Home Business Mission Statement – Why a Mission Statement For My Home Based Business?

As you begin to venture into home based business it is important to have a mission statement. Businesses at all levels from simple mom and pop stores to large fortune 500 companies all have a mission statement and you should not be any different. A mission statement is defined as a brief one or two sentence statement of the fundamental purpose of your business, or put another way why does your business exist. In the home based business arena people have the tendency to not view their business like a real business and that is a mistake. Having a mission statement can have a dramatic impact not just on the type of business but also in the way you conduct your business as well. Here are 3 other things a mission statement will do for your home business:1. It defines your why – Have you ever asked yourself why do I want a home based business? Identifying this one thing is critical to your motivation to continue. Running a business from home takes time, commitment and effort for it to work. It comes with frustrations and successes. Sometimes when you are first starting out there are more frustrations than successes. Knowing why you are in business can keep you focused on the prize you are trying to grasp while you are learning and growing your home business.2. It defines your values – All businesses have some type of business culture which is driven by the values of the company. Your values in essence tell who you are. They are ultimately the way you will choose to operate your home business. They will dictate how you treat your customers and how you build your team. If you are building a network marketing team your values can become a critical selling point as to why someone should join your team. They will speak volumes to your character and your integrity. Your values should flow directly out of the reason why you are in business. Remember you are not just running a business but you are creating a culture and your values will help shape that culture.3. It keeps you on track – One of the biggest problems especially in this internet age is distractions. If you search online there are thousands of home business opportunities out there. Knowing what your mission statement is will allow you to only consider opportunities that line up with your purpose and what you want to accomplish. In fact before you even consider a business you should write your mission statement and only find businesses that correspond with that. Imagine the power you will now have because now you can’t be sold into just any home business because now you’re not just looking for any opportunity. Opportunities you consider must now meet your criteria and not the other way around. By the way every successful business person looks at opportunities this way.Your mission statement is critical to your why, how and way you will do business. Not knowing these things can damage your home based business before it ever gets off the ground. Take some time and identify these things. It will change the opportunities you consider and it will make a huge difference in your home business.

How a Top Home Based Business Idea Can Turn Your Business Around

Looking For A Cost Effective Method To Gain Exposure? Read on!If you are self employed or are a small business owner, you’ll want to stay informed on every top home based business idea available. Although building a successful business in the current economic climate may seem impossible, keep reading and you’ll learn some cheap and easy methods to drive your business into profitability…and beyond!The internet is one resource that is very often overlooked by home based business owners. With a little effort, exposure through the internet can increase your sales by exponential proportions.You Need Multiple Exposures Before Making a SaleAnyone who has tried to sell a product is aware that it can take multiple exposures, up to 12 actually, before a consumer is willing to make a purchase. Traditional methods of advertising can produce this level of exposure but it can be costly and is typically out-of-reach for home based business owners.The internet is an inexpensive and effective alternative for any small business. Focusing on a product or service and presenting this to each visitor on your website and blogs can be the top home based business idea you’ve been looking for.Follow These Steps:1. Place a bookmarking link at the top of your website’s home page. Include text asking each visitor to bookmark your site. Visitors are more likely to return once they’ve done this.2. Set up a blog and update its content regularly. Blogs have become a very popular way to gain exposure and your business is no exception. Prominently display subscription links for RSS feeds to your blog and offer email update subscriptions.3. Sending out a newsletter each month is a good way to draw visitors back to your site. Be sure to include information that is both relevant to your audience and related to your product or service wherever possible.A newsletter sent out once each month is reasonable to keep in touch with past visitors and potential customers. Be careful not to send too many emails out to your subscriber list. If they feel they’re being spammed, they are likely to unsubscribe.4. Encourage new visitors to sign up for your mailing list by adding a sign-up button to each web page. Also include a sign-up link on the sidebar of your blog. This will automate the addition of a sign-up link to all subsequent blogs.Don’t Be Shy!Keep in mind there exists a balance between building relationships and credibility as well as your ultimate goal of making a sale. Don’t be shy about asking people to purchase your product or service whenever you follow-up with potential customers.As you can see, the advice laid out in this top home based business idea illustrates how to generate more exposure to your customer base through consistent quality communication via the internet.

