Owner Archives - GUJRAT INDIA

For Sale by Owner: Off MLS Listing Is Risky Business

Since 2013, there has been an increase in sellers pre-selling properties and listing them off the Multiple Listing Services(MLS). Core Logic reported that in 2013, 53% of real estate transactions conducted in the U.S. were not listed on the MLS. Most sellers do not hold a real estate license, and are not permitted to use the MLS – the standard listing portal for a licensed real estate agent. Although buyer’s agents are willing to work with For Sale by Owner (FSBO) listings, they are not permitted to give the seller any advice or access to marketing.

Sellers who want to list a FSBO may be losing out on tens of thousands of dollars in real market value on a property, especially if they list properties without an up-to-date appraisal or current market research. Often a seller will list a FSBO based on the sale price of a neighbor’s home, which may or may not be the best choice for a comparable property. A local real estate agent lists properties continuously in their regional sales area and is best suited to offer a market comparison in the neighborhoods he or she covers. Remember, tax assessments, though readily available, are not the best tool for gauging a property’s true market value at any give point in time.

One nuance about FSBO sales that should give sellers pause is the fact that an experienced buyer’s agent may hold the upper hand in a FSBO real estate transaction. Why? The seller may not be familiar with state laws and fiduciary codes and/or ramifications of contract issues that crop up during negotiations. Even with a lawyer creating a real estate contract on a property, the final outcome of a For Sale By Owner (FSBO) real estate sale may be held up over a variety of issues. Experienced REALTORS know how to circumvent these roadblocks quickly and keep a property transaction on track.

FSBO is Not Equal to a REALTOR’s Advertising Potential

Working with a professional REALTOR is worth the commission under these circumstances. A FSBO has a limited opportunity for marketing, becoming more heavily reliant upon web real estate portal sites such as Zillow.com. With a seasoned agent, advertising penetration for a property is far greater. For example, I list my properties for sale in Williamsburg, Virginia on four MLS websites. This gives my sellers and extensive area of coverage so that other agents can see the listing and buyers on the MLS can also see it. My MLS listings are also republished on Realtor.com, which is owned by the National Association of Realtors and is also a reputable website in the industry.

My broker, Coldwell Banker Traditions, also has a listing mechanism on its locally based website, where my client properties receive excellent visibility. Not all REALTORS list properties this widely on the Web, so check with individual real estate agents and ask them for specific information about advertising provided for client listings through MLS and other venues on the Web.

There are other disadvantages to listing properties without an agent. If the owner happens to miss a showing with a potential buyer, he or she may miss the opportunity to sell a property altogether. For real estate sales in my territory, Southeastern Virginia, an owner is not permitted to use legal forms created by the Virginia Association for Realtors (VAR), unless they are licensed. Real estate forms are formally copyrighted by the VAR and sanctioned for use only by membership. This puts the seller at another distinct disadvantage in the transaction. Having to create legal forms anew is not only time consuming, it may increase costs for an attorney.

Besides some of the more obvious advantages to listing with a licensed real estate agent, there is also a common misconception that the use of a real estate lawyer will save money versus paying agents’ commissions. The seller still has to pay the buyers agent fees (which is variable by state and type of real estate transaction). All FSBO sales contracts must be created and finalized with a lawyer. The sales process involves having the buyer read the contract and make changes. The lawyer revises the contract appropriately and it is presented at closing. Lawyers in Virginia charge far more to create an original contract (in my experience) than the commission on the seller’s side – in most instances. Sellers who want to go it alone should seriously consider the lawyer’s fees may be more expensive, and are largely unpredictable, depending upon the number of legal forms needed, length of negotiations and additional contract requirements.

Sellers need to forgo the FSBO and get smart in a real estate market that is definitely on the move in many regions of the U.S. Pricing is trending higher in the 2014 market and inventories are low in many markets. So sellers need to have expert advice on pricing real estate at current market value now – more than ever. In addition to potential loss of profits from home sale, the seller may easily run up against legal and contract issues that may not be quickly resolved. Worse yet, these matters may be settled too late to adhere to the time limits on certain loans such as FHA and USDA. If the seller does not know what they’re doing and timeframes are not heeded, this can cause the buyer to forfeit a loan. In turn, the property loses a good buyer and valuable time on the market.

