50 Business Ideas
Transcription
50 Business Ideas
2015 Business Idea Collection 50 Amazing ideas Table of Contents 1. AFFILIATE AND RESELLER SCHEMES .................................................................................. 3 2. BACKLINK SERVICE ........................................................................................................... 5 3. BARGAIN-BUSTING BUSINESS ........................................................................................... 8 4. BUILD A WEBSITE ........................................................................................................... 12 5. CAR DEALER ................................................................................................................... 14 6. CARICATURES BUSINESS ................................................................................................. 19 7. CARPET SUPPLY & FIT ..................................................................................................... 22 8. CLICKBANK .................................................................................................................... 25 9. COFFIN MAKING ............................................................................................................ 29 10. CONCIERGE SERVICE ...................................................................................................... 33 11. CONVERT PHOTOS TO CASH ........................................................................................... 35 12. CUPCAKE CRAZE ............................................................................................................. 39 13. DÉCOR RENTAL BUSINESS............................................................................................... 40 14. EARN FROM HOME MAINTENANCE ................................................................................ 43 15. ELECTRONIC PAWN SHOP ............................................................................................... 45 16. EXPORT ......................................................................................................................... 47 17. FAX2EMAIL .................................................................................................................... 51 18. FOUR WAYS TO PROFIT FROM PROPERTY ....................................................................... 53 19. GREEN COSMETICS ......................................................................................................... 55 20. KIDS PARTIES ................................................................................................................. 56 21. KITCHEN MAGICIAN ....................................................................................................... 59 22. LEAFLET DISTRIBUTION .................................................................................................. 61 23. LEARNER DRIVER - SCHOOL ............................................................................................ 63 25. EBOOKS ......................................................................................................................... 67 26. SCRAPBOOKING CRAZE .................................................................................................. 70 27. BONSAI TREES................................................................................................................ 73 28. MLM SERVICE BENEFITS ................................................................................................. 75 29. MOBILE CAR WASH & DENT REPAIR................................................................................ 78 30. MONEY MARKET ............................................................................................................ 82 31. ONLINE SHOPPING CONSULTANT ................................................................................... 84 32. OWN A HOTEL ROOM .................................................................................................... 86 33. PASSIVE INCOME ........................................................................................................... 88 34. PAY -PER-LEAD ............................................................................................................... 90 35. PERSONAL TRAINER ....................................................................................................... 96 Business Idea Collection | Empowerment Programs 24. LOGISTICS ...................................................................................................................... 64 1 36. PHOTOGRAPHS TO DISC ................................................................................................. 97 37. PROMOTIONAL MOVIES ................................................................................................. 99 38. PROPERTY BUCKS......................................................................................................... 100 39. NEWSLETTER PUBLISHING BUSINESS ............................................................................ 103 40. GREEN SERVICE ............................................................................................................ 106 41. SCRAP TO CASH ........................................................................................................... 109 42. SOCIAL NETWORK MARKETING .................................................................................... 110 43. START YOUR OWN CARTRIDGE REFILLING AND REMANUFACTURING BUSINESS ............ 111 44. START YOUR OWN CRAFT CLASS................................................................................... 113 45. SUPPLY BABYWARE...................................................................................................... 115 46. THE MIDAS TOUCH....................................................................................................... 116 47. TOUR GUIDE ................................................................................................................ 118 48. VIRTUAL PROPERTY ..................................................................................................... 120 49. WATER OPPORTUNITY ................................................................................................. 124 Business Idea Collection | Empowerment Programs 50. WEB HOSTING ............................................................................................................. 126 2 AFFILIATE AND RESELLER SCHEMES “Quick! What’s an affiliate scheme?” To start with, an affiliate scheme is a way where you can promote an existing product and then reap the benefits of sales commissions. Affiliate marketing is a form of online marketing that involves using one or more online sites to drive traffic to another. Affiliate marketing programmes connect product-based companies with website owners (who then attract buyers and increase sales). As an affiliated website owner, you’re rewarded for hosting and promoting materials and products on your site. This is one of the most cost effective ways for companies to extend their marketing reach. And this makes it an ideal chance for you to earn extra cash! A simple, fast way to make extra cash Whether you want to advertise your product or want to provide the marketing for an existing product – this is an inexpensive way to increase profit. And it doesn’t cost a cent to initiate the partnership. It costs you nothing to place advertising banners and links on another website (once they agree to become an affiliate) and it costs the affiliate nothing to advertise the business! They can only earn! Affiliates are paid on a commission basis when they attract new customers to the primary site for sales. Affiliate schemes overlap with other online marketing methods in many ways because affiliates often make use of regular advertising methods. These include search engine optimisation, display and email marketing. At the same time, there are other methods you can use that work well. This includes publishing reviews of products on your website. Fortunately, advertisers often overlook affiliate marketing as an effective tool, leaving a niche for entrepreneurs to fill. Why you should never listen to “easy affiliate offers” Bear in mind this will require a lot of input and maintenance. Often affiliate schemes will try to draw you in by suggesting you’ll not need to put time into the programme to make money. Be careful here, as many shady affiliates are using unethical methods like spam, trademark infringement and false advertising to make a quick buck. It’s best to avoid these techniques to ensure you don’t develop a bad reputation. ☞Steps to help you build an affiliate empire Luckily, there are ever-increasing numbers of Internet businesses and the demand for this industry is growing at an incredible rate. And unlike other online industries, there are no specific industry-wide accepted standards. While this may seem daunting at first, there’s no reason for you to feel it is impossible to get on the bandwagon. So if you want to join the booming industry of affiliate programmes, I suggest these simple steps: 1. Get involved in an area that interests you. If it appeals to you, it will likely appeal to thousands of other consumers. Try to learn as much as you can about this one specific field. This way your customers will develop trust in the products you promote. 2. Create your own website with top level domain names – and make sure you use reliable hosting sites. Consider the commission structure and conversion rates as you choose the right products for your site. 3. You’re now ready to promote – use the methods I mentioned earlier to advertise – such as search engine optimisation and product reviews. One of the best websites I’ve used is www.etraffic.co.za which is packed with ideas for the South African market. There are many sites you can visit to learn more – have a look at www.quirk.co.za as well. And finally, ask yourself these questions as you go through the steps: 1. Is the product or service related to your target audience? 2. Does the affiliate programme offer you a free membership without buying the product or service? 3. Will they notify you by e-mail when a sale is made? 4. How often will you receive a commission payment? 5. Do you get credited for a sale if people come back in a month and then make a purchase? Business Idea Collection | Empowerment Programs Boost Your Bank Balance 3 6. Can you get around-the-clock help online or offline? 7. Do you get a large percentage of each sale as commission? 8. Do they provide you with proven sales materials? 9. Will you have the freedom to create promotional ads? 10. Do they offer you access to an online sales statistics page? 11. Do they use a reputable system to track your sales? Business Idea Collection | Empowerment Programs Other aspects of the Affiliate System are covered elsewhere within “The Business Plan Collection”. 4 BACKLINK SERVICE EBusiness owners will stumble over themselves to secure your services I’ve got a business opportunity for you this week that could generate R150, 000 over the next six months – if you approach it the right way. And I’ll show you the right way. It’s no secret – unless you’ve been living under a rock – that Google, Yahoo!, MSN and Baidu receive more than 80% of all search traffic on the Internet. Some experts think the number is closer to 90%. But whatever the number is, it means MONSTER traffic – to the tune of more than 10-billion searches per day. In order for an eBusiness website – or any website, for that matter – to be highly ranked in the Google search results – IT MUST HAVE BACKLINKS. What’s a backlink? A backlink is a hyperlink from one website to another. We all know that hyperlinks make the Internet work. But did you know there’s such a thing as a “backlink hierarchy”? Well, there is. A backlink from just any old website is not that big a deal. If you want to increase your Google PageRank (your ranking in the search results pages), you need backlinks from “important” websites. Everybody thinks his or her website is important – but I mean “important” in Google’s eyes. An important website according to Google is one that has a high PageRank, traffic and links to other sites. So your mission – should you decide to accept it – will be to acquire backlinks from “important” websites for your clients. Here’s the headline for the ad I posted on CraigsList recently to test the waters for the backlink service I’m telling you about today: Improve Your Google PageRank with My Backlink Service. I ran this ad on an obscure CraigsList community and received 12 responses. I turned those leads over to an entrepreneur who is launching her own backlink service. Hey, don’t worry about competition. Almost no one provides backlink services on an exclusive basis. Granted, most SEOs offer backlinking services of one kind or another as part of a package. But not as a standalone service! Yes, you want to make money. After all, you’re in business to make a profit. But first, you need to become proficient at securing “important” backlinks for your clients – and making it super-easy for people to work with you. If you’re successful at doing that, the money will flow to you in a raging torrent. Because word travels quickly. Your fees are going to adapt to the marketplace anyway. Which means you’re going to need to do some testing to find your best price point. So don’t worry about it now. There is a HUGE demand for this service – and I’ll prove it to you by helping you write your first ad. But let’s concentrate on making the FIRST SALE – and then you can “tweak” your charges accordingly. Starting off by charging R1, 800 for the first month of service is very reasonable. For that, you can guarantee to secure a minimum of six viable backlinks from “important” websites for your client – or the service is free. Qualified prospects should be required to pay half of your fee upfront. (That’s my preference for a business like this.) The balance can be paid at the end of the month… when you’ve completed your end of the deal. Business Idea Collection | Empowerment Programs How much can you charge for your backlinking service? 5 To document the work you did, you can send them an Excel spreadsheet that shows the successful backlinks you acquired for them. Assuming you’ve been successful – and a client wishes to continue – you can then charge R1, 500 per month (or something like that). Just remember… this can be an ongoing service. Some clients may want the service performed only once, but some of them will love the idea of acquiring hundreds of viable backlinks from “important” websites. Okay, let’s do the math… In order to make R150, 000 over the next six months, you’ll need 100 clients who will pay you R1, 500 each. 100 x R1, 500 = R150, 000. Another way to look at it is that you’ll need between 16 and 17 new clients per month. I know that probably sounds like a lot – but we’re talking about a highdemand business service here! Keep in mind that the sample ad I used generated 12 responses and eight of them became paying customers for the woman I passed them on to. So if you run effective ad copy, to the right audience – you should be able to acquire 16 or 17 paying clients per month without any problem. But hey… If you only acquire two new customers the first month, that’s fine. The idea is to provide your service to 100 people over the next six months. On top of that, don’t forget that acquiring new customers on the front end is the hard part. Once you’ve successfully backlinked their website with the first phase of your service, they’ll probably come back to you again and again with money in hand. How do you acquire backlinks from “important” websites for your clients? There are dozens of backlink software programs on the Internet that will acquire backlinks for you automatically. Some are better than others. Here are two good ones: • SEO Elite: http://www.seoelite.com/ • Arelis: http://www.arelis.com/ Ask them if they would be willing to put your client’s link on their website. Don’t be surprised when most of them turn you down. That’s why most business owners don’t have time or patience to do this personally. In time, you’ll begin to see the value of your service for your clients – and you’ll get really good at acquiring backlinks for them. What’s more, there’s a dirty little secret in the backlink industry that you need to know about: PAID BACKLINKS. You have to be careful with this tactic, but there are tens of thousands of “important” website owners who are willing to place links on their sites for your clients… for a price. Simply present the idea to your clients to see if they’re open to the idea of paying for backlinks. If they are, you can set them up (as part of your service). Why backlink exchange networks are a bad idea... Business Idea Collection | Empowerment Programs These programs can complement your backlink service – but they’ll never replace making one-to one contact. In other words, the most powerful backlink candidates for your clients will be the ones you get by contacting people directly. This can be done by dropping personal notes to the owners of important sites (or the people in charge of portals). 6 I would, however, avoid backlink exchange networks like the plague. They’re not worth the time, trouble or unceasing spam. A backlink exchange or “link farm” is a site that posts a large number of unrelated links. These are also known as FFA – Free For All sites. Link farm sites – and the links that the site provides – are pretty much useless. Text link brokers are a different animal. I’ve seen some that work really well. Here are two of them: • TextLinkBrokers: http://www.textlinkbrokers.com/ • LinkBuildingDirect: http://www.linkbuildingdirect.com/ I like the approach of both of these companies – and LinkBuidlingDirect offers a neat backlink package that you could “re-sell” to your clients. Which means they do the work and you get paid for it. So, if your client wanted the whole enchilada, you could guarantee them 270 additional backlinks for R379.95 – which LinkBuildingDirect will charge you R189.95 for. (They also have an affiliate programme.){Prices may be different - depending on when you read this} Fast-start tip: Post an ad on Google. Keep the headline simple. Just state a benefit (as I did in my example). You should start receiving responses within a few hours. People will typically respond with some questions about your service, guarantees, etc. Put the emphasis on Google PageRank, not on your service. In other words, it’s not your service that needs to be sold – it’s the importance of improving the client’s Google PageRank. If potential clients ask for references, just tell them you don’t have any! Look, for every person who asks for references or a resume – 100 could care less. All they want is to improve their Google (and other search engine) PageRank. Simply restate your offer and proposition: R1,500 to acquire a minimum of six “important” backlinks… or your money back. Ask for half now – and half upon completion. Do not forget to follow up with people who respond to your ad. It may take a couple of e-mails before they’re comfortable enough with you to buy your services. ☞That’s it! You now have a great foundation for starting a profitable backlink service Business Idea Collection | Empowerment Programs Your service will help eBusiness owners in all of the top search engines that use backlinks in their search algorithms. If you have a website, great. But you don’t need one for this service. If you want to post a website quickly and easily, try DotEasy (http://www.doteasy.com/ ), Freewebs (http://www.freewebs.com/ ); OwnFree-Website (http://www.ownfree-website.com/ ) or FreeWebsite (http://www.freewebsiteproviders.com/ ). They offer bannerless free hosting too. 7 BARGAIN-BUSTING BUSINESS How keen would you be to buy various items at ridiculously reduced prices and then sell them for an amazing – but not unrealistic – profit? That’s what sourcing and selling stock from catalogue lines is all about and as far as entrepreneurial ideas go it’s a real winner overseas. But what about here? I decided to take a look at the idea of buying ex-catalogue stock and forming a business from selling it in South Africa. Here’s all you need to know… Your income will come to you from the numerous income streams that you’ll set up quickly, easy and with little cost The basic concept involves finding warehouses and wholesalers that sell off surplus items that came from catalogues. You know, places like Home Choice and Arcadia. These mail order catalogue stores order millions of rands’ worth of stock each year, but not all of it sells as fast as expected, some of it is damaged, some of it gets returned, etc. So then they sit with the problem of what to do with the extras. And that’s where wily entrepreneurs snatch them up at incredibly low rates for their own businesses. Now Home Choice is in the process of setting up a factory shop or factory outlet to sell off their extras. But they’re selling to the public too (and you don’t want that). You need to find factory shops that supply trade and retail businesses only. And I’ve done already your homework for you. First – you need to become a trader. But wait! Before we continue… If you already have your own businesses set up you can skip this next step. But if you don’t – don’t worry about the hassle of registering as a trader. Helpful hint: You probably know this already, but don’t forget to check whether the name you’ve decided on is already in use! You could do a simple Google search of the name, but the best is to visit the Companies and Intellectual Property Registration Office (www.cipro.co.za ). When you fill in any form or sign contracts or open a bank account, write your name and then write ‘trading as’ (or ‘t/a’ for short) and then write down the name of the business. What sort of products can you buy and sell? If you dig deep enough, the list is almost endless, but here are a few ideas to whet your appetite… • Appliances • Baby clothes and accessories • Camping goods • Clothing • Corporate gifts Business Idea Collection | Empowerment Programs It’s usually not as difficult as you think! Becoming a sole proprietor is the easiest route. You need to decide on a name, design a logo and put together some branding such as letterheads, flyers and business cards. You’ll also need to set up a bank account in your new business’s name, because wholesalers will want this as proof that you really are a trader. 8 • Electronics • Furniture • Kids’ toys • Machinery and equipment • Party paraphernalia • Pet supplies • Scrapbooking supplies • Tools My advice is to choose items that people need, want and use even when they’ve had to cut back their spending. As the worldwide recession closes its jaws on South Africa too, luxury items won’t be on the top people’s shopping lists anymore. What the consumer wants is cheap clothing for their families, good food, appliances that don’t break the bank… you get the idea. So keep your sights trained on those and you can’t go wrong! 5 Little-known places to find cheap stock OK, I’ll admit it: Unless you already have contacts in the trade, it isn’t as easy as it looks to find the right place to start. Using Google as your primary tool, you can come across lots of factory shops that are willing to sell to the public as well as to their trade and retail connections. That’s great for shopping in your private capacity if you’re trying to save money, but you need to track down the trade-only catalogues and wholesalers instead. (By the way, if you’re looking to shop at some of these places yourself a useful list of several factory shops around the country that supply to the public can be found at www.southafricafactoryshops.co.za ). I’ve trawled the net to give you a head start. Here are some starting points… • You’d be surprised how much people are willing to spend on their pets, even in tough times. To many people pets are like family and they’ll only give their furry, feathery or fishy friends the best. You could be their key link by sourcing stock from Daro Pet Products (www.daro.co.za or 012 327 1279)! Just a note with this one: you need to be a registered shop owner to buy stock from Daro as a trader. They’ll need to see a copy of your shop rent (they won’t accept pet shops run from home, of course), a copy of your ID and you’ll need to sign some forms. So only contact these guys if you aim to focus on pet supplies. • Here’s a big way to stock a huge range of items at trade prices: Stockists of corporate gifts will often sell items to a trader for the trader to do their own branding and reselling. You can visit Giftwrap (www.giftwrap.co.za or 086 111 1817) to source a wide range of such items. Another great company to contact for these types of products is Amrod Corporate (www.amrod.co.za or 011 457 9900). • Everyone needs a reason to celebrate when all is doom and gloom in the world and parties will be popular as long as there are people on this planet. Party Xpress (www.partyxpress.co.za or 021 511 Business Idea Collection | Empowerment Programs • For a long list of trade-only scrapbooking and other craft-related wholesale contacts, search through the “crafty contacts” from Craft Club (www.craftclub.co.za or 083 275 4898) using the “wholesale (trade only)” search category. 9 2570) will sell only to wholesalers and retailers who are in the trade, so let them know that you’re going to be a retailer of gifts and novelties and you should have no trouble buying from them. • It’s a strange fact that when times get difficult, there’s often a baby boom to accompany the economic slowdown! If you want to tap into this market, Baby Sea kiddies’ store (www.babysea.co.za or 021 979 0953) has a range of cute baby products that are only available wholesale. That’s only a handful, but it should get you started. Just keep in mind that you’ll need to choose your main sales direction before you approach these places eager to do trade. Most will want some sort of proof that you’re the real deal (and not just a sneaky member of the public trying to get a bargain!). So documents like a mini business plan, proof of rented floor space, a bank account in the business’s name and so on will definitely come in handy. Once you’re registered as a trader with these companies, you’ll get bulk and trade discounts – just what you need to give you room for adding your own profit margin! How to get your stock to move – FAST Now that you have sourced your products, where do you sell them? Of course, having shop space is the ideal, so if you already run a business and can incorporate some of these product lines into your store, perfect! (Businesses are closing down left, right and centre – so there are plenty empty offices out there that are going for reduced rent.) Here are some additional ways to sell your products: 1. Ebay.co.za or bidorbuy.co.za Online auctions are one of the easiest ways to sell, well… anything, really! It’s a good market to get into because everyone knows that auction prices are usually quite low. Just don’t forget that you wouldn’t sell big, bulky goods at online auctions – the packing and shipping costs too much. Advertise things like trinkets, toys and tools instead. 2. Fleamarkets What better place for cheap goods than at a fleamarket? South Africans love wandering through the rows of stalls and they’ll be sure to stop at yours when they see your prices and range. Visit the following website pages to find a flea market in your area: • Johannesburg: http://www.joburg.org.za/content/view/181/9/ Attract them with themed party decor, cheap clothing, art & craft supplies, inexpensive gadgets, curtains, appliances and so on. 3. Host your own “Tupperware party” Remember those Tupperware parties from way back in the ‘70s? They’re not dead yet! Here in South Africa, Honey Jewellery and other companies have been known to make use of this clever little marketing tool. Heck, what could be easier than getting a bunch of your friends and family (and their friends and family) to gather for some quality shopping? Don’t think that people are too busy for that sort of thing these days – people will always make time when they hear the word “bargain”! These parties often call in the ladies, so stock up on baby products, clothes, jewellery, kitchen gadgets, cosmetics and anything that they could be tempted to buy for their kids. Handy hint: If you’ve bought a whole lot of stock and can’t move it fast enough, consider putting it on sites like www.surplusstock.co.za ,especially if it’s more in the industrial line than fast-moving consumer goods. Business Idea Collection | Empowerment Programs • Cape Town: http://www.sa-venues.com/things-todo/westerncape/default.php?category=18 10 Another option – think globally, not locally! If these ideas seem too limiting for you and if you would like to spread your wings with buying bulk and reselling, maybe you should start your investigations at an international level. Plusto is revolutionising the way the world does business. Plusto? Yes, the hub of e-commerce between businesses across the globe. You can choose from a massive range of products – from textiles to timber and everything in between. If you’re keen to import and sell goods, check out www.plusto.com (way too much info for me to include in this issue). The world really is your oyster if you’re willing to put in the effort to get your pearls! How much could you make? That’s a very broad question and depends on what stock you’re selling and what type of people are buying. Sometimes with the really cheap goods you’ll be able to put on an excellent mark-up, even in these difficult times. Other times your profit margin will only be marginal. That said, here are a few tips on how to price your wares: • Set competitive prices: Remember what I said earlier about people wanting a good deal in bad times. Give yourself a reasonable profit margin, but don’t forget that for the first while you’ll probably be putting most of your money back into new stock. • Go public: Don’t bother selling to other traders – they can source the same goods at the same prices as you did if they do their homework. No, this business opportunity is for selling to the public. • Give it a grade: If any of your goods are damaged, you might still be able to sell them at a bigger discount. Many bargain-hunting customers are willing to pay for less-than-perfect goods, as long as you’re upfront about it and they get a few rands off. The bottom line: “The ladder of success is best climbed by stepping on the rungs of opportunity.” Business Idea Collection | Empowerment Programs This business blueprint will help you turn a struggling economy into a thriving business. Don’t wait for the recession to die down – act now. And start your own bargain-busting business right now. 11 BUILD A WEBSITE You will not believe how easy it is! You could argue that from my vantage point, building a website is easy, but it may not be someone who only has basic computer knowledge. True, but you have the advantage of ‘driving the car without reinventing the wheel!’ Yes, you get to create a beautiful website without the need to learn any code and contrary to some schools of thought; learning functionality before terminology does have huge advantages. (Only when you need to use a tool, do you find out what it is; but at the same time you are already executing its function!) You may not have proof of spending a huge sum of money on a three year course, but you will be able to build a functional website that can earn you a comfortable living. All in one day! Let’s get started. (For those that have some knowledge, skip to the video.) A highly simplified description of how Websites work. A folder on any Computer that contains mixed media like text, pictures and videos can be browsed by anyone that has access to that Computer. You could choose to read the text first and then look at the pictures by clicking on what you are intending to do. A website essentially is made up of that type of content and will display according to its design. Different programs are used to make content display in specific ways. Click on that things just as you would on your PC. Websites are created on computers and the content is placed in a folder and ‘sent’ to another computer that has ‘extra protection’. That computer is called a server and it is designed to serve you, whatever you click on. The extra protection that this special computer has are things like airconditioning to keep the computer cool and a back-up power source to ensure minimum downtime. Unlike your PC that server is always on; so that anybody that wants to look into that folder at any time can do so. This Server is owned by what is known as, a Hosting Service. One has to pay a hosting fee to have a website on that server. All we need now to link this folder to the internet is a Domain. A Domain is an exact address, in an interconnected network of networks that is also defined as a communication system. The ‘too’ simplified version of that is: a domain is an address where that particular folder can be found. In other words, if we want people to look into that folder, we need to get a domain that can be accessed via the Internet. Examples of Domains are www.easy.co.za or www.simple.com . In other words, you need to have some pictures, text and whatever media that you want on the website, on your computer. Then you need to find a company to host your website. There are many reputable companies that you can open an account with like www.afrihost.co.za , www.hetzner.co.za , www.mybroadband.co.za , www.mweb.co.za . Once your hosting account is opened, you will be able to select a domain name for your website. After you have set up your domain, choose the WordPress Software from the available list of Software, depending which company you signed up with. There are many other very reliable systems but just for this lesson, we suggest you use Wordpress because, the Step-by-Step video that will transform your thinking process, is a WordPress Tutorial. Business Idea Collection | Empowerment Programs Now we know that a Website is content from your PC that is placed in a folder using programs to give it its functionality. We also know that for people to access that content at any time, it must be hosted on a computer that is on 24/7. The hosting service must be paid for. 12 Now all you need to do is follow the 1 Hour, Step-by-Step video tutorial and watch your website form by just mirroring the actions presented in this amazing tutorial. Click here for the Conutant Wordpress Tutorial Video. Business Idea Collection | Empowerment Programs Once you’ve built your website, your thinking and approach to so-called ‘difficult stuff’ changes drastically; and life, you will find, can be easier! 13 CAR DEALER Make an extra R18, 000 in less than 30 days by buying a half-price car I’ve got a business opportunity you won’t want to miss out on. I’m talking about trading in cars. Now before you tell me: “Cars? The car industry has never been worse!” think about this… Tighter credit controls and a serious drop in disposable income means people simply can’t buy what they want these days – they have to buy what they can afford. And this is how you can profit… Start a new business… create a new lifestyle… enjoy a new way to make money This great business opportunity is one you can start from home, part-time. You needn’t have any previous experience – just some basic knowledge about cars. You also don’t need a fancy showroom to display your vehicles. What you do need to do is simple: Source vehicles (one or two to start) and have them checked to make sure everything’s in order. You’ll obviously need a decent amount of capital to get started and buy your first vehicle. If you don’t have enough, then I’ve got a plan for you… It may sound unappealing at first, but this is one of those times when you need to keep the bigger picture in mind. Small sacrifices now will lead to bigger gains in the future. So, if you’re cash strapped then you might want to consider selling your own car for two cheaper, more economical cars– one for you to use and one for you to sell. Make sense? I think so! Lastly, you need to create an effective advert (more on this later) so you can lure buyers in! 5 Insider tips to buy the best car Forget about the Ferraris and Lamborghinis. You’re not a high-end car dealer; you’re here to make money where you can in this financial crunch. We all want to drive a Porsche, but most of us can’t afford to. Practical makes perfect. Think of the cars people can afford to pay for, without having to be in debt for the next 10 years. Think value for money! • Colour: Stick to the basics like white, silver and blue. Not everbody wants to drive a fuchsia pink car or a mucky brown one. • Age: No more than six years is best. Target cars between three and six years old. • Condition: The better the condition of the car you buy, the higher the price you can sell it for. Don’t buy cheap and nasty – if you wouldn’t want to drive it, the chances are no-one else will either. • Mileage: Obviously, the lower the mileage, the better. Be careful though! Don’t buy a car that has really low mileage but is in bad condition! • Fuel economy: This is one of the most important factors to consider when sourcing your cars. Helpful hints It’s not always all “peaches and cream” when buying a bargain car. There are tons of things to watch out for to make sure you don’t get duped. Here are some useful tips to ask when buying a used car: 1. Are there any outstanding fines? Business Idea Collection | Empowerment Programs Here are some top tips to guide you: 14 2. Is the vehicle still being financed? 3. Has it been in an accident before? 4. Is it recorded as stolen? 