The Right Way to Start a Home Based Business Opportunity in 7 Simple Steps

Exactly how does one set about eating an elephant? The original response to that question is, “Only one bite at a time!” It is the same with any large task, really. Taken all together, it could be formidable. Break it down into parts, steps or sub-tasks, and each of these is much less formidable. Your specific steps can each be relatively easy, something that’s no problem, which can be done. And once you have done all the small-task steps, you gaze back and see that now you have gotten the entire formidable-task thing done. It is exactly the same with how to start a home based business opportunity.Here is a route to tackle the formidable task of starting a home based business opportunity from scratch, in 7 simple steps.Step 1. Find A Free Home Based Business Opportunity or at least a free to start home Opportunity. For this you will need to search the internet via Google or yahoo. If you neglect this or do not do it, you should expect to jump into a wrong business opportunity which could end up into tears.Step 2. Get As Much Information as Possible for your Home Business. This step is important because you need to make sure, that you feel comfortable with the business and you might have some knowledge about the home business niche ).Step 3. Get the Right Home Based Business System. Which means that you need a system that take the most work of you when it comes to promote the business opportunity on the internet. It will likewise signify that the home business have the tools and resources ready for you, so that you can concentrate on advertising your business.Step 4. Get An Auto Responder For Your Home Business. This will involve getting leads and prospects for you by collecting email addresses from potential customers.Step 5. Get A Mentor For Your Home Based Business. An important point to bear in mind here is that a mentor can show you the right way to start a home business from scratch successful.. The reason that this might make a difference is that it will take years to collect all the information you need to be successful online. A Mentor will save you time and get you on the right track.Step 6. Never Stop Advertising your Business on the internet. Consistent advertising will give you more leads and more customers for your home based business.Step 7. Be Patient and be Aware, that it will take some time and effort to see results in your home business opportunity. So don’t give up when the going gets tough. Great! Now you’re almost there! Remember, being successful and starting a home business is one of the best opportunity to make some money online.While you take the steps explained above, the large elephant-problem you had shall be “eaten up” one step at a time, “devoured” and dealt with. You’ll become successful, complete your project and then enjoy your winner’s rewards, the fruits and advantages of your victory! Congratulations for your triumph! You undertook a tremendous challenge, overcame it and won, taking 1 step at a time!

Home Based Business: Trust

In a home based business, trust is of utmost importance. you just cannot forge trust regardless of how one tries. It is very important for an entrepreneur to say what they mean and stand for what is said consistently for it to penetrate through to your customers and potential customers. You have to be constantly straightforward and honest. If something is declared regarding merchandise, a business owner must ensure to deliver on that assurance since it is hard to get a second opportunity to build a first impression.Home based business customers distinguish that they have a say and if they perceive a sham, they would not think twice of telling others. If you wish to spoil your home based business and your name or business name, do not make a guarantee and observe what comes about. If somebody has a query that is difficult to answer, then you should not be embarrassed to let them discern that you will do all in your ability to get the answer right away, and do not disregard them no matter what you do otherwise they would not speak of anything although you will no longer hear from them for a second time and they will set off to the business rival and open out the remark regarding your pitiable service. An entrepreneur’s goal is to be distinguished from the competition.Innovative technologies, in addition to a revolution in the way people, as a social order, feel regarding work, has caused a lot of people leaving the office or work place for the autonomy of a home office. However, home is not only an annex of the office or work place. It is a home base business for a lot of entrepreneurs who are in search of finding a totally new way of making a livingHome based business is a very extensive subject matter. Something essential to keep in mind is that the marketplace is constantly shifting. To be thriving, you have to be ready to continually check and try new-fangled ideas. By no means should you take something for granted and you should constantly seek progress. One factor is obvious, if one proactively endorses oneself and their product, his or her business will fail. Ensure that the product is practical to your projected customers. Check that the product really does what it declares it does. Take on a business at home that is suitable for you and you will discover that it can be satisfying and profitable. Also, when it comes to home based business, distinguish what people require, what they want and willing to shell out for it.Home Based Business is the future for many people of today, the world is changing at such a fast pace today, that sometimes it’s hard to keep up with all the technology that surrounds us. So long as you try to keep yourself updated by spending a few hours each week catching up with the changes, then there is no reason why you will not have the success you desire with your home based business.Copyright (c) 2011 Steve Duval

