The Easiest Way to Go Into Successful Business – Buy A Web Property

gold bars

I am seeing the birth of an entire new industry … and an entire new investment vehicle.

Those of you who know me know that I know investment vehicles. (If you don’t know me, look at my G+ profile.)

Anyway, what would you say if I told you that I know of a solid stock that pays a 50% dividend? You would say I am either crazy or don’t know what I am talking about.

However, you can’t deny it would be a great investment if it existed.

Not so fast! Consider this …

If you buy an online store that does a reliable $15,000 a year in net income, it would require you to work a maximum of 2 hours a day, and it costs $30,000 to buy. And

  • it’s a good store that hasn’t done much SEO so there is opportunity to drive more traffic,
  • has a good size mailing list so you can promote specials,
  • happy returning customers and
  • hasn’t done any advertising and doesn’t sell ads on the site so it has undeveloped revenue sources …. well, that’s pretty much the same thing as a stock that pays a 50% dividend.

If you hired an SEO service, started an affiliate program, sold ad space and pushed it on Facebook, you would probably see an improvement in revenues and profits while spending very little money.

This is not an unusual opportunity.

And most websites sell with a small amount down and a buy-out from revenues over a certain number of years. 

That’s right.

There is a growing market in web properties and, while the market is still very young, great bargains can be had.

It won’t last forever.

Some sites are made to sell. There are lots of people out there who are creating game sites, driving traffic to them through SEO and social media at very little cost, and make fairly good money off selling ad space. Now, these aren’t much more than formula money makers but you might just be going to one of those sites to play Bejeweled for free amid ads that pay the site owner well. And the site might be for sale.

Lots of people find themselves in need of selling their websites. If you started a site that became popular, and you need money to buy a house or a car, or you have an idea for a different business or you are just sick and tired of your current blog or e-commerce site, you might just be interested in selling your site. It happens.

It happens all the time.

I can suggest a reputable place to start your self-education: Latona’s 

The reason I say “reputable” is you want to deal with people who are professional enough to turn away the websites that use Black Hat techniques to make it look like they have a lot of traffic, and I happen to know Latona’s does identify and refuse to broker those sites because Latona’s is a client of mine.  (Did you notice that was a disclaimer?)

There are some great opportunities to be found now  —  before investing in web properties is discovered by the masses.

And don’t kid yourself! There are a lot of savvy investors out there investing in multiple sites and hiring people to run them. They are making a lot of money doing this. In fact, there are private equity funds doing this right now.

I will continue to post about this subject because I believe the marketplace for websites will grow and prosper.

Advertisements

Why All Companies, Public and Private, Should Write Annual Reports

An annual report isn’t just for shareholders.  Writing an annual report forces you to look deeply into the activities of the past year and see what worked and what didn’t. Those insights are vital to planning your next 12 months.

An annual report also creates a history of your decisions and their outcomes that can be used for future planning and dealing with unexpected problems. Being able to find an answer to a current problem by looking back through your annual reports for that similar situation you remember from eight years ago is a big time-saver and can help you dig into other records that you used to create that annual report.

This article gives you an idea of how to write a good annual report:

Simplified Structure of an Annual Report

An annual report is necessary if your company is a corporation with shareholders or limited liability company with members. Even if you have a sole proprietorship or a one-person corporation, writing an annual report can be a beneficial exercise. If you apply for a loan or hire professional services, you may be asked for a copy of your annual report. A simple document of a few pages in length is adequate.  MORE

How to Write a Vision and Scope Document

You should be doing this whether you are just starting to plan your new business, working on your plans for the new year, or preparing a presentation for funding.

Sitting down to write a vision document and a scope document helps you see holes and inconsistencies in your business activities and can give you a great new idea …

http://smallbusiness.chron.com/write-vision-scope-document-73586.html

Vision and scope documents define what your customer or company has in mind as well as describe the work process necessary to reach that vision. For example, entrepreneurs benefit from writing a vision and scope document to define their business ideas and list how to develop them into reality. Project managers use such a document to identify the expected result of the project and to set forth the methods and activities necessary to achieve that result.

The Jaws of Death – Entrepreneurs Beware!

The Jaws of Death - Entrepreneurs Beware!

