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Month: August 2015

What Is a Business Partner?

What Is a Business Partner?

The very term business partner or partners indicate that more than one person is engaged in a commercial enterprise. Generally, a business partner is misunderstood to mean that the partner has invested capital in the business. But this is not always the case. A commercial enterprise may offer a partnership to an inventor or manufacturer. The partner shares in the profit by giving exclusive manufacturing or selling rights to the enterprise that offers him or her partnership.

Partners can be family members, and this is the case in a number of small and medium-sized firms. Family members are made partners for several reasons. Of course, the major reason is that the business continues to remain in the family even after the death of its initial owner or one of its owners. Secondly, the tax paid by the business is reduced when there is more than a single owner.

That’s why brothers and sisters, husbands and wives, and fathers and sons are the co-owners of a number of commercial enterprises. Companies ranging from shops to factories to multinationals are generally owned by a family. Even in large public enterprises the major stockholders are members of a single family. Certain partners are ‘sleeping partners’, which means that they invest in a firm and get a fixed income for their investment or share of the profits. They have no say in the running and managing of the business.

Today the business world is witnessing a radical change from traditional business partners who were mostly family or friends. The internet is largely responsible for heralding in this change. Nowadays business partners is referred to more as commercial enterprises joining together to expand their business objectives. A classic example of this type of business partner venture can be found when Dell agreed with Intel to only install their processors in their computers.

Nowadays, small business ventures seek partners to market their products. All partner agreements are time-based and legalized. As the internet has brought more competition among businesses, a number of business owners have signed up with international partners to expand their business.

Today a business partner can be a supplier, a customer, an intermediary, or a vendor. Resellers and agents are described as business partners. Complimentary vendors are those who depend on each other to sell their products, like a hardware manufacturer and a software supplier.

The term ‘business partner’ has taken on a new dimension as businesses have changed. Small and large companies especially those who complement each other prefer to become partners. Both retain their own individuality, and at the same time, profit from each other.

If there is a business that’s doing well and wants to expand its operations, it will easily be able to find international partners. Becoming partners can be tricky when two firms that are based in different countries decide to enter a partnership, as the first hurdle is to decide which country’s laws will govern the partnership. However, a number of business partners have profited by joining forces and forming a partnership.

Business Acumen – Buying Out a Small Business Partner

Business Acumen – Buying Out a Small Business Partner

Looking for buying out a partner generally refers to businesses searching for information on how to purchase the shares of another partner. Partners may decide to leave a business if they are retiring, relocating, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner is to determine how much the partner’s shares are worth. This can be determined a number of ways. Value could be based on the market value of the company, the amount invested by the partner, or a pre-determined price detailed in a partnership agreement.

The next step when looking to buy out a partner is to find capital to finance the buyout. Though most lending institutions do not provide loans specifically for buying out a partner, they do offer loan programs that can be used towards any general business purpose. Most buyouts require large sums of money, and to apply for a large loan, lenders usually require personal and company financial documents, a business plan, and credit reports. Collateral is also required for secured loans, which can provide lower interest rates than unsecured loans.

If a business is looking to replace a partner, it may be able to obtain funding from an investor. Partner investors contribute large sums of capital in exchange for a portion of the business’s profits and a voice in the business’s decisions. In the case of buying out a partner, an investor could purchase the shares of the leaving partner and become part of the business.

Small business buying out partner usually refers to small business owners searching for information regarding buying out another business partner. Partners may wish to sell their shares of a company when they retire, relocate, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner in a small business is determining the value of the partner’s shares of the business. To resolve this problem, many businesses with two or more owners create and sign a partnership agreement that predetermines the value of every owner’s share of the business. For partnerships that do not have an agreement like this, the value can be determined by looking at how much the partner invested in the business or how much the business is currently worth on the market.

Once all partners have agreed on a selling price, the owner buying out must find financing. Most lenders don’t offer loans specifically for buyouts, but their loans can usually be used for any business purpose. Buyouts typically require large sums of money, and lenders have more extensive requirements for large loans. To get a lowered interest rate, many borrowers use personal or business assets to secure the loan.

