The Key To Business Success

Everyone has heard the phrase “Location, Location, Location.” In the real estate market, this phrase has come to signify that with everything else being equal, the business that has the best location will be the one to succeed while others may struggle to make a profit. Success or failure of any business may be related to the location that has been picked by the owner.

Could it really be that simple? Can where I put my business determine the long-term success of my business. Again, the simple answer is YES!

The first thing in finding a location is to make sure your type of business is allowed at that particular location. For instance, many subdivisions will not allow business to be conducted out of the subdivision. So if you want a home-based business, check out your local zoning ordinances. Most cities have a Planning Department that you may have to deal with before you can open your business.

There are many different criteria for commercial business that you should look at before opening for business. One example is a dry cleaning operation should be located on the side of the road that most people drive going to work, for instance the right hand side of the road going into town. That way, people do not have to cross traffic to reach your business in the morning. On the other hand, a grocery store on the side going away from the city would be ideal because people could stop by and pick up food for supper on the way home.

Would your type of business do better in a strip mall or in a mall? Some businesses seem to do better in a stand-alone building. What types of people live in the neighborhood that you want to place your business? The Census Bureau is a good place to look for such demographic data. It has information about he population in a certain area. You can find information about the age, households, income, and race of people living within a certain geographical location.

The state in which you live has a Department of Transportation that will provide you information with a traffic count for the road that you want to open your business on. This is very important information. It tells you how many cars go by that location each day. These are your potential customers. Figuring out how to get them to stop at your business is the challenge.

Make sure the customer knows that you are there. This seems to be an oblivious statement, however, how many times have you been into a business that has been there for years and you didn’t know that it was there. Make sure that the people know what you are selling by advertising. A good sign is important to any business. Once again, there are restrictions that you must check into before you purchase your sign and then realize that the city ordinance will not allow it where you want it, or perhaps it is to big for that location.

Learn as much as you can about an area. Talk to other businesses in the area. Talk to people in a grocery store about what you are planning and see if they have any ideas, or suggestions. Large companies spend thousands of dollars researching an area before deciding to move into an area. You may want to hire a research firm to find out the information for you. Do not skip this step. It is very important that you know the area where you want your business.

Find out if there are any major changes coming to the area you are looking at for your business. For example, any major developments could have an impact on your business. A road change could have dramatic effects of your site. If a new road is going to be constructed that will reroute traffic, that must be considered.

In opening any business, there are a lot of decisions to be made and research to be done. Remember to take your time and you will find the right location for your business.

Paul Taylor is a business owner that helps other business owners and entrepreneurs locate wholesale distributors and dropshippers for their business. Visit his website http://www.WholesaleMap.com for more information about wholesale sources or starting a business.

Sole Proprietorship, Partnership, or Corporation?

Starting a new business can be a daunting task. There are hundreds of decisions to be made. Who, what, where, and when are not just for English class anymore. Another question that must be answered is “What form will my business be?” There are several factors to be considered and there are pros and cons for each type. In this article, I will try to briefly explain the differences between the business forms.

· Sole Proprietorship: Most people are familiar with this type of business. This form is one person or married couple that usually operate the business by themselves. This is the “Mom and Pop” type of store. The owner receives all of the income from the business but is also responsible for all for the liabilities that the business incurs. The income or loss is also reported on the personal income tax of the owner. Most small businesses are started as this form of business. This is the easiest of all of the types of businesses to open.

· General Partnership: In this type of business organization, there are two or more partners. The income is split between the partners, usually based on the amount of money or assets that each partner invests in the business and each must report his share of the income on his personal income tax form. Each of the partners have unlimited liability for the debts of the business partnership. Another drawback to this type is problems can arise between the partners. However, sometimes another opinion in a decision is just what a business needs.

· Limited Partnership: A limited partnership is similar to the general partnership. All of the general partners have an unlimited liability for the business debts. However, a limited partners liability, as the name implies, is limited to the amount of the contribution that he has made to the business. Usually, a limited partner does not have as much input as the other partners and like the other partnerships must report income on personal tax forms.

· Corporations: A Corporation is usually viewed as a separate legal entity with many of the rights and responsibilities of a person. The investors have limited liability; shareholders are not responsible for the corporation’s debts. The corporation files its taxes just like an individual. If the corporation makes a profit and distributes dividends, it cannot deduct the dividends from its taxes and the individual recipients must also pay taxes. Therefore, a corporation is taxed twice on its earnings. A corporation has other tax benefits that an individual does not.

· “S” Corporation: An “S” corporation provides the owners the benefit of being treated as a partnership on income tax, while also being treated as a corporation for other purposes.

· Limited Liability (LLC): All of the members in a limited liability company have limited liability for the debts of the business. This form of business is similar to an “S” corporation because it is usually treated as a partnership for income tax purposes, but has the benefit of limiting the liabilities of the owners.

This is a brief description of the types of business that can be operated. Each of them has many more variations that are not present in this article and an attorney should be consulted to aid you in your decision. Each form has its benefits and drawbacks and the decision should be weighed carefully.

Although corporations allow limited liability to the principals, many creditors such as banks, other companies, and landlords may require a personal guarantee from the shareholders. A partnership may be a good decision; although, one of the partners may be dealing with a “hard head.”

Take your time to weigh the pros and cons of each type of business and pick the one that is right for you.