How to Defuse the Legal Time Bomb in Your Small Business

Unlike a typical time bomb, this one will not be ticking. There won’t be any warning signs. No specially trained dogs will sniff it out. No swat teams will swoop in and prevent its detonation, and as luck would have it, it will probably go off at the worst time.Fortunately, you can find this time bomb quite easily before it detonates. You can begin your search by checking your filing cabinets, file boxes, desks and drawers for any documents with “agreement” written on it. If they’re still active agreements, slowly pull ‘em out.Agreements form the foundation of many small business transactions. Transactions between customers, landlords, vendors and government agencies are frequently governed by written agreements. What’s interesting about agreements is that they govern future activities to be performed under known and unknown circumstances – an inherently risky proposition, unless you can predict the future.So let’s think back to when you first started your small business. How many actual “knowns” did you have? Would you say a lot has changed since you first entered into agreements necessary to get your small business going? If your small business is like most small businesses, a lot of things have changed, good and bad. As a result of these changes, you may be in breach of an agreement without even knowing it. We’re going to take care of this though.On a nice slow morning or afternoon, grab a hot cup of coffee, tea or booze (if it has been one of those weeks) and take a few hours to flip through those agreements you pulled out to determine if you might be in breach of any of them. Boring? You bet, but it’s one of those necessary boring things, like filing a tax return or waiting in a doctor’s office. So with your agreements in hand, you may use this non-exhaustive list of clauses that might need to be reviewed:
Restrictions on permitted use of leased equipment
Restrictions on who is permitted to use leased equipment
Restrictions on use of leased property
Insurance, license and certificate requirements
Restrictions on items stored on leased property
Written consent requirements
Restrictions on leasehold improvements
Restrictions on modifications of equipment
Lessee obligations
Lessor obligations
Now, if you find something, I don’t expect you to wake that sleeping giant (I probably wouldn’t), BUT you may be able to start putting a plan together to help soften the blow in case the other party starts looking for a reason to terminate the agreement for a more lucrative opportunity. You can start planning a defense, perhaps a worthwhile explanation for your breach, or looking for substitutions, such as new suppliers, a new location or whatever it may be. Once you collect information for Plan B, just keep it on file in case you have to move quickly. You may even want to keep a cash reserve on hand in case the issue might result in litigation. Who knows, but you’ll be following the Boy Scout motto (i.e. Be Prepared), and your small business will thank you.I appreciate your reading this post, but we both know you’re probably not going to rush to your files at this minute and start going through all your legal documents (unless you know you’re in breach and this post has reminded you of the possible financial time bomb that’s seriously near going off), but I highly recommend you pull out your lease agreement, if you have one, and this can be for equipment or real property, and just flip through some of the pages to see if you’re a beneficiary to a very favorable lease agreement on account of a change relating to the property you’re leasing. (I say favorable lease agreement because that would most likely mean it’s unfavorable to the other party.)For example, if you entered into a lease for retail space in an underdeveloped community when property values were still low, but because of several revitalization initiatives in the same community, the value of your leasehold has quadrupled over the past few years, you should be especially weary of your landlord looking to replace your leasehold with a higher paying tenant. Handshakes and smiles are great, but at the end of the day, it’s business, and if there’s a lot of demand for your space, and you’ve opened the door with an inadvertent breach, you will want to be ready for a breach of contract claim by your landlord.All isn’t bad with agreements, however, so don’t fret yet! Agreements can also swing the other way. You may find that the counterparty is in breach of something, or because of a certain event, such as a substantial change in prices, breach by other party or change in control of the other party’s company, you may have an out of a contract that’s not particularly in your favor. So in just reviewing your agreements, you may be able to get out of the unfavorable arrangement and stop a leak of money you weren’t even aware you had.PLUS, by reviewing your agreements, you may even find you have more wiggle room to do things related to your agreement that you thought were restricted or limited. Perhaps on second look, you have 11 parking spaces instead of 10, or that your landlord is obligated to reimburse you for some of your capital improvements. Instead of a time bomb, a jackpot might be sitting around your office too!So to just summarize the above, periodically review your agreements. You don’t have to read the all of the boring documents. Most will have headings that make finding relevant clauses really easy. Agreements should be reviewed frequently to ensure your small business is not breaching any existing contracts and to determine which clauses may no longer be applicable, and they’re primed for negotiations with the other party for their removal. Without a thorough and periodic review of its existing contractual obligations, you may be (i) subjecting your small business to additional and unnecessary expenses, (ii) limiting your small business without reason or (iii) unknowingly positioning your small business for a breach of contract claim by the counterparty. So don’t let that time bomb sneak up on you, be proactive and defuse it ahead of time.

