothing, billion is only 10 percent of retail sales. Think how much room there is to grow.
Stating “The World’s Greatest Business-Retail Sales Online” might seem like a bit of stretch at first. But the potential for growth and the amount of market share still to be gained make a very strong case that this is a true statement.
Do You Need A Diagnosis Of Your Personal Finances?
You’re probably reading this question and wondering are you kidding me, I don’t think that my finances are sick, maybe a few problems here and there but what does a diagnosis have to do with my personal finances? Well, if you’re having a problem with your personal finances and you cannot determine what the problem is then wouldn’t it be great if you were able to identify the problem you may be having with your finances? That’s right, you would be diagnosing your own problem with your finances up close and personal.
If you’re able to diagnose a current problem with your own personal finances this may help you to alleviate further damage to your finances. You’re thinking to yourself, yes maybe diagnosing my personal finances may help me but, I’m really not sure about this. Well, let’s take a further look to determine if diagnosing your personal finances is something you should consider doing. Interestingly, Janet and Joseph were also a little apprehensive about diagnosing a problem they had with their personal finances too, but, they decided that they would take a stab at investigating the problems they were having with their finances.
Joseph and Janet were having problems meeting their mortgage payment each month along with some of their other household expenses. They just could not understand where all of their money kept going each month. They both had very good jobs, no children and not many bills to pay. Their combined net income is approximately eight thousand dollars a month. It seemed when the first of each month rolled around they struggled to make their monthly mortgage payment of ,500. They just could not understand why they were living pay check to pay check with the amount of income they were bringing into their household each month.
Joseph and Janet decided they would sit down and diagnose their personal finances. They just could not continue to go on being frustrated and stressed out each and every month about their bills. They decided to use the following tips to diagnose the problems they were having with their personal finances:
Tip One: Write down all of your monthly expenses including the following: mortgage or rental payment, vehicle loan, credit card bills, utility bills, etc… Try to ensure that you include all of the monthly expenses you have to pay. Accuracy is the key here.
Tip Two: Calculate other expenses that you may pay on an annual, bimonthly, semi annual, or quarterly basis which may include bills such as; home or renters insurance, property tax, vehicle insurance, health insurance, etc…
Tip Three: Secure all of your credit card, debit card and store receipts. Calculate these receipts as part of your bills for each month as these particular expenses were incurred.
Tip Four: Look at your bank statement and balance your checkbook. This will be an important factor in helping you to diagnose your personal finance problem. Go over your statement and checkbook register as close as possible.
Tip Five: Tally up all of your income received monthly. This means any money you have received coming into your household each month.
Tip Six: Take a first, second, and maybe a third look at your expenses and income to determine where your financial problem may be. It’s somewhere there, all you have to do is locate it. You can do it, just look, seek and you will find. Just keep looking and you should be able to diagnose your personal finance problem. Keep in mind persistence, consistency and perseverance and determination is key here. Just stay focused and you should do just fine in diagnosing your personal finance problem.
After spending several hours going over their expenses and income, Joseph and Janet were elated that they were able to diagnose their personal finance problem. They discovered that Joseph had an awful habit of using his debit visa card on expensive daily lunches while at work and also weekly visits to play golf at his favorite golf course. In addition, Janet also had a fetish with going to her local mall to buy clothes three times a week after she left work. These extra added expenses incurred by Janet and Joseph really added up each month and neither one of them had any idea what they had been doing to themselves financially.
This information discovered by Janet and Joseph enabled them to make the necessary changes in their spending behavior to regain control of their personal finances. This also allowed them to meet their obligations of paying their monthly expenses each month on a timely basis. Joseph and Janet also found they had additional money left over after they paid their monthly bills so they were able to set aside money for their savings account.
Joseph and Janet found this was good time well spent diagnosing their personal finance problem. They are so happy they took action to take control of their personal finances rather sooner than later. So, if you think you may need to diagnose a personal finance problem you may have, go ahead, get started and take action to get back into the driver’s seat and control your own personal finances today, you’ll be glad that you did.
