Business

Laundromat Business Plan – Sample Design

These days, most experts will advise you to create a business plan before you decide to take the risks associated with starting a business. A laundromat is typically a bit more complicated than other small business models, making the need for research, planning, and clear direction even more essential for entrepreneurs entering the coin-operated laundry industry.

A laundry business plan will help you prove to yourself that your ideas are viable. With a plan in place, you will be able to set clear goals and chart a path to achieve them in an organized manner. A solid business plan can become essential if you have to show it to financiers or investors before you get the start-up funds you need. Lastly, it will help you be more realistic and ask yourself some tough questions about your ideas.

In this article, we have established an example of a laundromat business plan design. We have set out some examples of titles and content that you might consider using. Feel free to use it as a template as you come up with your own plan.

Presentation letter

Your plan should be arranged in a binder with a cover that describes what the report is about and who contributed to it. Your plan is likely to be read by many different parties, so you may consider attaching a cover letter to each that specifically addresses the reader, highlighting the concerns you will have.

Content page

If the plan has more than a couple of pages, it must include a table of contents. This includes a list of all titles and subtitles along with a page reference so that the reader can quickly locate the information.

Executive Summary

An executive summary is a simple introduction to the report. Give the reader a brief introduction to your business plan and summarize each section of the plan.

Mission status

While not essential, some companies like to establish a mission statement that describes their business purpose or philosophy. It generally covers non-financial reasons. In the case of a laundromat, you could say that you are striving to provide the best service to your customers or that you want to provide a clean, safe, and efficient way for them to do their laundry. Your mission should be to do your best for the customer and to be better than your competitors.

Bottom

Provide readers with general information about yourself and anyone else who is involved in the proposed laundromat. Readers may want to know what your qualifications are and if you have had any experience in business or in the coin laundry industry.

Provide background on the local coin laundry industry so readers better understand the opportunities available.

If your planning has been in progress for a while, you may want to update the reader on where you are. If you are considering purchasing an existing laundromat, you will also want to summarize the history of the business in this section.

business description

Provide readers with a basic overview of the proposed coin laundry business. When will your new unit open? Where will it be found? Will you have an on-site laundry attendant all day or only part-time?

Goals and goals

Establish a list of realistic goals that you want to achieve with the company in the first year or two. These goals could be financial and related to gross or net monthly earnings. They could also be related to other metrics, such as the number of members or customer satisfaction rates. Thinking longer term, you can also set goals to expand to new locations.

Startup requirements

Before you can launch your new laundry business, you need to know exactly what you are going to need and how much it will cost. The costs will include everything from purchasing equipment, renovations, and marketing along with professional fees and compliance costs.

Once you’ve listed everything, you can calculate the total startup cost. From here you can mention some of the options you have to finance the laundry. Mention how much you will be able to contribute yourself and how much external funding you will need.

Products and services

Review the services you plan to offer to clients. In addition to a basic machine laundry service with washers and dryers, it can also offer more exclusive services such as ironing or dry cleaning. Write down the products that will be sold on site. Obviously, you will sell laundry related products like soap powder and fabric softener, but you can also offer unrelated products like coffee and soft drinks.

Market analysis

As a prerequisite for writing a plan, you should have done at least a little market research in the area where you intend to open your coin launderette. You can present your findings in this section of the plan.

In your research, you should try to find out if there is sufficient demand for a laundromat in the area in question, and if so, exactly what kinds of services people want within this target market.

You should also consider the competition you have in the local area. Create a map that shows the catchment area for your customers, keeping in mind that customers will generally go to the laundromat that is the most convenient for them to get to. Look at the strengths and weaknesses of your competitors. Will it be possible to remove customers from the area of ​​influence of the competitor’s laundries? Can you make your service much more attractive than theirs?

Marketing plan

Set up a plan to attract new customers to your laundry and turn them into repeat customers. The marketing component of your plan should cover everything from your branding, pricing, advertising, other marketing methods, and customer service.

Remember that in the laundry business you will depend on building long-term relationships with regular customers. Not only should you focus on attracting new customers, but you should also focus on satisfying and “overdelivering” your existing customer base. If you retain your customers and please them, you will also benefit from referrals and “word of mouth.”

Business operations

Establish a plan for the daily operation of your laundry. Make a note of the equipment you will have in place and how the water and power demands will be met. Mention how you plan to maintain the machines.

Analyze your daily staffing needs. What role will you, as the owner, play in the day-to-day running of the laundry? How many employees will you need and what will your responsibilities be?

