Oak Sage

As a business owner or manager, during the last 18 months you have been faced with shrinking profit margins and fewer customers lining up to purchase your once thought to be "hot products or services." The question of how to survive these seemingly tough times usually results in answers such as..."we have to lay off more workers" or, "...let's close the office located in Suburbia".



Obviously, we must invest in gear and personnel at some point if we hope to grow. All I'm asking is that you be very conservative when doing so. I've had as many as 7 people on my payroll and over $200,000 in equipment loans at one point in my video production business.

Ok, now you know what drop shipping is. But how do you make money with it? First let's look at what type of products you can get through wholesaling/drop shipping companies. The list is enormous. These companies provide products such as furniture, toys, equipment loan, clothes, nutritional supplements, food items, diapers, etc. The financing world (http://www.salonlilu.com.ua) list goes on and on. Needless to say, you need to decide which area or niche you want to build a business around.

Simply put, it depends on the franchise. Your franchise investment could cost as little as a few thousand dollars, if you invest in a work from home business, or as much as hundreds of thousands of dollars, if you purchase a franchise opportunity offered by a major multi-national corporation.

VC or venture capitalists and angel investors - Among these two, angel investors are more likely to invest in a small business as they are willing to take on more risk. They will invest in such a way that they have a vested interest for about 5 years or so. Though an angel investor can be a great boon, it can be hard to find one these days. Venture capitalists are a lot choosier about where they invest. They usually invest very large amounts in high growth businesses and wish to pull out in a shorter time frame, say 3-5 years. The other drawback to venture capitalists is that they will often interfere with the operations of the business by trying to make changes to business strategies.

Google "equipment finance companies" and call them. Ask them who handles their returns. This is probably the toughest method in this article, but you can buy $18,000 in welding equipment for as little as $5,000 if you can get your nose under the tent.

Also, some SBA 7a loans are structured in different ways. For example, 99% of banks structure SBA 7a with an adjustable rate. There are a few banks that offer the loan with a 3 to 5 year fixed rate. Some other lenders have different focuses in terms of building types. While some lenders won't even look at hotels requests, others banks focus almost exclusily on them, for example.

On the other hand, in case of equipment leasing, the equipment is bought and owned by the lender and then it is rented to a business at a monthly rate for certain number of months. In other words, with a lease, one has to pay merely for using the equipment as at the end of the lease, the lender ends up owing absolutely nothing.