Ever wondered ‘Where’s the money gone”?

‘Where’s the Money Gone?’ traces the learning of a typical business person named Mike. Mike believed that to be successful he just needed to make a profit.

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5 Facts About Homepreneurs You Probably Never Knew!

By on March 4, 2010 in Legitimate Home Business Opportunity

Let’s start today by defining a homepreneur.

They are small business owners running viable enterprises from their home.

I guess you could say they’re a subset of entrepreneurs because being based at home they often have to be very enterprising in order to compete with other businesses.

So what are they like? How would I recognise one if I saw them down the street away from their home?

According to The Small Business Success Index in America there are five defining characteristics

  1. Homepreneurs tend to be male, middle-aged and white according to the 2009 Network Solutions survey.
  2. 69% of homepreneurs are male, 31% are female.
  3. 88% of homepreneurs identified themselves as non-minorities and 11% identified themselves as minorities.
  4. 52% were over 55 years old and only 6% were less than 35.
  5. 46% of homepreneurs completed college

So you can see they’re not some kind of fringe community. From the statistics they are fairly mainstream and a vital part of the economy and community

So if you’re a homepreneur drop a comment on your experiences

Is there something you could share that would benefit our community?

Video

Why cash is not part of working capital

By on March 2, 2010 in Melbourne Vlog Tour

Business owners sometimes ask us why we don’t include cash when we talk about working capital. This is a great question and it’s very important to understand the answer.

Andee explains in today’s video what cash really is and why it’s not included as part of working capital.

The Vlog series comes from One Sherpa an online global membership community dedicated to helping small business owners succeed and prosper.

The series is filmed on location around Melbourne, Australia and answers questions commonly asked by small business owners.

This video is filmed from the Government House, Melbourne and answers the question ‘Why Cash Is Not Part of Working Capital?’

4 Facts about Running Your Business from Home that you probably never knew!

By on February 25, 2010 in FAQs, Legitimate Home Business Opportunity

Are you running a business from home?

Are you frustrated by being considered a hobbyist more than a real business owner?

Well there is good news for you.

There’s a new class of business owners called Homepreneurs.

Small business owners running viable enterprises from their home.

A study by The Small Business Success Index in America last year researched home based businesses and found some very interesting facts.

  1. There are about 6.6 million home based businesses that generate at least 50% of the owner’s household income.
  2. Homepreneur businesses employ over 13 million people.
  3. 35% of homepreneur businesses generate more than $125,000 in revenue; 8% more than $500,000.
  4. Homepreneur businesses are competitive, scoring roughly the same on the Small Business Success Index as small businesses based outside the home.

So what can you take from this?

This section of the economy is alive and vital and increasing all the time.

Technology is assisting this and I believe in the next decade we’ll see it increase.

Do you have experiences you would like to share?

What obstacles have you overcome in running your business from home?

Video

What’s working capital?

By on February 23, 2010 in Melbourne Vlog Tour

Working capital is a term that confuses many small business owners. Today Andee explains in simple terms what working capital is.

Working capital is a very common place for money to hide in your business, so it’s very important to watch closely what it is doing in your business.

The Vlog series comes from One Sherpa an online global membership community dedicated to helping small business owners succeed and prosper.

The series is filmed on location around Melbourne, Australia and answers questions commonly asked by small business owners.

This video is filmed from the Sidney Myer Music Bowl, Melbourne and answers the question ‘What’s Working Capital?’

Putting The Family Home At Risk Through Bad Borrowing

By on February 18, 2010 in Small Business Cash Flow

I’m continually amazed at how small business owners borrow against their family home and then think they have CASH to spend in the business.

If you have borrowed money or have a form of borrowing in your business then you are using other people’s money in your business and not your own.

The fact is that to get started most small business owners have some sort of borrowing because just like buying a house it is difficult to save up enough money to launch a business from your own money.

So to get started it is simply a matter of taking a loan against the family and ‘hey presto’ you’re in business.

BUT unless you believe you’re using other people’s money which needs to be paid back you can get further and further into debt without quite realising it.

The fastest way out of debt is a strong cash flow in your business.

The fastest way to get into trouble is to forget about your borrowings and fail to produce good cash flow.

I’m not talking about profit because it is possible to make profit and still have bad cash flow.

There are lots of resources on cash flow available but if you would like an introduction then go to our series of teaching on this and educate yourself before finding the bank breathing down your neck.