What other systems will you have to ensure that the laundry runs smoothly on a daily basis and that you can monitor and manage the business efficiently? Will you have a computer system to keep track of stocks and cash flows? What about a security system?

Financial analysis

Last but most importantly, a solid business plan will include detailed financial forecasts over a two to three year period. This data is best displayed in spreadsheets so you can set up a column for each month. Some companies include more than one spreadsheet to allow for different scenarios. You might consider including one as the best case scenario and others that show revenue is growing at a slower rate than expected.

Try to identify a breakeven point where the business would basically run without making a profit, but without losing money at the same time. Then you will have an idea of ​​the volume of clients you will have to target. To calculate the breakeven point, you must assume an average customer spend per visit and then calculate the number of customer visits required on a monthly basis.

If you are borrowing money to start the business, you should also include a payment schedule to show how quickly the loan will be repaid.

Appendix

Many assumptions are made in business plans, so it is important to be able to give reasons for why you made those assumptions. Instead of guessing, you should try to include data to support your theories. Include an appendix at the end of your plan that includes all the supporting materials that do not fit conveniently on the pages of the report. These could include maps, images, spreadsheets, tables, and lists of references and sources, to name just a few examples.

Business

Window Film Energy Savings – Calculating Payback Periods

One of the most effective ways for property managers and energy engineers to improve the energy efficiency of a building envelope is to install window film. Window film makes glass more energy efficient, at a much more affordable cost than new windows or other glazing improvements.

Of course, there are a wide variety of energy efficiency upgrades to choose from, from solar photovoltaic systems to building insulation. One of the best ways, from a financial perspective, to evaluate a particular energy saving technology is to determine the payback period.

The estimated recovery calculation is an excellent decision-making tool for evaluating competing energy-saving technologies. It’s pretty basic: it indicates how quickly the money spent is paid back.

How to calculate recovery

There are several ways to calculate the ROI for your energy improvements, from the simplest to the relatively complex. The main difference between them is the assumptions built into the calculations. Adding assumptions and variables makes calculations more complex, but sometimes an accurate estimate is necessary. The two most useful ways to determine the payback period …

1. Simple amortization

2. Cash flow analysis

Both methods provide a reasonable estimate of return on investment without becoming overly complex.

Simple payback analysis

The main benefit of simple payback analysis is that it is simple and provides useful information at the same time. To calculate simple payback, simply divide the cost of the upgrade by the estimated savings to get the payback period. For example, if you spend $ 500 to install energy-saving measures that save $ 150 / year, the payback is a little over three years, $ 500 / $ 150 = 3.33. The energy savings after this period is pure profit.

Of course, this omits many variables that can affect the actual savings made. Variables such as maintenance costs, energy cost increases, and inflation are not taken into account, but the method has the advantage of being quick, simple, and easy to understand.

Cash flow analysis

Cash flow analysis is the next step in terms of complexity. By taking more variables into account – things like maintenance, energy cost increases, and inflation – cash flow analysis provides a more realistic picture of payback, especially when these costs are high. This type of analysis is best done with a spreadsheet program to simplify calculations.

To determine the return on investment using the cash flow analysis, the initial cost of the improvement is combined with the estimated maintenance costs, including an estimate of any increase in costs over the expected useful life of the improvement, as well as with an estimate of energy cost increases over the same period.

For example, when examining the costs associated with replacing an HVAC system with a newer, more energy efficient system, it would not be enough to use a simple recovery, as HVAC systems involve regular maintenance that is necessary to guarantee life. useful of the system. Because maintenance is critical and subject to cost increases over time, this should be factored into the payback calculation to provide a true picture of potential savings, or lack thereof.

Now let’s look at an example using window film, an energy efficiency improvement that has virtually no associated maintenance costs. Assume a window film installation that requires an investment of $ 385,000 that generates annual savings of $ 168,000. With a simple payback equivalent to 2.29 years and virtually no maintenance costs, there are very few things that significantly impact the payback period. Energy costs will increase over the life of the window film, but they will tend to decrease the payback period, as the savings achieved will be greater than the initial estimate.

When it comes to maintenance, the window film does not require any, but its lifetime will require replacement due to damaged window film and for updates associated with tenant improvements. The cost of these replacements should never exceed 0.5% – 1% of the total number of windows in a building. Again, the impact of this on the savings made is negligible.

Here is a story that will illustrate the practicality of using these two methods to calculate the payback period versus other more complex methods.