5. Is the mileage recorded on the odometer accurate or has it been tampered with? Make sure you know the Vehicle Identification Number (VIN) – also known as the chassis number – a unique number given to each vehicle. You can verify this number by checking it against the vehicle’s registration certificate. It’s really important to avoid buying cars that need mechanical repairs or body work. It’s also wise to fix any potential issues that could give buyers leverage over you. You don’t want them asking for a discount because the tyres are badly worn or there’s a scratch on the side. Here are some things to watch out for: 1. Worn tyres 2. Chipped or cracked windscreens 3. Worn brake pads 4. Weak handbrake 5. Worn windscreen wiper blades 6. Small scratches and dings 7. Holes in the exhaust pipe 8. Rattles or other strange sounds How to buy a half-price car There are a few places you can source cars from at trade price... or even less. With so many people unable to afford to pay their monthly car instalments, banks are repossessing cars by the thousands... literally. It’s estimated that up to 7,000 vehicles are being repossessed on a monthly basis. While most businesses are tightening their belts, auction houses are only too happy to be surfing the car repossession wave. Want to know what this means for you? Clive Lazarus of Park Village Auctions says, “The public has never had it so good when it comes to choice and quality of vehicles. The crowds at our auctions just get bigger and bigger.” You can pick up anything from bakkies to Benzes for dirt-cheap prices. It’s best to stick with reputable auction houses. You may pay a little more, but you’ll have peace of mind knowing they’re being conducted properly. Contrary to popular belief, you don’t have to be an auction pro to bid. Another good piece of advice is to check out a few auctions (as an observer), so you can feel confident when it’s time to do it yourself. Here are a few auction houses to get you started: • City wheels: www.citywheels.co.za or 012 335 1783. • Burchmores: www.burchmores.co.za or 011 258 9898. Business Idea Collection | Empowerment Programs #1 Vehicle auctions 15 • Aucor: www.aucor.com or 0861 2828 46 Quick tip: Contact your bank for a list of its repossessed vehicles and the details of the trade or auction agents you can purchase them from. #2 Advertise Another way to source some low-cost cars is to advertise “Cars bought for cash” in local and community papers. There are also other places where you can advertise for free. The best way to value your cars Yes, you can do this without any serious financial guides and without much experience. I’m going to tell you about a little rule you can use to value any car. I like to call it the “20/30 rule” and it works for almost anything. Go to www.autotrader.co.za . Look for three or four cars (being sold privately) that are the most similar to the one you’re looking to value. Be wary not to take notice of any pop ups or ads for car sales since these are most likely being sold at retail prices. Now, take the prices of each of the four cars you’ve found and get an average. That is, add all four prices together and divide by four. It’s as simple as A-B-C. If you’re buying on auction for half-price then just add 30%. You’ll still be 20% cheaper than the competition and chances are you’ll sell your car in less than 30 days. Ok, so the initial capital outlay is pretty hefty... but I’m sure you’ll agree that this is a handsome profit! Now imagine when you build on sales and reinvest your profits so you can sell three or more cars in a single month! Let’s get into the nitty gritty now. I chatted to Gary McCraw, director of the Retail Motor Industry Organisation (RMI). According to Gary, there’s a process you need to go through to become a member of RMI and its constituent organisations. You need to register with the National Automobile Dealers’ Association (NADA). After that, he advises you become a member of RMI, because you can’t trade without the support of an organisation (RMI). Also, under the Second-Hand Goods Act (enacted to regulate the trade of any kind of second-hand goods) you’re required to register your business with the police and get an operating license. Just contact your nearest police station to get the necessary forms to fill in. I also spoke to a self-taught expert in the field of used car trading, Murray Barnard. Murray runs his own part-time second-hand car business. According to Barnard, one of the big issues is the provision of finance. Most of the main financing institutions won’t finance a private sale. So if you want your customers to be able to access finance through these institutions, then you need to be registered with these motor trade institutions. To become a member of the RMI you need to complete an application form. You can do this either on their website (www.rmi.org.za ) under the “Contact us” tab or you can call the Johannesburg office on 011 886 6300 and they’ll point you in the right direction. Your application will be screened to make sure you meet the minimum criteria. Once that’s done and you’re accepted, you pay a once-off entrance fee of around R750. You’ll also be required to pay an annual subscription fee of between R4, 000 and R4, 800, depending on the size of your business. Divide that by 12 and you’re looking at between R334 and R400 per month. I know, you’re thinking, Business Idea Collection | Empowerment Programs What you need to know about the Second-Hand Goods Act 16 “That sounds way too expensive!” Well, it’s worth your while. Not only will RMI assist with the running of your motor trading business and support; they’ll also keep you updated on any changes in legislation that may affect you. So, if there are any changes in tax regulations (more on this now) or National Credit Act requirements, rest assured that you’ll know about them. Tricks to increase the value of your cars for under R500 First things first, it’s a great idea to get the car serviced before you sell it. Steve’s Auto Clinic specialises in any petrol and diesel car and bakkie services. They’re inexpensive and reliable and have branches all over South Africa. Check out their website for more info (www.steves.co.za ). Some good advice is not to carry out a service until you’ve got a truly interested buyer. There’s no use in paying for something you don’t have to. Know what I mean? Next up, you should thoroughly clean the interior of the car. If the seats are leather, give them a wipe. If they’re cloth, a steam clean will do the trick. The cost of this will be minimal compared to the couple of hundred rands’ value that’ll be added. Finally, it’s time to spit and polish the exterior. Well, not quite spit. Drive to your nearest car wash and get a good old-fashioned pressure wash. End it off with a shiny polish and voilá! The car’s ready to be viewed by potential buyers! How much will you be taxed on your profits? The only time you’ll be liable for VAT on a second-hand car transaction is if you’re a registered VAT vendor like an auction house or if you own a fully operating car dealership. If you’re conducting a private sale, then you can enjoy all the profits! Obviously if you’re buying your stock from a dealer or an auction house you’ll have to pay VAT on that. Lastly, if you earn more than the threshold of R1 000 000 per year, you’ll be required to register as a VAT vendor. In a nutshell, private sales are the way to go! There’s also the issue of vehicle registrations. The secret to writing a winning advert… When you’re writing up an advert, the copy is the most important part. Yes, of course a picture is worth a thousand words, but you still need to lure potential buyers in with the actual wording. Always include as much extra information on the car as you can, especially if it’s something that’ll add value. Remember, when you post your ad it’ll be one of many that buyers will sift through to find what they’re looking for, so you want to put in as many important keywords as you can. In fact, your ad is going to be your sales pitch. The first thing you’ll need is a catchy title. Say you’re selling a Ford Fiesta, then don’t just say “Ford Fiesta for sale”. Instead say something along the lines of “Sporty, economical Ford Fiesta for sale”. See where I’m going with this? Business Idea Collection | Empowerment Programs Once the buyer has agreed to buy the car and the sale is finalised, he or she will be required to register the change of ownership within 21 days. There’s a great company that’ll deal with vehicle registrations, licensing and the works for a minimal service charge. Just visit their website at www.queuingservices.co.za to find out more. It costs around R500.00 to have a new vehicle registered and they promise to have the completed forms returned to you within 5 working days. 17 Once you’ve got a captivating title, you’ll need to write an interesting description. I like to write something like this in a friendly, conversational way to make it more personal. Kind of like, “My Ford Fiesta is a really reliable car. It’s perfect for a first time buyer who’s searching for something that’s economical to run and sporty to look at.” Most importantly, don’t leave out your contact details. You should also always include a picture so potential buyers can see exactly what they’re in for. Here are some useful websites and other places where you can advertise for FREE. Start out this way and once you start churning out the profits, you can market your cars in more high-end publications. 1. www.gumtree.co.za 2. www.alltheweb.co.za 3. www.adoos.co.za 4. www.youpost.co.za 5. www.mytoko.co.za 6. www.vottle.com 7. www.adssa.co.za 8. www.capeads.co.za 9. www.advertiseforfree.co.za 10. www.junkmail.co.za 11. www.facebook.com 12. www.aaautobay.co. – another great one to try out. The AA Autobay website is really handy. The bottom line: If you’re a car fanatic, then this one is definitely for you. What better way to make money and enjoy doing it, too? All you need to have is time, a systematic way of thinking and some capital. Like any new business, the more you sell, the more profit you’ll make and the more experience you’ll gain. And the more experience you have, chances are you’ll think of new ways to make even MORE money from this fantastic business idea! Keep in mind that we’re in a global recession – buy everyday cars you’ll be able to sell easily, not fancy supercars and remember at all times that the golden rule of investing applies: Buy low and sell HIGH! Business Idea Collection | Empowerment Programs With over 40 000 visits a month, you’re sure to get a lot of exposure. They also do vehicle checks to make sure there’s nothing wrong with any of the vehicles being sold. 18 CARICATURES BUSINESS No experience needed! Just grab a pencil and a PC and bank an extra R12, 000 this month… What if I told you that caricatures are not only fun but also a cool way to earn some extra cash? But wait. Let’s just back up for a second, first things first... What are caricatures? Basically, a caricature is an extreme representation of a person. It can be really funny while still being an identifiable depiction of the person or object. The great thing about this art form is that it’s able to show lots of meaning in a picture with the least amount of strokes. The word caricature comes from the Italian caricare, which means “to load”, so in essence caricature artists aim at injecting their work with as much meaning as possible – which is why political cartoonists love drawing caricatures of politicians, of course. Plus, caricatures are also a form of entertainment, so you can impress your friends and family with an ultra-creative, ultra-hip drawing. The result? A good laugh while sneakily showing off your talent! And... It can make you money from doing something super fun. Sandra Kellerman, a caricature artist, says, “You can make about R850 per colour caricature.” She also explains that it takes only about two to three hours per image. How does that sound? What do you need to be a caricature artist? Konrad Rode, an artist based in Cape Town, uses Photoshop and a program called GIMP (www.gimp.org ) which is a totally FREE open source program that you can download. Now that is something; grab the opportunity now! You can also create caricatures with computer programs like http://www.vicman.net/cartoonist/ . Most of the latest Cellular phones have a similar application. If you think you have the skills and you want to draw without any technological aid, then why not? Go ahead and free the artist inside you! Either way, here is a basic outline of what you would need to begin… Invest in some books that will help you perfect your skill; for example, Draw Caricature: Techniques/Facial Basics/Projects by Steve Chadburn, Noel Ford and Pete Dredge. This book will help you become the artist you’ve always dreamed of being. With these thorough instructions, you will be on top of your game! For the actual drawing process, you will simply need paper, pencils, erasers and some inspiration, such as a photograph of the person you’re sketching. Wondering what to draw? Konrad Rode, graphic designer and caricature artist, says that a lot of his work comes from companies who give caricatures as goodbye presents or get-well presents and so forth. The genres are actually endless: Political, entertaining, personal... You can distort just about anyone’s face and get a laugh! Business Idea Collection | Empowerment Programs This program will instantly transform any photograph into a cartoon. Just upload a picture of the person and turn it into a cartoon with the click of a button. Then print it off and trace the image onto a good-quality piece of paper. That’s it! It’s as simple as that. 19 Handy hint: You don’t just have to stick to drawing people. Why not offer your services to avid pet lovers, too? Who could say no to a cute or clever caricature of their critter companions? How do I get customers? Caricatures are a fantastic way of earning some extra money... but in order to do that you need to get out there! You need to start inviting people into your world of oversized heads and undersized bodies. As with many business opportunities, it’s all about word of mouth. A catchy website is also something to consider. You like that idea, don’t you? Of course you do! And don’t forget to advertise on websites like www.gumtree.co.za . Flyers are also a good idea (especially at Christmas time when people are struggling to buy for friends and family). Don’t forget to visit www.flyerz.co.za for great a deal. And if you’re up for even more publicity (and confident to draw in public) the market place is the place to be. Fleamarkets are all the rage, so why not chill out and sell out at the same time at the market? Also, consider a stand at school or community fairs. The fun atmosphere will get people in the mood to have whacky pictures drawn of themselves and of family members or friends. You can even offer to create personalised birthday cards. Tourists are open to anything, too. So here’s a thought: Hit the touristy spots to promote and sell your work and those foreigners will be only too keen to lend their faces and give up their cash for a clever depiction of themselves. But don’t forget to get permission from the manager of the site first! And the best one... start a chain reaction. You can pass out your business cards to existing clients who can then give them to other interested people. And since we know that people seldom do things if not for gain, why not offer a small commission for every customer that is referred to you? How much money can I make? Time is money, so with practice you will be able to draw a caricature in less time than when you started (I am just making presumptions here, but it makes sense to me). It can take a few hours to complete one drawing, but considering what you’re making on one piece, that is time well spent if you ask me. Here are some more tricks and tips to help you out... • Caricatures should have a “cartoony” aspect to them. Cartoons generally have simple, bold lines. This is something that you should bear in mind when starting on your masterpiece. • Shadowing is an important aspect of caricatures as it complements the bold lines, but the shadows should not overpower your lines. • Try to get as much detail in your picture as you can. • Develop your own style – this will give you a unique edge. Business Idea Collection | Empowerment Programs Caricature artists charge varying rates. The most important thing, according to Konrad, is building up a strong clientele and good portfolio. So you’d better get cracking on your art if you want to get a head start. While Sandra Kellerman of Paint the Wave Caricatures charges a rough figure of R850 per piece, Konrad charges an hourly rate of R450 per hour. So you can do three or four drawings a week and make between R2, 000 and R3, 000 per week, depending on which charge option you choose. Either way it is an awesome means of keeping the cash flowing in! 20 • When you begin your caricature you must have a clear idea of what you’re drawing. It will help to look through photographs and magazines of basic facial features and shapes. Look at the face that you’re drawing and ask yourself this, “Can I visualise a caricature of that face?” Take examples from real life and try to imagine caricatures of the different faces that you come across, by looking at them from as many different angles as you can. • Drawing from a real person sitting in front of you is far easier than drawing from a photograph, so as a beginner try the first option before attempting the second. • How do I know which features to exaggerate on the face? The answer is easy: You will know just by looking at the face. Like if the guy’s nose is too big for his face, use that as an accentuation in your drawing and also if his ears are too big or too small. Draw inspiration from your subject. • One way of doing a caricature drawing is to sketch in pencil and then use Photoshop or another computer program to fill in the colour. This is an easier and quicker way to do it. • Konrad offers a very valuable tip, “Charge an upfront fee or perhaps take 50% before you start because getting money from clients once the work is done is never an easy task and there are many con-artists out there.” So be careful! • The advance pay method also keeps the cash flow flowing, so you will not have cash setbacks. ☞This business opportunity is really a great one, it’s the kind of idea with immediate potential and you don’t have to wait to see the money coming. It has a low start-up cost and a self-selling product that makes caricature drawing a great form of income and hey, it’s fun too! Also, remember that you are creating a product with high value as clients will not just throw it out; chances are they will frame it or keep it in an album for years to come. Special thanks to these caricature artists who offered valuable insight into this business venture: • Sandra Kellerman – 082 930 9208 – info@caricature.co.za Business Idea Collection | Empowerment Programs • Konrad Rode – 082 446 6526 – www.rodegraphics.com 21 CARPET SUPPLY & FIT BUSINESS that requires almost no investment and could net you up to R10, 000 EXTRA INCOME every week! When’s the best time to start a business? Today! Why? Because it’s time for you to strive, not just survive! No matter what’s going on in the global economy, people still have needs and wants. You just need to be smart about how to fulfil their needs. The trick is to give your customers what they want, hassle-free and at a price they can afford. This is actually true of any business and it’s particularly true in this day and age. But now you’re thinking that your profit margins will shrink, right? Not a chance! Read on and I’ll show you why… Want to know what I’m talking about? It’s a proven money-making opportunity overseas, so you can be sure to make it work on home ground too! Here’s the idea: A mobile carpet supply and fitting business. Why mobile? Well, mobile means no showrooms, no expensive stock, no full-time employees to look after and no hefty down-payments to get started. Yup, you got it; you won’t have any expenses to begin with. Why this may be the perfect business for you? People are cutting back on their spending, limiting their luxuries. But remember that flooring is one of the most important aspects of any home or company – regardless of how big or small it is. It’s not a luxury, it’s a necessity. And people are so busy working to keep afloat that they don’t have the time to shop around for the best carpet deals in town. You can bring those deals to their doorstep: Hassle-free and affordable. In fact, that’s even a good name for your company: Hassle-Free and Affordable Carpets. If you don’t know the first thing about carpets, relax. You don’t need to! You won’t be the one doing the supplying or fitting. Trust me, I’ve got all the answers waiting for you right here. What you do need Because this is a mobile business, all you need to get started is some transport, a telephone and marketing materials (I’ll talk you through that in a moment). And you really need is get connected with a couple of wholesale suppliers for carpets and a couple of carpet fitters. If you’re a skilled handyman, you may feel confident about laying carpets yourself. Well, it would be so much the better then. Your wholesale suppliers will provide you with a carpet sample for you to show to your customers. As your customer base grows you’ll be able to negotiate better prices and your profits grow even more. How to get started Business Idea Collection | Empowerment Programs You could add something about delivery and fitting in your logo. Because this is a home-based business and you won’t have massive overheads, you can offer the best prices around and still make a great profit. 22 First get in touch with the suppliers. I suggest you work with regional suppliers in the beginning. And better yet, go straight to carpet manufacturers. A great place to look is on the Business Broadcaster website (www.business-broadcaster.co.za/carpeting.asp ). The list of carpet manufactures, fitters and suppliers on there is fantastic – you’ll find their location, contact details and service details. Top end manufacturers have branches across the country. Take a look at these for a start: 1. Nouwens (www.nouwens.co.za ) 2. Belgotex (www.belgotexfloorcoverings.co.za ) 3. Van Dyk (www.vandyckcarpets.com ) 4. Crossley (www.crossleysa.com ) 5. Complete flooring (www.flooringco.co.za ) There are lots of manufacturers and wholesale suppliers around that can supply you with just about any carpet your customers want. Get sample sets of their carpets and build up a catalogue that will leave your customers swimming with choices. So you’ve got your product ready, now it’s time to attract customers. Marketing, marketing, marketing! By now you know, the only way to attract customers is to get your name out there. You have to be competitive so don’t stick to one method of advertising. Use as many different ways as you can. Yellow Pages: Start here. Did you know the Yellow Pages have a circulation of eight million copies nationally? By getting yourself listed, your name will not only be out there in print but on theInternet as well – that’s because Yellow Pages has an online listing (www.yellowpages.co.za ). So you’ll have targeted two avenues in one! Community newspapers: Get listed in the classifieds or place a small ad – it doesn’t need to be fancy and local newspapers are much cheaper than national papers.Door-to-door leaflets: Get your leaflets printed cheaply (I love the website www.flyerz.co.za) and spend just one day a week targeting different suburbs. But be selective and only target high-end suburbs. If you get just one new customer each week you’ll have over 50 new customers over the course of a year. Why carpet fitters are your new best friends Here’s the secret as to why this business will make you money: You don’t have to do the dirty work AND there’s no need for full-time employees! That’s a double bonus! Use self-employed carpet fitters and only pay for the work they do. You can negotiate a payment structure that suits both of you. You’ll need to find out how they typically charge. It’ll either be per square metre of carpet fitting or per job. The fee will also be determined by the size and type of carpet that needs fitting. You should look at around R40 to R70 per square metre. Again, Business Broadcaster is the place to look. Otherwise, get looking in your regional Yellow Pages. Just be careful; NEVER use odd-jobbers or casual labour, no matter how tempting the cheap price tag is. Without a doubt you’ll find yourself in a pickle with a very unhappy customer when the finished work is shabby! A professional fitter will have the know-how and all the necessary tools needed for joining carpets or working with gripper rods. Business Idea Collection | Empowerment Programs What people say: As your customer base grows, you’ll be able to rely heavily on word-of-mouth advertising. So start getting your exceptional service out there and let people advertise for you! 23 You can pay the fitter to carry out all the work from measuring to fitting, but that will cost you more. So why not do the easy bit yourself? Once your customer has selected a carpet from your sample catalogue, you need to get the right measurements. The carpet will be cut to size when you order it from the supplier. You’ll need a good quality tape measure of at least 10m, a measuring grid (which you can pick up at any hardware store) and a pencil. Fast tips for measuring and pricing 1. Measure all walls in the room – don’t assume the room is square! 2. Convert your measurements to scale and draw up a plan of the room on the grid. Work out how many squared metres you’ll need by multiplying the longest length of the room by the width. 3. Remember carpets come in standard widths of 2m to 5m. Keep this in mind and avoid having to make joins where possible because fitters will charge you extra for this. 4. Your customer might need a new underlay so factor this in to your pricing and project time. 5. Calculate your costs based on the supplier’s trade price lists, add the cost of the fitter and work out your profit using the recommended retail price from the supplier. 6. Add in a freebie. Customers love freebies, so offer a free measuring service (and since you’re doing it yourself you won’t need to add an extra cost!). Let me tell you about the kind of success you can look forward to. My colleague put me in touch with There’s no reason why you should limit yourself to living rooms. So let’s look at what you’ll be earning if you’re fitting an entire office of 200sqm for the same price. And here’s an important tip: It’s a good idea to adjust your profit margins as the job size increases. You don’t want to lose a customer because you’re charging too much! Now all you need are these helpful tips before you get going… • Always look professional. Dress neatly for sales pitches, consulting and measuring up. • Listen to what the customer wants. Don’t try to sell your preferences and don’t be pushy. • Sell new underlay because there’s a better profit margin. But if the customer is tight for cash, rather use the old underlay than lose the entire sale. • Once the customer has signed the order form, make sure they pay a deposit that at least covers your costs. These days a deposit of 75% of the total sale is acceptable – that way you’ll still be making a profit before you’ve done the work. ☞When you’re making a sale, don’t forget to point out that your mobile carpet fitting service doesn’t have expensive showrooms and big overheads. So you’re the one who can offer GREAT CARPETS at COMPETITIVE PRICES. That’s why your mobile carpet fitting service is the answer people are looking for! Business Idea Collection | Empowerment Programs • Start with the most expensive option. It’s easier to work backwards to the cheaper options than to start with a budget sale and try convince the customer to pay more. 24 CLICKBANK 1. Here’s what Clickbank actually is: New Internet marketers may have no idea what Clickbank involves. Basically, Clickbank is the largest affiliate marketplace on the Internet. Think about it: Back in the day, if you wanted to sell a product online, you had to get your own merchant account and credit card processing. For new businesses, this was very hard to do with no credit history. You needed to get credit for doing quite a few thousand rands worth of sales a month to build your business reputation. But Clickbank was created to solve this problem. Since 1998 they’ve been giving new businesses and individuals a way to sell their products and services. Today, the Clickbank Marketplace has a whopping 10,000 products and services listed. It’s also a home where those who want to promote other people’s products can go. That means it’s a way in which to promote products for an affiliate commission. That makes Clickbank a true gold mine. You just have to know where to find the gold. Of course I wouldn’t leave you to do that alone… I’m practically going to give you the gold! Then it’ll be your turn to use it and cash in with Clickbank. 2. Here’s how it works: First things first, there are a few ways to make your money with Clickbank, but here’s a little advice for starters: if you have your own website, you can use it to sell some Clickbank products. You can earn cash from this from a “pitch page”, which is a ready-made sales letter for your users. Clickbank issues you with a link called a “hoplink” to your “pitch page”. Then all you need to do is choose your products and start selling. Other ways of making money through Clickbank are by making a newsletter or a pay-per-click advert. With both of these methods, if an individual sources and purchases the product you feature, you cash in. Your pitch page, linked to both the newsletter and the advert, is what steers the user to the product and further to their buying of the product. It’s super simple. But now, the question is: Which products actually make the most money? Well, I’ve done all the hard work for you and identified the top 7 Clickbank products: There are thousands of Clickbank products in various categories, including: Business-to-business, health and fitness, home and family, computing and Internet, money and employment, marketing and adverts, fun and entertainment, sports and recreation and society and culture. Now, here are some of the top Clickbank money-makers: 1. Jamorama: www.jamorama.com ★★★★★ This little money-maker is quite interesting. It comes from the Fun and Entertainment section and is quite a different for Clickbank. Rated the best guitar learning course on the net, Jamorama is a truly promising product to promote. People young and old around the world are becoming more and more interested in playing musical instruments, especially the guitar. Young males especially! It’s a fun and easy product to promote and, according to my research, it gets thousands of hits every single day. The best part of all, is that it’s inexpensive for the buyer, which means more people will choose this product over all the other guitar-learning wannabe products out there. Business Idea Collection | Empowerment Programs What Really Makes Money’s list of the top 7 products on Clickbank 25 The Clickbank commission per sale is around R344. 2. Guy Gets Girl: www.guygetsgirl.com ★★★★ This one is directly from the “Fun and Entertainment” section and is truly entertaining. It’s an easyto-use guide to dating, for men. It’s quite interesting and it gives the user such simple information as: What to say to get her to give you her number and how to approach any woman and go on a date with her. It’s tasteful and not tacky at all and if you’re in need, you may even like to use this one for yourself! This product may sound odd, but it’s definitely a bestseller with online dating and chatting being the new in thing. With a bit of a database of male buyers you can go big with this one in no time. The Clickbank commission per sale is around R515. 3. The Fancy Fillies System: www.fancyfillies.co.uk ★★★★ What do you think this product is all about? Well, you might have thought of a website promoting pretty girls but you would be wrong! Yes, this is another horse racing system and I think this product is an absolute boodle maker. This website teaches the user how to continuously make money using their practical guide to horse racing. And even though it’s actually a UK product – bettors in South Africa can still apply the theories to horse betting in SA. It practically sells itself so no need to spend time on making it sound appealing; just sit back and watch the money roll in. The Clickbank commission is around R611. 4. Strip That Fat: www.stripthatfat.com ★★★★ What about this one? Well, the weight-loss industry is huge and big money can be made from it. According to my research, this product’s just hit the Internet in a big way. It includes a couple of ebooks plus an online diet generator. It’s well presented and the landing page is very professional. This is definitely one for individuals who have a complex about their weight. A perfect seller right there. 5. Beating Adwords: www.beatingadwords.com ★★★★ Do you use Google Adwords, the online way to advertise with Google? So many online businesses have experienced the Google Adwords slap. But no more worries. This e-book solves that problem and helps to increase your page quality score and reduce bid prices dramatically. It covers everything anyone will need for improving their Google Adwords campaigns and gives details about writing ads and creating brilliant landing pages. This is perfect for those established online money-makers and is quickly becoming popular. The Clickbank commission is around R390. 6. Official Secret Restaurant Recipes: www.recipesecrets.net ★★★★★ More money-makers! It’s another e-book with a very low refund rate so you can be assured your customers enjoy this product. It might be international, but everyone loves fast food. When you’re getting the secret recipes of your favourite fast food joints there is no turning back. The layout of Business Idea Collection | Empowerment Programs The Clickbank commission is around R394. 26 this site is well set out and you may even be convinced to buy this product yourself! According to Clickbank, this one is a top seller. The Clickbank commission is around R260. 7. Acne Free in 3 Days: www.acnefreein3days.com ★★★★ Ever had bad skin? We were all teenagers once. Anyone who suffers from acne can eliminate it with this product. It’s a confidence booster and a great aid to looking good. Since that’s what everyone’s worried about, it’s a good buy. That means more money for you! The Clickbank commission is around R279. Plus there’s one extra Clickbank product that I also really like – here’s why… Extra: World of Warcraft Secrets: www.goldsecrets. com ★★★★ With over six million players worldwide, World of Warcraft is taking the world by storm. This product will definitely make gamers’ fingers itch to buy it. With gaming being so big around the world, this product is practically sold! P.S. Check out hundreds of products relating to World of Warcraft, you’re guaranteed to find bestsellers there. The Clickbank commission is around R312. But make sure you stay away from these 3 products! There are always those products that are truly unappealing. The ones that don’t make you cash but can make you crash and burn. Clickbank is full of them. While doing my research, I came across a few and to help you out, I’m going to tell you which products to stay far away from. 1. Internet wealth system: www.internetwealth.com 2. Registry fix: www.registryfix.com Straight from the Computing and Internet category, this product claims to be a software cleaner. Basically, it promises to speed up your slow PC; with one click your computer’s errors will be erased. Now, why would you try and download a product that has no guarantee and only tons of claims? To me, this one is dodgy! What if you end up losing all your information instead? It’s not worth the risk. P.S. Stay away from anything similar to this product. There are so many products like this and knowing which one really works is almost impossible. 3. Paid Survey Etc: www.paidsurveyetc.com This one goes on about making money from undertaking paid surveys. A lady by the name of Michelle McAllister says that carrying out paid surveys has changed her life. Through this product she shares her skills on how she did just that. This product doesn’t capture me at all. If there’s no money-making guarantee, why would your customer want to buy it? They wouldn’t, that’s the problem. Business Idea Collection | Empowerment Programs This money-maker no-no is a definitely one to stay away from. It claims to help you make tons of cash in 37 days. If you take a closer look at this one you’ll see that it’s a bit fishy and not very clear. It really gives me bad vibes. In my opinion, stay away! 27 Business Idea Collection | Empowerment Programs With the size of the worldwide web, there’s no doubt in my mind that finding customers will be as easy as switching on your computer to get started. Go straight to www.clickbank.com and register today! 28 COFFIN MAKING There’s a shortage of affordable coffins in South Africa – here’s how you can profit… Given the current state of the economy, not many people can afford to bury their loved ones in the lavish coffins and caskets they’d like to. I’ve done all the research for you and identified a way you can offer a much-needed service. Let me introduce you to a company I believe could make you a whole lot of money…. I’m talking about a company called Trimo Training and Consulting CC. They offer hands-on training in coffin and casket manufacturing and, also, give you the option of buying a license to start your own company. Basically, after completing the training course (more on this in a minute) you have the choice of starting either a training centre like theirs or your own coffin manufacturing company. It’s like a franchise, only there aren’t all the strings attached. Let me explain: You’re literally given the business blueprint – marketing manual, training manuals and the tools you’ll need to start drilling. Simply add the wood! The most appealing part is you get to choose the business’s name and keep all the profits – no need to pay royalties! Now that’s the way I like to operate a business. Have I got your interest piqued? I thought so. Learn everything you need to know about the coffin-business (in less than a week) First, you’ll need to choose between the lecture-led workshops or home study kits. The workshops are more expensive, but you’ll be taught by an experienced lecturer and do practical work. Hester, from Trimo Training, advises budgeting for Workshops comprise of the following: • Practical training – you build a coffin. • Seven jig templates for the coffins. Jig templates are patterns used to shape all sizes of coffins. You’ll also be shown how to customise them. • A coffin construction manual. • A marketing manual to help promote your business; and Also included is mentorship for one year after you complete the course and a certificate of completion at the end. What’s more, you’ll receive free online business advertising for one year once your business is fully operational. There are three types of workshops to choose from: • Workshop A: Manufacturing coffins only: ± 3 days at around R4, 800 per kit. • Workshop B: Manufacturing caskets only: ± 3 days at around R4, 800 per kit. • Workshop C: Manufacturing coffins and caskets: ± 5 days at around R6, 000 per kit. Business Idea Collection | Empowerment Programs • Models and systems to help operate your business successfully. 29 All the workshops cover staining and graining and interior lining too. The costs include the manuals, products made in the workshop and all materials used during the workshop to create the products. A deposit of around R500 will secure your seat. Learn a profitable skill from the comfort of your own home The benefits of the home study kits are that you can study in the privacy of your own home and at your own pace. What’s more, the home study kits deal with the same subjects covered at the workshop. The self-study kit saves you money on the cost of training, travelling and hotel expenses. And you have the choice to upgrade to doing the complete workshop. You can choose between two types of home study kits: 1. Home study kit A: Manufacturing coffins and caskets: You get: • A construction manual. • A marketing manual for your business. • A DVD on coffin manufacturing to help show you how it’s done (includes templates) • ± 80 images of coffins to use as inspiration and with marketing material. 2. Home study kit B: Manufacturing coffins only: You get: • The jig templates. • A sample baby coffin. • A construction manual for coffins. • A measuring block used on coffin lids, sample skirting and sample lining. • A marketing manual. Bottom line – here’s how much you could make… According to Hester from Trimo: “The income generated can reach six-figure amounts provided the owner employs sound business principles, which he’ll be taught during the marketing session of the training.” He points out that profits linked to the quality and amount of the product sold. A low-cost quality coffin can be sold for R2,000, while a high end coffin can be sold for as much R20,000. He explains, “The key to making a lot of money in this business lies in the number of coffins and caskets you produce. If you only make a few coffins per month due to financial or other constraints, your products will cost more to manufacture and you’ll make less profit.” Like any manufacturing business, it’s all about economies of scale – the more you produce, the cheaper it becomes to produce it. If you produce a large number of coffins or caskets per month, you’ll qualify for bulk purchasing discounts from the suppliers of raw materials. This means you can manufacture the products for much cheaper. For example, if you purchase 10 sheets of wood you’ll Business Idea Collection | Empowerment Programs With the home study kits, you’ll still have access to mentorship for one year. Trimo’s business expertise is at your fingertips. It’s also good to know that everything dealt with during the workshops is written and illustrated by diagrams in the manuals. 30 pay a higher price per sheet than if you buy 100 sheets or even a truck load at a time, because you won’t get a bulk purchasing discount. But don’t worry! This doesn’t mean you need to churn out coffins till you’re blue in the face (or until you need one too!). Hester says you can also make a good profit by selling directly to the public. If you think about it, it makes a lot of sense, especially in cash-strapped times like these where people are looking to cut costs wherever they can. You can cater for a wider market by making different quality coffins for different market segments. Why not make economical, standard and luxury coffins and caskets? Supply both the poor and the rich with quality products! You can really spread your wings with this one. The bottom line on how much you make is determined by: • The markets you choose to pursue, • How much advertising and marketing you do, • How hard you work and • How much you produce. Insider tips to market your new business While Hester reveals the best way to market your new business in his course – here are some insider tips to help you get the competitive edge in what I believe will be one of the hottest markets over the next few years: Hone in on your target market: Identify your target market. If you’re looking to sell good quality coffins direct to the public (at huge savings) – you’ll need to have a clear idea of who your target market is. Identify the townships in your area, as well as the lower-income area. These are the areas you want to target, using one of these three marketing techniques: Pay 70% less for a coffin At a time when you and are family are at your most vulnerable, you could spend more on funeral arrangements than you need to. Some people pay as much as R20,000 or even R30,000 for a coffin. But you can buy the same coffin direct from the manufacturer for up to 70% less. To to buy a coffin direct from your local manufacturer – contact (xxx) xxx-xxxx now. 2. Find cheap advertising in key publications: Identify the magazines and newspapers that match your target market and place small adverts on key pages (always choose a right hand, bottom corner to place your advert as this is the most read part of the page). To place a 5x2 advert in a newspaper would cost you approximately R1,200. You don’t need more space to advertise than this – as this ad will basically be a teaser – urging people to contact your company. A good example of an advert like this is: Pay 70% less to bury your loved one Business Idea Collection | Empowerment Programs 1. Flyers: I find Flyerz (www.flyerz.co.za ) offers the best deal when it comes to printing flyers. You can contact them on 0861 359379. To find reliable people to hand out your flyers at major intersections visit Dial-A-Student at www.students.co.za or call them on (011) 403-2996. Identify the funeral homes in your target areas who don’t supply their own coffins – offer them a revenue-share deal for recommending your company. And don’t forget to leave flyers in their waiting areas. Here’s an example of a sample flyer: 31 For more information contact (xxx) xxx-xxxx now. 4. Create your own website: This website can be very basic – literally an online advertisement (similar to those above) urging people to contact you directly. Remember though, when applying for a website name choose, something easy to remember, e.g. www.cheapcoffins.co.za. In a nutshell – how much will it cost to get started? You can start this business in a double garage. No expensive tools or machinery required! With tools you can buy from Game, Makro etc. Take advantage of prospering funeral covers The funeral insurance industry is prospering even in difficult times. Even accounts like Edgars’ “Your Classic” entitles you to R3,000 funeral cover for your next of kin. These policies offer even more of an opportunity for a coffin-builder like you. Offer insurers revenue-share deals for being able to market to their list of beneficiaries who’ve been recently paid out. That way, you profit from the extra work and the beneficiary saves by being able to buy coffins direct from a manufacturer. Everybody wins! Obviously, as you start making more coffins, you’ll need to invest in bigger machines. But don’t let that scare you away, because, with the profits from your sales, you’ll be able to afford bigger machines at a later stage. Tools, machinery and materials you’ll need: • Small drill machine with speed setting for drilling pilot holes and insertion of screws (± R299). • Orbital sander to smooth and finish edges (± R299). • Circular saw for cutting (± R699). The distributor of the wood (e.g. Timbercity) will cut the wood in manageable pieces according to a cutting list that Trimo provides you with. • Router with bits (±R699). • Compressor and spray gun (±R3, 600). • Table to work on, shelves for stacking, storage for finished products. • Smaller tools like a hammer, square, screws,nails, glue, paint, bevel, pliers, brackets, clamps • Cleaning materials (R100). Total cost: ±R5,000 The bottom line The coffin-building industry is probably one of the most lucrative (but under-staffed) industries in South Africa today. And with the HIV epidemic still spreading at an alarming rate, mortality rates are only going to continue to rise, while the recession is going to push people’s budgets to the limit. Don’t wait another minute to get started. Take action today. Visit Trimo Training website at www.coffintraining.co.za to find out more or email Hester at info@trimo.co.za. Alternatively, you can contact him on (011) 696-1745 or (011) 696-1746. Business Idea Collection | Empowerment Programs (±R500). 