Home Based Business Opportunity – How to Find Yours in 7 Steps

Our mailboxes are flooded with direct mail “hype”. We get phone calls promising us “simple” proven home based business opportunities. The internet is full of promises to make us “millionaires”. How do you sort it all out? Who can you believe?

What we really want is a realistic way to make extra money and eventually say goodbye to our “job” and be boss free. You can sort through all the hype. Here are 7 steps to find your own home based business opportunity.

1. The Why- To start to sift through all the offers available, you must know… the why? Write down your top 25 reasons for starting a home based business or wanting to work from home. Find out what you really want your life to be like. What do you expect?

2. The What- review your reasons why. The list should give you an idea of the direction you want to go towards. Do you want to make something like jewelry or soy candles? Provide a service like catering or house keeping? Maybe sell a product or become an affiliate for some info product? Possibly set up a website or a storefront. You will find some areas that are yeses, maybes, and definitely not interested.

3. The How- Armed with a list of your whats you can now search for the how. Use the search engines and review your options. Take your time searching until you find home based businesses that interest you. Don’t rush this step… explore a lot of options.

4. The Promise- There is a lot of “hype” surrounding the “promise” of “easy money”… make $100,000 to $200,000 your first year”… “earn $1000 a day”. I believe the old adage “If it sounds to be good to be true… It Is!”

There are a few resources you can use to find out what other people have experienced with the product or program. The best is ripoffreport.com. It has real world feedback and rebuttals on programs etc. Another good online resource with a lot of information is Internet Fraud. The Better Business Bureau may provide some information but, they are usually local or state organizations. They often don’t have much information on the national programs. Another way to get more knowledge is to do a search on the business,the person,or subject and find relevant comments. Be careful of the online “reviews” as a lot of them are affiliate marketers wanting a commission for the sale of the product. You can usually tell if there is an active link to a sales page in the “review”.

5. The Investment- All home based businesses require some money to get started. You may need cleaning supplies, brochures, a website, a product to sell, or a storefront. Write down a list of everything you can think of that you may need. When you talk to the representative of the company their “enthusiasm” can distract you from finding out the “hidden fees”. There may be a monthly maintenance fee, a website charge or upfront or backend money that will be due. Refer to your list when the sales pitch is over to see if your questions were answered.

6. The Commitment- There is a commitment for any new business. How much time can you devote daily or weekly? You will also have to “learn the ropes” of your business. Will you start off part time until you can replace you “job’s” income? Or can you financially afford to make this business a full time adventure? Energy and enthusiasm are the easy parts.

7. The Decision- You now have enough information on some home based business opportunities. Which business appeals to you the most? Which one do you see yourself enjoying doing? Remember you don’t want it to seem like a “job” down the road. Now… go ahead and get started!

You now know the 7 Steps to find your own home based business opportunity. Mixed with your new enthusiasm there is an element of fear. Don’t worry! You can learn anything you put your mind to. You will get better at your business each and every day. Join the 50,000,000 independent business owners in the United States. If they can do it… so can you!Our mailboxes are flooded with direct mail “hype”. We get phone calls promising us “simple” proven home based business opportunities. The internet is full of promises to make us “millionaires”. How do you sort it all out? Who can you believe?

What we really want is a realistic way to make extra money and eventually say goodbye to our “job” and be boss free. You can sort through all the hype. Here are 7 steps to find your own home based business opportunity.

1. The Why- To start to sift through all the offers available, you must know… the why? Write down your top 25 reasons for starting a home based business or wanting to work from home. Find out what you really want your life to be like. What do you expect?

2. The What- review your reasons why. The list should give you an idea of the direction you want to go towards. Do you want to make something like jewelry or soy candles? Provide a service like catering or house keeping? Maybe sell a product or become an affiliate for some info product? Possibly set up a website or a storefront. You will find some areas that are yeses, maybes, and definitely not interested.

