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.

In today’s competitive, yet difficult business world there are many options for advertising. Unfortunately, banner advertising might not even enter the picture for business owners looking for advertising options. But it should.

When done well, airplane advertising can be more effective than other forms of advertising, turning a simple ad into dollars and customers for the advertiser. While advertisers often think about radio, newspaper, television and even billboard advertising, they often don’t even consider banner advertising.

And that’s a mistake. Let’s look at why airplane banners create advertising that’s effective in several ways.

Cost

Airplane advertising creates a stronger bang for the buck than other forms of advertising. While you might pay for a radio ad each time it’s on the radio, or a premium for a good billboard in a freeway location, with banner advertising, you pay for the banner once and then only pay a small charge each time that banner is flown.

Today, more and more advertisers are giving up on advertising altogether, but that’s a mistake. Businesses can’t make money and bring in new (and returning) customers without getting the word out. But in today’s economy, it’s essential to get the word out with the most affordable method. Aerial advertising provides that.

Novelty

We are bombarded with advertising each day. We hear it on the radio on the way to work, see it on the television as we watch each evening and read it in magazines, newspapers and on signs. It seems that everywhere we turn someone is trying to sell us something.

Of course, aerial banners are also selling or promoting something, but the method of delivering that message is so novel people pay attention. While you might barely hear most of the ads that are played on the radio and might flip past ads in magazines, when a flying banner is seen overhead, you look to the sky and make note of what you see.

Memory

That’s right, memory. People remember banner ads in a way they just don’t remember most other forms of advertising. This is likely due to two things – the novelty of the advertising and the attention we pay to the ads themselves.

As we discussed above, the novelty of aerial advertising gets attention. It’s not as common to see a banner airplane in the sky as it is to see and hear other forms of advertising, so we naturally pay attention. Aside from the novelty, however, people remember airplane advertising much better than other forms of it. Some studies have shown that most people keep an aerial ad in their minds much longer than they do other forms of advertising, which means people are more likely to act in some fashion that benefits the advertiser.

Although advertisers have many options for their advertising dollar, and most experts suggest that advertisers diversify their methods, it’s a common sense decision to include aerial advertising in the mix.

Arnold Aerial Advertising is one of the many companies that provide such services. Located in New York, Arnold Aerial Advertising provides nationwide service with affordable rates.