32 CONCIERGE SERVICE Capital investment: Low Skills level: Low Profit margin: Moderate Are you a compulsive Internet surfer? Then this one’s for you... this business blueprint offers you the opportunity to make some money, while enjoying surfing the net. Fancy hotels have been offering concierge services for years. Now, the advent of the Internet means everyone has access to information. It makes it super easy and really cheap for anyone to read up on somewhere they’d like to go or what to do in a place they’re in. Are you wondering what exactly a concierge service does? Let me explain... Think of it as a freelance personal assistant service. Here are some examples of the kind of things you’d do: • Book flights and hotel accommodation • Arrange car hire • Find out what’s showing at the movies or theatre • Search for houses or flats to buy or rent • Get quotes for a car or similar service • Do online shopping for customers • Make personal or business appointments for them, etc. As you can see, this isn’t exactly difficult work. So, you’ll need to make a few phone calls here and there, but most of your work will be Internetbased. Other than a computer, Internet access and a telephone, you won’t incur many other costs. In terms of your target market, this kind of service will be more appealing to wealthy business people. You want to target the kind of people who can afford to pay for this service – those who don’t have the time to spend hours on the net. Charge around R250 for every hour you spend on the web. Taking into account your bandwidth costs you’ll earn a net R230 for every hour you spend. That’s worth it! Advertising, advertising, advertising! I can’t emphasise enough just how important this is to get yourself out there so you can bring in new business. Now, bear in mind that you need to carefully select where to place your ads. A busy businessman is not going to sift through junkmail classifieds when he’s looking for a service. Aim for upmarket magazines, newspapers and that sort of media to get the kind of clientele who can pay for this service. Business Idea Collection | Empowerment Programs How much to charge? 33 Business Idea Collection | Empowerment Programs Quick tip: Why not offer your services free to a well-known celebrity or politician in exchange for the chance to use their name in your promotions? They’ll get some free assistance and you’ll have a winning marketing campaign that cost you nothing but some of your time. 34 CONVERT PHOTOS TO CASH These days, it’s not just professionals who can make money from their photos. As long as you have a basic digital camera, a bit of time on your hands and access to the Internet, you are halfway there to launching yourself into a lucrative photographic career. In fact, the financial possibilities are so great, you may find yourself not only supplementing your current income, but rather, completely supplanting it! But how is this possible? The answer is online photo libraries. Nowadays anyone can submit their photographs for sale and earn a commission for each and every one downloaded. Those photos from your boss’s wedding at a luxury game lodge or of your budding son John playing soccer with his friends, could potentially be worth not only a thousand words, but a couple of thousand rands. It’s so easy; in fact, you might feel like you’ve cheated somebody. So what do you need? • Digital camera. • A computer with access to the Internet. • A bit of time and enthusiasm. You can be your own boss The beauty of it all is that as long as you can access the Internet from your home, you have the perfect platform for making money at your fingertips. Think about all the places where pictures might be used. Magazines, newspapers, catalog, postcards, books... The list is infinite. Your boss’s wedding pictures would be ideal for a catering company wanting to advertise and the pictures of John playing soccer would suit a glossy new book on the 2014 World Cup. A bit more on online photo libraries What kinds of pictures sell? All sorts of publications need pictures of all kinds of things. Often, amateur pictures are more desired than professional pictures, due to their cheaper cost and grittiness. To get an idea of popular photographic subjects that are downloaded or bought, think about browsing through the stock of some of the more popular libraries. Photos that have been downloaded at least 20 times and above reveal the subjects you should concentrate on. Try to take photos that can represent feelings or emotions. These can be of people, animals or situations. A shot of a bedraggled person in the rain being offered an umbrella, for instance, could represent relief or gratitude. Religious, corporate, medical and underwater imagery is also highly sought after. Don’t bother too much with landscapes. Everybody takes them, but hardly anybody buys them. Business Idea Collection | Empowerment Programs Photo libraries stock millions of pictures that can be bought for a fee by users – from newspapers to publishers. The cost ranges anywhere from R10 to R30,000 depending on the quality and rarity of the picture. Some libraries also charge different fees depending on what the photograph will be used for. 35 If you are at all in doubt about subject matter, some sites even have a “wanted urgently” list, so this should make things easy for you! Also keep in mind that the most prolific buyers are based in the US and their requirement is usually for cuter photos than the slicker needs of the Europeans. A calculation Let’s think about a popular photo that is downloaded as many as 1000 times in a month. The current approximate rand/£ exchange rate is R14.50. So even if the photo is a mere £1 each download, you could be making as much as R14 500 for a single photo! Imagine what you could make with even a modest portfolio! How does it actually work? Let’s start with what you need. Get yourself the best digital camera that you can reasonably afford. Photo libraries these days accept photos from 2 megapixel cameras and above. And actually, considering the income potential, R850 on a new 5 megapixel digital camera is really not that excessive. A few tricks... While no expertise is needed to take advantage of this gem of an opportunity, a few simple tricks will help you produce winners that sell. 1. Concentrate on photographing single subjects, whether this is a door or a pen. When the subject matter of a picture is obvious, the photograph is immediately more saleable. 2. Fill the frame. Make sure the background is kept to a minimum unless it contributes to the image in some way. . Capture the action: Something that is happening or about to happen. What’s the catch? Although selling your pictures to online libraries is potentially foolproof, you do need to observe a few cautions. 2. If children are the picture subjects, their parents need to sign the form. No matter how cute and innocent children might appear in the pictures, you should never submit pictures of nude or seminude pictures of children. 3. Avoid trademarks. Even a picture of a Company banner in the background can cause hassles. A simple photo edit with Photoshop can “paint out” the trademark. 4. You also need a property release form from the owner if you are photographing the interiors of any buildings, houses, cars and boats. How to sign up… The next thing to do is to find a good photo library that sells the type of pictures you will offer. Read the submission guidelines and the terms and conditions carefully. Some libraries will ask you to take a simple online test. These are really easy. On the technical side Business Idea Collection | Empowerment Programs 1. With people shots, a model release form needs to be signed by the person in the picture if his or her identity is clear. These forms can be downloaded from the picture library websites. 36 1. File size: The bigger a file is, the better. The minimum, however is 2 megapixels. Photos that can print at 300 dots per inch, 5” x 7” are ideal. 2. Format: RGB (red, blue and green) JPEG files are accepted by most picture libraries. Click “Save as type” and choose JPEG, when saving the picture to your hard drive. 3. Editing: Can help improve picture quality. Crop the pictures to centre the subject or the action. Improve the colours and sharpen the picture using Photoshop or any other editing software. A good thing to remember is not to sample-up the pictures, as this will lead to distortion and blur. Set your camera’s ISO/ASA setting to 150 or even lower (100 is ideal). Maximising sales by description and keywords When writing the description for your picture, ask yourself a few questions about it: • What is in the picture or what is happening in it? • How does the picture feel? • Where is the subject or action? • Who is it? • What colour is it? • Who could use it? Keywords should be anywhere from 10 to 50 words, although the more the better. Concentrate on concept words and as many variations as possible. For example, if your key concept is laughter, try adding laugh, laughing, laughed, joke, humour, etc. Also use a thesaurus for more ideas. Checklist Keep this checklist on hand to decide if your photo is worth submitting: ❐ Popular subject but not one where numerous photos are already available? ❐ Well composed? ❐ Good light levels. ❐ Good colour? If your colour seems washed out, consider boosting it with editing software. ❐ In focus? ❐ Subject matter clear and centred? ❐ Any distortion from resizing the photo? ❐ Any dust or scratches if you have scanned the photo? ❐ Not upsampled? ❐ Any trademark infringement? Business Idea Collection | Empowerment Programs ❐ Broad usage appeal? Think about brochures, books, magazines etc. 37 ❐ If the subject is a person or place, do you have a release form? ❐ Is it creative? Other ways to profit But maybe you don’t have the time to take pictures. You could always pay someone else to go out and photograph for you. Otherwise, dust off those albums at home and scan in your old photos. Search for public domain pictures in libraries and archives. These are pictures for which the copyright has expired, so you can sell them yourself. Visit these online photo libraries • www.istockphoto.com : Based in Canada, this site offers cheap pictures, giving you 20 to 40% commission and is the ideal platform to start. • http://submit.shutterstock.com : Operates on a buyer monthly subscription, meaning you might make less per photo, but gives you the chance to upload a massive portfolio and get paid per photo download. • www.iafrikaphotos.co.za : Try this site once you are firmly established. It requires a submission of 200 photos to get in, featuring photojournalistic and documentary material. • www.pictureperfect.co.za : This site offers you basic courses in digital photography and is great for those more than a little tentative starting out. www.alamy.com : Alamy, based in the UK, is for upper amateurs or budding professionals and pays a staggering 75% commission. • www.corbis.com : To sell on this site, you have to be commissioned, meaning that it is one for professionals. However, visit the site to see what’s hot in the world of photography and for great ideas. • www.bigstockphoto.com : This site, based in the US, is great for beginners, with many buyers and users flooding in monthly. • www.fotolia.com : A great, easy-to-use site that covers different countries. The commission is excellent, averaging around 52%. Business Idea Collection | Empowerment Programs • www.shutterprint.com : Allows you to price your own pictures, charging 15% commission. 38 CUPCAKE CRAZE Another upcoming trend is all about couture cupcakes and peculiar pastries. Cupcakes have turned into a huge trend lately, and believe me when I say that today’s cupcakes are nothing like the sickly sweet concoctions you remember from childhood... I’m talking cupcakes that resemble pieces of art! The recent upswing in cupcake sales shows that this is a market that is already defined. Think about it, with the low-carb craze over with, there has been a return to the idea of eating for pleasure. Clients who are bored with the average supermarket’s tired old sponge cake with a cartoon character are looking for handmade, out-of-the ordinary cakes that truly reflect the theme of the celebration... and when they do, they’ll come to you. Not only are people looking for custom, creative cakes – they are willing to pay for them too. Red-hot opportunity: It’s time to trade in your overtime for oven mitts, and create your own sweet success story by starting a cake or cupcake decorating business. And if you’re really serious about this why not order a guide to becoming a cake decorator from www.fabjob.com . This guide will show you how to gain financial freedom by exploring your creative talents. It’ll also tell you everything you need to know about how to start a cupcake business. The guide will cost you just over R300 and you’ll receive the electronic guide minutes after ordering. How much you earn will really be up to you. But if you sell a dozen cupcakes for R150 and you sell 40 dozen a month that’s an easy R6,000! Of course you’d have to spend some bucks on the ingredients but large wholesalers such as Makro will ensure you can buy bulk products for less and now days there’s some pretty easy to use premixes. If you don’t see yourself in the kitchen with an apron around your neck why not ask the ladies in your life (wives, mothers, aunts etc) if they would be interested in home baking time! By now you can tell that this sweet opportunity won’t lead to early retirement but it could turn out to be an enjoyable way to make some extra cash... and who knows how big your business could grow! You can choose to specialise in a style or theme of cupcakes – as long as you have the desire, no education or experience is necessary! The impact of these long-term trends will continue to shape markets and industries. For new entrepreneurs, gauge the market closely. If you are expanding a business, look for complementary markets to those you are currently serving. For existing businesses with no growth plans, observe and plan for how these trends may impact your industry. Business Idea Collection | Empowerment Programs “There’s never been a better time to start up a cake decorating business,” says Jennifer Graham, cupcake cookbook author. 39 DÉCOR RENTAL BUSINESS First impressions count. This tired cliché still remains valid, especially when customers are about to spend their hard-earned money on a service a company is offering. The truth is that when you enter a commercial space, psychology is strongly at work. When you cast your eyes about and see soothing plant displays, hear the sound of trickling from a water feature or are energised by a vivid abstract painting, you’re already halfway there to trusting that the business can deliver what it promises. The interesting thing is that a number of these businesses don’t have to own these pieces themselves. Offices, shops, doctor’s rooms, restaurants or estate agencies could all potentially rent specialised décor, paying a monthly fee to ensure they are regularly maintained and rotated. And once you come to this conclusion, you’ll appreciate the fantastic small business opportunity this presents you. Setting up your own office space While you may start small, this is a business that has the potential to grow huge. But your startup costs don’t have to be enormous. You won’t need a huge stack of available cash – a few thousand rand would probably suffice. Only minimal storage space is needed as your stock will be kept on your customers’ premises, not yours. And if you don’t have a bakkie or van to move things around in, these can be hired. You’ll also need to print off some business cards to add that professional touch. Finally you’ll need a little space to work from with access to a telephone line and the Internet. What are the best items to rent out? The range you could consider is extensive: Plants, unique furniture pieces like artistic lamps, aquariums complete with tropical fish, sculptures, paintings and prints. However, consider the competition available. There are a number of existing companies specialising in plant rental. While this market is probably not fully extended, you’re committing yourself to regular visits to your clients for plant upkeep. The same applies to supplying aquariums and aquatic life. Supplying paintings, sculptures or prints, however, is a much more hands-off business. When it comes to art, you are spoilt for choice. But before you go on the hunt for your first décor Rental customers, you’ll need to source a few suitable pieces to get you going. You have two alternatives when it comes to sourcing your stock. They are: 1. Making your own artwork This is not as daunting as it may sound. Although you do need a certain creative flair, there are ways of producing your own work, which won’t seem quite as impossible if you read on. Stretch canvases: Pop into your local art store. A good choice is Herbert Evans (www.herbertevans.co.za ), which often runs seasonal sales with 50% off merchandise. You’ll need to buy a few basics: Canvases, paint (I suggest acrylic, it is easier to use and dries quickly) and a few paint brushes. By referring to a few art books or looking online, you could get some great ideas for some very presentable pieces. Canvases range in size from 25x25cm to 240x60cm and everything in between. A helpful hint is to invest in student acrylic. Photographs: Frame your black and white or landscape photos in funky frames. Even if you go large on your printing, the price can be reasonable. You can purchase frames from stores like Mr Price and even Pick ‘n Pay, with prices starting at R60 depending on the frame. Photos on canvas: Instead of printing your photos on paper, print them on canvas for an excellent professional look. Found art: Go to a jumble sale and buy aesthetically pleasing objects to frame. Business Idea Collection | Empowerment Programs Sourcing your stock 40 Linoprint: Cut out the linoleum with your desired image in reverse. Use inks to print out your picture. Start in black and white and play with colours once you get a bit more experienced. 2. Sourcing artwork There are so many alternatives. Here are a few ideas: Social upliftment: South Africa is far from lacking talented artists. There are numerous projects going on, including at the Bus Factory in Newtown, Johannesburg (www.craftcouncil.co.za ). Here skills development training in fibre craft and felt-making has brought diverse talent to the fore. Source new creative talent and at the same time help uplift the community. Frame posters: You can often find posters at antiques fairs or jumble sales. All you need to do is frame them. Alternatively, many framing companies can source posters and then frame them for you. Emstel Graphics in Johannesburg (011 887-6015; zee@emstel.co.za ) has posters available at low prices. Student work: Contact your local university or college art departments. Students are often looking for practical experience and a bit of extra pocket money – you can always commission a few pieces. Retail: This is the easiest option by far. Lots of shops stock ready-to-hang pictures. From Mr Price, to Makro to Game, you have a multitude of possibilities. Online: Log onto www.gumtree.co.za and do a search for “art” or “paintings” – you never know what bargains you might find. Markets Log onto www.capetown.gov.za/residents/ craftmarkets.asp for craft market destinations in Cape Town. Don’t forget to haggle, especially if you’re buying in bulk. Roadside sellers: Why not buy a few paintings here? You’re bound to get a discount if you buy more than one. Let’s be honest about this. Not every company is going to want an upmarket service like this. You need to find a business where its image really counts. Here are a few suggestions: • Shops • Restaurants (from wine bars to smart cafés) • Trendy bars and nightclubs • Gyms, health clubs and sports clubs • Government departments and local councils • Hairdressers, beauty salons and spas • Hotels and guesthouses • Offices • Banks • Professional practices from lawyers to accountants • Prestige car showrooms • Property developers (for their show houses) • Universities and colleges • Estate agencies Why don’t they buy? While your customers could probably buy paintings themselves, your job is to offer added value. For instance, you can rotate your paintings every three months from one customer to the next. You’ll keep your paintings a talking point and ensure your clients recognise the difference you are making to their company’s image. Marketing Though this business idea is innovative and exciting, your marketing doesn’t have to be. Log onto www.yellowpages.co.za and check your local paper to compile a list of the most suitable potential clients in your area. Once you have identified the decision-maker, write a sales letter Business Idea Collection | Empowerment Programs Finding the right customers 41 explaining your services and follow this up with call a week or so later. Your letter should be short, highlighting your key benefits. Your clients are not buying the use of a few paintings or sculptures. They are buying a better image and atmosphere for their businesses. Don’t forget this. To get your foot in the door, offer an obligation-free survey and advice appointment. Explain that by taking a closer look at their premises, you’ll be able to offer cost effective and viable ways to smarten up their image. This is essentially a sales visit, but couched in these terms, it will seem much more appealing. Do your homework As with any sales visit, make sure you know something about your prospect. What is their business? Who are their clients? What sort of corporate image are they wishing to project? That will help you select the most suitable art pieces for your visit. And when you show off your products, display them in the best way possible: On an easel and in good lighting. Closing the deal If you have chosen your paintings well, you might already be close to a sale. But if not, give your prospects an offer too good to refuse. Tell them you will leave the paintings in their office, free of charge, for one month. Then, after that, if they feel that the paintings have not delivered on your promises, you will take them away and they won’t owe you a cent. You do run the risk of course, that they will cancel on you. However, client confidence is always boosted by a sense of mutual trust. A tip: Recommend a more controversial painting to leave behind – something modern or abstract would be good. This usually encourages conversation and will increase the chance your prospects will keep renting it from you. Legalities Ensure you sign a simple agreement with your customer once the deal is done. All parties will know where they stand and future disagreements can be avoided. If you can, ask your customer to pay you by a monthly debit order, this will save you having to hunt down bad debt later. Before we do the figures, you need to forget the idea that there is a direct correlation between how cheap the painting is to buy and how much you can rent it out for. To give you an idea, you can rent a potted palm for R50 to R90 a month. I would estimate a small painting could be rented out for R45 and a giant one at least R300 per month. So let’s work on a medium-sized painting at R120 per month. That doesn’t sound like a lot until you consider you could have bought it for R350. After three months, you will have all but paid for the painting and anything after that, barring administration and travel expenses, would be pure profit. You may be able to rent out that work for another five years before it needs to be retired. Of course, companies hiring in bulk would get a discount, but the potential is enormous. So if you had 10 medium paintings, you could make R1 200 per month or R14 400 a year… And if you had 100 medium paintings, you could make R12 000 per month or R144 000 a year… And if you had 1000 medium paintings, you could make R120 000 per month or R1 440 000 a year… Good Luck! Business Idea Collection | Empowerment Programs Doing the sums 42 EARN FROM HOME MAINTENANCE We’ve all dealt with workmen who don’t turn up or simply don’t do the job properly. But don’t just sit there and growl, do something! And I don’t mean taking legal action. I’m talking about the best business opportunity in recent years: Providing consumers with easy access to trustworthy handymen. A new take on Mr Delivery… It’s a kind of ‘Mr Delivery’ for handymen – from painters to plumbers to electricians. If people have a job that needs doing then they phone one number – yours – and you despatch someone from your list of tried and trusted handy people. It’s done mainly on a credit card basis. You take their details and send the person. Once you have confirmed the customer is happy, you debit the credit card, pay the provider and take your commission. How to get started You need to develop a database of reliable, skilled people. Start with those you have personal experience of and those who’ve done good work for people you know. Then look at the Yellow Pages and your local press. Phone, visit and get three written testimonials from their clients – whom you also need to contact personally. You live and die by the quality of the people you’re providing. If someone is not making the grade – ditch them. You’re not only offering peace of mind to customers, but admin and marketing relief for the handymen. They need to make sure standards are kept high or they lose that benefit. Getting from ‘in the door’ to ‘in your pocket’ Firstly – you must always have someone available. Your handymen will still be doing other work so you need a rota system so that on one or two days a week they will make your work a priority. Get that commitment in writing. Thirdly – set up a simple computer database that has all your handymen and client details, tracks who is doing what work for whom and then makes sure the client is debited and the handyman paid. Use an Excel spreadsheet initially (www.usd.edu/trio/tut/excel/ to find out more) or go to www.openoffice.org – free database software and training. R11,200 per month is nothing to sniff at… Your revenue comes from commission earned for the jobs you’re farming out. A reasonable initial estimate might be an average R1,000 per job, a 7% commission and an average of 8 jobs per day (remember, they’re not all going to be plumbing jobs, so there’ll be a number of service providers involved). That’s a commission turnover of about R11,200 per month. Not bad for a starting point! The commission is included in the initial quote and is worth it to the customer for peace of mind. They’ll only be paying half the commission anyway, since the other half will be charged to the handyman as a finder’s fee. It may be that customers want more than one person to quote for the job. You need to undertake to hand out these opportunities fairly. Business Idea Collection | Empowerment Programs Secondly – your handymen must also sign a simple contract that says they won’t try and work for your customers directly. Do spot checks with customers and if you find someone is breaching the contract – they’re off the books. 43 What to expect in start-up costs Contracts: Most lawyers will charge around R500 to draw up a straightforward business contract. You can find one through www.attorneys.co.za .You need a contract for the people on your books. You also need a contract signed by the customer limiting your liability for the work done. The handymen’s own insurance must cover any problems. Advertise and market effectively: • Yellow pages – a small display advert costs about R150 per month. To have it appear under a number of different categories (e.g. handymen, builders, plumbers, painters, electricians, etc.) you’ll need to pay for each, although discounts are available. • Other advertising – the two best methods of local advertising are free-sheet papers (your local community paper) and simple flyers handed out at intersections and put in post boxes. • Phone line – install a second dedicated line or to set up a freefone line with an easy to remember number – like 0800HANDY (42639). There’s a R200 once-off payment plus R98 per month rental, plus calls. • Website registration and maintenance – your website can start as a simple online brochure but could be developed to include email enquiries for jobs. Depending on which service provider you choose, costs are around R1,000 set-up fee, and about R160 per month for hosting (try www.sitezone.co.z ). Business Idea Collection | Empowerment Programs ☞Get out there and end home maintenance despair – the opportunity is just waiting to be nailed down. 44 ELECTRONIC PAWN SHOP Perfect Part-Time Opportunity Revealed! Why an electronic pawn shop could be the best recession-raiding opportunity yet… Not just any pawn shops. I’m talking about taking the pawn shop concept and applying it online. Here is the low-down. Think about it Just like starting a gardening service was ‘in’ back in the day, now an emerging trend in today’s market is pawn shops. I have done my research and in South Africa, pawn shop trading is growing fast as a reasonable way to make cash from all levels of income. A couple of years ago people wouldn’t set foot in a pawn shop. If people needed money they would just borrow from someone they knew, get a cash advance, or dip into existing loans. But these days it’s not as easy borrowing cash from friends or family and there is too much risk involved in increasing your existing loan. Now what does all this have to do with you? Well, people are always giving away old stuff, and others always want to buy cheap stuff – this habit is never going to change. So, take advantage of the situation and make it all about making cash out of what others consider as trash. Be clever about this! You can start a very profitable business buying and selling pre-owned goods and providing alternate financial services. But while setting up a franchise might seem like a good option… In this case it’s just not worth the expense… Create your own online “pawn store” Why not buy people’s unwanted goods for cash and then resell the goods online through an e-store like www.bidorbuy.co.za. Your customers will be ecstatic to get instant cash and you’ll have saved them from selling the goods or carting them to a “pawn shop” themselves. And you stand to make a tidy profit from every item you sell. Plus, you can run this opportunity in your spare time, collecting and delivering goods on the weekend and monitoring your sales on www.bidorbuy.co.za during the week. When marking up goods for sale, you’ll need to account for delivery costs (i.e. petrol, postage) and marketing costs (i.e. printing of flyers). But this opportunity could really take off, with a minimal amount of work. In time, you might even make enough to take on a staff member. Here’s an example of how much you could make in a single month: Item: Bought: Sold: Your profit: Jewellery R4,000 R5,400 R1,400 Business Idea Collection | Empowerment Programs For a Cash Converters Franchise your total investment would come to between R1,000,000 and R1,500,000. R500,000 would be the minimum unencumbered capital required, from which the balance can be financed. With this type of investment, you are looking at owning either a classic store (300-400m²) or a combo store (600- 1000m²) which includes furniture. But from my research, I’ve found that it’ll take a considerable amount of time before you make money. You’ll probably only get your initial investment back within the first three years of opening your store. And only after that can you look forward to making R500,000 a year. So if you don’t have that kind of money to invest right now and you want to start making money right away… I have another option for you… 45 Furniture R10,000 R24,000 R4,000 Cell phones R8,000 R13,000 R5,000 Total: R22,000 R32,400 R10,400 A quick marketing tip… Hand out flyers at traffic lights, and post them up at shopping centres, detailing your services on offer. Visit www.flyerz.co.za to print 5,000 flyers for around R999.00. Or check out the Graphic Printing Services website at www.digitalprint.co.za or phone (011) 433-3409. ☞We’ve spoken about the how, why and the when, and they all point to one thing. Money! Business Idea Collection | Empowerment Programs Taking the opportunity to make money can only do one thing. Pay out! So, here’s one more calculation for the road. An electronic pawn shop + money, money, money = success! Go on, get started today! 46 EXPORT Why South Africa’s ideal for exporting The rand is still much weaker against the euro, pound and dollar. While this is definitely not great for importers, it’s PERFECT for exporters. You see, a weaker rand means it’s far cheaper for overseas buyers to come to us. The best part is that our Department of Trade and Industry (DTI) is more supportive of exporters than it’s ever been before. The government gives incentives to South Africans who want to export their products internationally. They use the Export Marketing and Investment Assistance (EMIA) scheme, which pays for costs involved in developing export markets for South African products AND offers exporters financial assistance with market research, trade missions and showcasing products and services at international exhibitions. I’ll tell you more about this in a moment – all you need to know for now is this kind of economic situation, combined with support from the right people in high places, means you’ve got a fantastic foundation to begin with. Don’t get me wrong, I’m NOT suggesting you should get involved in those massive complicated export sectors, like gold or coal. I’m talking about export products that are suitable for SMMEs (Small, Medium and Micro Enterprises) and for entrepreneurs like you. Why getting started is easier than you expect First of all, let’s look at what you don’t need. This will show you that it’s easier than you expect! You don’t need a huge amount of capital. You don’t need a great big warehouse. You don’t need to travel if you don’t want to. And you don’t need a container ship. There’s no need to start filling your home office with thousands of boxes or buying a van to transport the goods! (I can just imagine your relief!) They then deal with the packaging, customs, taxes and shipping. There are four simple steps involved: 1. Pick your product. 2. Find a buyer. 3. Make the deal. 4. Claim your commission. Step 1 and step 2 can actually be swapped around. You can either start with the product or with the demand. The two are linked, but I suggest you start with the product first. Business Idea Collection | Empowerment Programs With the big expenses cut out of the picture, here’s what you do need: A computer with Internet access, a little bit of business savvy and you’re set. Simple as that. What am I talking about? You’re in line to become an export agent. And your role is easy: connecting buyers and sellers. You’ll find and organise the deals – connecting the right buyer with the right seller and make the right cash doing so. 47 My insider tip: Your income will be based on commission fees. This will give you the incentive to work hard and put in the effort needed to make your business a success. Start your price tag at around 5-7%, but as your business grows increase it to 10-15%. Within a couple of years, you should be able to charge up to 25%! Start part-time and use your current income to keep you going until your profits start to rocket – then you’ll be in a comfortable position to choose whether or not you enjoy it enough to go full-time. Here’s a closer look The big question is: What products work best for an export agent? Begin with the concept local is lekker – what’s South Africa known for? What do we have that the rest of the world wants? The best way to make big bucks is to work with local products from local manufacturers. The export market is actually massive. You could select products that range from furniture, carpets, gardening equipment, office supplies and DIY tools, to cosmetics, shoes, toys, food and household accessories. But the best products are the ones that stand out. The kind of thing that’s distinctly South African. I’ll let you in on my top five favourites that are currently bestsellers across Europe and America: 1. Designer decor 2. Wine 3. Biltong 5. Rooibos tea 6. Designer clothes and jewellery Karen Roos, the editor of Elle Decoration has this to say: “It’s outdated to view South Africa as a mere commodity exporter. There’s huge interest in our innovative and functional designs, from Amsterdam to New York. Crafts and designer items are predicted to contribute R5-billion to the country’s GDP and offer 20,000 more jobs by 2015 if supported by more targeted interventions.” As an export agent, I want you to think even bigger – luxury products of high quality and high value. So let’s explore designer décor as the kind of product you want to work with. Look for South African designers that specialise in lighting, outdoor crafts, bedding, bathroom accessories, fabrics, seating, tableware accessories. The key to identifying what kind of product is in demand is to look for unique, exclusive, high-end designs. I mean the kind of décor that the international market will go mad for. Have a look at annual design competitions like EDIDA SA (www.elledeco.blogspot.com/2009/03/edida-south-africa.html ). The winners of different categories will obviously produce the best export quality products. Next, I’ll show you how these guys will increase your earning potential. My insider tip: Start with one product. Like any business, you’ll have to build from the ground up. Don’t expect to start with 10 products all at once. Business Idea Collection | Empowerment Programs Does that give you an idea of how big exporting really is? There is a huge market of young, talented designers producing incredible goods and when you tap into this market, you’ll be watching your success grow with theirs. 