Posts Tagged ‘profitable’

Are pet stores a good business?

Thursday, November 13th, 2008

Question from a reader: “Are pet stores a good business to get into?”

My answer: In this current economic market I would say no. While people can say that dogs, cats, birds, reptiles, amphibians and fish are man’s (and woman’s) best friend, the financial realities have not been kind to our animal friends.  There have been a lot of cases where people have lost their houses and as part of leaving their debt behind they have also left behind their dogs and cats because they cannot afford to take care of them anymore.

Leaving animals alone outside to fend for themselves after they’ve been domesticated isn’t a good idea.  Wild dogs and cats forage for food and are hungry like any other living creature and it isn’t fair to them.  Here in Southern California, the wild dogs join packs and it is not unusual to see half-dog, half-coyote packs running around late at night or very early in the morning.  There isn’t enough food in the mountains for the critters so they come down to feed wherever they can.

If you are already in the pet store business?   If you already are in an established pet store, my guess is that some business is doing steady – like specialized pet foods and certain seasonal items (cat and dog sweaters?) but a lot of novelty items probably aren’t selling.  Maybe you have had to trim store hours or staff. 

As a reminder (which isn’t lost on store owners), people who have a hard time taking care of themselves or their children shouldn’t be allowed to have a pet!  A clear example also of people not knowing what they are getting into is when the Dalmatian movies came out and everybody wanted Dalmy pups.  The problem is the pups are kind of nutso and skittish and a lot of them got returned the day after a birthday.  Parents should research what they are buying to prevent anguish for both the kids and the animals later on.  But I am getting off topic here…

For specialized markets like pet stores that only sell purebred beagles, etc there may be a steady market but like everything else I suggest that they are having problems with sales like you and I are.

Like any other business that has a storefront, if you do decide to go into business, even though the economy isn’t great, see if you can get some decent terms and a few months (if not a years) rent for free or at a lower cost. 

Remember that some suppliers have minimum orders as well and you may not be able to afford to keep your store stocked in everything that you might have wanted to in your planning stages.

Just use caution if you decide to go ahead with the pet store business. If you love animals it might be fun but remember that both you and your four-legged friends, winged and finny pals have to eat and they can’t eat if you don’t have the money to feed them.  Having critters go belly up on you just isn’t profitable.

 Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Are pet stores a good business?

What sells on the web?-prelude

Wednesday, November 12th, 2008

Question for Kim:”In your experience, what sells on the web?”

My answer:   Anything and everything can sell on the Internet if there is a market for what you are selling, the price is right and people are aware that you have products to sell.  I can tell you what doesn’t sell:

1.   Books or seminars about how to get rich off of the Internet.

2.   The same type of books and seminars (or videos) except they talk about making millions blogging.

3.   Any kind of short term investment system with day trading.  A lot of people have lost their life savings trying to make money shorting or betting that their stocks will recover and go up.

4.   Pyramid schemes or Ponzi schemes where the way you are suppose to make money is to get people to sign up and you make a commission off of things they sell.  People don’t have the money for experimenting or risking that they are on the “ground floor” of these schemes and frankly, a lot of them are illegal.

Things that do sell:

1.   Anything to do with people’s hobbies.  People always find money for their hobbies.  There will be a contraction with the depression/recession we are in but people still will find cash to get things they really, really want.  It may be collecting model cars, comic books, certain types of trading cards, it doesn’t matter.  People find money for things they want.

2.  Self-help books or videos that actually teach you something.  Word-of-mouth helps get the product information out and people do listen to their friends and relatives if they like the same things that they do.

3.  Things that have to do with pets.  That could be a subset of item one but pet products sell very well over the internet.

4.   Baby or children’s clothes if they are priced right sell well.  Parents are always looking for inexpensive fashionable items for their kids.

5.  Things that can really save money or labor for a person.   The profitable things that sell are things that can add minutes or hours to a person’s day so they can do the things that they want for items one thru four.