3. The How- Armed with a list of your whats you can now search for the how. Use the search engines and review your options. Take your time searching until you find home based businesses that interest you. Don’t rush this step… explore a lot of options.

4. The Promise- There is a lot of “hype” surrounding the “promise” of “easy money”… make $100,000 to $200,000 your first year”… “earn $1000 a day”. I believe the old adage “If it sounds to be good to be true… It Is!”

Coaching For Small Business Owners

Business coaching is a relatively new discipline. As a result, many small business owners are probably not aware of the coaching process and why they might consider coaching as a resource to fuel their business growth and personal leadership development.

What benefits can a coach bring to you and your small business? Will a coach help you become more effective in the day to day management of your small business? What specific skills or experience should you look for in a business coach? How do you find a business coach?

Benefits of Coaching

Coaching can offer a number of benefits to those that embrace the possibilities and enter into the experience with a positive attitude. Ed Rankin, Executive Coach and Founder & President at Manera Group in Dallas Texas, believes that coaching offers small business owners an increased level of self-awareness with respect to their strengths and weaknesses, better focus, and tangible strategies and tactics for addressing real-world concerns. He also states that “coaching helps people become more effective by bringing clarity to real challenges and opportunities.”

Virg Setzer, President and Executive Coach at Performance Point Solutions LLC, has many years experience as an internal and external business and executive coach. He feels that coaching offers up the following benefits for small business owners:

A fresh and objective view of a small business owners situation
A unique, competent and confidential resource that may not be available within the organization
The opportunity to have a “partner” in your small business that is focused on your success
A confidential partner that is available to test ideas and brainstorm possibilities
Assistance in looking at the “big picture” and long term results as well as short term goals
The opportunity to get challenged and receive candid feedback
Opportunity for Strategic Thought
It is a well known fact that owning a small business can be all consuming – so much time is spent on managing the day to day tasks that little thought ever goes into strategic planning. Gina Duvall, Owner of Business Sculpting, expands on the benefits of generating new ideas and focusing on strategic thought. “Coaching is a great opening for this kind of thinking. Left to their own devices, small business owner won’t get off the merry-go-round of finding the next customer, or producing more widgets, long enough to engage in critical thought,” says Duvall. “Having a business coach allows this to happen and have it happen within a partnership. It’s easier for a business owner to do this kind of thinking in partnership with a coach, as opposed to locked in their office alone hoping to not be interrupted.”

One might assume that the primary benefit of having a business coach would be an ample supply business advice. Not really – the benefits of a good coach extend beyond management consulting. “Many people start a business without understanding their real motivation and a good business coach can do much more than just work o the business process – a good consultant could do that. We ask different kinds of questions and have a different quality of conversation,” says Anne Wilkinson, Managing Director at Executive Playground Ltd in Birmingham, UK. “A coaching relationship is based on skilfully guiding a client through a process of increasing self awareness backed up by solid business acumen. This has the added value of increasing confidence and establishing a better process for making decisions in the long term.”

The Coaching Relationship

In my opinion, a key benefit of coaching is the opportunity for small business owners to develop a special relationship that adds real value to their organization. Francis Laleman, International Consultant, Coach and Trainer at Beyond Borders Training and Consultancy in Antwerp, Belgium, believes that “the mere fact of having an objective outsider at hand, someone who delivers insights from experience, who asks the right questions, who doubts the answers given, who suggests alternatives and ponders over chances and opportunities, can really have a miraculous effect.” In Laleman’s opinion “the key strength is in the mutual process of the business owner and the coach, working gently together in order to understand the dynamics of growth and change.” What to Look for in a Business Coach

There are some set criteria that you should look for when hiring a business coach. As with any other position within your small business, experience, is a key factor. Gil Gerretsen, President at BizTrek International, Inc in Greenville, South Carolina, suggests that you look for a combination of business experience and a history of proven results and warns that “too many coaches shoot from the hip with counsel based on a limited set of experiences in one venue/industry.”

Anne Wilkinson advises that you look for a coach that has general business experience as well as specific experience in the areas of your business that you know you need to develop. “I personally don’t agree with some of the coaching purists that say you can be a good coach without the business experience. My clients expect me to understand their business issues and wouldn’t tolerate a coach they couldn’t respect.”