A bag of gold was placed on a table in a room. Two people, an engineer and a scientist, were told to enter the room and try to get the gold. The only rule was that each time they moved towards the gold, they could only travel half the remaining distance between themselves and the gold. The scientist decided to leave, declaring that “if you can only get close to half the remaining distance, you will never get there. It is impossible.” The engineer, on the other hand, just took two steps, said, “Close enough for an engineering approach,” grabbed the gold and left.

The payback calculations look a lot like the example from history. You can make more and more refinements and assumptions, but in the end most of the time you can determine a viable recovery using the simple recovery method, which can be done on the back of an envelope. However, if you can, and especially when there are large variable costs, use the cash flow analysis method to include some of these costs.

The conclusion

We live in a world of financial constraints, requiring sound financial reasoning to make a particular investment, so we need to do some basic math to make sure we were smart about how we spent our money. For maximum efficiency and effectiveness, the focus should be on investments that offer rapid payback, which can usually be adequately determined with the simple payback method or, when maintenance costs are high, with cash flow analysis. a little more complex. Both methods are useful tools for the power manager.

Business

History of print advertising

Ads can be found in various forms and in various places. One of those ways is print advertising. The ads in this encompass those that are printed on some type of paper that is handled by the potential audience. Offers that are mailed or published in newsletters are well explained in the history of print advertising. Let’s review this article to learn more about the history of print advertising.

In fact, print media is the oldest type of advertising that has a long history. This advertising strategy began in 1468 during the days of William Caxton when he promoted a book that had its first print ad.

After which, in 1704, Joseph Campbell went on to include advertisements in the Boston Newsletter. In fact, this was a great idea as people began to be well informed about certain people and products. In the period of 1833, Benjamin Day printed his book “New York Sun”, which was a combination of advertising vehicle and news. Following this, the ‘Edward Book of Ladies Home Journal’ created a magazine ad code during 1910. From this period, print advertising began to evolve with more designs seeking attention and glamor. Generally considered advertising has had several significant events in the past, but the history of print advertising has overtaken it.

Print ads are effective only if people see them. When people look at various posts, they tend to receive new details and become more observant about the things that interest them.

This form of advertising aims to attract more and more people to your services and products, as they read or scan publications. These ads are commonly seen in magazines, newsletters, and newspapers. This type of advertising requires a lot of planning, which is often done by a group of people.

Some people are employed in this field to create the best ideologies to attract attention and inspire more and more people to shell out money.

When we take a look at the history of print media advertising, we get these concepts:

It takes a group of people to create ideas that are then developed into a concept.

Several others are involved in locating these concepts appropriately, as this factor allows them to earn more money.

Lastly, print media advertising becomes an important part of any publication’s revenue. Banners are also a type of print advertising that ranges from postcards to white paper the size of a note. So now you would have understood the history of print advertising.

Business

Keeping your food safe

Of all health and environmental issues, food safety demands the most urgent attention from authorities when regulations are found to have been violated. Recently in China, there have been several food safety scandals that have resulted in huge financial losses and damage to the reputation of the country and its food export sector. The climax came in July 2007 when it was announced that the former head of the State Food and Drug Administration, Zheng Xiaoyu, took bribes in exchange for issuing state food safety licenses. He was later executed in accordance with China’s tough official stance on corruption. Before this, there were a number of scandals related to the food sector. Jinhua ham was found to have been treated with a poisonous pesticide prior to sale (2003); the production of counterfeit baby food that caused the death of around 80 babies and hundreds of cases of severe malnutrition in 2004; and most recently, in 2008, the contaminated baby formula produced by the Sanlu Group caused the onset of kidney disease with many victims.

The fact that the State Food and Drug Administration of China (established in 2003 to take control of food safety issues) was itself the target of a corruption investigation has led to a resurgence in the adoption of audited standards. by third parties for food safety in the country. country. Foreign importers from China do not trust Chinese national standards and require exporters to adhere to international standards such as ISO 22000 inspected by global certification bodies. Similar incidents have occurred in Japan, most notably with the Snow Brand dairy company, which was found to have falsified food safety records in the wake of a tainted dairy scandal in 2002.

Most nations have a government authority to manage these problems from production to sale to consumers. They advise on national legislation and provide food safety requirements for products imported and produced in the country. These include the UK Food Standards Authority, the US Food and Drug Administration, as well as the China State Food and Drug Administration. At EU level, the European Food Safety Authority (EFSA) conducts food safety risk assessments in cooperation with national governments and provides independent advice and communication on current and emerging risks.