Paul Taylor is a business owner that helps other business owners and entrepreneurs locate wholesale distributors for their business. Visit his website www.WholesaleMap.com for your wholesale needs or for more information about starting a business.

Do I Really Need A Business Plan?

First, I want to start off by answering the question in the title with a resounding YES! That is, if you are going into business, you need a business plan. However, if you were just going to start selling items at a flea market on one weekend a month, perhaps one would not be necessary. But if you are going to open a business that will be your livelihood that is expected to return a profit to you, you need a plan of how your venture will operate.

The person that is starting a new business venture is probably the one that will use a business plan the most. However, existing companies that want to expand their operations and need an influx of cash use business plans. Before beginning any major initiative most experts agree that writing a new plan or editing an existing one is necessary.

A well thought out plan may be the difference between receiving a loan from a bank and not receiving the loan. Loan officers need to see a business plan in order to make a decision whether or not they are willing to loan on the proposal.

Writing a business plan is not a one-time event. It should be reviewed on a regular basis. Most experts agree that if there is a major change in the company, the business plan should reflect those changes. Perhaps, the company has grown faster than originally projected. Or, perhaps management has changed and has new ideas about the goals of the company. There are many reasons to update your business plan. A good business plan will reflect the reality of the business organization. And business organization objectives change constantly.

Most business plans include similar types of information. Cash flow projections, raising capital, and marketing efforts are among some of the most common. However, all business plans are not the same because all businesses are not the same.

Your plan should reflect you and your business organization in the best light possible. It should tell the story about what you intend for the company from start to finish. A business plan should be written for its audience. Therefore, there may need to be several versions of the same plan, although they all should convey the same message. A plan that is to be sent to a potential partner could contain references and abbreviations that he would understand. However, a plan sent to a banker may need to be more polished, because he might not understand the jargon that you would use in a more informal setting.

A business plan should be long enough to convey everything that is necessary to get your message across to its readers. However, it does not need to be too long and contain too many facts that would confuse the person it was designed for. The more relevant information that is included in the report, the better. However, keep in mind what the goal of the plan is. If you are seeking funding from your banker, you want him to have all the facts and figures that are necessary to make a decision. You do not want him to keep calling you for information that should have been included in your business plan. It could make him believe that you are sloppy and forgetful. You want him to believe that you know what you are doing.

Remember to tell the reader about you, what your objectives are, how you plan to reach them and in what time period you expect to reach them. That is all that a business plan is. As the name implies, it is just a plan and plans change. But how can you get anywhere if you do not have a plan to get there?

Check out http://www.WholesaleMap.com for all your wholesale needs.

Do You Really Want A Business Of Your Own?

At one time or another in every life, one decides that he or she would like to open a business. You may be tired of someone else getting rich from your efforts or maybe you want the freedom that goes with owning a business.

But, is it enough just to want your own business. What does owning a business mean? What does it take to be an entrepreneur? What do you need to open a successful business? There are thousands of businesses that open one year and within a few years are closed. Everyone has been to a restaurant or store one time and when they return in a few weeks, it is no longer there and something else has taken its place. It seems as though it is a never-ending cycle.

Today, I want to tell you what I believe it means to be an entrepreneur and to own a business.

The most important thing that one must have is guts! Are you willing to put your life savings at risk? Everything that you have worked for in the past is now at risk. That savings account that is there as a safety net may have to catch you if you fall. You also must have a strong desire to have your own business. It is not enough just to want a business. You must live it, breathe it and sleep it. Therefore, you need to start a business that you will be happy with.

Although there will be good times and bad times, you need a business that you are committed to seeing through. There may be times that you have to miss a child’s baseball game or soccer practice. And when problems arise, and they will arise, are you the person that can handle the stress of it all, or do you fold under pressure?

One of the biggest challenges facing the small business owner is MONEY, or lack of it. Business experts usually recommend that you have enough money to pay your personal expenses for about a year. It usually takes at least that long to begin to show any real profit. So, the small business owner does not want to get into financial difficulty during the first few months. The number one reason that small businesses fail is the lack of funds to continue the operation.

Another question that must be asked of the aspiring entrepreneur is do I have the knowledge that it takes to operate a business and if not, can I find someone that can help me to make this business successful? Perhaps there are family members that would like to partner with you and make a family business.

If you are unsure of the type of business that you would like to start, take your time to identify the business that is just right for you. There are thousands of different businesses out there, and it may take you a little time, but one of them is right for you. Identify whether or not your business has long term potential. You do not want to be on the tail end of a fad.

It is easy to operate a business. All you have to do is select something that you like to do. Be willing to risk everything that you have saved in your life. Be willing to miss things such as baseball games and soccer practice because a machine broke down that is necessary to get out tomorrows order. Work on few hours of sleep, because you stayed awake most of the night trying to figure out what to do since your biggest customer just went to your competition. Eat on the run – if you even have time to eat. Spend time at your kitchen table writing up orders or balancing the checkbook because an invoice is due and you are running low on funds and some of your accounts receivables are not received. Call the landlord, again, because the air conditioner went out again. Find someone to work because one of your employees called in sick.

See how easy it is. But overall, most business owners believe it is worth it. Because instead of saying I work for __________, you are now qualified to say, "I am a business owner."


Paul Taylor is a business owner that helps other business owners and entrepreneurs locate wholesale distributors and dropshippers. Visit his website at www.WholesaleMap.com