Your Home-Based Business – Do You Have the Requisite Skills Set?

So you are giving serious consideration to starting a business and running it from home. Thousands of people just like you make that big move from the corporate office to the home office. While this is a great move for quite a number of those who do take that decision, the fact is the majority of small businesses fail in their very first year of operation, as much as 80%.While there are numerous reasons for this, one striking reason is an inadequate skills set of the business owner. In a home business environment this is even more crucial as there is usually only the owner running the business. So a critical question you should be asking yourself if you are thinking of starting a home-based business is, are my job skills transferable in a manner that will benefit my business?Obviously you would have to do a match between what you believe your business would need in terms of a skills set to execute your business plan effectively and your own skills set. So one of the first things you really need to address is your own skills inventory. Basically you will want to answer two questions with your personal skills inventory exercise – what are the work-place skills you now have, and at what level of competence each one is.Your next step is to go through your business plan which should give you a good idea of what skills you will need where and when. Determine those tasks that you will need to perform as the business owner, how often and in what time frame. Your objective here is to come up with a skills requirement chart outlining the requisite skills, how critical each is to achieving your goals, who will be carrying out the tasks, how often the particular task will have to be done, and over what time frame.You now have a fair idea of what your business require in terms of skills and what skills you have to bring to the business. It is now time to find the critical skills gaps that you will need to fill somehow. Once you have identified the skills gaps, you need to give some consideration how these will be addressed.Some steps you can take to fill the skills gaps identified are:* Take additional training to upgrade your skills.* For those tasks where you do not have the necessary skills set to perform, consider contracting these out.* Take on a partner to complement your skills set.Ensuring that you have the requisite skills in place to make your home-based business a success is one of the most important things you can do for your business. It will save you a lot of unnecessary headache and frustration as you are now much better equipped to execute your home business plan.

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 Advantages – The Shocking Truths

Home based business advantages include personal freedom, being your own boss, no more commuting, keeping your own rewards and picking the times for working.This is just the tip of the iceberg of the many home based business advantages but if you are looking for personal freedom then a business based at home offers you the ideal solution. If you are running a enterprise from home you can pick and choose exactly when and where you want to work. You no longer have to worry about picking up the little ones from and kindergarten as you can stop working whenever you choose.Being your own boss would again throw up another long list of advantages, but when you’re your own boss you decide how much effort and time you are going to put into your business. Nobody’s looking over your shoulder or pushing you in this direction or that.No more commuting is a terrific advantage. The average worker would gain over 2 hours per day. How would use those 2 hours?. Having you own home based business gives you a terrific advantage. Just think no more stuck in a traffic jam or sitting in on a train for those 2 hours per day. You could be using that time constructively in your home base business.How would you like to keep all the rewards of the work that you put into your home enterprise. What a terrific advantage this is. The rewards you gain are equal to the effort you put in. No more breaking your back for your boss only to be rewarded with a pittance at the end of the month.The number one home base business advantages, especially for the stay at home mum is to be able to pick the times your work. No longer feeling guilty about having to leave your children with a child minder as you pick and choose exactly when you want to work.


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