In addition to business experience, Ed Rankin reminds small business owners to not forget that coaching in itself is a special and important skill. “A coach should be educated and trained in the process of coaching. Coaching is not mentoring, consulting, advising or counselling. It’s something different.”

Coaching Case Study

Merri Bame, an Executive Communications Coach, shares the following real life coaching story:

The owner of a small business came to me with a common, yet fragile matter. He had been an owner for several years while his mother remained board president.

What “John” experienced was the demotion of his authority every time his mother was present. From John’s perspective, his staff, managers and board all viewed him with little respect in her presence. He came to me, (an outsider; a neutral third party) for fresh perspective on how to have a very honest talk with her because he was intent on releasing her from her duties. With two major relationships hinging on this outcome, “John” was at a loss on how to proceed. Since this was a single circumstance, we met for an hour to give him guidance on focusing on the intent (restoring good relations) while broaching a difficult subject, and also wanting a good outcome.

John learned he could speed up (in his career and influence) if he chose to slow down (to address things properly and with care). Without a third party coach, he didn’t feel neutrally supported. And using one, he experienced a new way to address both conflict resolution and professional growth.

How to Find a Business Coach

Your needs and comfort level will have some bearing on searching out a business coach. For example, if you prefer face to face coaching, you will need to search locally, whereas, telephone coaching presents the opportunity to engage in a coaching relationship outside your geographic area.

In Gil Gerretsen’s opinion, face to face coaching offers more value to small business owners. He suggests looking for someone in your area by checking with your local Chamber of Commerce or asking for referrals from other local small business owners. He adds “if there is no one available locally, check the nearest big city and drive to see them there. Before I first launched my business, I flew to Los Angeles once per quarter to meet with my coach. It was worth every penny!”

Another thing to remember is to ask any prospective coach for references, training background and accreditation. “The best way, really, is to find a coach on personal recommendation because then you know what you are getting,” says Anne Wilkinson, “Certainly go for a professionally trained coach, even if they are not certified.”

The Heart of Coaching by Thomas G. Crane states the following: “As coaching becomes a predominant cultural practice, it will create a performance-focused, feedback-rich organization capable of creating and sustaining a competitive advantage.” If you are open to the process, coaching can provide you and your small business with a number of great benefits – and offer a new perspective on how to plan, manage and grow your organization.

The Finer Points of Internet Auctions

WHAT IS A PENNY AUCTION?

Penny auctions have exploded in popularity with the massive growth of the internet. However, few people know the true origins of penny auctions.Beginnings actually stretch back to the Great Depression. Those were hard times for everyone, but even harder for farmers. Farmers struggled to bring in steady income because of droughts and crops not selling as well as they had previously. As a result, the banks would foreclose on the farmers who couldn’t keep up with their mortgage payments.

The banks weren’t satisfied with just repossessing the house, they wanted to raise as much capital as possible, so they resorted to selling off the possessions of the owners of the repossessed houses. There was not much the farmers could do about it so they began bidding ridiculously low prices, pennies, on the items while threatening others who dared to bid higher than a few pennies.

The auctions of today hardly resemble their tremulous beginnings. Being part of a penny auction today is exhilarating, fun, and addictive. It combines the selling format of auctioning with a little bit of chance factored in.Auctions are a game of strategy but also a game of luck.

The premise behind penny auctions is giving people the chance to win an item at a drastically reduced price.Auctions make that possible by spreading out the cost of the product among multiple bidders. In order for a person to take part in an auction, they must pay a set price for each bid. For example, if a person wanted to bid on a fifty dollar Amazon gift card then he would spend a dollar for each time a bid placed. If he ended up winning the gift card, then he would only have spent a few dollars for a fifty dollar gift card. Usually penny auctions sell bids in packages.

HOW PENNY AUCTIONS WORK!

The main foundation of penny auctions is the pay-per-bid format. It is the key that allows bidders to win items at the fraction of their retail value and allows the auction owners to keep their site profitable. Most y auction sites run on the same premise: people pay a set amount for each bid, whenever a person places a bid within the closing seconds of the auction time will be added, the last person left with a unique bid after the clocks runs out will win the item. There are a large variety of items that can be won, but they tend to be popular electronics or gift cards to popular stores.