Another source of financing for a small business buying out a partner is another investor. If a business owner can find an investor who is willing to purchase the other partner’s shares, then the owner will not have to take out another loan. The business owner simply gets a new partner to work with.

Business Opportunities To Choose From

Business Opportunities To Choose From

Home business opportunities are virtually everywhere you look online. And the promoters of each home based business opportunity often claim that the opportunity they promote is the best business opportunity to join. This often makes it difficult for newbies to make the right choice, the choice that best suit their situation. This article takes a look at the four broad categories of home business opportunities so you can identify the option that suits your circumstances and, therefore, makes an informed choice.

The four broad categories of home-based business opportunities are:

1. Opportunities that involve building an information-rich web site from scratch and after that monetizing the resulting traffic

2. Opportunities that involve joining affiliate programs that offer unique affiliate links for promoting the affiliate product or service

3. Opportunities that involve joining a network marketing home based business opportunity that offers free distributor web site to members and

4. Opportunities that involve getting paid a fixed amount for completing a set of tasks online

Let’s take a closer look at each option above.

The first online business opportunity involves building your dream online business from scratch.

The right process requires you to do the following:

identify your passion

brainstorm topics that fall within your passion or interest using appropriate brainstorming software

identify a profitable niche that matches your passion or interest

Assemble low competition keywords that define your niche

Draw up a site blueprint

Design your website

Write content for your website using the low competition keywords brainstormed earlier

Promote your website massively online

Add income generating streams to your website

Cash your money month after month

If you conclude that the above process is tedious and time-consuming, you’re probably right.

But why?

It’s because it’s business… it’s online business. And online business takes time, effort, and creativity just like offline does.

The second home business opportunity mentioned above is affiliate program marketing. With this type of online business, you join the affiliate program of your choice and promote the affiliate links you’re given using a blend of online marketing techniques. Some online marketing techniques will produce more results than others. So, you need to track your sales promotion efforts or campaigns to determine what works and what doesn’t for the specific affiliate program you promote. Then drop campaigns that don’t work and do more of what works.

The third category of home based business opportunities is MLM home business opportunities that offer members free distributor websites to promote the MLM business opportunity. As with the affiliate program model, members of this type of MLM business opportunity promote their member website URL and register new team members using the tools on the member site they were given.

The fourth online business opportunity involves completing a set of tasks in expectation of being paid a pre-determined amount.

This kind of opportunities include:

paid to write

paid to attend to customers (online customer service jobs)

… and other such online job opportunities.

WARNING: Verify that the internet job opportunity you’re interested in is legitimate before you join!

Each of the home business opportunities described above has their pros and cons.

Option 1 above requires you to do a lot of work without immediate reward. With this type of online business, you’re basically writing an online book or journal. And you don’t get paid for writing a book until it’s finished and it starts selling, right?

In simple words, this option is a long-term business where you build traffic or your own customer base through content writing and marketing. This is a tedious but rewarding way to build a long-term business. With this type of home based business, you own your traffic or customer base. And when you own your traffic, you own your business.

Option 2 is affiliate program marketing. This system involves selling a product or service by finding a market for it. Depending on where you advertise or promote the affiliate programs, you can begin to make money right away.

Here’s one thing to remember, though.

Not everyone makes money from promoting affiliate program products despite spending a lot of money in advertising.

Why?

It’s because affiliate program marketing success requires a set of skills. To succeed, you need to learn the skill-set that guarantees success. Option 3 is much like option 2. You get paid for promoting a network marketing opportunity.

However, unlike most affiliate program opportunities that are free to join, virtually every network marketing home based business opportunity require members to join with a registration fee. Besides the registration fee, members must buy at least one pack of the MLM product they promote every month to stay active and qualify to earn commissions (at least in most programs). This means there is a maintenance cost for most MLM business opportunities.

Option 4 is the most direct form of online business. You get paid to complete a set of assignments. The problem with this is that it’s like having a day job… when you stop working, you stop earning. Whereas with the other kinds of home business opportunities discussed above, you can build your business to a point where what you earn far outweigh the efforts you put in. And you can put your business on auto pilot.

What home business option is right for you right now?

It depends on your current circumstances. In my candid opinion, the overall best option is one that allows you to build a long-term business and put your business on autopilot down the road.