The HACCP (Hazard Analysis and Critical Control Point) guidelines published by the Food and Agriculture Organization of the United Nations are a fundamental part of the important food safety standard being developed by the International Organization for Standardization (ISO), ISO 22000. There are seven HACCP principles that must be followed. These dictate that food producers must conduct a pre-production hazard analysis to identify and address biological, chemical or physical problems that make food unsafe for human consumption; establish good security surveillance systems; and implement comprehensive documentation procedures. The application of HACCP principles and procedures is mandatory in the US for food products including meat, juices, and seafood, and is generally applied elsewhere as the basis for third-party food safety certification.

As the examples from China show, food safety certification is absolutely critical for food retail and international trade. Without it, producers and suppliers cannot sell their products. There is significant reputational and business risk associated with the way in which certification is obtained and it is advisable to obtain certification against recognized standards issued by reputable third party certification bodies.

Launched in 2005, ISO 22000 is already one of the best recognized international food safety standards. Provides food safety management systems for any organization, regardless of size, involved in any aspect of the food chain. To meet the standard, an organization must demonstrate its ability to effectively control food safety hazards to ensure that food is safe for human consumption. It incorporates the HACCP principles described above.

Before the ISO standard, the BRC (British Rail Consortium) global standard for food safety was established and trusted by major global retailers to deliver effective supply chain management and legal compliance. The Global Standard is part of a group of product safety standards, which together enable certification of the entire food supply chain, and was the first standard in the world to be approved by the Global Food Safety Initiative (GSFI). .

Formerly called EurepGAP, GLOBALGAP establishes voluntary ‘pre-farm’ standards for the certification of agricultural products and Good Agricultural Practices. The standards are awarded by approved third-party certification bodies in more than 75 countries. GLOBALGAP is a business-to-business label and is therefore not directly relevant to consumers.

Other leading standards, more on the ethical side of food production, are the Food Alliance Certification and the US-based SQF Certification.The Food Alliance Certification is awarded to sustainable food products from North America covering topics such as the humane treatment of animals and the exclusion of hormones, non-therapeutic antibiotics, transgenic crops or livestock and certain pesticides, as well as the protection of soil and water on the farm / ranch. level.

SQF (Safe Quality Food) certification is awarded by licensed certifiers globally and provides independent certification that a supplier’s food safety and quality management system complies with national and international food safety standards. SQF certifications have been awarded to thousands of companies operating in Asia-Pacific, Europe, the Middle East, and North and South America.

Business

How IPV6 has transformed VOIP

Voice Over IP, also known as Voice Over IP, is a telecommunications technology that allows communication calls to be made over the network. Voice conversations are transmitted as a collection of data packets in this field.

VOIP has changed the fabric of telecommunications as it is practically replacing TDM-backed phones, while at the same time providing great benefits for local and business consumers.

People often start using VOIP to restrict communication costs.

Voice Over IP includes mobility, unified messaging, or presence-related communication functionality.

Not forgetting that VOIP has immense benefits including high mobility and presence-related communication possibilities.

The problem arises how IPv6 is better than the existing IPv4

The obvious reason to switch to IPv6 is that IPv4 is running out of addresses

The other benefit of IPv6 is that with IPv6 each machine can be assigned a specific IP address.

Quality of service

However, because VOIP uses IPv4, it has various quality issues like latency, jitter, and reverb, etc. The reason is clear; IPv4 has no internal QoS. That is why the moment there is a packet failure or outage due to overcrowding in the system, there is a degradation in quality.

By comparison, Internet Protocol version 6 addresses these issues by establishing a set of requirements to provide performance guarantees while traffic is transporting.

IPv6 classifies and marks IP packets to ensure a proven VOIP infrastructure. With the help of this technique, the network can indicate packets or traffic flows and then assign certain parameters within the packet headers to group them together. To implement QoS classification, IPv6 provides a traffic class field (8 bits) in the Internet Protocol version 6 header.

P2P and voice over IP

Skype, for example, which is one of the favorite VOIP services, uses P2P technology. Peer-to-peer is a model in which each party has similar capabilities and either party can initiate a communication call.

With Internet Protocol version 6, service providers like Skype can boast better quality conversations.

Voice over IP in IPv6 and free international calls

With improved QoS in IPv6, telcos have started to shift their focus to bringing larger progressive services to the world. What may have been difficult to achieve from a technical perspective until now and did not seem like an efficient business model has changed.