Be wise and don’t engage in risky business – listing a property off the MLS or without a licensed agent. It is best to have the representation of a licensed agent for a variety of reasons. The main reasons are: the seller will have expert advice, will most likely sell the property sooner and the property will command a fair market price. Say no to FSBO. Instead, seek out a capable real estate professional in your region for piece of mind.

9 Business Turnaround Strategies For the Small Business Owner

Many times when businesses fail, they go out not with a bang, but a whimper. They die a slow death. Many small business owners feel the overwhelm of shrinking revenues and the enveloping advance of competitors, but still refrain from making any dramatic changes until it is too late to achieve a business turnaround.

Whether you run a small manufacturing company, professional service firm, or a local retail establishment, there are at least 9 business turnaround strategies you can implement to achieve a successful reversal of your business fortunes.

1. Institute regular strategy sessions

The first time you notice your profit margins shrinking and your clients leaving you for your competitors should be a time when you consider reinventing who your company serves, what it does and how it delivers value.

2. Business model innovation

While this may be obvious for manufacturers, even very small local businesses face strategic business risk from large scale movements and trends taking place outside their industry, or among their customers, or within society as a whole. Business model innovation means that you consider changing who you serve, your position in the value chain, your differentiating value proposition, or all three (among other factors).

3. Invest heavily in customer communication

I am always shocked by just how rarely the average small business communicates with its customer base. So many entrepreneurs and CEOs simply assume that the customers “Do not want to hear from us that much”. My retort to that is always, “How do you know?”

One of the most dangerous habits you can pick up as a business owner is that of turning assumptions into facts without investigation or experimentation. I have seen this one habit kill more businesses than any external conditions or competitors.

Your customers hold the most valuable business intelligence money can buy. Aggressively seeking their feedback and opinions should be your first point of attack as soon as you suspect any structural weakness in your business or your business model.

4. Conduct an audit of marketing assets

Many of the supposed weaknesses and expenses of a business just might be marketing assets hidden in plain sight. For example, a list of former customers who have not bought a thing in the last two years could easily be reactivated with a targeted and honest direct mail campaign. Instead, I often see business owners whose attitude to past clients is, “You are dead to me”.

5. Establish a strategic alliance

The ideal strategic alliance partner has a business whose product or services complement your own. One of the fastest and most effective business turnaround strategies is to “force feed” your lead generation system with a series of strategic alliances. Such strategic alliances allow you to gain endorsed referrals to targeted prospects and to gain additional revenues without increasing your overhead or burdening your operational model.

6. Create a new profit center

One of the difficulties many small businesses (particularly local retail or service establishments) face is the inability to scale. For example, an assisted living facility that has only 10 beds is somewhat limited in how it can increase it revenues if all ten beds are filled and it still has financial difficulties. However, there is often expertise that can be packaged into consulting opportunities, or licensed to other establishments.

One of the simplest ways to turn product or service-based expertise into an additional income stream is through the creation of a closely related information-based business or profit center that piggy backs on the intellectual capital locked up in the business. Such profit centers usually have much higher margins and lower operational overhead than your existing business.

7. Innovate your pricing

Changing how you price your product is often a great way to build new momentum in your business. The history of IBM shows that one of the key changes made by Thomas J. Watson when he became general manager of CTR (the struggling company that would later be renamed IBM) was to convert the pricing scheme of their early machines from expensive outright purchases into more affordable long-term leases and maintenance plans.

Simple price innovations such as offering 3 tiers of price packages rather than a “take it or leave it” price, often results in greater sales conversions for many firms.

8. Factoring and asset-based financing

Sometimes, the unavoidable challenge in achieving a business turnaround is in getting better cash flow out of the assets in the business. Factoring is a type of financial transaction in which a business receives a lump sum for selling its accounts receivable to a third party.

Factoring is just one of many asset-based financing strategies that could fuel a positive reversal of fortunes in a troubled small business. Another option is to receive structured working capital by obtaining loans secured by other business assets such as inventory, machinery, and real estate.

9. Develop a unique selling proposition

Many small businesses get by for a long time on their tactical marketing efforts and only begin to appreciate the seriousness of true business differentiation when such marketing efforts begin to lose steam. A unique selling proposition or USP may be the single most powerful weapon for small business marketing success.