48 You’ll have to go through a learning curve, which means making mistakes and then doing it better next time. You can decide whether you want to contact top designers and offer to represent them overseas or focus on one type of product and then fill the gap in the market. As I said, this is a commission-based business, so set your sights on products that come with a decent price tag. Don’t waste your time on things that’ll only give you a couple of bucks per deal. And don’t be afraid to negotiate a good commission for yourself. Ask for 30-40% and gradually negotiate down to 5-15%. Remember, you’re offering an effortless way for the seller to make more money with very little hassle. Quick tip: Don’t forget to register with SARS As a new exporter you need to register with the South African Revenue Services (SARS). To download the Import and Export forms and learn how to register with SARS visit their website at: http://www.sars.gov.za/home.asp?pid=176 .Or call the SARS call centre on 0860 121 218.You’ll need to submit the relevant forms at your nearest SARS Customs & Excise branch office. Also – to understand the rules and regulations of exporting from SA (as well as a few extra hints and tips) visit the DTI’s user-friendly site at: http://www.thedti.gov.za/exporting/learntoexport.htm How to find the right products to export The first thing you must do is visit Best SA Exporters on the Internet (www.bestsaexporters.com ). These guys are geared toward SMME entrepreneurs and have a wealth of information to help you. They have the most comprehensive list of export quality products from across the county. One of their representatives, Ryan Theron, told me that their website is ranked number one in the industry. He also says: “We exist to connect exporters with the international trade market, but we’re specifically here to help small and medium businesses rather than the big industry players.” So back to our example of award-winning designer products (definitely niche products). Say you decide to start with lighting. Would you believe that lighting fixtures and lamps export anywhere between R5, 000 and R66, 000 per item?! I’ll be conservative and go with a middle-range light fixture to show you the start of your earning potential when you’re connecting buyers from Europe or America with South African manufacturers. Of course, when you get bigger prices, you’ll get better commissions! And here’s another reason to export (as if you aren’t already sold on the idea). These same light fixtures would sell in South Africa for about 25% less. So your earning potential is higher to begin with. That R675, 000 will get you going. You may only make this kind of sale every other month, but when you’ve built up a catalogue of 10 products that are selling like hot cakes overseas, well, need I say more? My inside tip: Make sure you go directly to the manufacturer. You don’t want to complicate things by haggling over retail prices with the seller. Your operating costs will be fairly minimal, so if you get a deal that offers you R2, 000 on a sale of over R100, 000 then you’re still looking at a decent profit of 2%. How to find reputable buyers Business Idea Collection | Empowerment Programs Best SA Exporters also has exciting news for start-up entrepreneurs. They say South Africa’s exports are relatively uniform – like mining and agricultural products and are largely commodity based. South African exporters are thus at a particularly exciting point in our history. If SouthAfrica wants to move toward a high-value, high income, export-led economy, we must diversify our traditional export basket. Niche products – the kinds of products countries are willing to pay a premium for – will enable South African producers to compete in the global economy. 49 It’s vital to start thinking about which countries you want to deal with. Like I said, the South African rand is weak against the euro, pound and dollar so these are obvious places to start and they’ll give you a nice price advantage. Also look at Australia, Canada, Ireland and New Zealand. Avoid the East because chances are, you’ll have a problem with communicating in English. You can source buyers on international trade websites like these: www.alibaba.com ; www.ec21.com ; www.bestsaexporters.com and www.wadetrade.com . These websites list buyers from around the world and each are moderated or qualified to minimise fraud. Approach the buyer directly. Send an initial email and follow up with a phone. Remember to sell the benefits of the product you’re looking to sell. Send sales statistics and explain how successful the product is in SA, then highlight how lucrative the overseas market is for this particular product. You can also advertise on sites like www.alibaba.com , but if you want to secure good sales – fast – I suggest you contact potential buyers directly, instead of waiting for them to contact you. Once you’ve hooked your buyers, the safest method of payment is cash in advance or cash with order placement. Keep in mind, the buyer has the highest risk in such a transaction as he has no surety he’ll receive the goods as ordered. So you need to offer a money-back guarantee or some sort of surety so the buyer can trust you. Keeping up-to-date with trends in the export world is important for you to stay on top of your game. Be sure to regularly visit these two local websites: www.tradeinvestsa.co.za and The Business Day’s export supplement www.businessday.co.za/specialist/saexporter.aspx?Page=BD4P49&MenuItem=BD4P49 . My inside tip: Never reveal the details of your product suppliers to the buyers until they sign the deal. You have to make sure they go through you until the deal’s signed and paid for. Only then can you connect the two. Insist that both suppliers and buyers sign a contract that restricts them from making their own deals without you. You did the research and work to make the sale happen and deserve to benefit from future sales too. Before you to make it happen, I have one more insider tip. You may think that depending on the government is a risky step but once you’ve been onto the DTI website (www.thedti.gov.za ), I’m sure you’ll see my point. They have the framework to support you as part of making the South African economy grow. They assist exporters in reaching their targets and specifically enable small businesses in any sector to access DTI support structures. Before you know it, you’ll be travelling to countries you’ve always dreamed of – and because you’re in export, they’ll be all-expenses-paid holidays that’ll open up even more trade doors. Make it happen! Business Idea Collection | Empowerment Programs One last lead: The DTI 50 FAX2EMAIL Discover how this fax2email phenomenon can make you an extra R5, 000 while you sleep! This business has been making money for people for many years and will continue doing so as long as there are more new businesses starting up. There are literally thousands of businesses that still do not have a Fax facility. If you want to tap into a business with a rapidly expanding market, then maybe you should set yourself up as an agent for fax2email. This is a great opportunity, but you’ll need to get in fast. People are signing up all the time for their own fax2mail email address… Here’s how you can make a bit of money – every time they do! The FREE service that’ll pay YOU every time someone gets a fax This fabulous innovation will do away with the already antiquated and paper-heavy fax reception process. Subscribers with their own fax number linked to their own email address can download any faxes sent to them in a digital format. Not bad, a fax service unrestricted by time or geography! Well, almost. One drawback is that you can only receive faxes from South African phone numbers. But another bonus is that fax2email offers free installation, free support and free rental. And it doesn’t cost the subscriber a thing to receive a fax! But you’ll get paid every time they do… Just sign up one or two companies and watch the money come in! Are you presentable? Can you communicate? Do you have a few contacts who might need this service? As an agent of fax2email services, your biggest hurdle is trying to convince people that you can offer them a fabulous enhancement to their business – completely FREE. By targeting large companies, small enterprises and even individuals you could literally earn money while you sleep! The bottom line is you have to have a little investment capital. According to Werner Henning, one of only 180 fax2email distributors, in South Africa (whenning@gka.co.za , 083 458 0332, www.savefax.powerfax.co.za ) can start this from as little as R5,000 and goes up to about R15,000. The initial investment is negotiable. It depends on how much annuity income you’d like to work on. So if you’d like to receive up to 13c for every fax minute, then your initial investment would be higher than if you only get 6c. You’ll also need a computer and Internet connection and you’re ready to go! What does your initial investment pay for? Your initial payment will cover: • Your setup costs: These include a website in a designed format that includes everything you or your subscribers will need to know about fax2email. • Your training costs: You’ll be taught how to approach the market; how fax2email works; how to set up fax2email and how to deal with the customer. • Permanent backup on the product from your national distributor. Now you’ve got the tools, the next step is to sign up clients. If you’re already in the printing business, you might have lots of clients whose business cards you already print. How about offering them their Business Idea Collection | Empowerment Programs What you need to get started… 51 own fax2email number? Or if you work in a corporate – lots of contacts await you. Or better yet – contact Cipro for details of newly registered companies. Their website is: www.cipro.co.za and their telephone number is (012) 394-9500. Perhaps you could do a deal with them – offering all newly registered companies free fax2email numbers in exchange for a cut of your profits. The sky is the limit! The more people you sign up, the more you will earn. Think about it, once you have signed up subscribers, you will be earning a passive income for as long as they keep their email address! Here’s how to sell a fax2email number It’s easy to sell this concept! Just push the benefits! The best way to do this is over the phone and via networking. Networking is an easy way to get new clients on board. Just think of the friends and family you know with companies. Approach them with your free service and you should have them onboard in no time. For the second option, identify medium size or large companies and call to see if they need fax2email numbers. Your conversation should follow along these lines… Haven’t you experienced this at least once? You receive a fax, and pages are missing. Your phone line is down and you miss that all-important fax. A fax comes into the office, and you have to drive all the way back to pick it up. Or even worse, a private fax lands up on the general fax machine so that the entire office knows about your raise or an embarrassing prescription your doctor has just sent through. There are also those unavoidable problems of disconnected lines, running out of ink or paper, paper jams or printing faxes you don’t want. But as a fax2email agent you can promise your clients this will never happen again. You can guarantee: • Confidentiality • No lost pages – ever again • No more monthly rentals on faxes • Accessible faxes any time of the day • Time-saving So when will you get your first paycheque You’ll have to wait 90 days, before you get your first paycheque but after that the money will continuously roll in – with very little effort! The reason you have to wait 90 days for your first payment is once your subscriber uses the fax number, the person who faxed him/her will be billed by Telkom. This billing takes 30 days. They will then take 30 days to pay, and it will take an additional 30 days to reach your account. The lowest amount Telkom will pay is R200, so if you earn less than this in a month, this will carry over to the next month. But after the first three months, as long as you earn over R200 per month, the cash will fly into your account via EFT on the 25th of the month. The great thing is, you have access to your account via a secret password, so you can watch the money rolling in, with a click of a button! ☞What are you waiting for? You have nothing to lose! Call 083 458 0332, ask for Werner Henning and watch your bank balance grow… Business Idea Collection | Empowerment Programs • No more paper wastage 52 FOUR WAYS TO PROFIT FROM PROPERTY I t’s no secret that there is money to be made from property. And plenty of it! But with the uncertainty in the markets now, you might not be keen to buy property. But you should be! Current market conditions in South Africa will favour buyers in 2013, with interest rate hikes and the introduction of the National Credit Act. Also the house price to income ratio is forcing more people to rent instead of buy – and that presents a great opportunity for you. So here are my best tips to make money in property despite the national uncertainty. 1. Residential property - buy to let There’s a growing demand in South African cities for flats and townhouses priced below R7,000 per month. So if you’re looking to maximise current returns, focus on the R500,000 – R1-million bracket. The appreciation rate, particularly in well-protected new developments, is almost double the R2-million plus bracket. And these often attract rentals large enough to cover more than half your bond repayments. You’ll need to do some number crunching though. Ensure you can afford the bond and have something in reserve to protect you should interest rates rise. This is another good way to earn passive income (often more profitable than being a propertyowning landlord). Many letting agents treat tenants in a less-than favourable manner and leave much to be desired as far as customer service, for their landlords. So you offer them a better service for less (discounted commission in the first year), which includes managing the property for them, as this will ensure an increased margin. You’ll find prospective tenants by placing an ad or looking at the “wanted” section in the Classifieds of local papers and on free websites such as www.vottle.com, www.junkmail.co.za and www.propertygenie.co.za. Or, contact universities, colleges and the HR departments of local companies to advise of your services. You’ll find prospective landlords among property listings on the above websites and via a myriad publications or websites such as www.propertytrader.co.za, www.property24.com and www.saproperties.com . Finally, networking with local estate agents, surveyors, conveyances, mortgage companies, etc is a good way to advertise. For a commission they could introduce your services to prospective landlords. If your tenant-to-landlord matchmaking abilities prove successful and you can manage one property, then you can manage a portfolio of properties, thus multiplying your profit. In addition, property letting has an excellent cash flow advantage in that tenants usually to pay their rent at the beginning of every month and agents only pay landlords at the end of the month. Note: There are software packages found on websites such as www.cyberproperty.co.za to help you manage your growing portfolio and for all manner of property documentation visit a legal stationer or websites such as www.PropDox.co.za. Also, before you can practise as a letting agent you must first register with the Estate Agency Affairs Board. You will need to register and to write the compulsory exam first. You can purchase a study guide for the exam from the board (www.eaab.org.za). 3. Commercial property leasing Buying commercial property that is already occupied allows immediate (often multiple) income through rentals. But if you haven’t the start-up capital to buy, then commercial and industrial property leasing is an opportunity worth exploring and it’s even more lucrative than leasing residential property. This is because tenancy agreements are generally long-term and rental is much higher, allowing for a much higher margin on the deal. But you need good negotiating skills. Again you could start an agency-type operation where it would be your job to find new Business Idea Collection | Empowerment Programs 2. Property letting 53 tenants to take over the unexpired portion of unwanted leases (e.g. 5 years left on a 10-year lease). Tenants looking to bail out (e.g. companies in financial difficulty or having to resize their operations) will sometimes go so far as to pay for someone else to take over their lease. A good source of information and of commercial properties for lease, is www.eprop.co.za. You should also circulate your details among large retail chains and other companies that may have a lot of property on lease. You’ll also find information on local property agents, surveyors, administrators, liquidators, etc. What you need is for them to alert you to any leases for disposal or when they are looking for property to lease. You don’t actually buy any leases yourself as lawyers of the existing and new tenants and the landlord handle this. Essentially, you need to negotiate the lowest possible price from the original tenant, then “sell” the lease out at the highest possible price to the new tenant. Your profit is the balance. Now for a way to make lots of money, quickly and without much effort… You don’t necessarily have to invest much money (or any at all, in some cases). Land and property speculation is a lucrative investment method, especially in highly sought after coastal land regions and the commercial sector. Land options: Here you profit from acquiring first right of refusal on land for development (i.e. you buy an interest in it). That way you sell the land to a third party, without actually buying or owning the land yourself. An underdeveloped or underused piece of land could be worth a substantial amount if it has planning, zoning and/or building permission from the local authority and appropriate relevant environmental agencies and provided the allowance is made in the title deed conditions. It’s a developer’s job to obtain these permissions. However, you should check with the local town planning department as to what type of development might be allowed. Get a surveyor to assist you and a lawyer to help draw up the land option agreement. When you sell the land, your profit is the difference between the option price at which you could acquire the land and the price a developer/ third party would pay for the land because of its future development potential, less any option money that you initially laid down. Land scouting/tip-offs: Similar to the above method, only you don’t have to negotiate an agreement and the return on investment is not as high. When you find land suitable for development, you simply tip-off builders or developers as to the location and they pay you a finder’s fee. This will involve signing a finder’s fee agreement (a formal legal contract is not necessary). Once you reveal the location of the land you can claim your fee, subject to planning permission being granted. This is a strong opportunity in current market conditions, where prices are set to fall - creating increasing interest for land from developers. ☞Tips for big property profits And most importantly don’t forget these pointers to property profits: 1. Always try to buy at a discount. 2. Finance your property sensibly by leveraging other people’s money (the banks) and getting someone else to pay your mortgage (through rent). 3. Know your numbers - affordability, costs and current financials - which will help you to make the best investment decision. 4. Make sure you understand the legal aspects of any property acquisition or seek legal advice from an attorney. 5. Make sure that you buy in the right location, i.e. close to good transport links, employment, shops, facilities and already-developed residential areas. Good luck! Business Idea Collection | Empowerment Programs 4. Land and property speculation 54 GREEN COSMETICS The next trend is all about green power. It’s nothing too new as the environment trend has been around for a while now. The care of Mother Earth is a big concern for society, now more than ever. According to a recent wellness poll, over 74% of South African adults believe in global warming. And even better - over 64% of South Africans would approve of an agreement for the county to limit their gas emissions. But while the green power trend has exploded in Europe – it’s only just taking root here. So strike now – while the iron is hot and competitors are few! Red-hot opportunity: A company called Victorian Garden offers a range of natural and organic cosmetics. They actually use original Victorian recipes from the 1800s. Their products contain no synthetic ingredients and are completely natural! They use ingredients like plant oils, traditional herbs and flowers and African indigenous plants that have long been known for their therapeutic and medicinal properties. Best of all these products are cheap when compared to the organic products big cosmetic brands are offering. This is an easy opportunity to sell and even easier to run. All your orders can be placed over the Internet (www.thevictoriangarden.co.za ). Plus you’re entitled to sell these products at a mark-up price of over 150%. So you can buy 10 bottles of Cucumber and Jojoba eye makeup remover gel and sell them for more than a hundred percent profit. Business Idea Collection | Empowerment Programs The products are all made by an experienced Herbalist/Aroma therapists registered with the Allied Health Professions Council of SA, the Aroma Forum of SA, the Aromatherapy Society of S. A. and the International Guild of Professional Practitioners (UK). You can be sure people will pay for this kind of quality. If you’d like to know more about this, phone (021) 783-0173 or visit www.faithful-tonature.co.za and click on the link for the Victorian Garden products. 55 KIDS PARTIES Start your own kids’ party supplies business with R10 000 and watch the money come rolling in… I f you love children and enjoy planning and organising events, starting your own kids’ party supplies business will bring you great joy – and a sizeable income! Many parents these days just don’t have the time to plan and execute elaborate birthday parties for their kids – your party rental business would offer them a valuable service. It would also provide you with the opportunity to earn a healthy income while enjoying low overheads and a fast return on a relatively small initial investment. In fact, the initial capital investment can be as little as R10 000. The business is also easy to set up (it takes less than ten minutes to set up a jumping castle) and low maintenance. It is the type of business you can easily run from your own home and you can start off doing it on a part-time basis. Advertising costs are low because word-of-mouth marketing is the “name of the game”. The parties themselves will do your advertising for you. Not only will your clients spread the word, but other parents attending the party will want to hire you for their children’s parties (if you do a good job, of course). Also never underestimate the powerful marketing force of children (the end users) who will nag their parents to have a similar event for their birthday party. Starting a business of this nature requires intensive preparation, hard work and commitment. The business end must be properly sorted out before you begin. Start by doing some research into the topic. Books such as “The Complete South African Kids Party Guide 2007” available from CNA or “The Birthday Party Business” by Bruce Fife from www.kalahari.net make great reference material in addition to searching the web. You will need to decide on a niche market – work out who your potential customers are and what they want. Find out about what other people in the industry are doing – check on the Internet as well as in your local newspaper and Yellow Pages directory. A little research will show that jumping castles and inflatable games are, by far, the most popular party accessories. Children love them because they provide exhilaration and physical activity; parents love them because they keep kids amused for hours. Set your prices based on information you have gathered from calling your competitors. In this industry, the market is huge so there is no need to undercut your competitors’ prices; instead, offer better service and value for the same price as they do. Factors to consider when working out your rates include what you will charge hourly or daily, whether you will offer delivery, set up and supervision or not; what your weekday or weekend rates will be and whether you will offer contract deals for more than one day. To fully calculate your start up costs you need to consider the cost of your inflatable game; the cost of storing and transporting it as well as marketing costs such as business cards, advertising, flyers, banners etc. Potential earnings The amount you make depends entirely on how much you are willing to put in to the business and how aggressively you market it. With only one inflatable unit you could be making at least R2,800 per month if you hire it out for R350 per party for 4 week days and 4 weekend days per month. In fact, you can hire this type of equipment out for as much as R500 per 3 hour party. You can easily grow your business by purchasing more inflatable games to rent out. Business Idea Collection | Empowerment Programs The business plan 56 To determine your break-even point, if the cost of your jumping castle was R10 000 and you rented it out at a profit of R2,800 per month, it would pay for itself in about 14 weeks. The average lifespan of a jumping castle is around 5 years so it will continue to make money for you long after this initial period. Purchasing equipment You can purchase jumping castles and other inflatable party equipment from www.jumpingcastles.co.za or www.giant inflatables.co.za. Prices vary depending on the type you purchase: a “basic bouncer” costs around R10 000. Animal-shaped bouncers go for R19,900 and mega obstacle courses will set you back around R49,000. You can also buy inflatable waterslides for R35,000. Insurance Public liability insurance is not an essential legal requirement, but is highly advisable. You will need to contact your insurance company or broker to obtain quotes for this type of insurance as premiums vary greatly depending on the types of equipment you use, the venue and the scale of the parties you plan to host. Visit www.outsurance.co.za for a free quote. You should also have contract documents drawn up (preferably by a lawyer) that include an indemnity form for parents to sign prior to the event. Naturally you are not limited to inflatable games; you can offer other services as well. If you own a suitable and sufficiently large property you can host parties there. This has the advantage of making you extra money in venue hire revenue as well as allowing sizeable reductions in insurance premiums. You will, however, need plenty of space for kids to run around as well as sufficient toilets and baby changing facilities. You can charge between R1000 and R1500 for venue hire for a 3-hour party. Tables and chairs with themed covers can earn you R30 per child. You can also act as a party organiser – doing face painting, playing games with the kids and supervising them while their parents relax. Party organisers charge R750 per 3-hour party. Make sure there are no more than 25 kids per organiser. Face painters can reasonably paint 15 faces per hour and you charge R350 per hour for their services. If you decide to do catering, you can charge between R250 and R490 for platters which serve 15 adults; R100 per platter serving 10 children and around R300 for a chocolate fountain or popcorn machine. You can also provide birthday cakes for about R500. Photos and videos can also make you money. A set of 100 photos on disk can also be arranged and used to bring in extra income at a charge of R350 or more. You can make additional money selling party packs for about R39 each. Party accessories can be purchased from sites such as www.parties4africa.co.za , www.partyinabox.co.za or www.partypacks.co.za . Decorations can be sold for between R250 (plain) and R500 (themed) per party of 20 children. You can expect to earn around R150.00 per child (providing rental equipment, set up and décor) and R50.00 per adult (providing platters and refreshments). If you include party packs, birthday cakes and other extras you could make around R3700 for a party of 20 kids and 14 adults. Franchising If you are uncertain about going it alone, there are a number of sites, such as www.fun4partyyanimals.com , which offer franchise opportunities. Starting a franchise can assist you in avoiding common mistakes and provide you with many of the tools you will need to get started. Franchises in the jumping castle hire business typically cost between R100,000 (for a small franchise comprising 5 jumping castles) and R170,000 (for a larger franchise with about 10 units). If you are still a child at heart with adult bills to pay, the kids’ party industry offers a multitude of great opportunities for creative and energetic entrepreneurs like you to make a lot of money. Business Idea Collection | Empowerment Programs Money spinners 57 58 Business Idea Collection | Empowerment Programs KITCHEN MAGICIAN A beautiful kitchen adds value to any property. It also plays a crucial role in swaying prospective buyers. And with the rise in interest rates, people are looking for ways to improve their homes (without spending piles of money). As a “kitchen magician” you can offer an inexpensive, hassle-free way to transform tired kitchens into sparkling new ones. All you need to do is keep your customers’ old kitchen units (called carcasses) and replace the doors, drawer fronts and work tops. This way you create a brand new kitchen at a fraction of the cost of a complete kitchen renovation. You’ll need your own transport to travel to your customers. You’ll also need a telephone, business bank account, some business stationery and business cards. Image is important in this business. Be sure to choose a professional-sounding name for your company. And don’t be tempted to use your own name. The name you pick should refer directly to what it is you do as well as the benefits of the service you provide, like: The Kitchen Magician or Kitchen Transformations R Us. You won’t need any fancy showrooms, staff or heaps of stock. All you’ll need is some samples (of doors, drawer fronts, handles etc.) of the most popular kitchen ranges and some brochures to take with you when you visit your clients. It’s vital to get a reliable supplier for the replacement doors, drawer fronts and other items such as handles, work tops, pelmets, plinths and perhaps even appliances. There are plenty of suppliers to choose from. Here are just a few: • Eucalyptus Kitchens (011) 622-9000, • KTB Cupboards 0861 582 000), • Weizter (www.weizter.co.za ), and • Kitchen, Bedroom Gallery (012) 666-8555. Prices and quality vary considerably, so it’s best to shop around. Most suppliers will provide you with samples and brochures at a nominal cost. A good basic range to have to start would be: • Solid wooden doors or drawer fronts or vinyl wrapped-doors. Vinyl-wrapped doors are cheaper than solid wood and are therefore a favourite. Stock at least six finishes including beech, ash, birch, cherry, maple, light oak, dark oak, pear, mahogany and painted (wood) or aluminium finished (wrapped). You’ll need samples in at least five styles: Single cathedral (rounded at the top), double cathedral (rounded top and bottom), square, double panel and glazed. • Handles: Stock a wide variety. They practically sell themselves! • Plinths, cornices and light pelmets: Plinths fill the gap between the cupboards and the floor. They are inexpensive, easy to fit and profitable to sell. The plinth should match or contrast with the style of the units. Cornices are used to trim the top edges of wall cupboards. Light pelmets trim the bottom edge and provide a space to locate concealed lighting. Although these are nonessential, a good profit can be made from them – and they give the kitchen a more polished appearance. • Counter tops: The most popular materials are matt or gloss laminate tops. However, you could also offer solid wood, Caesar stone and granite as options. Offer your clients at least two types of laminate worktops: A budget one and a better quality one. Try to sell the best quality first. • Appliances: You could add appliances such as sinks, taps, ovens, hobs, extractor hoods, fridges, freezers, microwaves, washing machines, tumble dryers or dishwashers to your range. These can be freestanding or integrated into the kitchen layout. Business Idea Collection | Empowerment Programs The set-up 59 • Additional kitchen units: You may be asked to fit one or two additional cupboards (including carcasses). These can be purchased in flat packs from kitchen component suppliers. You’ll need to find a professional kitchen fitter to carry out the transformations. It’d be best to have a few fitters (at least two or three) lined up before you advertise your business. Although you only need one fitter per job, he may not always be available so it’s better to have a selection. You can find good candidates through the Yellow Pages, on the Internet, in the local newspapers or by referral from kitchen component manufacturers. Select on the basis of good quality workmanship (even if it costs more). You’ll be staking your reputation on this person’s workmanship. Avoid DIYers and odd-jobbers. The fitter’s price will vary, depending on the job. You’ll have to organise for him to visit the site so he can give an exact quote. You can charge a commission on the price the fitter quotes you. All you have to do is organise everything effectively and watch the money roll in. Marketing can be done by word-of-mouth. Try bulletin boards, advertise in local newspapers, home-improvement publications (such as The Homemaker’s Fair) or in the Yellow Pages, distribute flyers, cold call or have exhibition stands. The process Kitchen transformations: The bottom line The amount of money you can make from this business will depend on your suppliers, the fitters you use and the size and style of the kitchens you work on. Let’s assume that a basic kitchen transformation consists of eight new doors, four new drawer fronts and two lengths of worktop, a sink and a mixer tap. Local manufacturers put a 40% mark-up on kitchen components when they sell to the public. They sell to contractors at a 20% discount. This means you can easily add a 20% mark-up to each component you sell. Business Idea Collection | Empowerment Programs Set up a meeting at the client’s house and offer them a free survey. Once you arrive, examine the existing kitchen to check the carcasses are sound. Discuss the type of kitchen the client wants. What type of finish, colour or style they prefer? Show them samples in the kitchen and allow them to handle the samples. This will give them a clear idea of what will work. Start by selling only doors and drawer fronts as these make the biggest impact and are simple to sell. Once the customer has selected these, you can go on to sell them the extras. This opportunity doesn’t require any personal kitchen-fitting or DIY skills. All you need to do is measure accurately. For greater accuracy, measure the reverse side of doors and drawer fronts and always measure to the nearest millimetre. Practise measuring up your own kitchen to refine your skills. In order to cultivate a professional image, it would be best to draw up a survey and pricing form before you visit any clients. You can record your measurements on it, list all the items you need for the job and then calculate the total cost and price to the customer. Once customers have decided what they want and you’ve completed the form, you can order the necessary components. Buy the components at cost or trade prices, add a mark-up and resell them to customers at retail prices. Then have the parts delivered to your client’s house and make your customer aware of the two to three week delivery time. 60 LEAFLET DISTRIBUTION Two Reasons why Leaflet Distribution is Profitable. Firstly, in the midst of a recession leaflet advertising is a great, inexpensive way for businesses to market themselves. And secondly, while large corporations like fast foods chains, etc. already have their own leaflet distributors, thousands of smaller companies don’t. By offering these companies a cheap, reliable way to advertise their business, you’ll bank a fantastic profit and help others beat tough economic times. Everybody wins? So are you ready to bank an extra R35,000 this month? I thought so, so let’s get started… How do you start? You can be your own boss and even start this opportunity part-time – although you may soon find that the demand is too much to keep up with and you’ll want to dive in head-first. You don’t need any skills or expertise to start – you can learn while you earn. Unlike most other new business ventures, there’s little or no risk involved in leaflet distribution. The number one rule in the business is reliability. There’s huge demand from businesses wanting a distributor they can rely on to deliver and bring in the customers. You just have to ensure you get the printed pamphlets to the right market and that all are delivered. The rest from there is out of your hands, but the success is inevitable as there wouldn’t be such a demand for it if it wasn’t. Turn these two trends into a constant flow of cash There are two common insider trends or services in leaflet distribution: Shared distribution and solus (or single) distribution. You want to start with the latter. Let me tell you why. The bigger established companies rely mostly on shared distribution where they deliver a number of pamphlets from different clients together. They need to do this to meet demand. This therefore works out cheaper, but it also lowers the response rate for their clients as the receiver is bombarded and switches off to the messages. That’s why the best way to compete with these larger companies is to offer clients a specialised “solus” delivery at a better rate. You won’t have to reach far to find an endless supply of businesses in need of leaflet distribution. But you need to create your “hit list”. The best way to tailor your list of possible clients to approach, is (drum roll), the Yellow Pages! Either online or in the book, it won’t let you down. Remember to look for small retail businesses. Get them to notice you by putting a leaflet (go figure) under their shop door. Call them to ask if they’ve received it and then ask to meet with them face-to-face. This is the best way to approach and discuss issues such as number to be distributed as well as charges. It also gives you the chance to form a relationship with your (soon-to-be) client. Once they know you can be trusted to handle the job, they’ll be back for more and hopefully spread the good news amongst others in their field. You can only grow from there! Just remember, the initial trick is to get those first customers and get it right. You can’t go wrong from there. Get ready for a steady flow of dough! Ensure an immediate and steady flow of cash by asking to be paid for your deliveries upfront. NEVER allow credit to a customer straight-off-the-bat. Only once you have developed a mutual trustworthy relationship with a client, can you consider allowing them to pay on credit. Leaflet Business Idea Collection | Empowerment Programs How do you find paying clients – fast? I’ll show you… 61 distributor, Michael Alkar says the best way to deal with a client if he isn’t happy with paying up front is to: “Suggest they pay for a small initial ‘trial drop’ of, say, 1,000 leaflets. This will help show them that you are reliable and trustworthy. You can then go on and do the remaining 5,000 or 10,000 or whatever they require”. Here’s what to charge The price of pamphlet distribution in South Africa depends on a number of issues. Firstly, you can base your price on the quantity to be delivered (volume), how many pages in each piece or the weight, how many days flex you’re given (meaning whether you are to be distributing for three or five days), as well as the areas of delivery, whether local or national (taking into account travel costs). Another factor is whether you are offering your client shared or solus distribution, solus being more expensive for the client. Many companies do not have set rates but supply the customer with specialised quotes. It’s therefore a negotiation process and you need to be able to judge your clients’ needs and interest levels. However, when you’re starting up, ensure your price is competitive – so keep it low. According to André Nortje, the National Operations Manager for NLD24, a branch of Media 24, the going rate for 1,000 leaflets can be anything from R195 to R500. As you can see this range is broad because of the factors I just listed. However, the average price is anything from R195 to R280. Try keep within the R195 to R250 zone to stay competitive, BUT there’s no need to go much lower than that as there will be untouched gaps in the market of which even a large company with 2,000 runners (or distributors) such as NLD24 can only reach a fragment. Most clients will bite at that anyway. Now let’s have a look at what this means for your earnings: • Let’s say you start off with six clients each wanting 5,000 leaflets delivered. • This means in your first week, you deliver 30,000 leaflets hand-to-hand at robots, intersections, taxi-ranks (you name it!). • At a going rate of R195 per 1,000, this means R5,850 earned in your first week! Just remember, that though this turnover looks very impressive, you will still need to consider your staff costs. You can expect to pay R100 per person per day. And with six people it’s possible to distribute between 10,000 and 15,000 leaflets in a day. This should be what you aim for. Quick tip: Always ensure your staff are actually distributing the leaflets and not dumping them somewhere and heading home. And make sure your teams are taken care of. Always have someone who is responsible for your entire team and when your service is well run, you WILL deliver. digital advertising is proof of its success and opportunity. And it’ll continue to survive in the future (and in the midst of a recession) because it’s so costeffective. Business Idea Collection | Empowerment Programs ☞The fact that leaflets distribution has survived and flourished in a world of Internet and 62 LEARNER DRIVER - SCHOOL OK first up, a major market force to be reckoned with comes from the Youth Market, or The “Y generation”. Think about it. In the States, a small town pop sensation, Avril Lavigne, went from total insignificance to being the fifth most searched word on the Internet! This power is also why the car industry can expect peak numbers from 27-million teen car buyers – and four million new buyers – per year for the next eight years. Wow, this isn’t juvenile stuff if you ask me! Still not convinced? Why not take a look at a magazine rack at your local bookstore? You can get a good idea of the market by looking at the thickness of the publication. You’ll soon notice that computer and business magazines have thinned from an absence of advertisers. But take a look at the size of GQ or SL magazine... as the student and teenage markets have grown, so has the advertising. Red-hot opportunity: Serving the needs of the teen markets will be good for your wallet! For example, the teen driving school market is a great way to profit from this market. Now I’m not talking about teaching high school kids to drive; there are far too many costs and legal implications involved in that. But why not provide K53 theory classes for Code 8 drivers? In English that means teaching young drivers the rules of the road! If you charge R100 per one-hour lesson and you’ve got 20 pupils each needing three lessons before their learner’s test, that’s an extra R6,000 a month. Not bad for going over the rules of the road with some teenagers who can’t wait to pass their learners tests! All you need to do is purchase the K53 driving manual, which sells for around R100. Familiarise yourself with the book. Draw up simple pamphlets explaining your services and costs, and distribute them anywhere young people and teenagers will be found (think inside shopping centres or outside schools and universities) and expect your phone to start ringing! Business Idea Collection | Empowerment Programs You can also post an electronic advert on websites such as www.gumtree.co.za. Facebook is an amazing free advertising medium. You can decide if you’d rather work from your home or go to the student’s home. Tip: Target areas where parents will be more willing to pay for a service like this, for example private schools. 