TrueFreecalls is one of those products, which although amateur in its form, provides what seems like the incoming revolution in VOIP. They provide free international calls to individual destinations everywhere. The user initiates a call to a local contact through which he initiates the global call, so he is only charged for making a local phone call.

This only seems to be the beginning, as the implementation of IPv6 continues globally, we can wait for more and more services to appear.

Business

Start a Cabela Retail Franchise

Cabala is a very famous store that caters to people who love the outdoors. Before you think about starting a retail store, you should consider these things.

1. Is there a need for a Cabela franchise in your local community? You don’t want to open a retail franchise in an area where it won’t be profitable. You should go out and interview people and see if they know what kind of merchandise they are carrying and if they would buy in the story that you are thinking of starting. Market research is crucial to knowing where to think about starting a Cabela retail franchise.

2. Assess your knowledge of Cabela products. You should have prior knowledge of the products you will be selling before thinking of starting a retail store. Here are some of the products your franchise would carry: archery gear, hunting gear, ATV accessories, camping gear, shooting gear, hunting dog accessories, clothing, fishing gear, and boating gear.

3. Compile a list of states that do not have Cabela’s if one of their retail franchises is not needed in your area. This would require moving to another state, but if you are really serious about your idea, then it is worth the sacrifice in the long run. Here are examples of non-franchise states: Tennessee, Virginia, North Carolina, South Carolina, Alaska, New Mexico, New Hampshire, and Oregon. All of these states have consumers who might need a retail franchise in their state because many people love the outdoors. Many people who love the outdoors don’t want to order everything they need online, they want to be able to see and touch the items they need before buying.

4. Assess your financial situation. To start a franchise, you need startup capital, and usually that requires a business loan. You need to know if you have enough credit to secure a business loan. You should also examine how this franchise would affect your home finances.

5. Look for potential investors or partners to help you finance your franchise. This will help ease some of the financial burden on you. It also helps if you can’t get a business loan large enough to provide you with the necessary starting capital.

6. Before applying for a business loan, see how much it will cost to start a full franchise in your chosen location. This will allow you to budget appropriately and request the correct amount of money from the bank.

Cabela’s has been around since 1961. The company is even listed on the New York Stock Exchange and in 2006 sent more than 135 million catalogs to consumers. In the second quarter of 2008, its total revenue was $ 526 million, representing an increase of 16.6%. If you decide to start a retail franchise and find the perfect location, the necessary start-up capital, and knowledgeable and skilled employees, then you have a recipe for a profitable business. And remember, the franchise is the best kept secret of the 21st century!

Business

Tying Secrets 146: Financial Statement Tracking Test

Here is a list of my business and accounting courses in college:

1.

2.

3.

I was an education (teaching) specialist so I didn’t get anything in the financial statements “FS”. When I started out as a bail bond underwriting apprentice, I realized that I had no idea what a balance sheet was, but I learned.

If your first reaction when looking at an FS is “Duh”, we’ll fix it right now. Keep reading! This will be a view from 30,000 feet. Big picture.

To be complete, each financial statement must include As minimum:

1) Balance sheet

2) Profit and loss statement

The balance sheet

This document is a one-day snapshot of the company’s funds (Assets) and who owns them (Liabilities). Assets and liabilities have an equal “balance” because each dollar of the company is shown from two points of view: the asset and who owns it, the liability.

The Balance has Three important parts that we can review initially. Let’s identify them based on their functionality.

Current Assets – This line item is a subtotal near the middle of the Assets column. Represent those assets easily convertible into cash within the next fiscal year (as accounts receivable).

Current liabilities: they are located near the middle of the Liabilities column, they are debts that owe paid out in the next fiscal year (as Accounts Payable).

Total Stockholders’ Equity, also known as Net Worth – Usually the last subsection near the bottom of the Liabilities column. This is the net worth of the company that would remain if they closed and liquidated everything.

The profit and loss statement

This is a historical summary of all money received (Sales, also known as Income) and money spent (Expenses) during the previous period, usually one year. At the bottom of the column is net profit, which is the money the business “earned” during the year after paying all related bills and taxes.

Now that you can pick a couple of strategic numbers in any FS, what are we going to do with them?

Calculate the working capital

This is a primary measure of financial strength used by all analysts, including guarantors, banks, and other creditors. It is found by subtracting Current Liabilities from Current Assets. It is an indicator of the expected cash flow in the next year.