Buying a Franchise – Evaluating Franchise Investments and Franchise Disclosure Documents – Tips From a Franchise Expert and Franchise Attorney
Millions of people dream about owning their own business. Having the independence that being your own boss brings, the security that no one can fire you, enjoying a good income – and for the most successful – the accumulation of wealth and prosperity. Unfortunately, the cards are stacked against a new small business making it big – or making it at all. An endless stream of problems makes competition from large, sophisticated chains too intense. Many new start-ups end as failures.
Buying a franchise represents a different approach to starting a business. For an upfront franchise fee plus ongoing royalty payments, the parent company teaches its business model and methods to the franchised-operator who shoulders all operating and financial responsibilities of the outlet. Some statistics are impressive: it is said over 40% of all U.S. retail sales are through franchised establishments. While franchise giants like McDonalds, KFC, H&R Block and Radio Shack are familiar, household names, franchises are available in a wide range of industries. The list of 3,000-plus companies selling franchises span over 100 different industry categories.
American Dream … Or Nightmare?
But just as franchising represents a chance to get rich, it’s also a chance to get stung. An alarming number of franchised operators make less than the minimum wage, working seven days, sixty to eighty hours a week, pursuing an expensive and elusive American Dream that turns into a nightmare. Since the ongoing franchise royalty payment comes right off the top, as a percentage of gross sales or a fixed minimum amount, the franchise company gets an assured revenue stream, even if its franchised units are operating unprofitably and are sold over and over again to new, unsuspecting buyers. The internet is filled with comments of the many people who lost 0,000 and more on concepts like eBay Drop off stores (iSold It), 30 Minute Fitness concepts (Curves), The UPS Store, etc. Yet many of these companies continue to sell and resell franchises over and over again. How do they accomplish that? Because there are enough people who think they can “believe” their way to success, even with a concept or business that’s not working in the marketplace. As discussed below, in many cases franchise investment decisions are incredibly based on emotionalism, not on business logic or even common sense.
Ownership And Being Your Own Boss?
Pride of ownership and being your own boss are highly touted phrases in franchise recruitment ads. But these are more fantasy than reality. Although you get all the financial exposure, headaches and stress of business ownership, what do you really own? A franchise owner is merely licensing a trademark (or service mark) from a company that dictates every detail of business operations. So the real boss isn’t you, but the company that sells you their franchise rights . . . and sea of franchise obligations.
Equity Build up?
But at least you’re building up equity, the ownership value of the business as a going concern beyond your investment of money, to compensate for all those years of hard work and long hours – right? Wrong – at least in the world of franchising. The franchise company reserves rights to acquire your entire business at below wholesale prices if their contract is not followed precisely. The acquisition rights provide for predetermined asset-based valuations, like book or liquidation value. These valuation methods provide bare minimum compensation (the used value of some file cabinets, office furniture, equipment, etc.) and are not generally used to determine the selling price of any business.
Absolutely no compensation is paid for established goodwill, the value of a business that is generating $ X in profit or cash flow every month after years of effort, investment and expense – thus eliminating the most valuable ownership asset. Of course, you may be able to sell your franchise to a third party for a sales price that includes an earnings-based valuation. But that’s possible only if:
(a) you can find a buyer who is willing to live within the complexities of a franchise relationship, and
(b) you happen to own a franchise that’s showing healthy profits.
What follows is a bottom-line franchise checklist and tips compiled by franchise attorney and franchise expert, Mr. Franchise, based on reviewing over 500 franchise offering circulars and twenty-eight plus years of experience in the franchise industry – including ownership of a very successful franchise. These factors to consider in making a franchise investment will help you eliminate 95% of the companies you are considering. Then, you can concentrate your efforts on the 5% “cream” of the crop” companies that may deserve consideration. This franchise checklist assumes you’re suitable for and willing to live within the confines of a franchise relationship. It also assumes the franchise company:
(1) has itself successfully operated the concept being franchised for at least five years at multiple locations;
(2) is not plagued by franchise litigation and franchise lawsuits from disgruntled franchise owners;
(3) does not have unusually high franchise attrition rates (owners who have “left the system”); and
(4) has a balanced, fair franchise contract.