Having a clear reason why your marketplace should do business with you instead of your competitors or substitutes instantly makes all your advertising and marketing efforts more effective. It also gives every customer and referral partner a very powerful referral script on your behalf. If your small business is already engaged in a heavy amount of marketing and advertising, developing an effective unique selling proposition may be the most potent weapon you have for turning your business around.

You do not have to implement all 9 business turnaround strategies immediately. Pick one that seems most appropriate for relieving your profitability and performance bottlenecks, and then get to work. Over time, if you test and implement these strategies, you will find your business on the path to explosive long-term profit and revenue growth.

New Small Business Loans Starter Guide: What Are Your Options for Financing As a New Business Owner?

It’s not easy at all for new businesses to get all of the funding they need. Even if you have excellent personal credit, you still might have trouble obtaining all of the business money you need. The good news is that there are a variety of options available these days, including online banks and crowdfunding. Just take the time to research all of the new small business loans and determine which ones you should try going for.

Microloans might be worth looking into as well. There are SBA microloans, which are typically available up to $50,000, as well as non-profit organizations that offer micro-lending options for up to $35,000.

Before applying to any kind of loan, there are a few factors you must consider about your own finances. In addition to your own credit report, you need proof that you will be able to repay the loan. Make sure you communicate any experience and expertise you have that will be directly applied to the business you are trying to establish.

You’ve probably come to the realization that new small business loans don’t come with the lowest interest rates. If you’ve been in business for less than two years, you will have a more difficult time qualifying for a big loan with a low interest rate. If your credit isn’t the best, you might have to put up some collateral and get a secured loan.

New Small Business Loans for Equipment

If it’s primarily equipment you need, then go for an equipment financial loan. This type of loan is specifically designed to help organizations pay for the equipment and machinery they need for getting started. They are similar in structure to a traditional loan, although the repayment terms can be for a longer period of time. Keep in mind that the proceeds can ONLY be used to purchase the machinery / equipment you need. The downside to an equipment loan, obviously, is that if you default, the lender has the right seize that equipment.

While some entrepreneurs actually take out a personal loan to fund their startup, this might not be the best idea considering that if the business should fail, you and you alone will be responsible for it. Not only will the business fail, but your own personal credit will be destroyed.

Your best bet is to look for new small business loans with online lenders, such as US Business Funding. There are many options available, such as vendor programs, equipment leasing and financing, working capital, and so forth. The approval rate is very high, and you can get started right away.

SEO and SEM Explained in Plain English For the Non-Tech Business Owner

Search Engine Optimization (SEO) is akin to producing a TV commercial. That is, it is PREPARATORY work designed to get the website ready to be marketed, much like how producing the TV commercial involves editing, formatting, and fine tuning. Once the site is optimized, it’s ready to be put out in front of the public’s face (and the search engines). Marketing the site is the process of calling attention to it, and continuing to enhance the presence in front of the viewing audience, just like broadcasting the TV commercial.

Think of it this way: If you produced a TV commercial and only aired it one time, you may receive some business from it, but over time, peoples’ memories fade and no one remembers the commercial. In much the same way, submitting the site to search engines (part of marketing) and creating links from independent sources (organic marketing) should get some initial results. But if the efforts stop there, then a few months later, the effect is gone. Just as you’d think it silly that a business owner complains 6 months later that no one is responding to their TV commercial (that only aired once six months ago), it is equally unrealistic that an SEO project that is marketed one time is expected to deliver results in perpetuity. It simply doesn’t work that way.

Like the TV commercial, the preparatory work to get the website up and running is typically a one-time BIG expense (with periodic adjustments as the market changes) due to the time involvement to do the job… and the time it takes to do the job right depends on several variables: the market (competition and saturation), the goals (local, regional, national exposure), the scope of the site (number of pages, amount of content), etc.

Also like a TV commercial, the marketing and promotion of the site takes comparatively less time to implement, but must be a steady, ongoing process to be effective. It is a shame when a business owner spends the money to optimize their site, and then fails to follow through with “the rest of the job” in terms of marketing it. The initial costs of SEO go wasted in such instances.

Just like with any kind of advertisement, the business owner needs to establish a budget for Search Engine Marketing (SEM). Perhaps they shave bits off of their other marketing methods (brochures, radio spots, yellow pages, newspapers, etc.) to establish their position on the search engines. Dollar for dollar, a properly managed SEM campaign, whether organic or pay-per-click, typically yields a better return on investment (ROI) for the business.