63 LOGISTICS ` How someone else’s empty truck could make you rich. Our country is five times larger than Great Britain, so goods need to travel huge distances – from Cape Town and other ports like Port Elizabeth or Durban to big centres like Polokwane, Johannesburg and even Nelspruit. That leaves an opportunity for you to sell the empty space in the trucks to willing buyers at reasonable rates and make a profit. How does that sound? All you have to do is offer to fill other transport companies’ empty space with goods, they charge you a rate, which you then mark-up for your customer to pay. In one-two-three you’ve got yourself a pretty little logistics business – without the hassle of owning a fleet! What you need to get started… 1. You don’t need a truck, a depot or any experience or licences to run this business. 2. You’ll need about R10,000 for your start-up expenses and some marketing. 3. You need to be exceptionally well organised. Let’s get started! Your first mission in this business is to make loads of contacts. Phone around to haulage contractors, chat to them, meet with them and get to know them. Networking is always the key in any business! Let these companies know how you can help them – by filling space that would otherwise have not made them a single cent. It may be too soon to make promises, but you can tell them you’re going to be bringing lots of business their way, so a trade discount is vital for a fruitful and continued relationship. Once you’ve made some great contacts, keep your own database. Make sure you mark important statistics like “refrigerated transport” or “only travels to and from Cape Town” – that way you won’t tender unsuitable opportunities to companies. Here are some other sub-categories to consider: 1. Is the haulage company: Local, regional or international (say to Botswana or Namibia)? 2. Does it specialise in multi-drop deliveries? To make your service attractive, ensure it is seamless and without any challenges for your client. They will have to pay for your services, but that is about all the trouble they want to endure. So your job is to be a dedicated logistics manager. Apart from pick-up and delivery, here are some service add-ons: Arranging packing on their behalf, storage – if required and insurance if this is relevant. Here are some costs you should keep in mind, also remembering that these will be affected by the size and value of the product: • Insurance – some good contacts include: www.outsurance.co.za ; www.youinsure.co.za and www.InsuranceHound.co.za . • Packing – you can hire staff at about R150 per day for unskilled labourers to assist with packing. Of course you will have to check their credentials. For example, do they have a South African ID Book or if they are foreigners, do they have work visas? Do they have recommendations or references? A very reasonable place to buy packaging material from is www.boxit.co.za . Business Idea Collection | Empowerment Programs 3. What about bulk liquids – does it transport these? 64 Remember to mark your costs up by 20 to 30%. How to market your new company… This is not a time-consuming business at all on the face of it. Sure, you’ll need to do a bit of marketing. But if people don’t know about you, how will they be able to contact you? Visit www.webs.com to set up your own 100% free website. Also, hand out flyers, advertise in your local Yellow Pages. And we all know word of mouth works a treat! Here are some more tips: 1. Newspaper ads: There are tons of community and local newspapers where you can place classified ads. It’s a cost effective way to attract interest! When you’re writing up an advert, the copy is the most important part. Remember, when you post your ad it’ll be one of many that buyers will sift through to find what they’re looking for, so you want to put in as many important keywords as you can: Like “transport your goods”, “safe and reliable logistics”. Most importantly, don’t leave out your contact details. 2. How to get free online advertising! Here are some useful websites and other places where you can advertise for FREE. Start out this way and once you start churning out the profits, you can market your business in more high-end publications: 1. www.gumtree.co.za 2. www.alltheweb.co.za 3. www.adoos.co.za 4. www.youpost.co.za 5. www.mytoko.co.za 6. www.vottle.com 7. www.adssa.co.za 8. www.capeads.co.za 9. www.advertiseforfree.co.za 3. Flyers and business cards: Have some business cards and flyers printed. You’ll want to keep costs down when starting up, so simply download a template from www.microsoft.com or use Microsoft Publisher program – there are tons of templates there! Fill in your details, have them printed and viola! Wondering what to do with them now? When you next visit your local hangout – restaurants, bars, shops, your gym – why not ask if you can leave a few business cards or flyers there? I’ve even left\ some at my chiropractor! Leave as many as you can wherever you can to get as much exposure as possible! What to do when you get your first enquiry When you receive an enquiry from a possible customer, contact the contractors on your database that best matches the requirements. For instance, let’s say your customer wants to transport vuvuzelas from Johannesburg to Port Elizabeth for a football match (a true example – this happened to one of my contacts a while back for a Pirates versus Chiefs match during the Vodacom Challenge.) Business Idea Collection | Empowerment Programs 10. www.facebook.com 65 Here are a few key questions to ask: 1. When do you need the items picked up? 2. When do they need to be delivered? 3. How many cubic metres will they take up? 4. Do they require insurance? 5. How will the items be packed? Based on this information, you will apply to all your suitable contacts for a quotation. Here are a few quotes my contact got in for the vuvuzelas, based on a two-day delivery, 16 cubic metres and the vuvuzelas being packed in plastic bags. Quote 1: R13, 700 + VAT Quote 2: R14, 500 + VAT {Remember this was an old quote – Prices will be different} Quote 3: R13, 500 + VAT Here’s how much you could make… So based on the above (and knowing that all three suppliers are reasonable), you would choose quote 3. If you add a margin of 20%, you’re looking at charging our customer R16,300, a R2,700 profit – for almost no work at all! In this case, no return journey was applicable, but in other cases it could be and that would double your money! And if you had to pack the vuvuzelas – well, you could simply add a few hundred to your fee. ☞So what do you think? You could start your own logistics biz without even setting eyes on a truck! Business Idea Collection | Empowerment Programs Time to get people’s goods on the move! 66 EBOOKS Make Mega Bucks by Selling EBooks How to bank R100,375 when you DON’T have a product of your own There’s nothing quite like the thrill of getting something for free and selling it to make a profit! And there’s no tool quite like the Internet to help you do this kind of thing. What am I on about? I’m talking about repackaging and reselling works that are in the public domain. Is it legal, you ask? Of course it is! Trust me, I’ve checked this business opportunity out thoroughly and I know you’re going to like what I found. Did you know? Walt Disney built his empire on works in the public domain! He sourced a lot of his Disney stories from tales told by the famous Brothers Grimm. These 18th century writings were already in the public domain at that time, so Disney got hold of them, reworked them, and resold them. Pretty brilliant, don’t you think? Make R100,375 selling FREE books… There are literally millions and millions of works on the Internet that are in the public domain, which basically means that anyone can use them because their copyright is no longer valid. By “works” I mean books, general info like blank forms and templates, and government writings. You can take advantage of these free works and sell them on the Internet. No risk, no investments, no big overhead costs, no initial outlay. You just need a computer with Internet access and you’re A-foraway! There are a few works that have been expressly donated to the public domain, and as such have never had a copyright. But for the most part, the public domain works you’ll need to get hold of are those that no longer have an applicable copyright. So how do you know which works have lost their copyright? For most countries, works first published before 1922 or those with a copyright first filed more than 95 years before January of the current year (that would be 1912 or earlier, fall into the public domain. If no one renews the copyright, if more than 70 years have passed since the author died, or if no Berne Convention signatory has passed a permanent copyright on the work, it’s yours for the taking! Because the US has such a huge literary market - a good place to start would be the US Copyright Database (www.copyright.gov/records ). This website stores millions of copyrights. You can search for a specific book according to various categories, and it’s a good idea to try a number of combinations to make double sure that the book you want is not one with an existing or renewed copyright. How to locate an endless supply of copyright-free books… You’ve identified a free work. Now you need to find it. To find these books, take the time to do an Internet search for something like “download free ebooks” or “download public domain works”. To make things a bit simpler while you’re getting started, I’ve visited a handful of promising sites for you. Now all you need to do is browse through their extensive collections… 1. Project Gutenberg www.gutenberg.org . They have thousands of books on a wide variety of topics. To take your reselling business a step further, be sure to read through some of the ideas, others have had when using Project Gutenberg. (A tip for the creative entrepreneurs among us: you Business Idea Collection | Empowerment Programs How do you check whether a specific book is copyright-free? 67 could turn the public works you find on this site into anything from audio versions and acoustic modelling to repackaged e-books – all of which you can resell for good money!) 2. Classic Literature Library www.classicliterature.co.uk . This site offers all the most prominent classics, from William Shakespeare to Mark Twain, and thousands of works of literature from various parts of the globe. The classics never die! Why not remarket some of these works into books people would gladly buy? (Hint: be sure to advertise your collection of classic literature in relevant places – think university websites or student notice boards on campus. The hook? Students are usually too strapped for cash to buy hard copies of the books they have to study each semester, so e-books are much cheaper and more convenient.) 3. Free Recipes www.free-recipes.co.uk/freerecipes.asp. This is one delicious deal! Get creative with free recipes and compile your own recipe e-books to sell. You can even have the recipes translated from English to another language, enabling you to market your e-books on a global scale! 4. The Internet Public Library www.ipl.org . This site is invaluable for collecting reliable reference works and academic texts. Once again, your market could definitely include selling to college and university students, because they’re the ones who need reference books the most, and e-books are generally much more convenient for them than spending hours in a physical library on campus. 5. The Internet Archive www.archive.org . Wow! With almost 500,000 texts available, this site is a goldmine of opportunity! Gather books on a myriad of subjects, from Cinderella to bird watching, and repackage and resell them on your own terms. With this site you could even go into collecting copyright-free audio and video footage from the public domain and reselling that… but that’s another biz opportunity for another day. 6. Free E-books www.free-ebooks.net . The e-books on this site are ripe for the picking. Although some are still copyrighted, it’s worth taking a look at them to get an idea of what the most popular subjects are. Romance, money-making and “how-to” books are usually a hit. Or better yet: Convert your free books into audio books. That way you can target the hundreds of bored South Africans who spend hours in traffic! Or if you convert student books to audio books you can target the hundreds of student who hate reading! Plus – it’s easy to have your book read into an audio format. These service providers generally charge between R100-R500 to have a book read onto CD/mp3. Contact this company for more info: Melton Kivitts Audio Book Production Manager South African Library for the Blind (BLINDLIB) Tel.: (046) 622 7226 E-mail: melton.kivitts@blindlib.org.za How to sell these “free books” and double your bank balance… 1. Create your own website: The easiest way to sell your newly acquired books is to build your own website. You also need to have a payment gateway on your site – otherwise you won’t be able to bill Business Idea Collection | Empowerment Programs But select a fresh angle before you build your website. Do you want to target students who’d rather spend R30 for a copy of Hamlet than the R90 bookshops charge? Or do you want to sell books that offer financial advice? Will your website sell books to help others boost their confidence? Make friends? Find love? The opportunities are endless. But you’ll have a better chance of selling your books (and being ranked higher on Google) if you make your website targeted. 68 clients for their purchases. The company www.mygate.co.za can help you with this. Contact them on 021 555 3260. Quick tip: This is really clever. Use the information you come across in these free-for-all books to substantiate your marketing of other products. Being well read and able to quote from famous authors definitely adds to your credibility. Or you could throw in a free e-book when you make offers to customers on other products (we all know everybody loves a free gift). There are literally dozens of ways you could make these public domain works, work for you! 2. E-letter advertising: Use snippets from your free books to create your own e-letters – then advertise your books within the e-letter. At first, you’ll be able to send your e-letter through your normal email system, but when your list grows too large, you can use a service like pmailer.co.za which charges approximately R100 per 500 emails sent. You can contact pmailer on (011) 447-6147. 3. Flyers: Another good way to advertise your business is to hand out flyers. Just make sure you’re targeting the right people (e.g. for student publications target universities). Call 0861-flyerz to print A5 flyers.(You can also visit them online at www.flyerz.co.za). “Show me the money!” It all sounds so quick and easy, doesn’t it? But you want to know what’s really involved, and most of all, I know you want to know how much you could reasonably expect to make. Here are a few projections. (Just remember: These are only guesstimates at best, but I believe they’re realistic.) Since there are hardly any start-up costs involved in this one, it’s pretty much profit all the way! If you’re just starting out with normal e-books, I’ve got good news for you. E-books are always cheaper than their printed counterparts. They can sell for anything between R10 and R100 per book, depending of course on the content and how popular the topic is. To give you an idea of how much to charge, students would be quite willing to pay R55 for an e-book version of Shakespeare’s Othello, for instance – instead of over R100 for a hard-copy version. So if you sold just five books a day you could make an extra R100, 375 a year. ☞This is a completely risk-free endeavour. You can try it at your own pace and find out for yourself how well it works. The bottom line of this beautiful biz opportunity is that no matter how little or how much you sell, you are always making a profit that can go straight to your pocket, because getting the goods cost you nothing in the first place! Business Idea Collection | Empowerment Programs The great news is that you can vary your prices, so you’ll have some books selling for almost R100 a piece, while others will be most effective at a low price, drawing customers to your site at the promise of affordable literature. 69 SCRAPBOOKING CRAZE Make money from the scrapbooking craze W ho would’ve guessed a pastime of the fairer sex could provide you with an extra source of income? I’m talking about when a group of ladies get together and make cute creations from photos and stickers and such. I’m talking about scrap - booking! This is one of South Africa’s latest trends as far as hobbies go. And it offers a great opportunity to make big money – before anyone else! The art of scrapbooking involves creating beautiful keepsakes out of the odds and ends that naturally accumulate in life: Newspaper clippings, movie tickets, letters and above all, photos. These are then cut and pasted into attractive books. The hobby has just recently hit South Africa and it’s becoming more and more popular. Do you want your share of the takings? I’ve done all the hard work for you and sourced the seven best ways to profit from this craze… 1. Become an affiliate For the fastest way to make cash from the scrapbooking craze, nothing beats affiliating yourself with existing companies. All you need to do is partner with existing companies selling scrap booking supplies and set up a website that helps direct traffic to their website. Affiliate schemes connect the retailers of products (in this case scrapping supplies) with website owners (that’d be you) who host ads and links for the supplier’s site. Your site will have an icon or advert on it that surfers can click on, which takes them to the scrapbooking company’s main site and hopefully encourages them to purchase from the company. If the customers bite the bait, you get paid commission because you helped lead them there. So basically you're marketing the established scrapbooking business and earning commission on the web traffic that results in final sales. I know you’re probably thinking this would take forever to earn you any useful extra money, but wait a moment before you dismiss it. What’s great is that it costs you nothing to have the links on your website, so you can only profit and there’s nothing to lose. This can be a very easy and lucrative concept, but you have to be sure of what kind of people you're signing up with. Make sure that they actually push a lot of products already (don't tie yourself to a sinking ship) and try to find out whether they're usually good at paying their affiliates on time. Have you ever taken a look at what’s involved in the scrapbooking trade? There are hundreds of little bits and pieces that hobbyists can use to decorate their sentimental scraps. In our country some of the shops selling scrapbooking supplies import the albums, stickers, frames, pictures, paper, covers and other goodies - but unfortunately they sell them to the end-users at quite a price. You could take advantage of this market and buy and sell scrapbooking paraphernalia either online or with a local delivery service. You can source products extremely cheap from wholesalers in places like China and India and make a profit even when selling them at the lowest possible prices here in SA. New and different items are vital and make sure you get good quality ones that will keep your customers coming back for more. Scrapbooking also involves the books, colourful paper, glue and kits for punching holes in card and laminated board. Make sure you stock a wide range of these too. Besides advertising and selling from your own website, don’t forget other online markets as well, such as www.bidorbuy.co.za, where people are keen to source scrapbooking stuff – and everything else – at a good price. And look around for different trends related to scrapbooking. One option for the busiest of hobbyists is scrapbooking photo frames, which gives customers Business Idea Collection | Empowerment Programs 2. Source supplies for end-users 70 the beautiful effect of the “collage” look without all the time, money and effort that actual scrapbooking requires. Check out www.frames-for-scrapbooking.com for examples. If you’ve got the handyman touch you could create these frames yourself and sell them at art stores or along with your own other scrapbooking supplies. Go for funky designs too, make them out of metal or other interesting materials such as crafter’s clay – don’t just stick to wood. Get ideas for decorating the frames from scrapbooking layouts online and in scrapbooking magazines. 3. Sell supplies to other distributors If you sell online and source the items cheaply, you could sell supplies to other distributors instead of directly to the public. Granted, you’d probably make more mark-up from selling to the public. However, the advantage of selling to established businesses is there’s an almost guaranteed demand and you don’t have to put as much money into advertising your business to the public. Just remember that good search engines rank\ pages according to the relevancy of the content. So don’t just list the names and prices of the scrapbooking items you sell. Rather take the time to write a short description about each of the items, which will make your website rank as more valuable in a Google search. You’ll only have to do it once for each article anyway. This tip goes for whether you sell to the public or to other distributors. 4. Start your own full-package scrapbooking business You could go all out and start your own business that focuses on all aspects of the scrapbooking experience. Instead of just supplying end-users with the “what” of scrapbooking, why not also supply them with the “where” and the “who” and the “how”? In addition to offering supplies and ambience, set up training events and competitions for customers too. For more ideas on how this could be done, check out www.scrapinabox.co.za. By creating something like a scrapbooking coffee shop, you could host scrapbooking parties and functions – either for strangers to get together and learn the art while making new friends or for groups of friends to gather and create their keepsakes over a cuppa. Although this would require quite a large initial investment, the idea is so unique that it’s bound to attract fans of the hobby. Do your research carefully and find out where there’s a large existing or potential market of Scrapbookers who’d take an interest in your shop. One problem with scrapbooking is the clutter created by all these books and bits and pieces. But thanks to computers, digital scrapping has now taken the market by storm. With add-ons to well-known PC programs such as Corel Draw, PhotoFinish and Paint Shop Pro, digital Scrapbookers can create the most amazing layouts and beautiful designs on their computers. You could definitely cash in on this by supplying images, backdrops, layouts and digital effects to this new breed of hobbyists. In order to make your hosting site really user-friendly, make sure it’s based with a secure provider and get a computer boffin to write instructions for users to upload their digital scrapbooks to your site (unless of course you can do that kind of thing yourself). Have a look at what places like Digital Scrapbookers SA (www.digitalscrapbooking.co.za) and ScrapGirls (www.ScrapGirls.com) have done. 6. Specialise in one niche Scrapbooking can be and usually is done for all ages and stages of life. But in order to stand out from the rest you should rather think about specialising in one area… For example, be THE supplier of baby-related scrapbooking items or focus solely on providing the best stuff for wedding scrapbooks, etc. Make sure you have a relevant website for this and invest in Google’s AdWords so that potential customers can search for keywords that take them straight to your site. Business Idea Collection | Empowerment Programs 5. Join the latest e-trend 71 If you specialise you will reduce your market somewhat, but you can also get your name out as the best place to go for a specific item (whether online or in a proper shop), which means you can build up a loyal client base. 7. Start a local scrapbooking club The last way I’ve found for you to start making some money on the side from the scrapbooking craze is to start a club in your area. Your income could come from charging membership fees and then extra amounts for training sessions, outings and such. This idea works well if you combine it with some of the others above. For example, if your club meets in the scrapping coffee shop you’ve set up or if they get to chat online on the blog you create just for them. ☞Your essential scrapbooking contact list Business Idea Collection | Empowerment Programs If you think about it, there are lots of ways to follow this rising trend and catch the golden wave. Make sure you take advantage of this craze! Here are some contacts to get you started in your research: For scrapbooking info and ideas: • www.needful-things.co.za • www.funkycrafts.co.za • www.timeandabout.com • www.memorieswarehouse.co.za • www.scrapbooking4africa.co.za 72 BONSAI TREES Make money with Bonsai Trees If you’ve got “green fingers” and enjoy spending time in the garden watering and pruning trees, you could be on your way to creating a life-long moneyspinner – growing and selling bonsai (miniature) trees. Today, bonsai trees older than twenty years are worth thousands of rands, having cost a fraction of the price to buy and pot... How to get started Go to your local nursery and ask them what trees grow best in your area. Typically, South Africa’s finest bonsai specimens are indigenous acacia varieties with very small leaves (this improves overall proportion as the bonsai grows) like monkeythorn, knob-thorn, boer-boon, wild fig and paperbark trees. Conifers like juniper and pine trees are also strong bonsai growers in the right climatic conditions. You can grow bonsai from seeds, seedlings, saplings and cuttings from trees in your garden (for cuttings from big trees, choose a tapering branch to form a trunk. Stand it in a jar of water until it grows roots, and then pot it). You can get a bonsai growing at no cost if you use material from your garden and a 5 litre plastic ice-cream tub as a pot. You can also buy bonsai starter kits that include seeds, a ceramic pot and instruction booklet and soil from Lifestyle Garden Centre (011) 792-5616. The next step is to buy pots and compost (bonsai mix – approx. R10/bag). Don’t invest in ceramic pots right away. A 1kg plastic baking tin from your local hyper-store (around R10) will do perfectly. Drill holes in the bottom of the ‘pot’ and line it with a piece of fabric to prevent the holes from clogging. Make a mix of potting soil using equal parts compost, loamy garden soil and river sand. Fill the pots with the soil mix and then plant your seed, seedling, sapling or cutting. Remember: Most bonsai trees are outdoor growers. Stand them in a shady, protected spot, preferably on a solid surface. Shaping the tree You will learn all the necessary design, pruning and bonsai care techniques from these books: • Understanding Bonsai by Pieter Loubser (ISBN 1412058953) • Bonsai Success in Southern Africa by Keith Kirsten & Carl Morrow (ISBN 0798143991) • For more tips and books, visit www.kwanba.co.za. • For advice, contact The South African Bonsai Association www.saba.org.za Making money Once your trees have grown and you’ve turned them into miniature masterpieces, transplant them into a ceramic bonsai pot (from R10 upward at nurseries) and start selling them. A five-year old bonsai currently sells for between R300 & R500. Distinctive styling adds value to the tree so apply the right pruning and presentation techniques. Business Idea Collection | Empowerment Programs The art of bonsai is all about patience and passion. Read as much as possible about bonsai techniques and designs. Watering the trees will be your main task, generally once a day, using a light spray nozzle. Once the trees grow branches, the pruning begins – not only the leaves and branches, but the roots as well. You will need special cutting tools available from quality nurseries. 73 Study photographs in books and real life bonsai trees at nurseries. Nurseries buy bonsai trees but going straight to the consumer will increase your profit. Flea markets are a viable outlet to retail your trees. Advertise in your local paper, print instruction booklets and business cards. Use your website. Sell direct to interior designers, architects and landscapers. Hire your trees to photographers, décor magazines and TV production companies on a per day basis. Business Idea Collection | Empowerment Programs ☞Just think – if you planted 50 bonsai trees today at a cost of around R700, they could be worth over R15, 000 in five year’s time. That’s more than 2,000% profit in just 5 years! 74 MLM SERVICE BENEFITS SDL. Yes – Success, Determination and Long-term wealth! The idea of SDL originated here in our very own country and has grown remarkably since its beginning back in 2001. What is it? Simply put, it’s a multi-level marketing or referral marketing business operated by SDL Financial Services, with lots of good products. The products include funeral benefits, disability benefits and access to legal assistance. In other words, you get double benefits from this one: You purchase one or more of the products on offer (and get efficient assistance in case of emergency, according to the testimonials) AND you can make some money on the side by referring people and getting paid for the number of active members in your downline. Plus there’s the option of becoming a marketer for SDL in order to make even more cash. What are the products? Briefly, the products offered by SDL are: 1. Referral benefit– I’ll deal with this in more depth soon. 2. Funeral benefit– comprehensive funeral cover for you and your family. 3. Personal risk benefits – including accidental death, total disability, income protection and inhospital cash benefits. 4. Emergency medical services membership– a range of emergency medical services. 5. Legal Assist membership – 24-hour assistance in legal matters. Excellent value for money! And here’s the nice thing: You can pick and choose which products you’d like to purchase. If you’re already happy with your own funeral cover, you don’t need to select SDL’s cover in your package. On the other hand, if you want even more cover, you can also have SDL’s cover along with that of your existing funeral plan. How does the referral system work? It’s quite simple, really. There are seven levels in your downline and for each person you recruit to join the referral system and SDL, you get paid a certain amount. It looks like this: Level Members Referral fee Remuneration per level per level 1 5 R 3.00 R 15.00 2 25 R 10.00 R 250.00 3 125 R 12.00 R 1,500.00 4 625 R 15.00 R 9,375.00 5 3 125 R 20.00 R 62,500.00 6 15 625 R 5.00 R 78,125.00 Business Idea Collection | Empowerment Programs Even if you just want to make the minimum payment in order to join SDL, you get an IRM (Independent Referral Member) number and a member’s rewards card with which you can get discounts on purchases from great places like Kalahari.net, Cashbuild and McCarthy Call-a-Car! 75 7 78 125 R 3.00 R 234,375.00 Hint: Be sure to check out www.sdlgroep.co.za/page/referral-fees-bonuses/207 for an updated breakdown of the ideal growth of a downline. There’s also an excellent range of incentives and bonuses to boost motivation – I can’t go into detail here, so please have a look at SDL’s website for all this extra info. Insider secret: If you run out of personal contacts to mail to, place ads in other people’s e-letters (this will cost very little and you’ll get huge exposure). Remember to target appropriate e-letters though. For example health and financial e-letters. And as you develop your own database of contacts you’ll be able to swap your list with others at absolutely no charge. The opportunities are endless! How does the marketing work? If you’re already a referring member of SDL, you can expand your income by becoming a marketer. There’s a payable once-off fee for marketers and a one day training course plus an exam to equip you for the task of marketing SDL. You sign a code of conduct and get cracking on telling the world about SDL! Then, for every successful new membership with SDL made through you, you get a certain amount in your pocket. For 1-7 people, you get paid R45 per person once they’ve signed on the dotted line with SDL, chosen the products they’d like and paid their first fee. For 8-21 new sign-ups, you get R90 back per person and for more than 22 new paying members you can expect R150 per person, plus a delicious incentive of R1, 700! What skills do you need for this opportunity? No special skills needed on this one – you don’t even need to have finished school! As long as you’re outgoing and have a passion for people and for extra income, you stand a great chance of success. How does the online opportunity work? If you’re not keen on person-to-person marketing, This one involves very little work on your side. For a once-off registration fee plus your monthly tariffs for the benefits you choose, you get an IRM number and a unique URL that’s linked to the SDL website. You don’t have to create or update the website/URL at all – it’s all sorted. Your task is merely to send out emails to your various contacts; once they’ve visited the URL and signed up with SDL, they are counted as referred by you, for which you get commission. How does the mobile phone opportunity work? The company is launching SDL Mobile soon – so members can get discounts on airtime (between 312% off!) and sell airtime and electricity to others. SMSs are sent to your clients with the voucher numbers, which they then input into their cell phone or electricity meter. This opportunity will cover all the major networks, including Worldcall and Telkom and will probably already be launched by the time I’ve type this. If you ask me, it’s just one more good reason to join SDL and start making an extra income today! Contact details Business Idea Collection | Empowerment Programs SDL gives you the option of online marketing, too. 76 Website: www.sdl-groep.co.za Tel: 021 939 9107 Email: clientservices@sdl.co.za Business Idea Collection | Empowerment Programs Or visit http://www.sdl-groep.co.za/survey/contactus/65/ to access details for the branch nearest to you! 77 MOBILE CAR WASH & DENT REPAIR Whether you’ve got a shoestring budget or a lot of cash you want to invest, and whether you are looking for a part-time or a full-time opportunity, I can show you how to turn your love of cars into a fountain of extra cash! There are lots of ways you could get our four-wheeled friends to line your wallet, but I’ve picked out what are, in my opinion, the top two business opportunities in this area. And both take advantage of busy people, who are strapped for time…. Helpful hint: Both of these ideas can be expanded to cover more than just cars. You can apply this to motorbikes, caravans and even boats! Remember to think big and always be on the lookout for viable opportunities. Auto opportunity #1: Mobile car washing service The carwash industry is well established in South Africa. But now there’s a new concept that’s taking the world by storm… Except it’s yet to hit South Africa. It’s called mobile car washing and it takes advantage of time-strapped individuals like you and me… Here’s how to turn the hottest trend in car washing into a profitable business… Most people like to keep their car clean… But who has the time to spend an hour at the local garage to get it done. And while shopping centre washers are more convenient – they can’t vacuum inside your car and give it the thorough cleanse it deserves. That’s where you come in… You’ll target businesses and offer car washes at a special group rate. Not only will your clients have the luxury of their car washed while they work – but you can offer a more competitive rate because you’ll be washing a lot of cars at once! Everyone wins. Here’s how much you could make… Bank an extra R33,200 this month (without getting your hands wet)… After paying for supplies (approximately R1,000 per month) and salaries (approximately R3,000 per employee) you’ve still made an extra R33, 200 in a single month. And that’s without even so much as getting your hands wet! Rate/wash Cars/month Full-time (Mon-Sat) R45 per car 960 And remember the costs above are only for a basic valet – you can add the trimmings e.g. a wheel clean and charge more per wash! It’s as simple as 1, 2, 3… 1. Get a reliable team and good cleaning supplies 2. Market your business and get contracts 3. Rake in the cash! What you need to get started… Business Idea Collection | Empowerment Programs Picture this: Your 3 employees wash 40 cars a day (that’s 360 cars a month) and at R45/car that amounts to an extra R43,200 (before expenses). 