Benefits of a Home Based Business In Lieu of Traditional Employment

In today’s uncertain economic climate, a growing number of people are looking to establish home businesses in lieu of looking for traditional employment under an already established but highly unstable business. Establishing your own home based business or start up is a relatively simple task; all that will be require of a potential entrepreneur is a solid, well thought out business idea and great care taken when executing the idea.The economic market is in a highly erratic position which leads those looking for a stable source of income to pursue self employment because it is a great way to avert a number of potential pit falls that today’s economy is littered with. Starting one’s own home based business also affords the owner absolute freedom to make their own executive decisions as to the well being of the business.Establishing your own home based business is a relatively simple process. The most important element to setting up a home based business is a solid and well constructed business model. Having a great business plan and effective form of executing your idea’s will benefit you in the long run. When working from home, you will mostly likely have a separate room or study which will be used as a dedicated home office; here you can effectively run your business at your own pace.It is easier to work at a pace you are comfortable with because it is your business; you are afforded a level of freedom you would not usually have in a traditional business. You are your own boss and you can run your business the way you see fit; there is no supervisor to report to, no strict work policies and absurd work hours. This new found freedom will significantly reduce your stress levels, while personally improving your skills as a leader and professional entrepreneur.Operating a home based business will effectively help you to grow as a professional, all while increasing your productivity. The time you spend working is directly proportionate to the money you will make in your home based business; this leads you to be more practical with time management and to utilize your skills and assets effectively. When working for yourself, you are not boxed in to one particular job with limited opportunities to branch out; in your own business, you are the CEO, marketer, accountant and secretary. You have a wide array of experiences.With the freedom that a Home Based Business allows, it is no surprise that people continue to establish their own businesses. The era of home based business start ups is only beginning.

Hiring An Auction Company

Estimating your assets value:

Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.

Compensation and Expenses:

Is the company you are considering working for you or against you? The agreement you decide may determine this.

A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.

In a straight commission structure, the company is paid an agreed upon percentage of the total sale.

In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.

In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.

In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.

What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.

Auction Expenses:

In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.

All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.

Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.

Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.

Buyer’s Premium:

What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.

The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.

It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.

Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.

Pre-Sales:

We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.

As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.

Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.

A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.

It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.

When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.

Home Based Business: 3 Excellent Home Based Business Ideas for Part-Timers

In today’s economic turmoil, people are now more receptive to the idea of building a business and are looking for home based business ideas. With all the massive layoffs that have taken place and the unprecedented high unemployment rates, it is smart today for people to have other streams of income other than the primary income stream from the not so reliable JOB. Building a home based business is an excellent method for people to supplement income and/or replace existing income. The following home business ideas can be done part-time while working a full-time job. All of these business opportunities have the potential to earn a real significant income to change a person’s lifestyle:

1. Affiliate Marketing

Affiliate Marketing is one of the many popular home based business ideas available to people. The concept is simple where you the marketer is promoting products via the internet for companies while earning commissions for each sale. Typically you will find a niche and market for the company by placing an advertisement such as banner ads, graphics, or text links to drive the consumer to buy the product. This will earn you a commission on the sales or clicks that the advertisement generates. In this business model of home business ideas, you can also build a list of a targeted market which will allow you to market via email marketing and makes sales over time and growing your home based business.

2. Network Marketing

Network Marketing is another one of the many very popular home based business ideas. The concept is similar to affiliate marketing. You as the independent representative are promoting products and services for companies while earning commissions for bringing a sale. You also have the option to promote the home business opportunities to other people. Promoting the business opportunity allows you to build a sales force and override commissions within the sales team. As your sales team and customer base grows in your home based business, the commissions and residual income grow proportionately. This business model is a very lucrative business model considering the other home business ideas because of residual income.

3. E-commerce

E-commerce is a great option for home based business ideas. The concept behind E-commerce is composed of setting up a website where you can sell products from vendors in any particular niche all across the world. Think of E-commerce as online retailing where you would sell products in any particular niche you wish. For example a variety of pet nutritional products could be sold on your website or online retail store. Another form of E-commerce, is setting up an eBay or Amazon account and selling your own products or products from companies that allow you buy bulk at wholesale pricing.

Although the three home based business ideas are conceptually simple, building any of these three mentioned home based business models is not simple and requires an investment of time, money, and commitment. Be weary of any programs promoting easy road to riches or promises of fast easy money. This is not the case with any legitimate home business opportunity. Remember there is always a learning curve to master. Anyone promoting thousands of dollars in days, weeks, even months can very well be illegitimate and should not be considered with the other home business ideas. The key to finding legitimate business opportunities is to find a company with a good track record, good product base, a fair to excellent compensation plan, and/ or excellent margins for a home based business.


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