If you’re one of the many people looking to find a business to work from home then you should consider if it’s right for you. No doubt if you are looking into this type of revenue generation, then you’re probably tired of working long hours for little pay, building someone else’s dreams. Have you ever heard that whoever owns the business owns the dream? Well I believe that’s true and if you spend most of your time working to build someone else’s dreams then I hope you understand that you don’t have a shot in the dark of making it big financially in this country! It will never happen! Most people are so busy making a living that they forget to live a life and before they know it they’re older, their kids are grown and they don’t have much to show for the “40/40″ plan, working 40 hours a week for forty years of their lives. We live in the richest country in the world, so why do so many people scrape by? If you want to be successful in life, find out where 98% of the people are going and go the other way. Almost all successful people have built assets rather than work for a paycheck. They’ve owned their own businesses and built pipelines. So the question isn’t whether a home based business is right for you, but rather can you build a successful home based business. The answer is an undoubted YES YOU CAN. But how, you may ask? First you need to decide what kind of business you’d like to operate. With so many different businesses to choose from, how do you know what’s right for you? To answer this question, you must see the difference between a traditional “brick and mortar” type small business, a franchise, and a non-traditional, e-commerce type business usually referred to as MLM (multi-level marketing or Network Marketing).First off, with traditional small businesses, there are four factors to consider: time… money… knowledge… risk.Time: To show a profit, you’d have to be open for business for long hours every day, including weekends. Usually, a 70-90 hour work week is very realistic in this type of business model. As the owner, you’d have to be there that long, or at least hire a manager that you could trust to run most of your day to day operations and pay that person enough to stay reliable.Money: As an owner, your overhead in this business model is fairly substantial. You have leased space for your business, insurance, paid electric/utilities, heat and water. Then you have inventory and computer and software to manage it. Usually a cash register, and you must register with a bank as a merchant to process Visa, MC, Amex, and Discover Card payments. Not to mention any other equipment needed to maintain the business.Knowledge: How to run a small business is not taught in college. If a person does not have a relative under whose tutelage he/she can learn, they must be self-taught… in the school of Hard Knocks. Most small business beginners are shocked to find that filling out paperwork takes the equivalent of one day per week. If they don’t know basic bookkeeping, they hire an Accountant. If they need advice on business structure, whether and how to use a Corporation, a Limited Partnership, or a Limited Liability Company (LLC), they hire an attorney.In either case, they exchange money which they need for knowledge which they also need. This is a wise trade, since a small mistake made early can compound to a big problem later, but it is costly. Not to mention the sole proprietor cannot approach the competitor down the street for guidance on how best to organize his/her store. So like a person entering a dark room, they must feel their way carefully or they will trip over what they can’t see. Even with care, ignorance is not bliss and can cost the owner dearly… maybe cost the enterprise to fail. Take a look at this article ( http://www.usatoday.com/story/money/business/2013/02/01/retailers-close-stores-24-7/1873745/ ).Risk: The new businessman has “tied up” in the venture several thousands of dollars which they cannot afford to lose. Also, hundreds or even thousands of hours of their lives invested as well… which in time can never be recaptured. Look at what happened to Hostess, maker of Twinkies and Wonder Bread.As you can see, the traditional small business venture can run upwards of tens of thousands of dollars with more “work” involved than having a job. You simply bought yourself a job with the business.Franchising, on the other hand, is that you plug into an already proven system. People think you are “buying a franchise”, but actually you invest your assets in a system to utilize the brand name operating system, and ongoing support. Think of one of the largest franchises of our time, McDonald’s. People who buy a McDonald’s franchise buy into the system already in place of producing Big Mac’s and Filet o Fish without having to “reinvent the wheel”. All you have to do is follow the “system” and your franchise will be successful, so they say. But the desire to “be my own boss” is not fully satisfied by a franchise. Franchisees cannot think of themselves as an independent owner. If they do they will be tempted to try to change the system. Does Mickey D’s sell hot dogs at all? Of course not! The home office does not permit anyone to “tinker” with their formula. The franchisee owns the assets of their own franchise, but is licensed only to run someone else’s business system. The desire to become a franchisee is grounded on belief that they can be more successful using someone else’s brand, and operating according to their methods, than they would be if they opened up their own independent business and competed against them. The problems with most franchises like McDonald’s, is that: it costs substantially more than a small business, there are royalty fees (usually 5-10% gross profit), loss of personal control… need to quit your full time job and be “locked in” to suppliers chosen by the franchisor, the inability to will your business to your family, a one-sided contract drafted by franchisor that may not fully protect your territory and interests. However, a franchise allows for: opening more quickly, developing a profitable customer base faster, has less risk, national advertising presence, built-in name recognition, strong support system that can be called upon for advice, readily identifiable trade name and goodwill associated with it, centralized, and collective buying power.Now that you understand the differences between the two, what we need is a home based business that can adapt the best of both worlds: a way to generate full-time income with part-time work, a system that produces residual income that keeps coming in although one’s advancing age eventually prevents putting in much, if any, time.More and more companies are entering forms of innovative cooperation with outside marketers. Reducing their own in house personnel has prompted them to enter strategic business alliances or joint ventures in which two or more business entities help each other. Since the 80′s, three powerful trends have converged.First, threatened by corporate layoffs, highly capable men and women are looking for ways to diversify their income. Quite a few have asked themselves, “why go back to a corporation, even if I can find one to hire me, and risk being cut by the same layoff axe in a couple of years? Why not become an Independent Contractor?”Second, not everyone laid off was “dead wood”. When companies cut their ranks by tens of thousands, they also cut thousands who were productive. They need to hang on to the productivity of the people they did not keep. So they started scrambling to find Independent Contractors to reach their marketThird, since the early 90′s, the introduction of the personal computer and soon after, the internet have allowed small, part-time businesses with few or no employees to compete on a level playing field with anyone in the world. Some of the smartest businessmen in the world have found a unique way to harness these trends to their advantage.This is where MLM and e-commerce come in. Successful business models that harness the power of the internet and e-commerce along with the concept of independent contractors has made MLM companies a major power house in business today. Companies like Avon, Mary Kay, Herbalife, Amway, Melaleuca, Primerica, Pampered Chef, Ambit Energy, and many others have all realized the top 20 reasons for non-traditional business.1) Low investment- usually less than $500 to start, depending on the Home Based Business opportunity..2) No Boss-the independent contractor determines how much money to make and how hard they want to work.3) Ability to work from home- daily commute consists of walking to your coffee pot on your kitchen counter. (That’s why it’s called Home Based Business!)4) Fewer, more flexible hours- people are just too busy now a days!5) Time-compounding through duplication- what you do and teach others to do the same adds to your business exponentially. Would you rather have 100% of your own efforts or 1% of 100 people’s efforts?6) Minimal legal liability- no person in a “downline” can create vicarious liability for the sponsor.7) No special licenses or training to join- unlike a realtor or insurance agent.8) No discrimination-8) No discrimination-a Network Marketing type of Home Based Business rewards a person for movement of product and sponsoring others to do the same, regardless of sex, race, creed, or religion.9) Tax Benefits- ability to claim home office deductions, utilities, gas and mileage, and business conferences, even while on vacation as deductions.10) No employees- one works with, but not for the parent company.11) No risk- startup costs are trivial compared to traditional small businesses and franchises.12) No accounts receivable and collection headache- “cash and carry” type business.13) Inexpensive, usually free training- upline mentor has vested interest in helping downline grow so the mentor will provide any and all training to help their downline. Like a good parent guiding their child teaching them what and what not to do.14) Early Income-possibility to recoup initial investment in first month in business.15) Unlimited income potential- Network Marketing has no floor. You could make nothing at all. It is because of no floor that it has no ceiling either. The sky’s the limit!16) Inelastic Demand- a good Network Marketing company offers products or services that are top-quality, which people want, need and can afford, and have to buy again. Repeat business.17) No regulatory Problems- the Parent Company takes care of all of the regulators and taxing authorities so the individual marketer is freed up to be creative.18) Insulated against disaster- no single location; rather, it connects the country and the world with small individual participant-outlets.19) Time flexibility of training/support system-time cost super small compared to medical school, business school, or even law school. You are in business for yourself but never by yourself.20) Willable to one’s children- Network Marketing business can be transferred to one’s heirs usually estate-tax free. It’s the transfer of cash flow not assets that allows your heirs to keep the wealth.Now that you see the many benefits of Network Marketing compared to traditional business, it is clear that this concept is by far the simplest and fastest form of generating extra income, regardless of what your mother-in-law, or brother-in-law think they know. So, again the question is, is this right for you? Only you can answer that, however, if it is right for you, how do you get exposure for your new MLM business? Very simply put, you need powerful training at little or no cost that will flood your inbox with potential customers and business partners in the easiest way possible. For a step-by step guide on developing this plan and maximizing your income from your MLM opportunity,click here to access a free training series.. “Small opportunities are often the beginning of great enterprises.” – Demosthenes