The sniff test

Here’s a quick simplified evidence to use when considering a particular offer or performance bond. The evaluation is carried out based on expectations contract (no deposit) amount. This is an instant indication of the adequacy of finances with respect to the next project.

First part: the target amount of working capital is 15% of the contract amount. For example, if the contract amount is $ 1,000,000, the guarantors expect to see a Working Capital of at least $ 150,000.

Part Two: The target amount of net worth is 20% of the contract amount or around $ 200,000 in our example.

Certainly, there is more to underwriting bonds than this simple analysis. However, by using this method, you can get a quick idea of ​​whether the financial statement easily supports the bond or it can be a tranche. If your analysis reveals negative numbers, which are shown in parentheses in financial reports, it is obviously a bad sign.

Also note that applicants who do not meet these can still qualify for bonuses based on other factors, and the reverse is also true. The surety subscription requires many factors in consideration. In this article we are offering a very simplified version of the process although it is valid as a quick review. This procedure will allow you to conduct a quick financial assessment and relate it to the next surety exposure.

Summary

This article does not make you a bonus subscriber, but now when you get a new FS instead of “Duh!” you can say “Let me analyze this!”

Running one more quick scan the sniff test it will indicate the probability of obtaining surety support. You learned a lot in three minutes, but when you have a link that fails the crawl test, that’s where our experience and market access come into play. Call us!

Business

Real estate: the speed of money

This lesson is actually adapted from Robert Kiyosaki’s book, “Who took my money?” I highly recommend that investors read this book. He writes that the velocity of money is the only reason the rich get richer and the average investor runs the risk of losing everything. I agree. From Robert’s book, write “As a professional investor, I want …

1. Invest my money in an asset.

2. Get my money back.

3. Stay in control of the asset.

4. Move my money to a new asset.

5. Get my money back.

6. Repeat the process “.

When I teach my houses the home buying investment strategy, I am teaching Robert’s concept of the speed of money. I read Robert’s book in the summer of 2005. Little known to me, he was already teaching the speed of money and I really didn’t realize it. Fortunately, I was already using it with my investment.

To give you an example: Let’s say you buy a nice single-family home for $ 200,000. To buy this home, you use a 5 percent down payment loan program and invest approximately $ 10,000. You use a fixed interest loan program and your total monthly payment is, say, $ 1,400. You are offering this home on a rent-to-own program. Your new tenant / buyer gives you $ 6,000 upfront on this beautiful home and chooses a program that pays you $ 1,695 a month in rent.

After collecting your down payment, you would still have $ 4,000 invested in this property ($ 10,000 down payment minus the $ 6,000 down payment received from your tenant / buyer). Your monthly cash flow would be approximately $ 295. (Rent of $ 1,695 minus your payment of $ 1,400) It would take you another 13 and a half months to recover the remaining $ 4,000 invested. ($ 4,000 divided by $ 295 of monthly cash flow) In this example, it would take you about 14 months to complete steps 1, 2, and 3 above. You would have invested in one asset, got ALL your money back, and kept control of this same asset. You are now in step 4, which is to move your money to a new asset. Robert continues his teaching as follows:

“A professional gambler wants to play house money ASAP. While in Las Vegas, if I had put my money back in my pocket and only played with my winnings, that would have been an example of how to play with it. house money … The moment I started betting everything, I lost the game because I lost sight of my goal, which is to stay in the game but play with other people’s money, not mine. “

When you reach a point in your investment where you have gotten all of your money back and still own the asset, you are playing with the money in the house. In this example, after month 14, you would still receive a cash flow of $ 295 per month until the property is sold. This is all house money. Now let’s go ahead and assume that your tenant / buyer does not purchase their home during the Rent to Own Program. In four years, your $ 200,000 home would be worth $ 243,000 with a 5 percent appreciation rate. This appreciation would be ALL the money in the house. You could then borrow a portion of this capital increase tax-free. You could refinance this home at 90 percent of the loan’s value. A 90 percent loan on a $ 243,000 home equals $ 218,700, minus your current home loan of $ 190,000 would give you $ 28,700 tax-free (current loan is the initial purchase price of $ 200,000 less your payment $ 10,000 initial).

At this point, you would have recouped your investment of $ 10,000, plus borrowed an additional $ 10,030 in positive cash flow and borrowed another $ 28,700 tax-free. This equates to approximately $ 48,000 in four years. Remember, you still own the original asset, the $ 200,000 house.