This is an article from Kitco everyone should read!
http://www.kitco.com/ind/Taylor/2013-10-11-The-Jaws-of-Death.html

It shows a likely stock market crash on the way, and that brings on very difficult times for everyone. In this case, on top of the most sluggish and prolonged recovery from recession I have ever witnessed, it could quite easily create a situation much worse than the Great Recession.

I know you get sick of hearing me warn about over-expanding before you know what is around the corner … well … this just might be the monster around the next corner.

I know you are also tired of me warning about taking on debt at this time, but if things look like like what this chart is showing, debt will strangle you!

And, although I no longer carry my mountains of securities industry licenses, and I can’t give investment advice, I can say that you might want to read up on the subject of “Protective Puts” if you have any investments in the stock market.

Is Digital Retardation a New Need to be Filled?

In my lifetime, I have noticed social change. In my parents’ generation, intimacy was mostly saved till marriage. In the 1950s things were pretty much Ozzie & Harriet. In the 1960s the Pill and rock & roll changed all that. AIDS put a big damper on free love, but as the computer became more prevalent in our lives, things started to change … particularly with the Internet and now with smartphones and easy connectivity nearly everywhere.

My friend, Rob Frankel, has always been a vanguard in his opinions on what’s around the next turn. I have rarely seen him so passionate as in this article titled Digital Retardation:

http://www.robfrankel.blogspot.com/search?q=digital%20retardation

Here is my favorite line out of the blog, which should get you thinking about [1] a need to be filled, and [2] how this might become a social outrage in the foreseeable future:

“Critical thinking  and personal interaction skills — both of which are hugely lacking and contributing to an unprecedented atomization of our society.”

He goes on to point out some tech-inspired social habits that are doing us wrong. You can see it starting out in Internet addiction treatment … what is next? 

“Still think you can pay your way out of your problems?  That technology is the wonderful panacea Apple and Google and Microsoft keep telling you it is?  Really?Maybe it’s time you did some critical thinking of your own.

I like to help my clients watch for what ‘thought leaders’ are saying and apply it their own business planning and strategy. This might be something to think about …

 

 

A Look at the Economic Future

Image

I want to take a break from talking about re-inventing a business to focus on a trend I find worrisome.  One of my favorite economists, Joseph Barbuto has been talking about this.

This is a chart depicting the velocity of money, thanks to one of the best economists I knew on Wall Street –  Lacy Hunt at Hoisington Investment Management.

The velocity of money is important because it tells us where the money in the economy is going.

When money velocity is high, the money currently in the system is flowing freely throughout the economy.  Wages rise, banks make loans, businesses thrive.  Of course, when money velocity is too high it creates inflation.

When the velocity of money is low as depicted in the above chart, money in the system is not reaching Main Street.  This is important particularly now because the Federal Reserve has spent recent years pumping money into the system.  Where has all that money gone?  Well, banks [including the big brokerage firms that have shifted their legal identities to include that of banking institutions], and banks are lending to only the highest rungs of the credit ladder  — brokerage firms, big companies and institutional investors.

The velocity of money creates pools in specific asset classes  —  In the above chart, the velocity of money declined after 2000 and it pooled in the housing market.  After the housing bubble burst in 2005 the velocity of money increased until it became clear that a lot of this money was disappearing in loan defaults.  That’s when the Fed dropped interest rates and began pumping money into the system to try to get the economy back on track.

Note that this didn’t increase the velocity of money.

Money is pooling in institutional investment accounts where it created a bubble in the stock market, emerging economies, gold and may even be creating another bubble in institutional investment in housing.  Much of the improvement in the US housing market has been due to hedge funds and foreign investors buying blocks of houses/apartments to use as rental properties.  However, money has been conspicuously absent from job creation, wages, and consumer credit.

What a lot of top economists are wondering right now is when the investment asset bubble will burst.  This is something you should wonder, as well.

Another economic crisis will compound your struggles over the past years, so start conserving money and lowering your expenses now.

When money velocity is rising, it means the economy is expanding. Production capacity is increasing. Deposits from rising wages are being lent and invested effectively. Essentially, more money is moving around the economy, in the places it should. Late 1978 into 1997 was such a period.