There are two types of auctions: lowest unique bid auction and highest unique bid auction. Lowest unique auction sounds confusing but it is actually quite simple. A unique bid is when only one person has a bid at a certain price. Bids usually start at one penny, a bidder can then place a bid at two pennies. Until another bidder places a higher bid, the most recent bidder will be the lowest unique bid because that was the only bid at two cents and nobody bid higher. However, penny auctions generally don’t stop at one penny. It is not uncommon to find auctions that end up at a couple hundred dollars based on the popularity of the item being auctioned. However, the same principles apply for those auctions. Highest unique bid auctions follow the more traditional auction format such as eBay. The person with the highest bid at the end of the auction wins the item.

Auction site owners turn a profit by selling bids. Say twenty people are bidding on a ten dollar gift card at one dollar per bid, at the end of the auction if there were twenty bids placed in total then the site owner would have made twenty dollars with a ten dollar profit.Auctions do seem like a win-win situation:The site owner makes money while the bidder gets an item for dirt cheap. However, not everyone wins in penny auctions. The people who paid one dollar each bid but left with nothing to show for their investments will not be so happy.

HOW TO WIN!

Penny auction has a lot of chance mixed into it, but one can incorporate strategy that will help raise the chances of winning. Playing smart can make all the difference between gambling and auctioning.

The first crucial tip to winning penny auctions is to know how to manage your bids. Your goal should be to win as much as possible without spending a ton of money buying bids. Managing your bids means that you should already know how much you are willing to risk in order to win an item. The amount of capital you are willing to risk will determine how many bids you can use. Once you know how many bids you have to spend on an item, then you will be better able to manage how and when you place a bid. That will keep you from blowing away all of your bids in the first few seconds of the auction.

The next tip is to practice time management. When fighting in the trenches of penny auctions, you have two enemies: other bidders and time. Knowing when to bid is a must if you want to have success. Placing a bid when there is a lot of time left on the clock is never a good idea. You have to remember that the key to winning a penny auction is being the last one standing when the clock runs out and that each bid increases the amount of time left. It would be a good practice to wait until the last few minutes of the auction before you begin to bid.

The final tip for successful auctioning is to keep your emotions under control.Auctions have a lot of similarities to gambling, and just like gambling, your spending can get out of control. If you keep your emotions level, it will keep you from making rash decisions and blowing loads of cash. Keep your mind clear so that you can gage the behavior of the other bidders and outsmart them.

HOW TO AVOID SCAM SITES!

Penny auctions are a great addition to the web whether you want to win an item that otherwise you wouldn’t be able to afford or if you simply enjoy the thrill that comes with bidding in auctions. Unfortunately, scam sites have tarnished the reputation of the legitimate penny auction sites. However, there are ways that you can protect yourself from scamers and enjoy your auctioning without having to worry about losing your money due to dishonesty.

Checking the reputation of the auction site before you start spending your hard earned money is always a good idea. Chances are other people have tried the site before you and some of them have left reviews. The reviews are your way to gage whether a auction site is trustworthy or not. If a site is getting overwhelmingly negative reviews, then that is a clear indication that you should steer your business elsewhere.

Another tool you can use to protect yourself is checking the Alexia ranks of the auction sites. Alexia rank will give a solid view of how much traffic the auction is getting. If you see a huge difference in the amount of traffic Alexia is projecting and the amount of active bidders on the site, then warning signals should be ringing in your head. Some auction sites have been known to set up robots that automatically bid on projects in order to keep the auction going and inflate the price. That is known as shill bidding. You can sniff out those sites by comparing the traffic the site should be getting to the amount of users using this site.

CONCLUSION!

New legislation may come out later down the road that will officially make penny auctions gambling, but until then, it is a fun, exciting auction that allows one to win the item they’ve always wanted but couldn’t afford.Auctions are also quite lucrative for the site owners because of the pay-per-bid strategy they’ve incorporated. Penny auctions had humble beginnings with farmers who just wanted to get back at the banks who kicked them out of their house. More recently, auctions have enjoyed an explosion in popularity with the rise of the internet.

There are two main formats fora auctions, lowest and highest unique auction, however they both run on the same premise where the last unique bid wins the item. Winning a penny auction will require a certain amount of mental tactic and a bit of luck. However, you can increase your odds of winning by practicing certain techniques such as managing your bids wisely, learning how to work with the time, and keeping a level head and your emotions under control. When you combine those three strategies to your bidding plan, you will find that you win a lot more often.