78 Ok. First you need employees. But if you think your only hope of finding good car washers is to pick up strangers at the robots, think again. The “Men on the Side of the Road” project is the best way to get screened, trained labour – and make a difference, too! This non-profit organisation trains and helps those looking for an honest job in a variety of industries. Have a look at www.employment.co.za or call 0861 WORKER (0861 967537) to find out more about hiring quality staff for your new biz. As for supplies, here are a few basic pieces of equipment you’ll need – some of which you might even have at home already: • A bakkie • A vacuum cleaner for upholstery (unless you’re not offering valet services with your wash) • A hosepipe with a variable nozzle (between R200 and R350) • One bucket for each worker (at most Pick ’n Pay Hypermarkets you can get a wide range of these, most averaging around R50 per bucket) • Chamois cloths • Sponges • Window squeegees • Car polish Your biggest start up expense is going to be the bakkie. But don’t pay full price for a new one. Visit these bargain auction websites and grab a quick bargain: • SA Auctions: www.saauctionscars.co.za or call 022 714 0945 • Burchmores: http://www.burchmores.co.za/auctions_blm_nov_25.php or call 011 258 9898 So even if you had to spend R20, 000 on a new bakkie – you could cover your start-up costs in the first month! A part from the marketing advice I’ve given you in the previous business opportunity, I would contact companies directly. Send an initial email and follow up with a courtesy phone call. Offer special low rates based on how many people sign up (you could even work on a sliding scale – the more clients the lower the price). Always remember to sign a contract for washing in a particular car park. This contract should also include an indemnity clause – stating you’re not responsible for a loss of possessions or any damage to the person’s car. I would suggest setting up a debit order payment system so you can be assured you’ll always be paid for your hard work. Here’s an example of the type of email you could send (target HR managers who can notify the rest of the company about your services): No more trips to the car wash - ever! Dear Mr Smith, Business Idea Collection | Empowerment Programs The best way to market your new service… 79 I know you’re too busy sit at the carwash, but I also know you’re the kind of person who likes to take care of his possessions. But what if you could still have a sparkling car every single week – but you’d never have to set foot in a car wash ever again? Interested? I’m offering a unique service for successful, time strapped people just like you… You see, most people don’t have time to spend hours washing and polishing their car. But if you sign up to my mobile car wash service – I’ll clean your car every week while you work. You won’t even know I’ve been there. That is - until you leave work to find your glowing car waiting for you in the parking lot. Now my standard car wash usually costs R60, but for the next month – I’m willing to charge you a fraction of that. For just R45 a week – you’ll never need to visit a car wash ever again. And the more people you get to sign up from your office. The cheaper that weekly cost will be. Sign 20 people up and you’ll pay just R40 and sign 50 people or more and you’ll pay only R35. That’s a fraction of what you’d pay at your local garage. What are you waiting for? Beware! Why you shouldn’t opt for local franchises… The few companies that have launched mobile carwash services will charge you as much as R900,000 to use their franchise. Don’t pay this. When you look at how low your start-up costs are – it’s just not worth it! Keep it simple and you’ll make more money in the long run. This is definitely a business you can start up on your own! So that’s the one way you can make money from cars. Now let’s look at… Auto opportunity #2: Mobile dent repair Besides cleaning, there’s another thing that cars need often: Repairs to bodywork. This is the perfect opportunity for you car lovers out there to hone your skills and make extra money while you’re at it: Become a (mobile) dent doctor! Once again, your draw-card here would be that you would travel to clients’ homes or offices to fix dents at their convenience. This also means you wouldn’t need your own premises. And because of the advance of technology, dents can now be fixed without taking off doors or body panels or even paint! How to get expert training… But the key question, of course, is where do you get the training? Well, I’ve found a way for you to get the training separately – without having to buy a franchise package first. I spoke to my contact Freddy Janson, manager of Janson Paintless Dent Removal and he offers training as a separate package from the franchise option. It costs about R28,000 for the basic general training, and around R20,000 to acquire the tools. What’s great about this training package is that it prepares you to run your own business too, teaching you to do quotations and marketing. You even get an international certification once you’ve done the course. And if you’re not in Port Elizabeth where Janson is based, you’ll get special treatment when you go to Freddy for training – he hosts his trainees for free in his guest room and gives them hands-on training himself. He says he does it because he’s truly interested in helping Janson trainees and franchisees get started this business. I, for one, admire that sort of personal touch. Business Idea Collection | Empowerment Programs How does it work? 80 In comparison, the franchise package will set you back R250,000, but includes the tools, full training and marketing help. Still, I would rather opt for the training without the package – it works out a lot cheaper. You get all of the training – but won’t need to pay future franchise costs. You can contact Janson on www.janson.co.za, call Freddy on 082 889 2722, or email him on freddy@janson.co.za . Business Idea Collection | Empowerment Programs Bottom-line: As you can see, these two ideas (car wash and car repair) are very different and require different approaches, different amounts of money and different slices of your time. But both offer you a chance to take your love of cars to the next level by turning it into a business. Enjoy the ride! 81 MONEY MARKET OK, first things first. If you’re unprepared in an economic downfall you’re going to get burned financially! But if you have a plan, you can come out stronger than ever. So if you need some extra cash, I have a way you could turn your spare time on a Sunday into making yourself a few extra bucks – or even a few thousand! You should know that I’m not going to talk to you about selling fruit and veg on your street corner. No, this opportunity is a bit like traditional market trading. But it’s more upmarket... and a lot more profitable! In fact it’s two great moneymaking opportunities in one. Keep your weekday job (but rake in an extra R1,000 on the weekend) First, it’s an ideal part-time opportunity that won’t interfere with your weekday job and it’s really great for the current economic climate too. We all are feeling the pinch at this time of the year, especially with our tight economic conditions. And what better way to put some cash in your wallet than getting out on that day you just laze around, to make yourself some extra income? So you probably think – HOW? Well, it’s all about creating your own Sunday market. Why get involved in Sunday flea markets now? Right now, the low market trading overheads mean you can sell stuff at realistic prices and still make a good profit margin. Customers are looking for value for money, and flea markets deliver that in a big way! According to one of my reliable sources, Franca Coda, who has been a Sunday flea market stall owner in the Bruma Flea Market for the past 11 years, “My Sunday stall has put well needed extra cash in my pocket and has really helped me through months that were a little tight. A bonus is that it takes me out of the house into the fresh air meeting people.” Need more proof as to why it’s the best way to make a few extra bucks? Just listen to how simple it is… Picking the right venue is key! To be honest, most of the really successful Sunday markets are only successful because of where they are located. Always keep space in mind when you choosing a location. It must be a venue with enough space. Basically, you don’t need hundreds of stores because people go to Sunday markets to have a brief outing, not walk for hours. Anything from 20 to 50 stalls (at most) is probably about right. Now once you’ve got some venues in mind you need to contact the owner and try set up a deal. Right now with rising running costs like rates and expenses I think anybody with a large empty piece of land that is unused on a Sunday is going to jump at the opportunity to rent it out. But don’t count your chickens before they’re hatched: try to have a few venues in mind in each area in case some of them just aren’t interested. Now remember to negotiate rent with your landlord as these are tough times. Plus, you need to keep your own costs fairly low so that you can afford to charge your stallholders reasonable rents. And they can afford to charge their customers reasonable prices. It’s the best way to get things rolling. There’s room for negotiation of course. But about R1,000 – R3,000 to rent the venue for a Business Idea Collection | Empowerment Programs How to pick the perfect venue for your new market… 82 few hours is about right. Trading hours? You can trade whatever hours you’d like. Between 9:00 and 15:00 sounds reasonable. You’ll need to hire an attorney to draft a watertight contract, and this will cost you between R1,000 – R3,000 but it will be well worth the expense. And one last thing: aim for a venue that can provide stalls or trestle tables in with the price. This will save a lot of hassle over having to rent them – or having to tell stallholders that they need to provide their own. Don’t forget you’ll also need toilet facilities. Tip: Model your stallholder contract on the contracts used by other markets – it will save you a lot of time and money. How to find stall holders… What’s a flea market without stalls? By now, I think you see where I’m going with this. The next step will be to find those who want to rent a stall at your Sunday market, which should look like a pretty profitable opportunity to most. As lots of people are looking for ways to make extra money with a sideline business, take advantage. But remember to try to keep your event upmarket. And yes, you can be as selective as you like when selecting what kind of stalls you will take. When I mean selective, I don’t mean choose all the stores with the products that you only like; they should ideally be selling a wide variety of products. Don’t be scared to use a direct approach – just phone them up – because if you sit and wait for stallholders to come to you, it could take months to build up a decent number of stalls and visitors. What you could even try is offering select stallholders a free space in your market for the first two market Sundays, just to give them enough time to sustain themselves. What sort of money could you make? Now this is probably what you’ve been waiting for. Let’s just think about how much you could make from Sunday markets. I see this as a great sideline income. You’re probably not going to make millions, but then it’s a relatively easy and hassle-free concept. As a market-owner - you would probably be looking at renting out an average stall for R100-R200 a day, although some Sunday markets rent out stall space by the foot. Some of the big Sunday markets have upwards of 500 stalls. But let’s not jump ahead of ourselves. Say you had about 20 or 30 stalls. That would make you anything from R2,000 to R5,000 per Sunday – before costs of course. And just don’t forget that if you already have your own stall at Sunday markets you can also have that stall at your own market. Imagine that; that would essentially be a free stall that could add another R1,000-R2,000 on top. Don’t wait another moment – get started today! So now what? It’s up to you to stop using your Sundays for sleeping, lazing around the house and complaining about your tight budgets. Get out there and walk around those markets! Do a little bit of your own research. You don’t have to stick to the traditional flea market trading way, so get creative. If you have the time and the ambition, start up your own Sunday market. Think about it and act fast, otherwise you’re going to be missing out on a brilliant opportunity. Business Idea Collection | Empowerment Programs As a stallholder, as it depends exactly on what you sell, but R1,000-R2,000 clear profit every weekend is the average for an established stall. 83 ONLINE SHOPPING CONSULTANT Capital investment: Low Skills level: Low Profit margin: Moderate The Internet really has revolutionised the way companies conduct their business. Nowadays most businesses have online stores where you can purchase their goods and services. Whether it’s to buy a book on Amazon.co.uk or to order clothing from a catalogue, we’ve all made use of online shopping services. The problem is, it doesn’t always work. We all know how utterly frustrating it is when you’re doing your grocery shopping online and you’ve sat for an hour filling your virtual trolley with what you need, then you’re ready to pay and you click “buy now” and nothing happens! The thought of starting all over again is almost nauseating. Well, it’s even more infuriating for those companies who are trying to do business and losing customers. Here’s a great business opportunity idea that’ll let you cash in on this little crisis, without requiring any major technical skills: An online mystery shopper and website checker. Explanation: visiting and shopping in online stores and reporting to the owners any faults and sites that don’t work. Think of it as being a consultant of sorts. First things first, you’ll need to sell your service to businesses. This is a business-to-business service that you’ll be offering to companies who want to improve their websites and ensure there are no selling glitches. It doesn’t matter what industry they’re in, any business can be a potential customer. Whether it’s a travel agency or a grocery store, it doesn’t matter. Target local customers at first and once your business expands, you can start looking further afield. You can try selling your service through email, but it’s not likely to be effective because people hardly look at unsolicited mails. It’s best to find a phone number and physical address. Then give them a call and arrange a meeting with them. As you build a good reputation, you’ll find companies will give you great referrals and you’ll get more work that way. You’re not going to make much money if you charge a rate per fault, nor if you charge per hour, otherwise your income will decrease as soon as their site is rectified. The best way to charge for this one is to sign companies up on a subscription basis. If you charge, R100 per week, that’ll work out to about R400 per month. That in turn adds up to R4, 800 per year, from just one client. Let’s say you have four clients; then you’re looking at an extra R1, 600 a month. Once you get into the swing of things, you could probably be able to pull off eight clients a month. I’m sure you’ll agree that an extra R3, 200 a month is nothing to complain about. How much you make is entirely dependent on how many clients you sign up. Here’s a list of possible things to look out for when checking sites: • Check that the website loads properly. • Check whether or not the site is user-friendly and easy to navigate. • Check that all links are in good working order. Business Idea Collection | Empowerment Programs So, what should you charge? 84 • Check that each webpage displays correctly and loads properly. • Watch out for any typos or other mistakes. • Ensure facts, figures and contact details are up-to date and working. • Check that the online shopping tool works properly. • Do one or two test purchases to check that the system works well. When you’re finished, compile a report with a list of all the faults that you can send off to the website manager. Business Idea Collection | Empowerment Programs What’s better than a business opportunity that caters to the e-commerce revolution, but needs no special skills? The fact is, it doesn’t get easier than this. If you can find and help fix just a few glitches on your customers’ websites they’re sure to be satisfied, especially when their sales increase. 85 OWN A HOTEL ROOM Buy your own hotel room and bank a steady stream of holiday income every single month We all know Sol Kerzner made his millions or billions I should say, in the hotel industry. And with a track record of more than 30 years in the hotel business, Kerzner has set an example for all would-be hotel tycoons. Well, maybe you can’t start big the way Kerzner did, but you can still bank some easy hotel profits. Perhaps you’ve already heard of owning your own hotel room and want to know more… Or maybe this is the first mention of it you’ve picked up on. Either way, here’s exactly what’s involved and what this means for you… So how does this opportunity work? Hotel companies build a new hotel somewhere in sunny South Africa – or perhaps even in some of our neighbouring countries. For the purpose of this investigation, though, we’ll focus on SA. They offer up some of these rooms for sale. They can start low, say a R20 000 deposit and go up into the millions. The hotel manages absolutely everything for you – from bookings to making the beds and cleaning the toilets – breathe a sigh of relief here! You get a nice cut of the profits for every guest that stays. You’ll also get to use a few bed nights for yourself or your nearest and dearest. Not bad! There are several companies in SA offering these sorts of opportunities. And actually the concept isn’t all that new, despite the recent coverage… So what’s the cost? In June 2004, The Island Club – the R400-millionresidential development nearing completion on the north bank of the Grand Canal at Century City had Pam Golding Properties marketing 23 of its hotel suites “for purchase by buyers seeking capital growth and a luxurious holiday destination”. Buyers received four weeks of free accommodation in the hotel a year or could swap these weeks for free days at any one of 3 600 RCI resorts worldwide. The suites they bought for this: • • Top-notch • • Ranged • • • • Parking bays Fully interiors Four-star from En-suite Living and 39 to furnished appliances deluxe 93m² bathrooms Kitchen areas Before you invest – here’s what you need to know The scheme is appealing, especially if the initial deposits are low and you can subsidise your payments with income generated by the hotel. The returns are pretty good. Many hotels offer you Business Idea Collection | Empowerment Programs The units ranged in price from R745 000 to R1.59 million, inclusive of VAT. No transfer duty was payable. People could secure a purchase with only a 10% deposit. What’s more, there were options of getting finance. For the first three years, investors were GUARANTEED a 5% net rental income per annum for the first three years. They didn’t have to pay any levies over this period. That wasn’t all. 86 50% of the rate of the hotel charge for the guest. So for a R1 000-room, you’re looking at R500 into your pocket, R1 000 for a R2 000-room... Believe me, hotel prices can be a lot steeper than that, especially in peak season. Many investments offer a yield that seems very attractive too. Companies promoting these schemes offer you from 5% to 15% back on your money each year. Something to consider, certainly, when you think how little interest your money gets in the bank. And as one of my property investment gurus told me, getting finance will allow you to exploit your new money-making best friend – leverage. So for instance, if you borrowed the cash to purchase a hotel suite at 6% interest, but your investment earned you 12% return, you’d be looking at 6% pure profit for doing… well… nothing. And if you’re guaranteed a minimum return for the first few years, well then, you’d be looking at a sure thing. Wouldn’t you? Another great thing about this opportunity is you could resell your golden egg a little later once the property value increases. More cash to line your wallet. But be warned, any experienced investor will tell you to think about your exit strategy. Though property is at a slump now and may become worth more, selling an individual room is still a relatively new concept. Don’t be too sure someone else will want to buy it! Make sure you take the hotel’s occupancy into account It’s a recession, isn’t it? How many fancy holidays are you planning this year? Even though tourism will rise in 2014, many tourists are cutting back on their overseas travel. That’s why, before you invest, it’s vital to estimate the hotel occupancy rate first. To give you the correct definition, a hotel’s occupancy rate is the percentage of nights each year that a room is actually paid for and occupied by a guest. You’ll need to do your sums. Multiply the hotel’s occupancy rate by your share of the room rate and you’ll soon discover how much you could make annually. And let’s be honest; any investment scheme telling you the hotel is 90% full is exaggerating. Work on about 50-70%. And remember at certain times of the year the hotel will be fuller (e.g. whale watching season or summer holiday). And always, before you invest, examine the hotel’s marketing plan. If no-one has heard of the place or the hotel, then you’re in for low occupancy. Not good. The bottom line: Do your homework. If a project sounds like a possibility, ask as many questions as you can. Find out about occupancies, marketing, the competition and the track record of the company you are potentially going to be dealing with. If it’s a fly-by-nighter, drop it immediately. Check supply and demand – what other hotels are in the area and how do they compare? What sort of prices are they asking? What is their service offering? Check out the location – in peak and off seasons. Think about the weather. Focus on events that happen at that destination each year – will they draw the crowds? What else is there for holidaymakers and businesspeople to do? Are there restaurants? Cinemas? Holiday clubs for kids? Think the process through and make your mind up very carefully. And ultimately, you could always take the words of Sol Kerzner at his last hotel launch to heart: “I have been an optimist all these years. The fact that we built this hotel – and as I say it is about as good, the best we’ve ever built – says more than anything that I believe in the future of the country as a growing dynamic economy.” Business Idea Collection | Empowerment Programs And be careful: You won’t own the land on which the hotel is built, just the room. This means less security for your investment. If the investment company goes up in smoke, so to speak, so will your hard-earned cash. So stick to reputable property agents like Pam Golding (www.pamgolding.co.za ). 87 PASSIVE INCOME Affiliate or referral-based marketing, is a form of advertising where you, as a website owner, are paid a commission for referring traffic from your own website to that of a licensed merchant, by the use of banners or links. Affiliates can get paid per click, per lead, per sale, per subscription or per download, depending on each merchants' particular product or method. Affiliate marketing is a booming industry in Europe, the UK and USA, accounting for approximately 40% of all online retail sales and South Africa is rapidly following suite. 11 Smart benefits of becoming an affiliate: 1. No outlay - it's FREE (there are merchants who levy a charge, but with the industry growing at such a rate, there are enough reputable companies offering free affiliate membership). 2. Various merchants to choose from: Depending on what product/service your website offers, you can choose from myriad merchants to complement your site. 3. High commissions, and sometimes lifetime commissions for referring other affiliates, as well as frequent bonuses and incentives. 4. Added credibility to your website due to association with leading market brands. 5. Real time, 24/7 statistics to keep you in touch with your traffic, with hardware and software supplied by the affiliate network. 6. No face-to-face selling. 7. No holding or shipping of any stock. 8. If you have a legitimate email newsletter, some affiliate programmes allow you to post your affiliate link to their site in the newsletter, giving you access to potentially thousands of referrals with one click! 9. Affiliate programmes usually offer you unlimited links to quadruple your chances of making good commissions. 11. Customer support and expert experience of affiliate managers through your network, as well as any relevant supporting branding materials. Instant cash with a click of your mouse The door to affiliate marketing is wide open, both internationally and locally - here is a list of reputable SA-based affiliate programmes: www.earningsonline.co.za : Merchants include Auto Pedigree; Beds-on-Line; Best Bond; Budget Rent-a-Car; Outsurance and Netflorist and they provide banners, buttons and text links, access to HTML and text e-mails, flash banners and other unique marketing tools. Commission levels vary per merchant campaign, and affiliate payments are processed by the 25th of each month, providing the payment due is more than R250; otherwise earnings are carried over to the next month. www.veza.co.za : VeZa (Visit and Explore Africa) contains CD-Rom and DVD products like Route Planner Traveller and SA Tourism Encyclopaedia and is touted as being the world leader in "Virtual Business Idea Collection | Empowerment Programs 10. Fast, usually electronic, payments straight into your account. 88 Techno Tourism". As an affiliate, you earn 5% of the purchase price of products (excluding VAT and any other applied taxes and costs) bought via the Welcome Page from your site/e-mail. Fees are paid out 30 days after the end of each quarter if the amount due is R100 or more; alternatively referral fees are held over until they have reached this amount. www.safarinow.co.za : Travel, which includes accommodation, is the largest e-commerce retail category and SafariNow is Africa's leading accommodation reservation solution and a potential goldmine for affiliates. You earn a commission every time your users book with them through your website. You earn 25% of the net revenue per transaction, which translates to roughly 3% of the total amount but the big benefit is your referred customers are yours for life, and each and every accommodation booking they make with SafariNow in the future will earn you a commission! Payments are made monthly, there are no minimum earnings required and there are "funky features" like sample web-skins and 30 high-quality maps of SA destinations to use on your website. www.afrihost.co.za : A premier web-hosting company enabling your web visitors to register a domain name and host a website, they pay R200 per web-hosting package sale and R20 for every client who signs up as an affiliate as a result of your weblink! Paid once a month by electronic transfer, debit order or credit card and if your commission does not total R200 or more the balance will be carried over to the next month. www.clickatell.co.za : A premier provider of bulk SMS solutions and software with coverage of more than 569 networks, they offer 10% of all sales generated from your website. Minimum earnings of approximately R450 required before payment, which is per cheque or other agreed method. www.datingbuzz.co.za : A popular and respected online dating and friendship service, you earn 10% of every new subscription referred from your site, as well as a R100 joining bonus! www.clickbank.co.za : An online market-place offering over 10 000 products, from electronic goods and software packages and scores of e-books in many categories. You can earn commission of between 1% to 75% from either referring your traffic to specific products on their site; or directly to the Clickbank Marketplace, where you will earn commission on every sale they make thereafter! Payments are made bi-monthly per cheque. CAUTION - keep your site clean! Spamming is also a BIG no-no, and any e-mails you send reflecting a merchants link must be an optin newsletter or mailing list of your own. Do research in order to match your merchants wisely to your own products and/or website to capitalise on sales. This is a low-outlay, high earnings opportunity you can run on the side. So what are you waiting for? Go for it! Business Idea Collection | Empowerment Programs If your website focuses on any undesirable elements (including explicit sexual or violent content; race, sex, gender, religion, nationality, disability or sexual-orientation discrimination) you will definitely not be eligible to register as an affiliate, and if already registered your affiliate account will be suspended and you will forfeit any commissions. 89 PAY -PER-LEAD Come home to BIG BUCKS every day with just 30 minutes of easy work! Would you like to start earning dollars, pounds and euros from the comfort of your home? I bet you’re thinking “what kind of question is that?” Of course! Who wouldn’t? How? It’s easy! Set up a Pay-Per-Lead Programme on your website and start cashing in your ticket today. Read on and you’ll find all the resources you need right here… I’ve started numerous businesses in my time. So here’s one that I just know you’ll go for: Pay- PerLead Programmes! Imagine coming home a few thousand rand richer every day just with the click of a button. Instead of spending your day cold calling, sales pitching or working every marketing game in the book to sell your service, you were out doing what you really want. Here’s how it works The Internet is the gateway to millions of potential customers. This is why companies are always looking for top-notch qualified leads. And this is where you come in. You can use your website to provide these companies with the leads they need and they will PAY YOU for each lead. The best part is, you’re not limited to the South African market – you can attract business from anywhere in the world! And this means racking up your wealth with those coveted dollars, pounds and euros. (I’ll get to this later and I’ll give you a list of international and local companies you can start working on in a moment.) Pay-Per-Lead is a give-and-take relationship between the online advertiser that wants to promote a product or service and a website owner – that is, YOU – who would like to earn a handsome living from displaying advert links or from collecting a database of leads. 1. You display Pay-Per-Lead adverts on your website and/or create web signup forms for lead data capturing. 2. The advertising companies usually offer the viewers a free product or service in return for signing up. 3. Viewers click on the ads and are taken directly to the companies’ websites or they sign up to receive more information about a specific product. The web form is delivered electronically to the advertiser. 4. You get paid a commission for every lead your website generates. The leads don’t have to buy anything in order for you to make money and once you’ve set up your programme all you have to do is keep track of the leads and watch your bank balance grow! What types of action are Internet viewers required to take in order for you to make Pay-Per-Lead commissions? Business Idea Collection | Empowerment Programs Follow this 4-step moneymaking formula… 90 Here are some examples: • Signing up for a newsletter. • Taking a poll or filling out a survey. • Supplying contact information like a name/email address. • Filling in a form. • Joining a free programme. That's right! You don't have to sell anything, nor do your leads have to buy anything! Follow my lead… Right, for a start, it’s not entirely true that you won’t need to put in effort. Every business venture requires some sort of initial investment. First off, you need a computer with access to the Internet. If you’ve just said yes to these two essential ingredients then we’re on the right track! The next thing you need is to get your website up and running. Already got one? Great! Keep reading on! If not, you first have to decide whether you want to pay a little each month for a secure and user friendly website or whether you’d rather go for a free web hosting. Personally, I think the minimal fees are worth it so have a look at www.paradigmsolutions.co.za or www.webstorm.co.za for a selection of cheap options to help you get going. Just remember that if you register for a local domain address (i.e. website addresses ending in “co.za”), you might find that international companies are less enthusiastic, so rather go for an international domain, for example, www.allsearch.com/net/info. Once you’ve got your website up and running, you’ll need to create original eye-catching content for your website that will direct viewers to your lead-capturing web form. The content doesn’t have to be long or fancy – just enough to get the viewers’ attention on a particular topic. But more important, you should have bite-sized chunks of information on all the different products or services you are advertising. Search Engine Optimisation involves Internet marketing that promotes websites by increasing their visibility and accessibility in search engine results. This means you need to get your website visible by getting listed on Google AdWords. Take Gevalia Gourmet Coffee for example. First, you write a short article that catches the viewer’s attention. You could do some research on theInternet and write about the benefits of drinking highquality pure coffee, or perhaps you could provide a few tips on buying and brewing coffee. Beneath your tips you then create a link that says something like: “Click here to find out more about pure coffee”. This link will direct the viewer to your web form (which any qualified programmer can set up for you). I’m sure you’ve seen them before – the link that requires you to fill in your name, email address and other details and click submit. This is usually the only way viewers can access more information. Business Idea Collection | Empowerment Programs For a business like this I also wouldn’t suggest that you opt for a free website hosting. While you save in short run, you could also run into major problems like restrictions that don’t allow you to set up lead capturing programmes, or that make you pay a small commission for every page viewed on your site. Because it’s free, they don’t like you to make big bucks and if they catch on, they’ll milk you for the money you’ve earned on your personal Pay-Per- Lead Programme. 91 Here’s an example from Mint (Mint.com downloads, categorises, and graphs all of your finances automatically every day): Once you’ve created a web form, you can sign up for any number of programmes. But it’s vital that your website looks professional. Think about the number of times you have left a website just because you don’t like the way it looks. Spend time going through different types of websites and see what appeals to you. Keep these design ideas in mind when working on your own website. Do you want to make more money or not? So now you’re ready to get going! Here is my list of 61 reputable international companies you can approach online: Don’t be put off by the idea that they cater for customers overseas. Anyone sitting in front of a computer anywhere in the world can access your website. In no time at all you’ll be collecting leads in America and sending them to companies in America. AND you’ll get PAID in American dollars! AIU Online Allegra Annuiweb AOL Ascendant Media Blockbuster BMG Music Club Bookspan Career Education Corporation Carnival Cruise Lines CitiCards Classic Selections Wine Club Comcast Continental Auto Warranty CoolSavings.com Inc Corinthian Colleges Cosmetique Cox Communications Business Idea Collection | Empowerment Programs Claritin 92 CTU Online Dentalplans.com DNC Doctor Diabetic Eclipse Financial Group eCredit Quest Eversave.com Fastweb First Horizon Gevalia Global Marketing Group GM Card Hydroderm Intermark Communications Lead Power Inc. My Sony Mypoints.com Netflix Nexium Nokia Onetravel.com CDI Pedigree Players Vacation Club Prostep Python Media Quality Health Qwest Real Rhapsody Business Idea Collection | Empowerment Programs Net Web Media 93 Save 4 Less Sony Tempus Resorts International The Selling Source Trimlife Tri-Vision LLC Visa Card Venue Pages Weight Watchers Worldprofit.Inc You Gift Cards Take a look at what kind of cash can be made: $15 per lead. An online health store could pay you $15 (approximately R150) every time you send it a lead that requests a free sample of its health/diet product. $8 per lead. A free DVD, ring tone or music site could pay you $8 (approximately R80) for every lead you send it that signs up and downloads free ring tones. $5 per lead. A bookstore could pay you $5 (about R50) per free online registration. $25 per lead. A mortgage company will pay you $25 (about R250) per lead that fills out a FREE quote form! $12 per lead. A printing service could pay you $12 (about R120) for every lead you send that signs up and gets 10 prints.$20 per lead. A games merchant could pay you $20 (about R200) for every free trial taken. Getting paid… This next point is important… However, international companies will get charged huge fees to do international transfers. Fortunately if you register with PayPal (www.paypal.com) or PayGate (www.paygate.co.za) you CAN get paid by international companies. In fact, it’s the only sensible way to ensure money reaches you from overseas. These online accounts are safe and easy to use. So, you will need to monitor two accounts, but hey, it’s worth it! Another option is to get work from third-party Pay-Per-Lead facilitators. My personal favourite is www.affiliatenetworksa.co.za because there are no signup or management fees. There are also other great websites that enable advertisers to syndicate their adverts to hundreds of targeted websites and assist website owners like you to earn effortless cash by simply displaying these adverts on your site. It’s a two-way deal and here’s the kind of benefits you will enjoy: • Easy income from your website just by displaying advertising campaigns. • Instant access to high-paying companies. • Multiple earning opportunities such as Pay-Per- Click or Pay-Per-Sale. • The option of managing all your programmes from one central base. Business Idea Collection | Empowerment Programs If you are dealing with local companies they can easily pay you by postal cheque or direct transfer. 94 I also recommend that you take a look at these fantastic third-party sites: • www.affiliateseeking.com • www.offerforage.co.za • www.affliateinfo.eu • www.affliatefuel.com • www.linkshare.com • www.commissionjunction.com • www.valueclickmedia.com • www.websponsors.com • www.transact.com • www.performics.com That’s 10 more to work with! A word of caution though, some companies pay as little as R10 per lead. Try to avoid these because fewer leads with higher paying commissions are far more desirable than hundreds of small commissions. They add up but it also means that you’ll have to keep track of more commissions. Business Idea Collection | Empowerment Programs What are you waiting for? You don’t have to imagine coming home to a bulging bank balance. I couldn’t have given you a better starting point! Get clicking and get those leads going. Enjoy a smooth ride to riches! 95 PERSONAL TRAINER The personal wellness and health trend shows no sign of slowing down since it began during the 80s fitness movement. Experts say that this trend is so popular because in most countries health costs are rising along with the desire to keep our youth and remain physically and mentally healthy. A world economist and entrepreneur by the name of Paul Zane Pilzer, foresees that the wellness industry will be worth trillions by the year 2015. It’s all about looking good, feeling great, being healthy, and fighting ageing and disease. Plus, now more than ever before, people are looking for ways to gain personal fulfilment and happiness in their lives. Red-hot opportunity: These days professional life coaches are earning R35,000 a month and more. If you’re the kind of person who gets enjoyment out of helping other people achieve their dreams, this opportunity could be perfect for you. Life coaching is not only a highly regarded profession; it’s also a well paid one! A quick Google search will show you that there are a number of life coach training programmes out there that aim to help you become a fully-fledged life coach by giving you all the information, skills, techniques and support you will need to practise effectively. Now these programmes are rather pricey - around R15,000 for an entire life coaching course. But if you’ve got the money I think this is an investment worth looking into. You’ll learn a new skill, and make a career out of it! A “full” coaching practice would include 20-35 clients per week. So if you charged R400 a session and have 20 clients a week, you’d gross around R35,000 a month. To be honest, it’s up to you to make it happen, but as they say the sky is as high as you want it to be. If you’d like to read up more about this opportunity visit www.life-coach-trainingsa.com and if you’re interested on going on a life coaching course call 073 366 8910 or e-mail admin@nlpcoaching.co.za. Cost per session Number of sessions Profit R400x20=R32, 000 Business Idea Collection | Empowerment Programs R400x35=R56, 000 96 PHOTOGRAPHS TO DISC What you’ll need to get started Well obviously you need a computer... There’s just no way of getting around that one. You don’t need a fancy computer. It doesn’t have to be a laptop either – a good, old-fashioned desktop PC will work just fine. Although, if you do have a laptop, you’ll be able to run these business opportunities from anywhere. You’ll require a scanner and some CD or DVD Blanks. Computer blueprint: Preserve treasured memories – convert photos from paper to digital format Capital investment: Low Skills level: Moderate Profit margin: High It’s the 21st century and the world’s being taken over by a digital phenomenon brought on by huge technological advancements. Heck, everything’s digital – these days you can even get digital photo frames that display a “slideshow” of your photos. Remember back in the day when people actually used to take photos with a camera and you had to get the film developed? Seems like a lifetime ago, but it isn’t really. In fact, many of us still have those printed pictures stacked in shoe boxes or if you’re good about it, in photo albums. There are millions upon millions of treasured memories out there, waiting to be digitised. Truth is, most people are either far too busy or too lazy to digitise them, yet everyone wants to make sure they’ll last forever. Here’s a great little opportunity you can do from home – converting old paper photographs into a digital format. So, I bet you’re wondering if this is so easy, why people won’t just do it themselves. For the simple reason that it’s fairly time-consuming and people are just plain lazy. Most people are happy to pay others to do the jobs they can’t be bothered to do. One of the keys to your success will be an effective advertising campaign. To start off, keep it local. Set a little cash aside so you can put a few ads in places people are most likely to read them. While free advertising sites work, you’re not guaranteed to reach your target market. That’s why if you advertise in as many places as possible, you’ll achieve maximum exposure. Here’s an example of an ad you can use: Make your photographs last forever Don’t let your old photographs become permanently damaged (or destroyed) by light, damp or acidic photo glue. Save your precious memories! Now you can have them professionally scanned onto CD and preserve them for future generations to enjoy. I know you don’t have the time to do it Business Idea Collection | Empowerment Programs If you’re thinking this sounds complicated, hang on, it’s really not so bad. Other than your computer, all you’ll need is a scanner to scan the treasured memories. You can pick up a decent scanner from places like Incredible Connection for as little as R1, 200. A really good quality one might cost a lot more, but it’ll also be more durable. Then you’ll need writable CD-Roms to save the photos on. You can buy these in bulk from most places, even stores like Pick ‘n Pay. They sell them in 10s, 20s, 50s and some places even sell 100s. 97 yourself – but I do! And I promise you, I’ll help make your memories last forever. Contact X on XXX XXX XXX Simply put the photo in the scanner and press scan. After you’ve scanned all of them and saved them as digital files, write them to a CD. So, what should you charge? Well, this is the kind of service that doesn’t entail huge overhead costs. I mean, a little bit of electricity and some CDs doesn’t cost that much. I suggest you charge a rate per photo scanned, rather than an hourly basis. This is because; in the beginning it’ll probably take you a lot longer. Once you’ve had a bit of practice, you’ll improve your timing. Look at R2 per photo scanned. You’d need to ensure each job will be cost effective, so have a minimum charge of R50. Most potential customers will have hundreds of photos. They may not want them all scanned in one go, but you could offer a bulk discount if it’s over 300 photos – say R1 per photo scanned. Here’s how much you could make… If you scan between 600 and 800 photos for a single client, you could make R1, 200-R1, 600 in one day. Business Idea Collection | Empowerment Programs That’s as much as R3, 200 in a single weekend. I sure like the sound of those figures! 