SEO is a pre-requisite to effective SEM. It’s the first part in the SEM process, and involves performing market research, defining and refining keyword phrases to maximize what SEO professionals refer to as “keyword density” and minimize the effects of “keyword dilution.” SEO involves editing links, content, and sometimes structure of a website to get the site prepared for marketing. The SEM promotion of the site can be handled a variety of ways, using several different strategies (both organic and paid-for marketing) to accomplish the same end: getting the site found when someone searches for a particular keyword or keyword phrase. SEO is commonly known to have a direct impact on organic marketing efforts with SEM, but unbeknownst to many business owners (and even some Web developers, the quality of a website’s SEO will often affect the price of pay-per-click marketing as well. For example, keywords used in pay-per-click campaigns through Google AdWords are assigned a “quality score”, and sites that are optimized well will typically yield higher quality scores than poorly- or un-optimized sites. The higher the quality score, generally the lower the price-per-click for an optimized keyword.

A key point to remember about the search engines is that a company’s “competition” is not necessarily its “sworn business rival” down the street or across town that draws from its customers. In terms of search engines, the “competition” is any website, link, document, advertisement, etc. that is ranked above the business’s website, or showing up within a page or two of the business’s search engine listing for a given keyword phrase. This is why proper keyword and market research is so important for effective SEO, rather than simply relying on the words and phrases that intuitively come to mind when a business owner thinks of his or her own products and services. Using the “hardwood floors” example, it is possible that articles and companies about carpentry, arboretums, laminate flooring, and floor wax could all be “competition” on the search engines.

The problem with any kind of marketing is that a business can always spend more money on it. For example, if a billboard company is approached to advertise a company and asked the question, “How much does it cost to advertise my business on billboards?” the answer is likely to be, “It depends on how many billboards you want to advertise on, an where they are located.” A similar response would be offered in reply to someone asking the question, “How much does it cost to advertise in the Yellow Pages?” The answer: “It depends in what city and on how big of an ad you want on the page.” The cost questions pre-suppose that there is some fixed cost to advertisement, which is far from reality. Not all markets are the same, and a business could conceivably spend an infinite amount of money on advertisement. SEM is no different.

At some point in advertising, whether it be via traditional methods or via the Internet, there comes a point where the marginal cost increase in marketing yields a diminishing return on investment. As an extreme example to make this point, let’s assume that a company achieves the Number-One position in the organic rankings on Google for a particular keyword, “hardwood floors”. No matter how much money is spent on promoting the keyword phrase “hardwood floors”, there will be no improvement in the position of that company because they can’t be better than number one. If the position for “hardwood floors” were numbers three and five in Yahoo! And MSN respectively, then spending more money on organic marketing may bring them up to Number-One across the board (there are no guarantees), but those advertising dollars would be much better applied to marketing other keyword phrases that are not quite as prominent yet. In this way, the ROI is part of a “best bang for the buck” consideration in terms of effective SEM.

Search engines generally look at three criteria to determine a website’s placement in the rankings: text features, link features, and traffic (or popularity) features. All three comprise the search engine merit of a website. Website developers generally only exert control over text criteria, meaning the content on the website itself. Taking it further, SEO/SEM experts “wordsmith” the text content on the site and work externally to the website to influence link criteria by creating and adjusting links from relevant content on the Web that point to the site, such as articles, blogs, and other websites. In other words, SEO and SEM address the text and link components of a website. The traffic component of the site’s search engine merit is largely driven by the text and link adjustments. Eventually, if a site is optimized and marketed properly and effectively, the popularity (traffic component) of a website will continue to deliver placement results over time and allow the business owner to reduce their organic marketing budget, or perhaps realign those marketing dollars to focus on a different set of keyword phrases.

The business’s budget will largely determine how that company’s SEO and SEM strategies are prioritized and implemented, so it is important that the search engine optimization and marketing company is provided with limits. If a business owner doesn’t know how much they want to spend on SEO & SEM, then it is smart to discuss options in a consultation and perhaps offer the business owner a “good, better, best” style of initial proposal for the scope of work that is defined. Surprisingly, most businesses can achieve favorable results with a fairly modest budget if they find a competent SEO and SEM company. That is, there are a lot of people and companies “practicing” SEO/SEM in the market place, but comparatively few that are proficient in it. Due to this, it’s always advisable that the business owner insist on references of demonstrated results from a portfolio of other clients, rather than just make a decision on price alone.