Now, this is where the fun starts to happen. What can you do with the $ 48,000? Could you use this $ 48,000 as a 10 percent down payment on a $ 480,000 asset? Suppose it does. What do you think the cash flow would be on this property? Maybe $ 10,000 a year? In a few years, both properties could be refinanced to get more money to invest in another asset, creating even more cash flow. For example, at a 5 percent annual appreciation rate, the $ 200,000 home would be worth $ 295,000 and the $ 480,000 property would be worth $ 583,000. You can borrow another $ 100,000 from these properties and use it as a 10 percent down payment on a million dollar property. What would the cash flow be on a million dollar property?

Your assets double when you separate your equity from your properties. Can you see what I mean? Can A Properly Managed Property Make You A Millionaire?

Now if you really think about what happened in this example, you will see that you were making your money work extremely hard for you. You didn’t lay it idle as equity in a property. The key point for you to realize is that home equity is idle money. Idle money provides zero return.

If you’re just following a tip from this report, make it this:

SEND ALL YOUR INVESTMENTS THROUGH YOUR REAL ESTATE

Most people make contributions to their company’s 401 (k) plan or some type of IRA. These contributions are paid, in most cases, directly out of your pocket. If your company automatically contributes to your retirement plan with your paycheck, this will continue to come directly out of your pocket. I really think this is a massive wealth destroyer. Instead, take these contributions and invest them in real estate. Then invest the cash flow from the real estate in your IRA or retirement plan. To be clear, I’m not saying don’t invest in your IRA. I’m saying insert real estate into your direct retirement plan contribution. Buy an asset (real estate) and have that asset finance your retirement plan.

This is the advice that will encourage many people. I know Money Magazine tells you to maximize your 401 (k) contributions. I know your parents would tell you to put everything on your 401 (k). I know your company’s human resources department would tell you to invest in their 401 (k) company. I know. I’ve been there. I remember all my coworkers at the international accounting firm I worked for talking about how much each one contributed to their 401 (k). They thought he was crazy to invest in real estate. They thought I was crazy when I quit my high paying job to invest in real estate full time. I can still hear the jokes and the giggles.

This will also happen to you. Everyone will think that you are making a big mistake. The reality is the other way around. You are making a big mistake listening to others. Please listen to this advice. I can’t tell you how powerful it is. I can hear you say, “Well, my company matches my contributions.” I do not mind. Your first investment dollars go to real estate. Real estate dollars go into your retirement plan. Don’t worry about the coincidence of your company because it is insignificant compared to what will happen if you follow this advice.

I bought real estate to generate cash flow. I used cash flow to quit my job and start my own business. The profits from the first company were used to start a new company. All this while my “giggling” co-workers are still arguing about how much they should invest in the company’s 401 (k) plan.

Now, I have all the real estate, company # 1 and company # 2. All of this can channel my retirement, living expenses, startups, and / or additional assets. This is the speed of money in action. The key is where your FIRST investment dollars go. If they go for a traditional retirement plan, you are not building speed. You cannot take advantage of a 401 (k) plan.

Now, if you had followed the traditional approach, you would still be working as a certified public accountant. I would be investing 10 to 15 percent of my income into the company’s 401 (k) plan working a job that I couldn’t handle. Yes, I could have more money in my 401 (k) plan, yippee! I wouldn’t have any assets working for me. Financing the real estate first was the best decision I have ever made. I don’t really care how much money I have invested. I care about the assets that I have working for me. Most people focus on the size of their portfolio. As Robert Kiyosaki’s book teaches, your focus should be to get your money back and reinvest it, not let it pile up. He writes, “In my world, the speed and safety of my money is much more important than the amount of my money … Only amateur investors put their money into their retirement plan and put the handbrake on.”

I like retirement plans. Do not misunderstand. I just want you to finance your retirement plan with money from the house. The money in the house is much better than your money. You do not agree? There are many options for investing your home money. Here are just a few:

1. Build an emergency fund for your family.

2. Invest in more real estate, houses buy houses

3. Pay off credit card debt or other loans

4. Invest in your retirement plan / IRA

5. Invest in a mutual fund / stocks or bonds

6. Start a new business

7. Buying and reselling a mobile home.

8. Invest in someone else’s business.

9. Invest in a comprehensive life insurance plan

10. Invest in seminars, books, and audio programs.

11. Hire people to help you with your investments.

12. And many more

I know that my path is the most difficult. It’s so much easier to make contributions to your company’s 401 (k) plan and not think about it. Let’s face it, you don’t have to go looking for houses. You do not have to show your properties. You do not have to go through an eviction. But you have to work until you’re 65. Chances are, you won’t be able to live the life you really want when you retire. I started investing in real estate around 1994. I started company # 1 in October 2000. I started company # 2 in August 2005. The speed of money has taken me to new levels every five years. I guess it will be the same for you. Where will you be in 2013?

