Start-up Capital

There is no secret that money talks loudest of all. As a future entrepreneur, you may well know fact that capital is perhaps most essential part of setting up a business, both online and offline. Lack of start-up capital not only puts your business at a disadvantage, it also makes cash flow a serious issue. Over time, it also makes it difficult for you to expand your business.

The good side is that start-up capital in form of small business loans are readily available at most commercial banks around your country. As long as you have a good credit rating, getting small loans should not be much of a problem. One important thing to remember here is to never borrow more than what you need to get started.

You loan amount need only cover for basic necessities of business. Start your business small and control your finances daily, monitoring everything you spend on and trying to cut costs where ever possible. When your business cash flow starts working in your favor, you are ready to safely take out another business loan for expansion of business activities.

Business Experience

Most people are afraid to start their own business, simply because they have "no experience". Therefore, they never get started at all, and never end up gaining that experience in first place.

Most people are afraid to enter into a business venture because they fear failure due to lack of experience. It's a Chicken-and-Egg story, or a Catch 22, or whatever else you can call it.

A Solid Business Plan

Any business is more likely to succeed if they have a definite plan of action to follow. Unfortunately, in reality most small business and home based businesses have no idea on developing a business plan that drives them to success. That is reason why 70% of businesses fail within first year. A solid plan needs to state exactly WHEN and HOW you will make money.

Before you get into business, make sure your business plan is laid out right to very minor details. You need to know:

I discovered Ebay way back in 1998. At first, I was strictly a buyer. I was amazed at thousands of items that could be found on Ebay. Just about anything you can imagine can be found on Ebay. And there were more incredible bargains to be found than at any other ecommerce website or brick and mortar store I had ever visited. After about six months or so of buying, I began selling items on Ebay. I had an extensive collection of unbuilt as well as built plastic model cars. I began placing models on Ebay with starting bids of $5.00 and no reserve. To my surprise, people started jumping all over these model kits. Some of them sold for as high as $70.00. It was at this time that I realized enormous money making potential of Ebay. The key to being a successful seller on Ebay is selling items that people want. There are a number of ebooks on Internet auctions that tell of importance of a great headline and a killer ad for your auction. While this is true, it is also important to remember that best ad in world will never sell an item that no one wants. The items that do well on Ebay are unique or interesting items. Antiques, pottery, collectables and high-end apparel are just a few of items that will bring high bids on Ebay. If you can easily find item at Wal-Mart, chances are it will not do well on Ebay.

There are a number of wholesalers around country that you can buy merchandise from to sell on Ebay. But before you buy, do your homework. It's very tempting to buy a bunch of electronic widgets that sell for $2.00 a piece. You might think you can buy 20 of $2.00 widgets and then sell them for $12.00 a piece on Ebay and make a killing. Unfortunately, you discover that no one is bidding on your widgets despite fact that you have started bidding at a mere $6.00. In fact, there are very few people that are even viewing your auctions. The end result is you are now stuck with 20 widgets that no one wants. The first mistake here was not doing a search of widgets on Ebay to find out if they're hot or not. The second mistake was trying to sell an electronic item. Yes, I know there is a huge market for electronic gadgets. That's problem; market is too huge. It is already saturated. How many times a day are you bombarded with offers for latest and greatest cell phone or digital camera? If you try to sell in this market on Ebay, you're encroaching on Best Buy's turf, which means you'll be smashed like a bug. On other hand, how many offers do you receive for NASCAR collectibles or Gucci shoes? Or how about die cast models? These are hot items on Ebay. These are in demand items and more importantly you can sell these items without competing against Wal-Mart and Best Buy.