By now, everyone has been talking about or has talked about the importance of time management for any small business. It’s one of the integral components of successful home based business systems. But what most home based business systems lack is how to efficiently implement time management when applied to result-producing activities. You know that it’s important to organize your time, organize your activities, and try to minimize the time spent on activities to increase output. However, what I find lacking is that most people are not talking about how to apply those techniques in reference to home based business systems where you have several categories of tasks that need to be accomplished every day. Those categories are prospecting, business execution, and support.In order to create a time management action plan, you must first decide how much time you set out to devote to your home based business systems.Prospecting:When we consider prospecting in home based business systems, we need to understand that prospecting needs to be worked in two pools: customer base and distribution. Now, most people start freaking out when it comes to bringing people in to their businesses, or are up in arms on how to do it right. But isn’t that one of the basic precepts of any business? Think about it: what is the best way for you to increase your reach?Consider the basic retail business in this regard. Companies like Walmart, Target, Macy’s, or franchises like McDonald’s or Burger King all have exponentially increased their revenues by expanding their number of distribution points. The more stores in strategic geographic areas, the more customer base. When it comes to your home based business systems, the same principle applies. If you identify people that want to achieve their dreams through owning their own business, you can expand your customer base and increase sales revenues through increased distribution.Anyhow, back to the main focus. 1/2 of your day should be focused on prospecting customers and potential business owners. Business doesn’t grow if you just focus on administration and maintenance. This is especially true of home based business systems because of the fact that you don’t have the large financial budget compared to retail outlets and corporate companies, so you need to create clout and business organically. These methods can be done online and offline, in-person or utilizing social media. However, you must set out specific times in which you go and promote your business to get exposure.Some examples of how I prospect are that I join local community groups through Meetup and Chamber of Commerce. I keep a schedule of events that are posted and make time to get out and network. You can even prospect through your daily errands. If you are a stay-at-home mom, there are tons of ways to prospect. Whether it’s at the park, grocery store, picking up your kids, PTA meetings, every day that you are out in the world is another opportunity to prospect customers and potential business partners. Study up on how to start and maintain conversations and figure out approaches that will land you names to add to your list. I will write an article on this at a later time.Executing Business:A 1/4 of your remaining time should be devoted to administration and business maintenance tasks. Home based business systems all have administrative tasks that need to be completed on a timely basis. Failure to do so can result in penalties and setbacks in your business. It’s no different than the same penalties that traditional businesses suffer when failing to comply with certain regulations. For example, if a restaurant fails to renew their alcohol license or they fail a health inspection, fines are implemented. In your business, tasks can include filling out forms to maintain sales reports for safe taxable reporting, organizing your names list, and answering emails, tweets, comments, and posting new content on your funnels. The list goes on and on, so it’s key to write all your tasks down per week and organize them in to daily lists to organize your time to complete them.Supporting Your Business:This is something that I think most home based business systems lack in terms of having their business owners spend time thanking and maintaining customer loyalty. I’ve found that offering to provide your current customers with incentives to refer other customers to you is one of the primary and most effective marketing methods there is. Identify your top 5 customers and personally thank them by sending a note. Also useful is to provide a special promo incentive for them, like a tiered discount structure for the number of customers they refer to you. Just be sure that you don’t harass your customers by sending too much communication. Be smart with your business. Give them incentives to provide reviews and testimonials for the products they love that they purchase from you, so you solidify your sales materials for other potential customers.Not only do you want to support your customers, but support your team as well. Take time out to call your teammates and make sure you are providing them the support they need. Stabilize your organization and you stabilize your own income as well. Utilize contests to promote friendly competition with your team to boost sales, and set goals with your team and follow-up with them to keep them accountable.Don’t forget to keep track of your business volume and make sure that you are being rewarded for the result-producing activities you and your team are conducting.
Differences in the Types of Auctions That Take Place Around the World
Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.
Types of Auctions:
Different types of auctions take place around the world. Below mentioned are some types of auctions:
1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.
2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.
3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.
Examples of Auctions:
Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:
1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.
2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.
3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.
4. Horse auction: Bidders can bid for young horses of the best breed.
5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.
The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:
1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction
Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.
Hiring An Auction Company
Estimating your assets value:
Typically, one of the first questions a business owner will ask me is, “how much will the assets bring at an auction”. After taking the time to review the assets, the auctioneer should give the client a conservative estimate of the sale based upon his experience and the current market trends. It is important that the company give realistic expectations so the seller can make informed decisions based on their best interest.
Compensation and Expenses:
Is the company you are considering working for you or against you? The agreement you decide may determine this.