It is important that you do your due diligence to protect yourself when participating in auctions. Not every auction is run by honest and trustworthy people. There are people out there who just want to take your money. You can protect yourself by ensuring that you only bid on sites that already have a very positive reputation from real users.

How to Find Great Live Auctions for Resale Items

Hi, my name is Walt. I’m an auctioneer with 25 years of experience in the auction business and licensed in the state of MA. I own Quick Auction Service, a company that specializes in building and running custom auctions, I’m also the webmaster of my own site and have been on eBay for 8 years. Besides eBay, the types of auctions I run most frequently are antiques and on-site estate auctions, although I’ve run everything from business overstock auctions to charity & special event auctions.

I enjoy sharing my knowledge and stories of the auction business. My goal for article is to help folks get the absolute most out of their auction experience.

Whether your fresh out of the package or a seasoned dealer I think I can offer something in this article to help you with your auciton adventures.

There may be as many reasons to attend auctions as there are types of auctions to attend. Maybe you want to attend an auction to buy items for re-sale on eBay, or some other market. Maybe you want to furnish your home with wonderful antiques, or you want to furnish your home as inexpensively without sacrificing quality.Some folks are just looking for a fun night out. With a little perseverance all these things are possible.

There are antiques and estate auctions, auto auctions, overstock auctions, absolute and no reserve auctions, real estate auctions, specialty auctions where only one genre of items are sold, tailgate auctions, live auctions, online auctions, sealed bid auctions, silent auctions, charity and fund raising auctions and many more.

Can you really buy for pennies on the dollar at an auction? You bet! Many times I’ve seen folks buy and re-sell at the same auction on the same night for a good profit, although be advised, this should only be done after the auction is over.

There are a lot of ways to find an auction, but here are some tips on how to find and attend the best ones.

Visit the genre of shops in the area that apply to the type of auction you want to attend. IE: If your looking for a good antique auction to attend, stop in the local antiques shops and ask for what there are for good auctions in the area. Sounds obvious right? But listen to what they don’t say as well as what they do say. Oftentimes when a dealer speaks poorly about an auction he or she attends, it may be likely that they are trying to keep a good thing secret. Think for a moment, why would a dealer keep attending a lousy auction?

Newspaper ads: I personally like to find ads in the classified ad section rather than flashy display ads. Flashy ads are usually indicative of an auction that will be high priced, may have reserves, (a set price on an item), and usually an enormous crowd. While any auction can be profitable to attend, it is usually best to steer clear of the glitzy ones, at least for the beginner.

Here’s the minimum you want to find out before you go. If there is a phone number in the ad, call and ask for the terms of the sale. What forms of payment do they accept? Is it an absolute auction? An absolute auction is one that has no minimum or reserve bids on items. These are the best auctions to attend! Is there a buyers premium? A buyers premium is like a tax that everyone who makes purchases at that auction must pay above the winning bid price. Most auctions these days do charge a buyers premium, 10% is not unreasonable but I feel much more than that is greedy, and the auctioneer that charges over 10% is counting on most bidders not doing the extra math as the bids quicken in pace.

A fair auction will have ample time to inspect the merchandise, usually at least 2 or 3 hours. Find out when inspection starts and make sure to attend! Never attend an auction if you can’t make the inspection, not unless your prepared to gamble. Most auctioneers sell at a rate of about 100 items per hour, which is why they sell “as is”. They simply don’t have the time to give a detailed description of all the items. Since almost all items at auction are sold AS IS, there are sure to be some damaged, refinished, fake and incomplete items at any given auction. Beware of any auctions that offer very little or no inspection time.

Good auctions will usually have 150 to 400 lots. A lot may be one item or a group of items. The exception to this are specialty auctions, auto auctions, real estate auctions etc.

When you attend your first sale, take note of the 1/2 dozen or so dealers that buy the most often. See if you can find out about other area auctions they attend.

When you do find an excellent auction, attend it as often as possible. By frequenting good sales, you help increase the bottom line of that business. It’s difficult for many auctioneers to keep the quality of merchandise consistent, so good attendance certainly helps. And when an auctioneer gets to know you as a buyer, he/she will go out of the way to accommodate you, to keep you coming back.

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.


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