Business

Can you start selling your invention before patenting it?

Chemical, pharmaceutical and biotech companies spend large sums of money to have their employees burn midnight oil and come up with great inventions, whether it be a novel drug to treat heart disease or a process to produce large quantities of a chemical. used in industry. manufacture of a plastic. They know that patents are powerful when it comes to resisting competition. They also know that a patent grants an exclusive right for up to twenty years. So once they get their patent they should be smiling all the way to the bank … correct?

The answer is not always “yes”. The competition will try to unravel the patent and find many ways to discredit it. If companies discover, within five to ten years, that their patent is invalid, then all that investment and related work is going down the drain.

One way a challenger could break the patent is by claiming that you sold the patented invention before applying for a patent. The United States Patent and Trademark Office, like many other patent offices around the world, has strict rules and regulations for filing patents. One of those rules says that you must file your patent within a year of selling your product or offering to sell it. If you want to sell your product abroad, you will need a patent in one or more European countries or in Japan, for example. The European Patent Office has stricter rules than the US Patent and Trademark Office In Europe, you must first file your patent; the sale comes later.

Although inventor companies deliberately do not wait more than a year to file a patent, the question often arises as to when did they start selling. This is because, in modern business life, many parties often work together to create a new product. For example, one company may agree to fund research, while another company may agree to perform laboratory work. There could be multiple exchanges between the two companies, often over a period of 3, 4, or 5 years or more. Without the knowledge of the parties, such exchanges could have triggered the legal sale date or the offer date.

Take the case of the DNA patent where the company obtained a DNA patent to detect gonorrhea. The company that developed the DNA sent a sample to its settlement partner and received payment for it. However, he waited 13 months to file the patent. The superior court of patents in our nation’s capital ruled that the patent is invalid because we waited too long. The laws related to patents are very complex and therefore it would be wise to seek a competent attorney when filing a patent or if you are considering buying a company with patents or licensing a patent.

Business

Small businesses without an emergency preparedness plan? You’re headed for disaster

The word “Disaster” immediately brings violence to mind: a hurricane, a flood, or an earthquake. Just thinking about it, the real impact of a disaster, no matter what its cause, becomes clear.

When a disaster hits a small business without an emergency survival plan, it likely means total closure of the company and loss of jobs for everyone involved.

Even when a plan is in place, you may be missing a key component: being prepared to handle employees’ concern for the safety and well-being of their loved ones.

This concern is so strong that it is often known that even the highest staff members, with the greatest responsibility for mission-critical functions, leave the business altogether, struggling to get home to save the family from chaos or the imaginary danger.

If key personnel have left, even though the building is still standing, the result can be the same: total closure.

Is there a solution?

After a career working with small (and larger) businesses, and the last 15 years helping to build and lead an emergency preparedness team in the local neighborhood, we believe there IS a solution.

In our opinion, the ideal solution is the coordination or even the “integration” of communities. This can be achieved when …

  • Company management, staff and employees have been trained in the Community Emergency Response Team (CERT).

  • The company has built its emergency preparedness plan around the CERT model and these specially trained employees.

  • All members of the employee family have been encouraged or even supported to receive the same CERT training.

The ideal extension of this concept would be for each of the employees’ residential neighborhoods to also become CERT-enabled communities, which we must recognize is an unlikely possibility.

Nevertheless simply knowing that their families are prepared for major emergencies would allow employees to remain in their jobs longer, helping the business take immediate action to protect critical equipment and data to preserve the business and its revenue.

It’s a win / win if it can be done. And even if only part of the solution can be implemented, the business will be in a better place to withstand or even prevent business disruption.

It all starts with emergency preparedness plans for the neighborhood and / or business. Such plans are NOT difficult to develop given the many resources available from government sources and dedicated authors. But it is urgent to start now:

  1. Emergencies can and do happen. Without a plan, they can turn into disasters.

  2. Your planning should be done BEFORE the emergency occurs.

New and inexpensive tools are available to ease the process. Don’t wait any longer to get started!