98 PROMOTIONAL MOVIES Capital investment: Low Skills level: Low Profit margin: Moderate – high This is a simple, start-at-home business opportunity... With the rapid rate of technological change, you might have noticed that static websites have become rather outdated. In fact, more and more companies are starting to add all sorts of things to their websites, including movies. Yes, you read right – movies! It may sound expensive and a few years ago it was, but nowadays it’s relatively cheap and easy to do. Other than your computer, you’ll need a digital camera (or even better, a digital video camera) and some video editing software. You probably didn’t even know you have it, but there might be some similar software already on your computer. For example, Windows Movie Maker. Other useful kinds to look into are iMovie (www.apple.com/ilife/imovie/ ) and Muvee (www.muvee.com ). As soon as you’ve set up your software and practised a bit, you’ll need to make up some sample presentations you can use when you pitch to clients. I bet you’re wondering who would pay for this kind of service? Well, your target market is pretty much any company with a website anywhere in the world. Obviously it’s more realistic to start out with smaller companies until you build up your portfolio. Start by surfing the net and finding a few companies you can approach. Once you do, jot down the details and give them a call to set up a meeting. Remember to be 100% organised for your meeting – study their website rigorously. Ask them what they’d like to achieve with their website – do they want publicity or actual sales? Then create a plan suited to their needs. As soon as your movie’s ready to be put on the website, you’ll need to make sure your client’s website can host it. If not, an easy solution is to host it on YouTube (www.youtube.com ) and just put a link on your customer’s website. Wondering how much you can make? If you think about professional companies that film corporate videos, they charge an arm and a leg. I don’t think it’ll be a great idea for you to start out charging like that – you don’t want to scare customers away. I suggest starting out at about R500 to R1, 000 for something that takes around a day to produce. Don’t forget, your customers’ movies will need regular updating, so there’s potential for retainer income. Visit www.localinks.co.za for a list of hundreds of potential clients that are waiting for a service like this. Business Idea Collection | Empowerment Programs After that, you’ll need to collect material for your movie. Simply ask the company for pictures of their staff, their products, their premises, their logos and pretty much anything else you can use. It’s also advisable to line up some interviews with key staff members. 99 PROPERTY BUCKS T he average price of properties has increased by 20% over the last few years. This year, predictions are for a 12 to 15% increase. John Roberts, franchisor for ‘Just Letting’ in KZN says, “Two years ago the sales market was soaring. But now interest rate hikes and an oversupply in the market has led to a slight downturn in unit sales. Developers and investors now face financial loss unless they can get tenants into their units.” That’s why, buying to let is now recognised as a great investment. The number of landlords is increasing, as are the number of properties. What are the costs? Amazingly, costs are minimal. As most of the communication is done via phone, SMS or email, it’s a great “work-from-home” option. And prospective tenants look during weekends or after hours, so letting property could be a part-time job. All you need to start is some space to work and a phone line. A computer’s not essential for starting up, but can help for handling your paperwork. It also gives you access to the World Wide Web. Otherwise you could significantly limit your exposure. If you want to find some excellent software tools for spreadsheet work, creating electronic contracts etc. then check out Gideon le Roux’s website: http://www.privatelessor.co.za/Welcome.aspx?Agent=PrivateLessor . So what does a letting agent do? It’s pretty simple. You take property details from the landlord and list tenants’ requirements. Then you match-make them to available houses. For doing this simple task, you get paid a regular commission. How do you start? The key is to have the right attitude. Many letting agents have the attitude that, ‘they couldn’t care less about tenants’. You can be unique by being customer-focused. Here’s my suggestion… Firstly advertise a free, tailor-made house-hunting service in your area. You need to be honest from the start. Tell your prospective tenants you haven’t chosen properties yet, but promise them first pick when you do. Then contact the landlords and use this list of property-hungry people to leverage some deals. 1. Run short, cheap ads in the “Property to Rent” section of the classifieds in your local newspapers. 2. Get in touch with accommodation offices at big centres near you (e.g. universities or techs). 3. Contact the human resources department of local companies. 4. Don’t forget to make use of the community bulletin boards in your area (like those at Pick ‘n Pay). Now it’s time to make use of the Internet. No need to set up your own website. Instead, there are a number of property websites where you can advertise: • www.propertyfinder.co • www.property24.co • www.privateletting.co.za • www.privateproperty.co.za/rentals • www.sarental.co.za Now for the landlords… Competition from other letting agents may seem off-putting. But again, it comes down to attitude (and, of course, a bit of financial incentive to the landlords.) If you can offer a better, more economical service to the landlords, you’ll have them eating out of your hands. Offer a Business Idea Collection | Empowerment Programs 4 Ways to create a register of tenants (without much cost) 100 discount commission deal: 5 to 8% for the first 6 months and then 10% thereafter. (Corporate letting agents can charge as much as 20% commission.) Note: Before you can practise as a letting agent you must first register with the Estate Agency Affairs Board. It will cost you to register and to write the compulsory exam first. You can purchase a study guide for the exam from the board (www.eaab.org.za ). To advertise your services, again make use of your local papers or check the Yellow Pages for a list of landlords. Contact them directly and offer your better and more economical service. Thirdly, network. Get in touch with local estate agents who don’t let properties themselves and ask them to introduce your service in return for commission. Do the same with surveyors, conveyance attorneys, banks or financial advisors. Offer them 1% of the rent for the first year. How to prepare professional property profiles To beat the competition, your brochures must be persuasive. Go the extra mile! List every room and its dimensions. Add descriptions of features (such as a real fireplace or an outside braai area). These help make the property sound more interesting. Also, add information about the surrounding area – schools, shops etc. Make your brochure a visual delight. Put in shots from different angles. If there’s a place of interest nearby, stick in a picture of that as well. When it’s ready, print some copies and post to your would-be tenants. Otherwise send them an electronic version. It’s much cheaper! Again, Le Roux’s website can help you with this. The golden rule is to listen carefully to what the tenant wants – size, location, budget etc. Then suggest suitable properties and organise viewings. A tip from someone in the business is: Always suggest at least two (but ideally three or four) properties to view. That way, you double (treble or quadruple) the probability of getting a tenant. Do this if you can conduct the viewing yourself. A professional, escorted viewing is likelier to get results. But don’t forget to screen tenants carefully. Consider the following tips: 1. Get the right tenant mix. Elderly people and couples with young children usually don’t mix well. 2. Ensure their rent does not exceed 35% of their income. Ask them for a salary slip to verify this. Always get a proof of income. 3. Do a credit check. 4. Get a deposit of at least one month’s rent (but preferably two or three). Also don’t forget to get the first month’s rent upfront. 5. Limit the number of occupants. State this clearly in the contract. 6. Get referrals from previous landlords. 7. Don’t fall for sob stories. Remember this is your business. Managing properties Not every letting agent offers a property management service. However, if you do you can charge 15% commission. This means you’ll deal with problems from the tenant’s side. You’ll also have to inspect the property on the landlords’ behalf (usually every six months). What about the legal stuff? A lease agreement does not need to be in writing. However, the House Rental Act (HRA) lists 15 areas to be covered in any lease. So it’s best to have everything in writing. You can simply download model contract forms off the Internet (e.g. from http://capetownproperty.blaauwberg.net/forms/lease_ agreement_contract.php ). Let’s talk money… Business Idea Collection | Empowerment Programs Conducting viewings and choosing tenants 101 Business Idea Collection | Empowerment Programs What’s amazing about this business is you’re not making or selling anything. You’re just taking your “slice” of a regular property transaction. Let’s look at an example on a house worth R800, 000. • On average, the rental cost is between 0.5 and 1% of the property’s value. • If you charge 10% commission, that’s R400 per month or R4, 800 per year. • If you handle just 10 properties, you’ll earn R48 000. Handle 100 and you’ll bring in R480, 000. • With property management, that income would increase by up to 50%. That means you’ll earn an extra R720, 000. Do the maths! Being a property-letting agent could actually be more lucrative than being a property owner! 102 NEWSLETTER PUBLISHING BUSINESS N ewsletter publishing demands quite a large upfront investment if you want to start making money quickly. However, if you are prepared to be a little patient, this investment can be scaled down. Because of the vast amount of energy, time and money that newsletter publishing demands, it hardly ever gets sold as a big business opportunity. But if it’s a venture you might like to get involved in, be aware from the start that it will probably not generate very much income in the first year. However, it has great long-term potential! There isn’t a set itinerary to newsletter publishing. You could start part-time from home, using just your PC. Depending on how often you plan to publish your newsletter, you can also work in the evenings or just on the weekends. In terms of printing, you could do a home job (print one copy and photocopy the rest) or you could outsource. Apart from using external printers, you can also outsource editorial, database management and admin and call centre businesses as well. To determine your content, you can focus on a particular area of expertise or a topic you’re passionate about. Your newsletter may aim to promote the activities of certain associations, charities or churches. Or your newsletter could be used to promote your new business and so generate more income. The options are endless. So why choose newsletter publishing? Challenges to consider 1. Newsletter publishing demands quite a big upfront investment from you. If you start off your business using direct mail, you need to invest thousands of rands into the idea to get it set up. 2. Getting involved in newsletter publishing is a waste of time unless you focus on a subject you’re passionate about. 3. You need to be prepared to give up a lot of your time. Promotional campaigns, marketing, answering e-mails and conducting research all take time. Looking at the subject of your newsletter If you have a look around, you will see that there is a newsletter to match almost every niche market. Here are some ideas: 1. Business opportunity: While this is an extremely competitive market, you can succeed in it if you find a new angle for the opportunity, for example the Internet, auctions, gambling etc. 2. Hobbies and special interest: These can range from scuba diving to gardening, from rugby to bird watching. Whatever interest you have can potentially be transformed into a newsletter. Business Idea Collection | Empowerment Programs 1. it’s a genuine home publishing business. You can start part-time out of your own study, on your own computer. You can make use of all of the Windows programs: Word to create your documents, Excel to manage your marketing results and Access to keep accurate databases. As you get more advanced, try get hold of Adobe InDesign, this is a very user-friendly program that is excellent at creating documents. 2. You’re completely independent, with no employees. Everything you need, from writing and design to printing and marketing can be outsourced. 3. Renewals, list sales and backend products are potentially huge sources of residual income. 4. it’s not just a once-off thing. A newsletter can be repeated and you can launch an entire series without actually doing more than a little editing on them. 5. The very nature of newsletters makes them easy to produce. They are usually printed only in black, range from 8 to 12 pages and have no fancy pictures or photographs. Newsletters are typical examples of niche publishing, up-to-date news is delivered to readers on a particular topic. This makes it so easy to put together that you can even print and post your letter from home or e-mail it from your computer. 103 3. Health: Here you can base your newsletter either on a particular illness/ailment or you can take a more general look at the health world by focusing on a different illness every month. If you choose to go the health route, you need to comply with advertising standards. Have a look at the Advertising Standards Authority of South Africa’s website on www.asasa.org.za . 4. Weight loss: Weight will always be a popular issue and what with up to 40% of South African females being obese (www.health24.com), you will always have a market for weight loss. You can include diets, recipes and tips from readers. 5. Lifestyle and travel: You can use your newsletter to focus on a particular group of people, such as parents, teenagers or retirees. You can also focus on a certain region, such as Kirstenbosch Gardens or the Pilanesberg. By including features on these regions each month you can draw in people who have an interest in these areas. 6. Charities, associations and clubs: Come up with a fresh approach to the local church’s newsletter or begin from scratch and try to generate donations and income for a local charity. This has worked well with some animal care facilities in South Africa like the SPCA and Animals in Distress. However, you will need to align yourself with a charity organisation that has permission to collect donations. 7. Business to Business (B2B): This is a potentially huge market for success. You can target specific business areas, for example restaurants, law firms and property sellers and provide industry-related information. 8. Research tips: Visit www.statssa.gov.za to get vital information of market trends in South Africa. Get a feel for the top magazine circulation figures in South Africa to find out what publications are selling… and what’s not. The website www.mediafinder.com /provides international circulation figures for newsletters, magazines. Once you have chosen a niche subject, you then need to go about finding a suitable market. 1. Can you find any other newsletters in your niche? If you can, it’s definitely a good thing. Competition is good for newsletter publishing, as it enhances quality and good pricing. Publishers are often also more open-minded about niche subjects that have been done successfully before. 2. Look at available lists: This should be the first step in your market research plan. Look at lists of other publications and reports, as well as people who buy products via mail order that are associated with your niche. Visit: www.cbmdata.co.za and www.directmailcentre.co.za . 3. Check out available magazines at your local bookshop: This will give you a good indication of what topics are in at the moment. The next step you need to take, before you even write one article, is to create a franchise statement. This is a clear statement of what your newsletter aims to achieve and acts as a reference point for all marketing and editorial strategy. Promoting your newsletter Direct mail seems to be the best route to market a hard copy newsletter. It’s expensive and time consuming, but the value it adds to the long-term value of your business surpasses that of other methods. The costs incurred in direct mail include printing, postage, layout, design and mail house costs. The other marketing alternative involves going online. Because of the extensive reach of the Internet, you can now market your hard copy newsletter online while saving on costs such as printing and postage. To do this you can use online forums, Google ads or start a blog. This allows you to draw in a group of interested people who are your potential market. While the Business Idea Collection | Empowerment Programs How to find a market for your newsletter 104 online route is a cheaper option, it does tend to take longer to create a substantial list of subscribers. What you should charge for your newsletter You need to research your market, see what other newsletters there are and what they charge. Discount your fee in the first year to retain your market. Annual subscriptions can range from R1,000 to over hundreds of thousands of rands. Keep yours low until you feel confident enough in your list. If your newsletter is sent out via direct mail, you can use a debit order to charge your readers. If it is online a credit card or PayPal would work. Visit www.mygate.co.za to set up an online payment gateway. Creating high quality editorial Business Idea Collection | Empowerment Programs 1. Keep a file of related articles: These can be newspaper or magazine clippings or articles from another newsletter. These must all be related to your niche and you can use them to see what has been done, what has been missed and what could be redone from another angle. 2. Share your knowledge and experience: Your newsletter is based on a particular niche, thus your readers will be interested in the same things you are! 3. Make use of your subscribers: You can make a reader’s page with their stories and experiences. 4. Interview those in the know: Send questions to experts or interview them and turn it into a story you can use. Or, get them to write articles for you for free by offering free publicity for their product. 5. Keep the readers updated: Include up and coming events and news that relates to your niche. As long as you keep delivering high quality, interesting content, your renewals will make you a lot of money. Once your newsletter is established, you can also start including an insert on recommended products and make even more money. Offer your subscribers a free e-letter as well, as it compliments your hard copy letter and assists in sales of other once-off titles you sell. 105 GREEN SERVICE I n South Africa more than 20-million tons of waste reaches our landfills every year. Through recycling, this waste could be reduced by up to 90%. This means lower energy costs and lower input costs from communities. But recycling also offers a business opportunity that’ll make you money and save the environment. And recycling can be very lucrative. In Dharavi (one of the worst slums in India) a thriving recycling business earns £700-million per year. And thousands of small businesses are turning the waste of 19-million people in neighbouring Mumbai into cash. If they can do it, so can you! The idea – in a nutshell Turn junk into cash by offering a recycling collection service and selling the recyclable materials to vendors. The idea is for you to provide the public with bins (similar to the council dustbins) to deposit their recyclable waste into. (You can sell these bins to clients as part of your service or rent them out for a monthly fee.) Once every two weeks, your company empties the bins. For this service you charge a nominal fee (the going rate is R50 per bin per month). You then sort the waste into categories and sell it to vendors for recycling. • Pamphlets, brochures and flyers that explain your services to clients. They should also explain what types of waste are recyclable. • You’ll need a collection of dustbins-on-wheels to supply to your customers. Be prepared to buy quite a few of these. Resolution Recycling is only 9 months old and already has 1,000 customers (that’s 1,000 bins!). Order these from JoJo Tanks (www.jojotanks.co.za ) or any local supplier. Pick a colour combination that’ll distinguish your bins from the council bins (so there’s no confusion). Resolution Recycling uses blue bins with green lids. • You’ll need to hire staff members to drive trucks, collect and empty the bins, sort the waste, help with admin etc. If your business goes well you could employ up to 20 full-time and 35 parttime staff. • You’ll need a site where waste can be sorted into different categories. Also it’ll have to be stored until it’s sold. Buy skips or large containers to store the different types of waste. Skips can be purchased from any recycling company. • At first you’ll only need a small LDV to transport the waste. As your business grows you’ll need something larger. Trucks can be purchased or hired from companies such as Interwaste (0860WASTE0). They also offer metal and electronic recycling and would offset vehicle rental costs against the material you bring in for recycling. How do you find a market? You’ll need to find vendors for the different types of waste you collect. Many companies purchase recyclables, like: • Collect-a-Can (www.collect-a-can.co.za ): they recycle food and drink cans. • Atlantic Plastic Recycling (www.atlanticplasticrecycling.co.za ). • Cartridge Depot (www.enviro-cartridge.co.za) who collects and remanufactures printer cartridges. • Mama She's Waste Recyclers (www.wasterecyclers.co.za ) that recycles waste paper, waste cardboard, waste plastics, waste glass, used metal cans and other waste products. • African Sky Electronic Recycling (www.ewaste.co.za ). Business Idea Collection | Empowerment Programs What you’ll need… 106 Some materials can be sold directly to the company who prepares them for the end-user. Others can be sold to brokers who market the materials to end-users. Vendors are usually easy to find either in the Yellow Pages or on the Internet on sites such as www.urbansprout.co.za . The economic value of materials depends on how useful they are. There are three elements that are important to vendors namely: Type, quality and quantity of waste material. • Quantity is important because vendors can’t always afford to transport or treat small quantities. • Quality considerations include checking the material is clean, consistent and contaminant free. The material must also meet the vendor’s quality standards. They may even charge you for disposal of some materials. It’s important to focus only on collecting items that can be sold for profit. • Paper: Most types of paper are recyclable. White office paper fetches higher market prices than paper that is a mixture of different colours and types. Vendors won’t purchase any types of contaminant such as glossy paper, tape or envelopes with plastic windows. Sort your paper waste and remove contaminants to get the best price. • Cardboard is great because it’s easily separated from other materials. You’ll need to remove contaminants, flatten the boxes and bale or tie them together. • Glass should be separated by colour (clear, green and brown) before pickup. Some vendors, however, will accept mixed glass. Purchasers require that the glass is clean and free of contaminants (bottle caps, ceramics and rocks). Many don’t accept light bulbs. Broken glass and paper labels are acceptable. • Aluminium and tin/steel cans, aluminium foil and other scrap metal is easily recycled. Some metals (like copper) yield high market prices. Many entrepreneurs hire people to collect empty cans and scraps of metal from public areas. Even from along the side of the roads and motorists. They then sell the scrap metal to dealers and pay the collectors a commission. • Plastic must be separated into resin types. PET is commonly used in cold drink bottles while HDPE is used in other plastic containers such as milk containers. Mixed plastics can be sold to certain vendors who use them to manufacture items like garbage containers and highway barriers. • Other materials that can be recycled include: Plastic bags, food containers, cosmetic containers, electronic equipment, magazines, newspapers, phone books, ink cartridges, toners and batteries. • Hard plastic, sticky tape, chip packets, toilet paper, tissues, waxed cardboard, petrol cans, light bulbs, ceramic dishes, mirrors and leaking batteries cannot be recycled. How to grow and develop your business This business can be run in so many different ways. You don’t have to stick to the domestic garbage route. You could run a small enterprise by employing casual labour to collect cans at traffic lights and then sell those to metal recycling plants. Or you could offer your services to office parks. Collect and sell their recyclable waste to vendors. You could collect and sort all types of recyclables or you could concentrate on one or two materials. Why convenience matters! Now that you have the guidelines use your creativity to design a programme that works for you. An important general consideration is to place your recycling containers in convenient locations. Business Idea Collection | Empowerment Programs Vendors will not pay for all materials 107 Business Idea Collection | Empowerment Programs They should be close to the area where the recyclable material is generated. This encourages people to throw the material into your bins. Get involved in initiatives that educate the public about recycling. This is also a good way to encourage people to support your business and encourage them to care for the environment. There’s no reason you can’t make money while doing good! 108 SCRAP TO CASH Minimum requirements: Transport, some cash, a mobile phone and guts! This is a simple scrap to cash business that could produce enough money to live a comfortable life, if you just follow these simple steps: The opportunity: There are literally hundreds of homes around you that have lots of disused or unwanted stuff taking up space and making their residence unsightly; you can turn that stuff into the cash that it really is, if you approach this smartly. You will also find many mechanical, engineering and panel beating workshops around you that will welcome your service. The offer to Workshops: The workshops will welcome a service that is designed to help them to keep their work space clean and save them the trip to scrap dealers. Offer to collect the scrap and sell it to scrap dealers on their behalf for a percentage of the returns which can be determined by important factors like fuel and metal prices that fluctuate very often. Calculate the distance, labour and time that the job entails and add a small profit to get to the percentage that you can ask for this valuable service. The offer to the private sector: Most people have something that they wish to get rid of at a price and if you can save them the hassle of lugging and flogging the item, you will make money. Familiarise yourself with going rates of second hand goods and offer the client a third of the going rate to ensure a profit and surprisingly, almost all clients accept the offer. Clients usually offer you their ‘broken’ goods for free and if cannot get that old stove, washing machine and fridge repaired, you still have your scrap metal load for free. You can also offer to transport useless junk to the dump for a friendly price. Create a route for your daily pickups from workshops and do a few cold calls to private homes to kick off your new ‘clean-up’ service. Remember to ask for referrals when dealing with people. It is a million times easier and safer to mention a familiar name when approaching a referred client. The outlet: As your business skills improve, so will your profits. Sell your goods from your new FREE website or to second hand dealers around you. Other sites like Gum Tree are fantastic for free advertising. Business Idea Collection | Empowerment Programs Remember to use Free advertising like Notice Boards around you and social networks like Facebook. 109 SOCIAL NETWORK MARKETING An amazing idea that can rake in thousands by using your phone to place companies on social networks for a price. The concept is simple and if you know all the tricks that regular users of the social networks use; your success is inevitable. A very small percentage of companies can afford to employ someone to keep their social networks updated, and those that can, are seeing the returns of their investment. The idea: Offer to set up and maintain social network accounts for businesses at intervals of their choice. Charge an hourly rate, with the minimum fee being for one hour. The present market rate is R200 an hour and that is adjusted by the method that the ‘material to be posted’ is received. If you are expected to pick up material from the business rather than getting it mailed to you, the price will be calculated by the time and travelling costs. The Flexibility: The amount of companies you service will depend on the amount of time you wish to invest. Conflict of Interest. Business Idea Collection | Empowerment Programs Always make sure that you are not servicing more than one client when it comes to any given product, to avoid unnecessary conflict. For instance you should only service one Sports Bar to be sincere. There are lots of different companies to service. Estate agents, Auto Lots, Take-Aways, Hardware Stores and Workshops are a few of the types of companies that will welcome your service. Talk to the owners of stores that you frequent and you may not have to do any ‘cold calling’. 110 START YOUR OWN CARTRIDGE REFILLING AND REMANUFACTURING BUSINESS I f you’ve always wanted to become your own boss, now’s the time because I’m going to introduce you to the booming computer supplies industry. Over the past decade, cartridge refilling has become one of SA’s fastest growing industries. Information technology is the driving force of the business world and all professional South Africans have at least one PC for their business (and most likely one for their home too). Put simply, computers need printers and printers need cartridges, which will continually run out of ink. Make thousands from SA’s empty cartridges… I want you to consider just how much money you can make refilling ink cartridges when I tell you that more than 80% of South Africans throw away their used cartridges and then spend a fortune on buying new ones. Step into the picture and offer the cheaper refill option and you will make your way to success very quickly. Stay away from these scammers… But a word of warning before I tell you how… You don’t need huge capital to start this business, but there are schemers out there who will try to sell you concepts like this one, promising instant success with little or no financial start-up. Don’t fall victim to adverts that don’t give all the details but require you to pay up front for a starter kit. If you can’t assess what you’ll actually receive, don’t pay! While you don’t need specialised training, I have learned that there are a few basic skills you’ll need to get started – like how to choose the right ink or how to unclog stubborn cartridges and how to make professional packaging. And of course you will need the right materials to begin with. Fortunately, ink cartridge refilling is already a popular entrepreneurial business in the USA and UK. The guidelines are easily accessible. You can find books online that give you step-by-step instructions to get started as well as tips on how to do all the marketing. I found a couple of good eBooks online at www.electronicbooks.co.za. If you’re not much of an entrepreneur, I suggest you consider going the franchise route. As I’ve said in the past, buying into a franchise is more expensive but the benefits are tremendous. The upside is that you won’t have to start from scratch and you will be guaranteed help from experienced professionals to get up and running. If you do your research right, franchising also provides access to a proven successful brand with marketing concepts that work and a continual support structure to back you. Just take note that you could need anywhere between R20,000 andR400,000 to finance this type of investment. On the other hand, if you have the entrepreneurial spirit to start your own business, your profit margins could reach as high as 500%! You won’t need nearly as much capital to invest either. Once you’ve acquired the materials and the necessary guidelines, you’ll be set to go. Most ink refill sets come with an instruction manual so be sure to check this is included. Shop around for the best start-up kit prices, for example you could start with www.inkmate.co.za 5 Reasons why you should start this business today If you’ve been looking for a complete career change or even a part-time job to bring in extra cash, here are 5 reasons why I think ink refilling is a great way to make money: Business Idea Collection | Empowerment Programs The simple way to get started 111 1. South Africa is becoming more and more environmentally aware. Any business that is ecofriendly and helps to reduce, reuse and recycle is guaranteed to be a winner. 2. The market is still untapped! The opportunities for you to establish yourself as an industry leader are phenomenal. 3. International and local franchise opportunities can help you get started. This way you will avoid the process of trial and error and the costly mistakes that come with it. 4. The learning curve is a short one. You could be open for business and earning money within a month. 5. This is a business that can suit your style – whether you want to operate from home as a delivery-only service or open a small retail store, the choice is yours. ☞Your ink cartridge contact list Business Idea Collection | Empowerment Programs To get a better idea of what’s out there, have a look at these two existing and reputable inkrefilling franchises and see if they could work for you: The Ink Place www.inkinc.co.za and Cartridge World www.cartridgeworldsa.com . 112 START YOUR OWN CRAFT CLASS A rtisans who want to turn their passion into profit need look no further: Starting your own craft workshop classes will allow you to put your passion into practice and reap the rewards. Regardless of whether creativity or management is your thing, you can earn cash fast. Gentlemen, before you flip over to the next article, continue reading, this one’s not only for the ladies. By the time you’ve finished reading, you’ll see what I mean. You don’t have to teach the craft workshop classes – you can hire people to give the classes while you host them and handle the admin side. Why not supply the location, materials and tools? On the plus side - you’ll get to meet plenty good-looking gals! What’s more, you won’t have to search far and wide for them either – they’ll be coming to you. Kick-start the craft-making If you have a spare room in your home, you can easily start out there. Some of the basic things you’ll need for the workshop room are: tables, chairs, tools such as a hammer or two, a pair of pliers, scissors, flexible wire and glue (adhesive and wood glue). The rest will depend on the type of workshops that you choose to offer. Quick tip #1 Do a spring clean and collect a heap of old stuff that you no longer need. Sort the heap into two piles: a pile of stuff like old boxes and rags that you can use in your workshops and one that you can sell in a jumble sale to make a few extra bucks. Use this money to kit your workshop/room out with certain bits and pieces. How to schedule your sessions Craft corner Whether it’s a decorative wall clock, funky necklace or a wire ornament for your home, there is a broad range of crafts that can interest crafty people. Here are a few ideas of the different types of workshops that you can offer: • Boxes and bag-making • Mosaics • Glass-staining • Découpage • Needlework • Home décor • Wirework • Paper maché • Sand art • Woodwork • Fabric painting Business Idea Collection | Empowerment Programs When scheduling the workshops, you might consider running the same workshops twice so that those who can’t make it at one time can attend at another time. Just visit www.themakelounge.com and you’ll get tons of ideas for potential workshops. You’ll also get an idea of how to schedule the craft classes. Offering short-term classes will appeal to people because it will allow crafters to start at any time during the course of the year, whereas most existing workshops only allow new members to join at the beginning of a new term. You can choose how many people participate in a workshop at any one time. For example, if it’s a box and bag-making class you can have up to 10 people, but if it’s a decoupage class you can restrict it to 5 people. 