|Small Business Information|
Increase Profits With a Small Investment of Time and No Money
The less a business pays for goods and services the more profit that business generates. How does a small business with limited purchasing power get access to lower cost goods and services? The answer is simple. Pool the purchasing power of many small businesses to increase the purchasing power of each individual business. The implementation of forming a buying group can take lots of time, money and resources. Most small business owners have little of these buying group ingredients.
The concept of many small to mid-size businesses joining together to form buying groups has been around for a very long time. The implementation of the concept has only been available for a few years. Just about all of the national buying groups that have started operations in the past five years are no longer in business. I will tell you why many of these buying groups were not successful later in the article. Some of the few surviving buying groups have formed an alliance that offers their members access to greatly discounted pricing with a total of 37 national vendors. The Hospitality Buying Group was the first national buying group to offer a FREE lifetime membership to any business in any industry. This group recently started the Hospitality Buying Group Alliance which offers free lifetime memberships to all the national buying groups in the alliance. The only investment the business members make is the time to compare the prices of the alliance vendors against what they are currently paying.
By now you are thinking that all of this sounds too good to be true. If the Hospitality Buying Group Alliance gives away lifetime memberships then how do they make any money? If the members are not a revenue stream then the only other revenue source must be the vendors. The vendors pay the buying groups commissions on all purchases made by their members. There is no risk for the vendors because they only pay the commission after they have been paid by the buying group members. The commissions are very low so the maximum discounts can be offered to the business members.
Some credit card companies, like American Express, offers a small savings or a percent cash back reward to their customers for using vendors in their network. While saving 2 ? 5 percent with credit cards is good, a 10 ? 50 percent savings with buying groups is much better. Buying group members will only be contacted by the alliance vendors they select. As the buying groups get more established more vendors are interested in offering their services to group members.
If the concept of the buying group is so good then why do most buying groups fail? Most of the failed buying groups spent a few hundred thousand to over a million dollars just to get the buying group started. To make matters worse they have large operational expenses. This is going on at the beginning of the buying group's existence while the group has few vendors to offer potential members. To keep the group functioning they need to charge members $500.00 - $10,000.00 annually to join the group. With few vendors the members can only expect to save a few thousand dollars annually. Many small business owners are not willing to take the risk of purchasing a membership in a buying group that may not generate significant savings. This results in few buying group memberships sold. The buying group can't pay their operational expenses resulting in reducing the sales force. This results in decreased revenues and finally the buying group ceases to exist.
The successful national buying groups that make up the Hospitality Buying Group Alliance were all started with an initial investment of just a few thousand dollars and thousands of labor hours by just one or two individuals. Their operational expenses in the beginning were just a few hundred dollars a month plus lots of labor hours by the owners. As the buying groups grew the revenues were reinvested back into the buying group. The use of technology reduces the operational cost of the buying group. This approach results in a successful buying group with a positive cash flow. This information should put potential members at ease because they know the buying group will be around for a long time.
This is a very special time in the history of buying groups because this is the first time an alliance of buying groups has ever been formed. With the free lifetime membership, total freedom to select one or many alliance vendors and a growing alliance of buying groups makes this the best time to participate in the buying group alliance. You can which national vendors the Hospitality Buying Group Alliance offers by going to: http://www.hospitality-buying-group.com/.
Paul Buisson has been involved with buying groups for over 12 years. He has consulted with several buying groups to make them successful. He can be reached at 985-727-2992 for free advice.
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Employee Induction - Are you Inducting your People - A Practical How To
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Small Business Opportunities And The Tens
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Practical Money-Saving Tips For Small Businesses
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Macon, GA goes after garage-gas station conversion detail/hand car washes for allowing storm drain pollution. I can remember a time when we were in the Macon GA. we stopped and talked to be head of the DEP and showed them pictures of people polluting after someone complained about our company we knew it was a competitor. They looked at the pictures and then looked us in the eyes and said "we do not want any problems around here, you must be from somewhere else are you from California?" we said yes, we were from California, but that makes no difference, because you are not allowed to pollute anywhere in this country no matter where you are because the NPDES permits requires that you follow EPA laws.
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Going Public: Now that You Have Successfully Made the Transition, What Do You Do?
Ok, you have successfully accomplished your dream of being the CEO of a public company. The stock of your company has a symbol and you are continually going to the computer to check the price, you tell all your relatives and friends and you even tried to encourage them to buy the stock.
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There is much competition in the mobile auto detailing business. There are two different lines of reasoning emerging as to how the business should be run. One is go for volume and discount and wash the world. The other is go after the high end customer which is 10% of the market, do exceptional work and charge as much as the market will give. These two principles are the reason for a war between mobile auto detailers and mobile car washes. Mobile car wash companies are often seen washing the Honda car for the single mom in an office complex. While the auto detailers would not touch the car unless she was a total babe and they thought they might get a date out of it.
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When you awoke this morning, you found yourself buzzing with a fantastic idea for starting a new business and you hadn't a doubt in your mind that you could turn it into a huge success. But now what? All those great ideas floating around in your head and you're excited about making them happen, but at the moment you don't know where to begin. What is the first thing you should do as you contemplate your plan of action?
Keep TRACK of your Business Relationships and Gain Profits
How do you know when an alliance needs to be monitored and tracked?
Where Can I Get Clients From?
The following tips have come from a wide variety of sources; some from other successful businesses we know, some from our Home-Based and Small Business Support Group meetings and some we've developed by trial and error.
Buy a Flower Shop: Serious Considerations
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Small Businesses With Work Trucks; A Warning
If you are a non-operator owner of many work trucks, you should keep your business credit card with you not leave it in one of the trucks. You should not issue them to employees without strict guidlines. Employees may tend to abuse credit cards by buying things that are not an emergency such as tires that are over priced instead of simply plugging a hole in a flat or spraying fix-a flat into the valve stem.
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