SOLD It – An American Dream That Turned Into A Nightmare
An example of a franchise company in trouble that failed to meet basic threshold standards is iSOLD It, an eBay drop-off store franchise. The company started its one and only company-owned store in November of 2003. Just weeks later, on December 10, 2003 they filed an application to sell franchises. The California Department of Corporations didn’t say “What are you thinking? You’ve only been in business a couple weeks, how can you even consider selling franchises?” Nor did they require this be disclosed as a risk factor on the cover page of the Franchise Offering Circular, as it should have. Disclosure responsibilities ultimately rest with the company (and its attorneys), and this will become one of many issues in future franchise litigation.
Instead, the Department simply collected its 5 filing fee and issued an order declaring the franchise registration effective the next day – on December 11, 2003. Then the magic of franchise marketing took over. By 2006 the company had nearly 200 franchised drop off stores in operation and was touted by Entrepreneur Magazine as #1 in their list of “Top New Franchises for 2007” and #17 on their “Hotter Than Hot” franchise list. Entrepreneur Magazine, which requires franchise companies to submit their FOC’s (Franchise Offering Circulars) for supposed review each year before they’re listed, didn’t consider the high attrition rate (franchise owners leaving the system) or the fact that the audited financials in their FOC showed the company hadn’t operated profitably since 2004 as serious negatives and awarded iSold It the #1 listing for Top New Franchises of 2007. How did all of this happen? It’s yet another bizarre reality in the world of franchising.
The franchise company’s audited financial statements for the year ended 12-31-05 showed an operating loss of .1 million. Nine months later, in September of 2006, the net operating loss mushroomed to over million.
In its November 3, 2006 Franchise Offering Circular, the table in Item 20 disclosed a total of 10 franchise owners leaving the system, yet a hand count of Exhibit D-3’s “Former Franchisees” revealed a significantly different number – 44. A similar “discrepancy” exists about franchise transfers. Item 20 says 12 transfers whereas Exhibit D-3 discloses 27.
In a long overdue letter distributed to franchise owners on April 5, 2007, CEO Ken Sully painted a dire picture of an American Dream that had turned into a nightmare. Mr. Sully’s letter admitted the company has not been profitable since 2004 (according to the audited financials, the company showed its one and only operating profit of 6,286 in 2004 before the precipitous downward spiral of 2005 and 2006). Over 60 franchised stores have closed and many more are struggling for survival. Mr. Sully observed “Tragically, many individuals who believed passionately in the potential for the category have lost sizable investments, including homes and retirement savings.”
Lost homes and retirement savings? How could such a travesty happen? I counseled a number of persons considering an iSold It franchise and warned all of them against the investment. Fortunately, they followed my advice. The concept was never proven in the marketplace before franchise efforts began, violating the most basic Franchise 101 precept. I also felt the management team lacked strong franchise credentials and the five-day training program was woefully inadequate. Finally, the franchise company was operating increasingly in the red and had a high attrition rate (owners leaving the system). It didn’t take a lot of brain power to see this was an accident waiting to happen. I predicted the bubble would burst and, sadly, it did.
Common sense could and should have prevented so many people from losing so much. Unfortunately franchise sales persons appeal to emotions (passions and potential, to use Mr. Sully’s terms) and strive to keep common sense and business logic out of the buying equation. If a franchise company is able to obtain a ranking on a media list, the sale is even easier. Reprints of high rankings on lists, like Entrepreneur Magazine, are included in the package given to franchise buyers, who are lulled into a false sense of security and begin to stumble over each other in a rush to sign up before someone else takes their
Should You Buy Worldwide Brands? Check Out This Review First
Looking for an alternative source of income? This may be reasonable since our economy has experienced crisis recently. Nowadays, our normal salary from 8-hours work sometimes can’t sustain every day’s expenses anymore. Hence, we tend to find other source of additional income.