113 • Bottle craft • Candle-making • Ceramics • Scrapbooking (see my article on ways to make money from scrapbooking for more info) • Card-making Your guide to “instant marketing” You’ll need to spread the word and stimulate interest in your craft classes. Apart from the usual advertising, flyers and banners, a great way to start people talking about your workshops is to have a get-together at your home. Invite a few of your creative cronies and have a craft party. Prepare a fun workshop that your guests can take part in like beaded jewellery or key rings for the guys. Make sure that your guests have a memorable experience by making the workshop as enjoyable as possible. Provide refreshments and finger snacks, encourage networking and send your guests off with a fabulous souvenir. You can bet that if your fellow crafters get pleasure from the experience of crafting with you, positive word-of-mouth will begin to spread. The simplest to source your supplies Another way to market your crafting business is by visiting your local crafts store or hobby shop and getting them to sponsor some supplies to get you started. Formulate a short presentation that includes information on who you are, what kind of workshops you’re offering and most importantly, what’s in it for them. Introduce yourself to the management of the store and pitch your presentation. Explain that you operate your own craft classes and that you’d like them to sponsor a few supplies to get you started. In return, you’ll encourage workshop participants to buy from their stores. Be well prepared with professional business cards and, if possible, a sample of some of your work. The more professional your presentation is, the better the chances of your pitch being successful. You can earn extra cash by selling the supplies yourself. All you have to do is buy the supplies from a craft-supplier and add a mark-up. Remember the more stuff you use in the workshop, the more you’ll sell. From airbrushes and easels to ceramic knives, visit these websites to find suppliers for all your craft requirements: www.sasupplies.com, www.jmdcrafts.co.za , www.paperworld.co.za, www.stellacrafts.co.za , www.artxpress.co.za, www.villageartsupplies.co.za . Hardware stores such as Mica (www.mica.co.za ) and Builders Warehouse (www.builderswarehouse.co.za ) are helpful for buying various kinds of wood, paints and glues. ☞Once your business takes off, you’ll be able to move to larger premises, hire more teachers and offer even more crafty classes, thereby raking in the cash. Business Idea Collection | Empowerment Programs Quick tip #2 114 SUPPLY BABYWARE Discover how supplying parents with inexpensive alternatives can make you rich If you’re a parent you’ll know how expensive baby products are. Everything from food and clothing to nappies and prams are highly branded, often imported and therefore cost plenty. But with a little savvy you can source new, wholesale baby products, manufacture disposable nappies and offer a delivery service of emergency baby requirements and market your specialised service in your area. By understanding the needs of parents with babies, you could offer a unique service that not only helps people but makes you rich too. The time is NOW: A search through the Yellow Pages and on the Internet clearly shows the big gap that exists in the babyware market for cheaper products. By conducting research into which products are big sellers and what cheaper options are available, you will be able to target your stock lines more accurately. Visit a large babyware store and get supplier information off the various products on their shelves. Phone and compare wholesale prices. Consult your friends and family who have had babies about the really essential products needed by parents. Source cheaper alternatives: Most big babyware outlets stock imported goods and offer few local products. Shop around at various plastic manufacturers and wholesalers for cheaper, locally produced items. Think laterally and convert non-baby products into items that babies require regularly, like toweling, soft paper wipes and disposable nappies. If you can sew, you can make baby clothing from home and sell it to baby stores or directly to parents. Get a Brabys Directory for a list of wholesalers, at www.brabys.com . Network where the kids are: Like any business, your new baby enterprise will need cost effective marketing. Start in your area by placing ads in local newspapers, distributing leaflets at clinics and doctors’ rooms. Nursery schools are an obvious point of contact for parents with young families. Look through the Yellow Pages and other directories for paediatricians and ask them if you can put up a poster in their waiting rooms. Strike a ‘profit-share’ deal with these network partners. Put up weatherproof signs in your area and on your vehicle. ☞With a growing population and tough economic times ahead, an effectively marketed business that provides parents with cheap, safe baby products and services will provide savvy entrepreneurs with a great small business – from as little as R5,000 start-up costs. Business Idea Collection | Empowerment Programs There’s a buck-et in poo: Disposable nappies are very much a part of any parent’s baby-care routine. On average, a baby will use between three and five nappies a day. Branded disposable diapers cost around R1.50 each. You could invest in a disposable diaper manufacturing machine (cost from R25, 000) and produce cheaper nappies from home at a cost price of just 58 cents. If you can sell to people in your area and further afield you could realistically earn a net profit of R50,000 per month. Contact Zhauns on (021) 447-3665 or visit www.zhauns.com for more details. 115 THE MIDAS TOUCH Discover a “golden” opportunity to bank an extra R4,000 for 15 minutes worth of work I recently came across an advert for Gold Effects Plater’s and Professional Workshop. I must confess. At first I was suspicious. I thought, “There’s no way you can make real money from this.” So I decided to investigate and I was pleasantly surprised. This is a great part-time venture that costs around R5, 995 to start! Discover why mobile gold plating could be your ticket to a better life! Now, I’ve mentioned that gold plating is creative but you don’t have to be artistic to do this sort of thing. The first time I ever saw it done was some years ago – and I will never forget the experience. It was at a car expo and the person was demonstrating the process on a Mercedes emblem. As the shinning 24-carat gold appeared on the emblem I felt elated! It was pure magic to my eyes. There are literally hundreds of items that you can turn into golden beauties and sell for a remarkable profit. Think of all those second hand ornaments that look old, faded or outdated. A teapot for example – you can find them everywhere in second-hand stores for a ridiculously cheap price because nobody wants to serve tea to their guests from an old, ugly teapot. But add a shinning coat of gold, and voilà! You have a valuable, stunning teapot that will impress even the rich and famous! Or how about cheap jewellery, picture frames, door handles, special gifts – you can turn all of these into desirable must-have pieces! No matter what is happening with South Africa’s economy, people will always love gold. Gold plating is HUGE over in America but South Africa still has a big gap. According to Gold Effects there are as few as 50 independent operators across the entire country! So what does it cost you? The next step is a bit pricier at around R13, 995 but you get the Professional Package with sufficient gold to plate about 3,600cm2. And while it is more expensive, it also offers more of an opportunity to make more money. But Gold Effects offers a complete three-year parts and labour guarantee. Should the equipment fail due to component or manufacturer’s failure they will replace it free of charge. Here’s how to bank R4, 000 for 15 minutes of work… As a mobile gold plater you can offer your service to clients who bring their personal goods to you and then all you have to do is work out the cost of the plating, depending on the size of the item and how much gold is needed to coat it. Or you could plate your own products and sell them in bulk to suppliers. So let’s say you buy 100 stainless steel picture frames that are 20 x 20cm. At R20 a pop you’ll spend R2, 000. Add the magic of gold plating and you can sell them to shops for R200 each! And it shouldn’t take you longer than 15 minutes to do. The Business Development Manager at Gold Effects also gives the example of golden bathroom tap fixtures: “With either the Plater’s Workshop or the Professional Workshop an operative could charge Business Idea Collection | Empowerment Programs Gold Effects offers the basic Plater’s Package for around R5, 995. That covers the unit, all parts and all materials necessary to plate 900cm2 with gold and silver. In financial terms you can recover 80% of your investment with the gold and silver supplied with the unit. This unit is best for small ornamental jobs. 116 between R600 and R900 depending on the geographic location and the size of the units to be plated. The cost of materials should be as little as 5% and a maximum of 10% of the rate charged.” How to find an angle – to get clients flocking! Choose an angle that people will love. For instance – pet accessories are very popular right now. Any pet lover will tell you their dog, cat or parrot is their best friend. So doesn’t their cherished pooch deserve only the very BEST? Gold-plated nametags or collars could be your ticket to fortune. They’re small, so you’ll use very little of your plating supplies, and they’re special, so you’ll be able to rake in the bucks. There are so many different things you can apply gold plating to so your market is literally huge. The key however, is to plate your own products and sell them in bulk to shops. Here are just a few ideas: • Bathroom fixtures, • Picture frames • Cell-phones • iPods • Jewellery • Corporate gifts like business card holders • Household ornaments Buy these items cheaply from bulk stores like www.perkalgifts.co.za and www.alibaba.com . To get started check out Gold Effects on the Business Idea Collection | Empowerment Programs Internet at www.goldeffects.co.za or call them on 084 779 5530. They’re based in Cape Town, but you can set up your business anywhere in the country. They’ll send you detailed information about how to plate using gold, copper or silver over various surfaces including nickel, copper, brass, plastic, wood, stainless steel, pot metal or pewter. 117 TOUR GUIDE There has probably never been a better time to start a tour operating company in South Africa. The government is firmly backing small, medium and micro enterprises (SMMEs) because of their contribution towards job and wealth creation so there is plenty of funding available. Decisions! South Africa is full of cultural, historical and environmentally interesting sites to visit. To start you may want to focus on sites in and around your area and plan your business accordingly. You could offer day trips for locals and tourists or business people on team building excursions. These will be less expensive and easier to arrange than long distance trips so they may be a good place to start. If you prefer, you could offer overnight trips to the many fascinating game reserves, beach resorts and other places of interest in our country. Decide whether you are going to offer food and accommodation or just travel and tour guiding. Whatever you choose, keep your business customer-focused not product-focused. Keep it fresh and interesting, get regular feedback and do sufficient market research to offer something unique and different from your competitors. You will probably need a minibus that seats 6 to10 people comfortably. It should be in good condition and less than 5 years old to ensure reliability. To operate this type of vehicle you will need a PDP (public drivers permit) from your local licensing department as well as the correct code driver’s license for the type of vehicle. The vehicle must be insured (for general public as well as passenger liability), regularly serviced and put through safety checks on a routine basis. Your vehicle license must be up to date at all times. Visit your local licensing department and Provincial Department of Transport to ensure you have all the correct permits to transport fare-paying passengers. If you are planning to cross country borders (Swaziland, Mozambique, Zimbabwe etc) you will need cross-border transport permits from the Cross border Road Transport Agency in Pretoria. The AA website (www.aa.co.za ) is invaluable when it comes to looking up the total operating costs of your vehicle. Be sure to get an accurate estimate of these costs for your vehicle so that you can factor this into your rates. In the South African climate air-conditioning is practically a must. An on-board public address system would be advisable if you are going to make the trip interesting and informative. If you have a bit more capital you could make certain modifications such as extra-wide windows for game viewing and photography, refrigeration and deep-freeze facilities. A CD/radio/tape entertainment system as well as a ‘hands-free’ cell phone would be excellent for long trips and to ensure contact with the outside world. A GPS system could save you the embarrassment of getting lost if you are venturing into unfamiliar territory. For long trips it would be a good idea to stock up on reference books and maps and keep these on the bus, so that all questions can be researched on the spot. Legalities It is recommended that you run your business as a private company. You must be registered with the DTI as well as with SARS. The Companies and Intellectual Property Registration Office (www.cipro.co.za ) can assist you with this process. To operate as a tour guide you need to register with the Department of Environmental Affairs and Tourism (DEAT). You will also need to attend courses with a training institution approved by DEAT. To become a ‘national’ guide you will need to be accredited in all nine provinces. Business Idea Collection | Empowerment Programs Vehicles 118 As a tour operator you need to apply to a Provincial Registrar for registration. You need a valid first aid certificate from an institution accepted by the Department of Labour (e.g. Red Cross, St John’s, the fire brigade etc). Registration costs very affordable and is valid for two years. You need to be trained by an accredited trainer and sign a code of conduct upon registration. Marketing South African Tourism can be contacted for a list of exhibitions providing a great opportunity to showcase your business and increase sales. Networking with potential customers and suppliers at this type of event as well as being active in your community by attending all tourism product-related launches, forums talks and conferences will help you to make valuable contacts. Direct marketing activities can include telesales and door-to-door sales as well as distributing leaflets by hand, by mail, at tourism information offices or in magazines and newspapers. Developing a website for your business will give you great exposure to the overseas market although it is not such a good tool for direct marketing. Be careful not to pay a fortune for a website when a simple free site will do. Consider carefully whether you need one at all before going to the expense and effort. Don’t forget public relations, which is generally cheaper and more credible than advertising, getting your business mentioned in the press can be invaluable. You should list your company on your provinces database and attend the local tourism association meetings. Tourism is a person-oriented business and you need to be a visible part of your business. Rates Your rates will largely depend on the type of packages you decide to offer. Typically tour operators charge between R1500 and R3000 per person per day depending on what is included (accommodation, game drives, meals etc.) The Small Medium Enterprise Development Programme (SMEDP) supports new or existing tour operators with tax free cash grant incentives of up to R3 million. They can be contacted on 086 184 3384. The Industrial Development Corporation’s Tourism Business Unit (www.idc.co.za) finances large capital expenditure in tourism businesses in the form of a loan. The Department of Environmental Affairs and Tourism offers an excellent handbook, which provides valuable information on sources of funding, professional bodies and support instruments for SMMEs in the tourism industry. It is available free of charge, in four official languages, (English, Zulu, Tswana and Afrikaans) from their website www.environment.gov.za . Owning a tour operating company will not only become increasingly lucrative as the number of tourists in South Africa increases, it’s also a wonderful way to get to know this beautiful country and show it off. Business Idea Collection | Empowerment Programs Funding 119 VIRTUAL PROPERTY Do you have the Internet at your fingertips? Are you interested in how people actually make money by running websites? Would you like to make your own boodle using the World Wide Web? If your answer to these three questions was yes, then listen up. I’m going to give you all you need to know about being an online property tycoon! You are definitely going to make money with this one. The more time you spend perfecting it, the more money you’ll make. So let me teach you how you could turn R2, 500 into R140, 000 within the next 12 months as an “online property developer”. Why an “instant website” could make you an extra R140, 000… Right now the website www.calenderworld.com is selling on www.websitebroker.com for $140,000 and all this website offers is a way for users to create customisable calendars. That’s it. And another website: http://moneytalks.awardspace.com/ is on sale for $30,000.00 and all this website offers is advice on how to make money on the Internet – that’s it. You see, there are literally thousands of entrepreneurs who would happily buy your website – just to save themselves the hassle of having to design their own. Also, it can take Google months, if not a year, before it ranks your website high on its search pages. And few entrepreneurs can afford to wait that long. They need a high-traffic, high-ranking website today to market through. And you can give them precisely that! So if you want to make money like that – then I’ll show you how to create your own website and possibly sell it for a fortune... It’s as easy as steps 1, 2, 3 and 4…. Step 1: Get a domain name Basically, getting a domain name involves registering the name you want through a domain name registrar. For example, if you choose a name like “yourname.co.za”, you will have to go to a registrar and pay a registration fee. That means you will get the right to the name you request, for a year. The catch is, you will have to renew it annually for (usually) the same amount per annum. When you sell it that responsibility will belong to the buyer so don’t worry about it. There are many reliable domain name registrars, take a look at a few options I’ve given you below… Now you know how to buy the name, but how do you decide on the name of your domain and the actual site itself? Well, it’s quite easy. Being creative is important, but not too creative. You would want your website to get as many “hits” (views) as possible. Simply think of a few good domain names that you’d like to use. It won’t do to think of only one – it might already be taken. A website that everyone wants to use (e.g. a product site, images, blogging sites and communication networks) to get traffic. You would want to think of a name and a use for the website that will make your site popular. Business Idea Collection | Empowerment Programs This is not going to happen overnight, but I guarantee that the time you spend on it will all pay off in the end. So, let’s get started. The first thing you need to do when starting off is get yourself a domain name. A domain name is the name you want to give to your website. It usually starts with ‘www.’ in front of it, e.g. ‘www.worldonline.co.za’. 120 Register your domain with one of many reliable companies like www.mweb.co.za , www.afrihost.com and www.hetzner.com . Your domain name and your website name and function should all be well thought-out. Visit some of the website brokers I list further on in this article. You’ll see what’s for sale and which websites are popular. Also visit: http://www.alexa.com/site/ds/top_sites?cc=ZA&ts_mode=country&lang=none out what the most popular websites in South Africa are. to find If you think about it, people automatically turn to the website for information so it pays to have a domain name that reflects your site. Take the time to decide on one. Don’t rush into anything. The better your name and site you’re offering, the more hits you’ll get and that means that when it’s time to sell it, you will make a fortune. OK, so let me not get ahead of myself here. There is still so much to teach you about this money maker. The next step involves making the website. It’s all about design with this step! Step 2: Create your website Depending on the size of your website, the website design could cost you between R2, 000 and R9, 000. According to experts from the well-known web-designer house, Go Fish Client Catchers, getting web designers to design your website ensures it’s user-friendly, attractive, has enough content and remains simple. And remember, people like to visit sites that don’t take up too much bandwidth. That means, the simpler, the better. If you don’t want to use a designing company, why not try your hand at designing your website yourself. Try these out: • Fusion Essentials (www.netobjects.com ) • WebPlus (www.freeserifsoftware.com ) • Coffee Cup (www.coffeecup.com ) • EVRSOFT (www.evrsoft.com ) To guarantee a successful design that your users will love, follow these simple designing tips… • Select a colour scheme and stick to it. Focus on consistency. • Use templates. • Provide an easy-to-use navigation system. • Don’t go overboard on special effects. • Use backgrounds. • Provide external links (they create traffic to and from your site). • Content is key. • Make it easy to operate (for your buyer). Now it’s on to the web-hosting step. One step closer to the money! Business Idea Collection | Empowerment Programs • Personalwebkit (www.personalwebkit.com ) 121 Step 3: Host your website After designing your website, the next step is to get it up and running. Now, what you need to do is get your website launched and hosted. It’s not that complicated. This means that you need to find a website host. You can do this by searching on the net. Then you need to choose between using a free web host or to pay a monthly fee. The difference is that most free web hosts impose advertising on your website. This is done to cover the costs of providing your site with the free web space and associated services. Free can actually be quite costly if your site is slow, it’s frequently unavailable or you can’t get the statistics on your visitors. But, it’s up to you. Quick tip: By the way, let me just give you a pointer here. When choosing a hosting company, always check their “uptime” (the percentage of time their servers have been running properly for the last two or three months). However, all computers are machines, so eventually they’ll have problems. So what you really need to do is find a competent company that responds quickly in an emergency. Now it’s on to step 4… Step 4: Sell your website for a profit! Once you’ve got your site up and running, it’s time to sell. Your best bet for selling your website is through an auction website like www.bidorbuy.co.za or through a website broker. Selling websites on auction websites can be very profitable. • Use an appropriate username. • Include the domain name of the website and the cost to own it per year. • Give all details about the website (what type of site it is). • Give the link to the website. • Supply some screenshots with all Social Network icons. (Facebook,Twitter...). • Include details of the hosting and the costs involved. • Price your website high. • Enable Skype contact. • Include an email link for potential buyers to communicate with you. • Show customers your face and tell them about yourself. • Be honest. It’s also a good idea to enlist the help of a website broker. Here are just a few broker website you can list your “virtual property” on: • www.buysellwebsite.com or buysell@buysellwebsite.com • www.selldomains.co.za or queries@selldomains.co.za • www.dealasite.com • www.websitebroker.com • www.webrokerwebsites.com or Business Idea Collection | Empowerment Programs • Offer a contact number for verification. 122 broker@webrokerwebsites.com Now the negotiating will begin. Just remember, as a seller you must stick to your guns. Don’t sell unless you are happy with the terms. Think of an appropriate price. Basically, you will know how much traffic your site is receiving (from your hosting company). The better you manage your website, the more traffic it will receive and that means more money. You could sell your site for between R1, 000 and R140, 000 or even more. You can ask a brokerage company to give you an evaluation of your site. Or you can test a price on www.bidorbuy.co.za. Put it on sale for a fairly high price. Once you start getting hits you know it’s right. Otherwise you will soon learn that you will have to drop the asking price. But remember, until you find the right buyer keep working on the site. Keep up the number of hits it receives to make it even more valuable. Remember these sales tips • Consider asking for an upfront partial payment (50%) and a final payment once the transfer has been made. • Choose a form of payment (cheque, direct bank wire or cash). • Write a formal contract with dates and agreed upon price and have all parties sign. • Define for how long you will provide support. • Don’t forget web hosting, domain names, autoresponders, mailing lists, software, subscriptions, paid directory listings and any of the host elements that might be used by your web business that you need to transfer to the new owners. • Only transfer the website to the buyer once they have paid in full. • Contact the hosting company and tell them that you are transferring ownership. Business Idea Collection | Empowerment Programs Bottom line: When your site is sold, you’re going to be all smiles. You’ve learnt what it takes to build a website and sell it. I have no doubt you would like to do it again. You will now be an official online property tycoon. Next time round you’ll have more capital which you can use and invest wisely. Sure, celebrate a little, have some fun and enjoy the moment, but remember you didn’t get to where you are by spending all your money, you’re not about to start wasting it now. So get right on to making your millions. Cash in quick! 123 WATER OPPORTUNITY Revealed! A unique opportunity to “milk” the coming water crisis… Imagine if two years before the “Eskom blackouts” you’d known it was going to happen. You’d probably be a millionaire today – living off the sales of thousands of generators, solar heaters and the latest light gadgets. Today I can offer you that opportunity. There’s another crisis that’s about to unfold and I know a way you can profit from it... The water report the government doesn’t want you to know about… Anthony Turton of the CSIR recently wrote a damning report on South Africa’s water quality and supply. This report caused him to be suspended – and it’s no wonder why… The report itself highlighted three key drivers that would affect SA’s water supply in the coming years. They are: 1. Dilution capacity: Turton points out that SA’s annual rainfall falls are currently well below the global average. However, our country’s National Water Resource Strategy was developed from the outdated rainfall figures from 1998. And not only are we getting less water than we used to, but our country has already allocated 98% of its water resources. As such we have no surplus water for our fast growing population and a water shortage is imminent. But as if that wasn’t bad enough, South Africa has also lost its dilution capacity. So we’re going to need more sophisticated treatment processes in the future in order to remove the growing number of pollutants in our water. But government, at present, just isn’t supplying the funding for this development. 3. Historic legacy: While it’s clear that these problems will require a change in infrastructure, South Africa simply doesn’t have the intellectual resources to cope with these challenges. For instance, there’s a huge base of engineers who have left South Africa due to affirmative action. And in turn, this has left the areas most likely to be affected by the imminent water challenges (i.e. rural areas) with not enough engineers to cope with coming crises. Turton’s report is fascinating and frightening. But the most frightening thing about it is, the fact that government refuses to accept that we have a water problem. Which means, unfortunately, that a water crisis is a given. And considering today’s headline in The Times: “Cholera claims 32 lives in South Africa”… I’d venture to suggest that disaster is not too far over the horizon. I’ve found the perfect business opportunity for you to benefit from this coming crisis. And I believe this opportunity could make you a significant amount of money. There are numerous water filtration opportunities available in SA, but here’s why I like this company best… • They offer the widest variety of water-related products. Business Idea Collection | Empowerment Programs 2. Spatial development pattern: All our major cities are located on watershed divides. This means that all our waste runs directly into our water resources. And as our cities grow, this waste grows too – making our water much harder to treat. Plus, we face new challenges. For instance, the influx in Antiretroviral drug-use is affecting our water supply. Plus, the levels of dangerous bacteria in our water supplies are growing daily. 124 • They have a good support structure and offer in-depth training with a 14-module course that covers sales and marketing, administration, water science, business cycles, customer service, legal and technical issues. • They’re breaking new records in the hydration industry. • They work on a royalty-free basis. The company is called Eish2o Hydration Solutions. And in a nutshell, they’re directly targeted at solving water problems for individuals and businesses in South Africa. In short, they’re perfectly poised to take advantage of our failing water supply. Here are your options… This franchise has three different areas that you can specialise in: 1. The sale of dispensers and reverse osmosis equipment (i.e. water purification). 2. The bottling and selling of Eish2o™ water in 500ml, 1.5L, 5L and 20L variants. 3. Branded water for corporate gifts, conferences, wedding functions, etc. There are clear markets and great advantages to each of these sectors. Firstly, the purification equipment can be installed for businesses and in private homes. Plus, selling your Eish2o bottled water is equally lucrative. What I like best about the second option is you can generate low-effort, repeat income as you gradually create a database of clients who order water on a monthly basis. I would steer clear from the third option, though, unless you’re able to secure contracts for large corporate functions/seminars. That’s the only way I see this option being financially viable. What you’ll need The franchisor will help you out with most aspects of the business. But it will cost to start up the franchise. Visit www.eish2o.co.za to view options. This covers: • The setting up of the purification system and bottling plant. • Your full training as a new franchisee. • A marketing pack with equipment. Other things you’ll need could include basics like access to the Internet, a bakkie for deliveries, some staff members. The bonus is that this is one franchise option that does NOT require you to pay royalties. In my opinion that’s a good way to operate. How much you could make The income you generate will depend on how much you put into the business. And the profits should only increase as SA’s water supply starts to run dry. ☞Don‘t wait for the crisis to hit before you make money from it. Act now and you’ll be perfectly placed to profit when disaster strikes. At the moment Eish2o has franchise “territories” available all over the country – but I’m sure they’ll be snapped up fast, so grab this opportunity now! Business Idea Collection | Empowerment Programs • The license territory. 125 WEB HOSTING Grab blazing hot profits with this clever webhosting opportunity It’s no secret that the Internet is BIG. There are millions to be made – and every single day the figures keep growing. You just need to know exactly how to tap into these millions (and that’s precisely what I’m going to talk you through in a moment!). With rapidly increasing competition in all business sectors, there couldn’t be a better time for you to zoom in on web-based business. I mean, businessmen aren’t fussing about competitors who open shop in your neighbourhood anymore. These days we need inter-continental telescopes to keep track of the global business development. Fifteen years ago, people thought the Internet was a techno-trend that would never last. I’ll admit that I had my doubts at first – the entire concept seemed too far out. In reality, the Internet has been almost entirely responsible for the growing “global village syndrome”. If you want to retire rich – keep reading… The only way not to get left behind is to get on board today. Of course you want to be in the big league! If you want to generate extra money – real money – then stick with me and I’ll show you how with 3 easy steps! The key word is EASY. At this point you probably think starting a home business using the Internet is something only IT nerds can do. But in fact all you need is some computer knowledge, a bit of marketing sense and the will to turn your dream life into a reality. You really don’t need an MBA certificate to understand web-hosting. A business that wants to get its website on the Internet needs a web host. There’s no other way around it. That’s why I believe web-hosting presents the perfect opportunity for you to start your own business. I’ll fill you in on the profit margins in a second, but let’s get through the basics first… I’ll put it in plain simple English. A web host is a company that has web servers hooked up to the Internet 24/7. A web server is a computer that stores and uploads web pages (i.e. websites) to the Internet.So when you search for a website, a request is sent out to the net to find and download that website to your computer at home. Think of it like this: just as businesses need office space in a building, websites need space on the net. Of course, storing web pages costs money – money that you can earn! That makes you a cyber landlord who collects monthly rent from businesses that need web space. OK, so here’s the deal Like I said, there are just 3 things you need know in order to get started. I’m going to take you through them step by step. Step 1: You don’t need to buy a web server. The best part about web-hosting is that you don’t need to invest in expensive technical equipment! A web server is a highly specialised computer that stores the web pages and makes them available to everyone and anyone surfing the net. Business Idea Collection | Empowerment Programs What exactly is web-hosting? 126 Obviously you can choose to buy one if you want to go the technical route. But then you’ll have to cover all the technical requirements as well – such as installing a cooling room to store the server (these machines must never be allowed to overheat), dealing with ISPs (Internet Service Providers) and covering hefty bandwidth charges. If you still want to, a new web server will cost between R30, 000 and R200,000, depending on memory capacity, speed and size. Then it needs to be configured with Linux software (the stuff that makes web-hosting possible). Linux will cost you a once-off fee of about R1,800. Forget it! There’s no need to spend in excess of R32,000, because I’ve got it down to a fine art that cuts out 98% of the start-up cost and allows you to get right to the money-making point. What do you need to do? You simply need to get connected with a hosting reseller. This is the behind-the-scene guy who sees to all the technical aspects – hosting resellers deal with setting up bandwidth, creating website templates, registering domain names, running web servers and providing technical support. They sell you a complete white label setup (i.e. hosting packages without any branding) for a fixed price. You then add your own branding and sell it to your clients. I highly recommend Hosting Reseller SA (www.hosting-reseller.co.za ), which offers one of the best reseller services in the country for just R495 per month. They configure, monitor and manage your web hosting service – all that’s left for you to do is to get out there and make the sales happen! (An extra helpful hint – take a look at the design and layout of their website. It is user-friendly and attention grabbing. Keep this in mind for your own website. Check these out as well: Site Zone (www.sitezone.co.za ) Paradigm Solutions (www.paradigmsolutions.co.za ) Ample Hosting (www.amplehosting.co.za ) Hostworx (www.hostworx.co.za ) Rack Space (www.rackspace.co.za ) In fact, make sure you visit Hetzner because you’ll find lots of helpful information and I would go so far as to say that these guys are right there at the top of the success chain! Step 2: Identify your market Right, so we’ve established that it will cost you as little as R495 per month. I’m sure all you want to know now is how much it will make you each month! For a start-up entrepreneur like yourself it’s best to target the lower-end and mid-level sectors of the market. You can differentiate yourself from more established companies, by offering more competitive pricing and more personalised, quality service. High-end clients will require sophisticated dedicated applications. Over time you will be able to build your hosting portfolio, but for now stay focused on the broader sectors. Spend time browsing through webhosting sites on Google to see what works and what you find appealing. Business Idea Collection | Empowerment Programs Hetzner (www.hetzner.co.za ) 127 I suggest you set your long-term goals on the high-end sector. Why? Well, Andrew Burns from one of the top IT companies, Dial-a-Nerd, revealed to me: “Web-hosting is a matter of economies of scale – that means it’s one of those businesses where if you had just five generic clients from the lower-end market, you’d certainly be losing money each month. But if you attract a few hundred clients, then you’ll be making the kind of profit that’s worth the effort!” How much you could make… It costs you R500 per month to buy a white label reseller package that caters for the lower-end market. On the other hand it costs you around R1,000 per month to cater for the middle to upper target market. This is what your earning potential is per client if you have just 100 clients: Now that is the kind of cash you should be bringing home to start with. As your business grows just think about your earning potential! I can’t stress enough how important it is to identify potentially profitable niches to base your business on. This will dramatically increase your chances of success. Study your chosen niche closely and figure out all the ways and methods of attracting business from that particular niche market. An example that most people completely overlook is the non-profit organisations. It’s almost as if the word “non-profit” steers entrepreneurs right past this niche. Don’t forget that non-profit organisations are always funded by large corporations. Part of their funding is put aside for administration. So just because the organisation is not out to make a profit, it doesn’t mean that they don’t pay their service providers. Whichever market or niche you choose, here’s what I think you should do: while you’re finding your feet, stick with generic web-hosting, make sure your prices are competitive and attract as many potential clients as you can. Once you’ve established your business make sure you tailor your service to include the exclusive high-end clients. There are hundreds of web-design templates available for free downloading on the Internet. And as I already mentioned, hosting resellers usually offer free templates as well. I have used www.openwebdesign.org in the past without any hassles. And they offer templates specially designed for the purpose of web-hosting. It’s so easy; all you have to do is add some text and a couple of images! So as I mentioned, web-hosting typically costs your clients between R100 and R400 per month. The price tag increases based on the number and type of services your clients would like to use. Visit www.afrihost.com to see an example of the services you can offer. You’ve got steps 1, 2, and 3 under the belt. But I’m not finished just yet! I still have 5 blazing hot tips to guide you toward a seriously successful web-hosting business: 1. Get there first Reach your potential clients before they register their chosen domain name. It’s a lot harder to convince someone to transfer their website account than it is to catch them before they even get started. My trick is to use other forms of advertising to attract business. Print flyers; post an advert Business Idea Collection | Empowerment Programs Step 3: Design your web-hosting website 128 in your community newspaper and, most important, secure advertising on domain registration websites like www.dotster.com . 2. Charge less to earn more Set your prices below those of your competitors. Don’t skimp on service though. Offer top-quality hosting, a money-back guarantee and enough options to cover the needs of all your prospective clients. 3. Practice makes perfect It takes at least 6 months to get any new business off the ground. Think of this period as mandatory training and don’t expect huge earnings until you’ve educated yourself. Most important, don’t give up! 4. Leave your card Get business cards made with all your contact details (name, telephone number, email, and website URL). Leave your business cards wherever you can – at the barber, the dentist, with your mechanic, and at any other small business you support. 5. A friend in need is a friend indeed Tell all your friends, family and acquaintances – nothing works better than word-of-mouth promotion. Offer a few of your friends free hosting to kick-start the process or make a deal in which they get free hosting if they bring you five clients. Business Idea Collection | Empowerment Programs ☞Like I said, you don’t need to be an IT nerd to make it in web-hosting, but knowledge is money. So, keep focused and ALWAYS keep learning about the Internet. 129