When money velocity starts to fall (as we saw after 1918 or 1997), it means investment is increasingly speculative. Less money is spent on productivity enhancements or capacity improvements. Workers’ wages stagnate or fall, so they spend less. Basically, the money flow shifts.

Think of it like our circulation. When money velocity is rising, blood is flowing through all our veins and arteries smoothly, feeding our muscles and organs the necessary nutrients and oxygen we need to function optimally. When money velocity is falling, blockages form and the blood pools dangerously. Blood clots and strokes become a constant threat.

When money velocity drops below average levels, as the black line in the chart above shows, then those bubbles and the debt behind them are starting to deleverage, and that causes deflation and negative money velocity.

– See more at: http://survive-prosper.com/2013/08/28/why-quantitative-easing-has-not-created-inflation-and-why-it-wont/#sthash.kdoDLpyH.8FWgXJhU.dpuf

When money velocity is rising, it means the economy is expanding. Production capacity is increasing. Deposits from rising wages are being lent and invested effectively. Essentially, more money is moving around the economy, in the places it should. Late 1978 into 1997 was such a period.

When money velocity starts to fall (as we saw after 1918 or 1997), it means investment is increasingly speculative. Less money is spent on productivity enhancements or capacity improvements. Workers’ wages stagnate or fall, so they spend less. Basically, the money flow shifts.

Think of it like our circulation. When money velocity is rising, blood is flowing through all our veins and arteries smoothly, feeding our muscles and organs the necessary nutrients and oxygen we need to function optimally. When money velocity is falling, blockages form and the blood pools dangerously. Blood clots and strokes become a constant threat.

When money velocity drops below average levels, as the black line in the chart above shows, then those bubbles and the debt behind them are starting to deleverage, and that causes deflation and negative money velocity.

– See more at: http://survive-prosper.com/2013/08/28/why-quantitative-easing-has-not-created-inflation-and-why-it-wont/#sthash.kdoDLpyH.8FWgXJhU.dpuf

When money velocity is rising, it means the economy is expanding. Production capacity is increasing. Deposits from rising wages are being lent and invested effectively. Essentially, more money is moving around the economy, in the places it should. Late 1978 into 1997 was such a period.

When money velocity starts to fall (as we saw after 1918 or 1997), it means investment is increasingly speculative. Less money is spent on productivity enhancements or capacity improvements. Workers’ wages stagnate or fall, so they spend less. Basically, the money flow shifts.

Think of it like our circulation. When money velocity is rising, blood is flowing through all our veins and arteries smoothly, feeding our muscles and organs the necessary nutrients and oxygen we need to function optimally. When money velocity is falling, blockages form and the blood pools dangerously. Blood clots and strokes become a constant threat.

When money velocity drops below average levels, as the black line in the chart above shows, then those bubbles and the debt behind them are starting to deleverage, and that causes deflation and negative money velocity.

– See more at: http://survive-prosper.com/2013/08/28/why-quantitative-easing-has-not-created-inflation-and-why-it-wont/#sthash.kdoDLpyH.8FWgXJhU.dpuf

Re-inventing a business – The Mission

I discovered an outstanding article that describes exactly what I have been seeing increasingly over the last few years, and it is one reason I am moving my services into the coaching/mentoring arena from startup consulting on a project basis.

As I mentioned in an earlier post, most young entrepreneurs just out of school come with planning and structuring knowledge, and so do the new wave of 2nd career entrepreneurs.

I am finding that my clients really want to have a chance to talk over their ideas with a real pro who has seen just about every business model and every problem. It is always amazing to me how much get accomplished in these little brainstorming sessions, and over the years, clients have always raved about my positioning sessions.

Defining your niche

This post is all about defining what I really am going to be doing: Offering my experience and skills for your benefit through coaching/mentoring. Apply the same analysis of where your business is trending, which of your strengths fit with the trend, and what your customers have always valued most about your products or services. This is your mission.

This post is also about the article that pretty accurately describes why entrepreneurs need to be able to talk privately and confidentially about some very sensitive situations. I have been a fiduciary for 40 years, and apparently my clients find that helpful. I highly recommend it …

The Psychological Price of Entrepreneurship by Jessica Bruder

http://www.inc.com/magazine/201309/jessica-bruder/psychological-price-of-entrepreneurship.html/1