A business owner should carefully consider how the auction company is compensated. The most common commission structures include: straight commission, outright purchase of assets, guaranteed base with a split above to both auctioneer and seller, guaranteed base with anything above going to auctioneer or a flat fee structure.
In a straight commission structure, the company is paid an agreed upon percentage of the total sale.
In an outright purchase agreement, the auctioneer simply becomes your end buyer. The company purchases your assets and relocates them. While this can be an option in some unique situations, keep in mind that they will want to purchase your assets at a very reduced price to make a profit at a later date.
In a minimum base guarantee, the auction company guarantees the seller that the auction will generate a minimum amount of sales. Anything above that amount either goes to the auction company or split with the seller. While a seller might feel more comfortable doing an auction knowing that he is guaranteed a minimum amount for his sale, keep in mind that it is the best interest of the auction company to secure a minimum base price as low as possible in order reduce their financial liability to the seller and secure higher compensation for the sale.
In a flat fee structure, the auctioneer agrees to show up for the sale and call the auction. There is no incentive for the auctioneer to get the best prices for your assets. The auction company is compensated regardless of the outcome of your sale.
What is the best option for business owners? In my experience, an agreed upon straight commission structure. This puts the responsibility on the auction company to offer the best outcome for everyone involved. There is an incentive for the auction company to work hard for both parties, set up and run a professional sale, get the highest bid and sell every item on the inventory. Successful auctions translate to a higher bottom line for both the seller and the auction company.
Auction Expenses:
In most auction agreements the expenses to conduct an auction are passed to the seller. If the auction company pays for the expenses, it is simply absorbed in higher commission rates.
All expenses should be agreed upon in advance in a written contract. Typical expenses will include the costs of advertising, labor, legal fees, travel, equipment rentals, security, postage and printing. A reputable auction company will be able to estimate all expenses based upon their experience in previous auctions. An agreement should be actual costs charged as expenses, not an estimated amount.
Advertising is typically the highest cost in conducting an auction. The auction company needs to set up an advertising campaign that will promote the sale to its best advantage and not overspend to simply advertise the auction company.
Once the auction is complete, the auction company should provide a complete breakdown of all expenses to the seller, including copies of receipts within the auction summary report.
Buyer’s Premium:
What is a buyer’s premium? If you attend auctions regularly, you are very familiar with this term. The auction company charges a fee to the buyer when they buy an item at auction.
The buyer’s premium has been around since the 1980′s and is standard auction practice. It was first used by auction houses to help offset costs of running brick and mortar permanent auction facilities. Since then, it has spread to all aspects of the auction industry. It is prominent in online auctions and allows auction companies to cover added expenses incurred from online sales.
It is the responsibility of the auction company to provide clear disclosure of the buyer’s premium to both the buyers and the sellers. Those not familiar with auctions are often taken back by the buyer’s premium. They looked upon it as an under handed way for the auction company to make more money. Reputable auction companies will provide full disclosure within the auction contract, advertisement and bidder registration.
Typically, an auction company will charge online buyers a higher buyer’s premium percentage than those attending an auction in person. Extra fees are incurred with online bidding and are charged accordingly to online buyers. This provides the seller a level playing field for both online buyers and those attending the auction in person. Without the buyer’s premium, there is no way to do this.
Pre-Sales:
We’ve all been there. We’re looking forward to attending an auction only to find that some items were sold prior to the auction date.
As an auctioneer with over thirty-six years of experience, I can honestly state that pre-sales will hurt an auction. When a company decides to liquidate their assets, it is easy to sell off high-end pieces of equipment through online sources, equipment vendors or to other businesses. The seller receives instant cash and avoids paying a commission to an auction company.
Auctioneer’s find themselves appearing to acting in a self-serving capacity when potential clients say they are planning to sell off parts of their inventory prior to an auction. It’s hard not to consider the auctioneer’s commission when they warn you not to pre-sell anything. Yes, the auctioneer wants to earn a commission on those sales but it is more important that the auctioneer protect the sale from potential negative backlash that comes from pre-selling. The buying public knows when an auction has been “cherry picked” prior to the sale and it reflects in their bidding. It becomes a sale of “leftovers” and that impacts prices.
A buyer who purchases prior to the auction usually does not attend the sale. They already bought equipment at a good price with no competition. If they do attend the auction, they tend to let others know of their great pre-sale purchases which again, impacts prices and the overall excitement of the sale.
It is important to understand that auctions work best with a complete inventory. You want competition on your higher end equipment. The easy to sell items make it possible to gain respectable prices for hard to sell items.
When a business owner decides to liquidate their equipment assets, there is only one opportunity to do it right. Hiring a reputable auction company will assist you with a professional, orderly and timely liquidation.