Ad Blocking Technology and the Online Business Owner

Many browsers are now using ad blocking technology in order to attract users. This technology stops things like banner ads, pop-up ads, and even the basic click ads from even showing up on your window, making for ad free browsing. Although this is useful for the user, a lot of internet businesses are feeling threatened by this technology, fearing that they will not be able to get their message across to the public anymore. In truth though, ad blocking technology can work to your advantage, if you are savvy about it. Here is how:

1. Ad blocking saves you money. The problem with the pay per click style of advertising is that you get dinged even if someone accidentally clicks on your advertisement and this kind of accident is extremely common. Perhaps each click is only costing you a cent or two, but it quickly adds up. With the ad blocking, you don’t have to worry about accidental hits anymore.

2. Ad blocking forces you to be more creative-and thus stand out. Banner ads, pay per click ads, and pop-ups are boring and easily ignored anyway. With them no longer reaching people, you have to do some more work in your advertising and visibility efforts. Creativity means that you are more memorable-meaning that you stand a better chance of attracting customers.

3. No matter how prevalent ad blocking is, not everyone is going to use it anyway. Ad blocking sometimes costs extra as a part of a subscription fee, is part of a search engine people don’t like, or someone might decide to disable it. Regardless of the reason, ad blocking will never blanket the world, so why worry about it?

4. Random advertisements scattered across the internet should only be a fraction of your campaign. To be truly successful, you have to have visibility in several laces online, not just one, so if you lose your banner ads, then you should have a contingency plan in place anyway so that you don’t just grind to a halt.

5. If nothing else, you have one less kind of marketing to worry about which means you can spend more time on other varieties that work better or on expanding your business overall. Advertisement blocking is nothing to fear for the organized, creative, and savvy internet business owner. It is simply one more thing to be overcome in your mission to become a successful online business owner.

Social News And Bookmarking Sites – What Every Online Business Owner Needs To Know

If you run a business online then you’re probably looking for a way to increase the number of sales and the number of visitors to your site. One simple and cost effective way to do this is through social news and social bookmark sites.

Social news and bookmark sites are community driven. The community vote for the content that they want to see reach the popular pages. If your content reaches the front page then you are likely to attract tens of thousands of new visitors to your site. Imagine – all that traffic from one article!

Many website owners will spend vast sums of money on traditional advertising, yet treat social media sites almost as an afterthought. If you’re not using social bookmark and news sites then you’re missing out on a huge opportunity to grow your business.

Understandably, most people who run a small business or website are pushed for time. There are only so many hours in a day to get things done, but not using social media sites as a marketing channel is a big mistake. Here are just some of the reasons why you need to start thinking about social media marketing:

Drive traffic – social media sites will definitely drive traffic to your site if you reach the popular pages. You can attract a large number of visitors to your page that might otherwise take months to achieve from traditional internet marketing methods.

Reach influencers – by submitting your content to social media sites you can reach key “influencers” on the web. Why does this matter? Well, since most of these influencers have their own websites, reaching the popular pages will often mean that they will link back to your website, which helps you to climb up the rankings in search engines and also helps spread your products.

Build authority – building authority in your particular niche will undoubtedly increase sales. People are more likely to buy something from someone who appears to know what they are talking about. Reaching the front pages of social news and bookmark sites will help you build trust with your audience. You’ll also come to be regarded you as an expert in your field.

Grow your brand – social media sites can also help you to grow your brand. You can almost think of it as a form of public relations. You are increasing your visibility on the web and again, this helps you to gain trust with your audience.

Understand your customers – some users will leave comments about your submitted content. While not all will be helpful, there might be some valid suggestions from users. If you listen to your users and engage in a conversation with them they are far more likely to trust you in the future and you can also get some useful feedback on your website.

Increase sales/subscriptions – this is what every business or website owner wants. Not only can you increase sales in the long-term by building up your authority, but using social news and bookmark sites to promote your business will also see an increase in sales in the short term.

If you’re not using social news and bookmark sites as part of your overall marketing strategy then you’re missing out on potentially tens of thousands of new customers. Just one piece of content can drive traffic to your website and increase sales dramatically. So what are you waiting for? Start today and watch your online business grow!