Choosing the right small business software for your home-based
internet business can be a confusing undertaking to say the
least. It’s a good thing most women love to shop because
otherwise it could be really frustrating. The challenge in
choosing small business software is striking a balance between
what you have to have and what you can afford. There are many
small business software packages that have a number of features
included, even though you may not use all of them. Then, there
are some that are sold in individual modules where you buy only
what you need.The first step in shopping for small business software is to
distinguish between what you need now, what you want, and what
you might need in the future. The second step is to define your
budget. Never start buying small business software until these
two steps are done. Otherwise, you are likely to buy some of
those things you want, rather than the things you definitely
need, and then you’ll end up with a busted budget and you won’t
have the small business software that is crucial to running your
business.At a minimum, most businesses need a recordkeeping system, a word
processor and an email program. Other small business software
packages you may or may not need include spreadsheet programs,
database programs, web design and graphic design programs, time
management programs, and desktop publishing programs.Some small business software packages, like Microsoft® Office
products for instance, have several basic programs that are most
commonly used by small businesses packaged in one small business
software package. Some of the basic recordkeeping or bookkeeping
packages also have several commonly used components included in a
low-priced package. If these small business software suites have
what you need, in addition to things you will need in the future,
sometimes it is most practical to purchase them rather than
buying individual small business software products that may be
more expensive.Before you spend a dime on small business software, familiarize
yourself with the types of software that are available and their
features as well as their benefits. You may find that there are
software packages that can save you loads of time in operating
your home-based business even if you didn’t previously know what
they were or what they were capable of doing. Research is vital
when choosing small business software for your company.Here is a quick overview of the very basic, commonly used small
business software:Word ProcessorsWord processing capabilities are something that just about every
business needs from its small business software. Word processors
are primarily used for preparing written communication such as
letters and reports. Word processing software can also be used to
prepare information products and web copy for your internet based
business.Most word processing programs have spelling and grammar checkers
which are important to ensuring that your communications are
grammatically correct. Some word processing programs don’t have
these features, so that is something to watch for when reviewing
small business software that will be used for preparing business
communications.Email ProgramsMany of the small business software packages that include email
programs. A basic email program is usually included with computer
operating systems. Some of the more advanced email packages
include time-saving organizational features that are great for
small businesses. For instance, some have contact organizers with
the capability of grouping your contacts so you can send email
messages to a particular group.Some have built in SPAM filters that will send junk mail directly
to a junk mail folder, and some have features that automatically
organize your messages into folders for you. While a basic email
program may be sufficient, some of the more advanced email
programs can sure save a lot of time and aggravation.Recordkeeping ProgramsFor most businesses, recordkeeping is accomplished through the
use of small business software programs designed for accounting
or bookkeeping, although recordkeeping can be accomplished using
database or spreadsheet programs. A comprehensive recordkeeping
package will have modules for tracking sales and expenses as well
as paying bills and managing accounts receivable.If you have employees, you need payroll processing capabilities
and if you carry inventory, you need inventory control features.
Some bookkeeping programs integrate with reports from online
sources like eBay® or Elance®, so if you are working with such
marketplaces it may be wise to see what types of recordkeeping
programs are capable of uploading their reports. This capability
will save you lots of data input time.There are many other types of small business software that you
may find useful. For instance, if you are going to be designing
your own websites, you will need an HTML editor and website
design software. The trick to getting the small business software
that you need is to determine exactly what you are going to do,
then evaluate small business software packages and explore the
numerous capabilities of each. Compare the features, benefits and
prices, and select the small business software that best meets
your needs within your budget.

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.