You’ll find a variety of people reviewing Worldwide Brands out there that aren’t even members. I am a member, so if your looking for an honest review stay with me for a few more moments.
Then why not consider dropshipping? With dropshipping, you as the reseller can directly market the items to your patronizers through the aide of the internet without even having any stocks on hand. Make time to think and study on which particular product you will be selling. Along with this, it will likewise be great to know your interest to know why you have chosen that product and how to best sell them. Aside from your interest, you must also consider and also think if this type of product is among the normal needs of the people. Pick a thing that most people are seeking since they’re the most selling.
Worldwide Brands dropshipping encompass selling and dropshipping of different product. This is when you, as online seller should have a website or eBay selling account. Your site will function as your electronic store. You’ll put all your promoting items to your site so that your customers will be able to purchase from there. Nonetheless, you don’t have to be able to keep the products with you. The products will be supplied and shipped directly to your customers by Worldwide Brands dropshippers once bought. All you have to do is to promote the products as its best.
These are simply among Worldwide Brands’s ways in helping you reach success through dropshipping. This directory is loaded with lots to make available you, from the quality of their products to how they held to you their customer help and the grade of their service.
As a lot of people who are just starting out are earning the same huge mistake, you may want not to be one of them – there is an excellent eBay tutoril which is absolutely free, and shows you exactly what process you have to follow step-by-step, to choose those profitable products to sell. You will also get to know what it looks from the inside.
Here are a few other sites you might want to take a look into:
Worldwide Brands Dropshipping
Worldwide Brands Review
Worldwide Brands Discount
Top 5 Business Security Secrets
Copyright (c) 2009 Dr Mark Yates
It’s no secret that globally businesses are navigating through troubled times. The global economic downturn is having a catastrophic effect on businesses. When well known high street names that have been in business for up to a hundred years go bust, then businesses need to evaluate their business development strategy.
One other factor which adds further misery to businesses trying to survive a recession is that crime increases exponentially. Crime against businesses is one of the first sectors to rise in a credit crunch. Large numbers of people are laid off or made redundant,they lose their income and many struggle to come to terms with the low income provided by the welfare system.
Those with criminal tendencies will turn back to committing acts of theft and fraud to raise money. Organised criminals also experience financial losses in any economic downturn and sadly businesses are usually the criminal’s first port of call.
My top 5 business security secrets are designed to assist all businesses to increase their security effectiveness and minimise the security risks of theft and fraud.
Top 5 business security secrets #1- Conduct A Security Audit
Every business has security requirements, the problem is most managing directors and owners fail to realise this critical factor until it’s too late. By too late I mean it generally takes an incident of employee theft, fraud or an act of vandalism or product tampering for the MD or owner to consider implementing security counter measures.
This is a positive first step; however security is best applied as a preventative procedure, rather than post incident. If security counter measures are applied post incident then the insurance premiums will have already been increased, or flagged for increase during your next trading year. Many MD’s and business owners then take it upon themselves to conduct a security audit. This generally is pre-programmed for failure as unfortunately most MD’s and business owners don’t know what they don’t know.
By this I mean, very few are skilled security specialists. The MD or owner security audit is generally driven by price, i.e. they will usually purchase security products based on the cheapest price, whereas a security audit specialist will focus on quality security products that will stand the test of time and assist in providing business support to the company as the business grows and prospers.
A security audit for an SME size business can often be conducted in one to two days.
Top 5 business security secrets #2- Form A Threat Management Unit
It is safe to say that most business applications and concepts that materialise in the USA tend to find their way across the ocean to the UK at anything between 5 to 15 years later. Threat Management Units or TMU’s as they are known in businesses, are big in the USA and it’s only a matter of time before UK businesses jump on the bandwagon. The role of a threat management unit is to analyse all perceived and actual threats to any business and then implement business continuity strategies to ensure the business doesn’t fail because of critical incidents. All business aspects are covered by the TMU including, business growth, joint venture partnerships, due diligence, directors legal responsibilities to employees, employee checks, risk assessment and risk management,crisis planning, downsizing, redundancies, and a host of others. A threat management unit generally consists of two or three company employees, usually the senior company director or partner, the head of personnel or human resources and a manager. The threat management unit is then supplemented by a security consultant or a security director. ( see top business security secrets #5 for further information on security director.) It is important to realise that a threat management unit can and should be formed by even the smallest businesses as the strategies put in place can ensure that small, medium and large businesses can survive and thrive in the event of any critical incident.
Top 5 business security secrets #3- Design And Test Your Business Continuity Plan
It’s difficult enough surviving the current economic downturn without having to face the corporate trauma of losing your business
because an external critical incident had an indirect or direct impact on your business. In the aftermath of the London7/7
terrorist bombings many businesses were affected by this critical incident. Sadly a number of them although not directly affected by the bombing were forced to close down. Many of them were small and medium size businesses. Local coffee bars and retail outlets closed because the police and security services closed down the streets to pedestrians where these businesses were located. Some of the pedestrian restrictions lasted several weeks as scenes of crime officers meticulously investigated these areas. Few small or medium businesses can cope with a loss of all revenue for several weeks.
However if any of these businesses had a business continuity plan in place alternative methods would have been pre-identified to continue with income generation during the time of crisis. Business continuity plans are not restricted to acts of terrorism. They include any type of critical incident which can happen to any type of business small or large. For example; A fire or a flood
destroys your office or shop, an electrical fault blows all your computer and communications equipment. An employee steals valuable data and sells it to your competitors. A disgruntled former employee returns to your business to harm members of your work force. A business continuity plan is a fantastic investment for any business who are seeking long term sustainable business growth.
Top 5 business security secrets #4- Research Your Business Competitors
All intelligence agencies conduct ongoing research and surveillance on their competitors. The old cliché of knowledge is power that every business coach and mentor bands around is severely flawed. Knowledge is not power. Power comes from the actions you take from gaining knowledge. I’m not suggesting you hire a platoon of former KGB agents to spy on your competitors although I personally know that this service is available although generally only to larger businesses. What I do advocate is the ancient Sun Tzu Art of War principle of, ‘know your enemy-know yourself’. If this appears somewhat extreme then it’s time for a reality check, your business competitors are your business enemies and the war is driven by annual turnover and increased profits, hence the need to research your business competitors.
With such advanced research technology offered by computers and the internet researching your business competitors has never been easier. For example most online search engines now offer competitor analytics which allows you an insight into how much they are paying for online marketing campaigns and who they are targeting.
Just as it is in covert intelligence operations, being one step ahead of your competitor is key to success. In business this translates to long term business growth, sustainability, increased turnover and profits.
Top 5 business security secrets #5- Hire A Security Director
This business security secret #5 should not be dismissed because you think it is too expensive or beyond your reach.
A select number of security experts and consultants hire themselves out to businesses on an annual retainer basis. The benefits of this concept are many. You and your business will have the ear of a security expert on call 24/7. You will not have to pay a full time salary for this security director, nor will you have to pay PAYE, national Insurance, holiday or sick pay, nor will you have to pay executive director benefits. In fact I know of some security directors who are retained by small business consultancy agencies for small to medium size businesses for the salary equivalent of a junior administrator. The fees payable for your security director are of course tax deductible. When you factor that this security director generally has a wealth of security experience and contacts which will all assist in your business growth and expansion of your business, then it’s a very small price to pay.
A professional security director will be able to produce your security audit, and assist with your risk assessments and prepare a business continuity plan in case your business faces an unexpected crisis.
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