6.   Anything that you are passionate about that somebody else share’s the same passion.  You may not make a lot of money selling books on worm farming but for people who are into conservation with their gardens or the environment, you may make some sales.

My suggestion though is to be different and get involved on the manufacturing side as well.  You will be helping out the economy and actually providing something for the economy if you can.

If you are doing well selling on the web – and please no instant fortune scams or schemes, drop me an email and share your success story and I will post it on my blog.

I will try and get an occasional series going with this if there is interest in it. I am trying to prove a point that even in down economic times people can still sell goods and services and make a profit and even a living at it. If you can help prove my theory one way or another, let me know!

 Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

What sells on the web-prelude?

Deal Or No Deal Could Mean Meal or No Meal

Monday, November 10th, 2008

Question from a reader:”Kim, so which is it with Deal or No Deal?  Would you take the offer or go for the case?  I figure I’d ask you in case I went on the show.”

My answer:  I am honored that you are asking my opinion.  To be fair, I think it has been covered pretty extensively over the last few years but in case you haven’t been reading about it, haven’t looked for it or don’t trust the television show itself, I will go over the math results with you.  There has been a lot of controvery and a lot of what I gently call, “bad math”.  It boils down to what amount would you feel comfortable receiving and at what point do you put greed aside to make a year or maybe several year’s income (maybe less after income taxes) in one sitting. 

Can you really actually win the big money?  Sure, it is possible, though not probable.  If you feel lucky, you follow your heart.  If you are feeling confused, let me throw some numbers and profitable common sense at you and you can make your own informed decision when you make it on the show.  Factor in that even if you walk away with “only” $10,000 after taxes that could still be around $7000 and that could cover a few rent or mortgage payments and leave some money for some salads, steaks, hamburgers, tacos, ice cream sundaes and/or french fries.  French fries with ice cream tastes great!

 

1.  You start out in the average “Deal or No Deal” game with 26 suitcases with the following amounts. We aren’t talking about the specials where they jack up the amounts.  The same math can be adjusted to handle those cases as well if you are fortunate to get on the show.

$.01           $1000
$1              $5000
$5              $10000
$10            $25000
$25            $50000
$50            $75000
$75            $100000
$100          $200000
$200          $300000
$300          $400000
$400          $500000
$500          $750000
$750          $1000000

Note:  The EXPECTED VALUE at this time, if no cases are opened is about $131,477.54.    That is the the average dollar amount remaining in the cases.

The formula for calculating the expected value is:

Expected Value (x) = (.01 * 1/26) + (1.00 * 1/26) + (5.00 * 1/26) + ……..+ (1,000,000 * 1/26)

Please feel free to do the math yourself and if I am off, let me know and embarass me in my comment sections!

2.  Each turn, if you accept a deal/offer from the banker that is generally less than the average dollar amount you are considered by some as a ”weakling”.  Considering though that even several thousand dollars can change your lifestyle, especially in the recession/depression we are in right now, I don’t buy into that philosophy.  Math people would tease you as well as the studio audience into “going for it-it is a once in a lifetime chance” but the reality is that you need to live and eat.  I know your friends and relatives are yelling at you but think through what you are doing (and good luck trying to do that with the lights, the screaming and the audience rooting you on).  It probably is a good idea to read and review something like this before you actually get on stage!

3.  If it gets towards the end of the game, if the banker offers you a sum of cash that is greater than the calculated average dollar amount, you shouldn’t even think about your choice, you should take the cash and run-unless you got a telepathic message from God in which case please ask Him (or Her)  what He (or She) is going to do about things down here for us, would you?  Only you know how well your intution works for you and if the universe actually communicates well with you.  For those of us who don’t receive clear cosmic messages, please don’t pass up a sure thing for a gamble.

4.   Human nature is such that even knowing the statistics, YOU have to make the choice if YOU want to take a hopefully slight gamble, depending on the offer from the banker.  Nothing beats getting a sure thing though.

5.  Also, if you are at the final point and there are two suitcases, you have a fifty-fifty shot of holding one or the other.  People who tell you to switch no matter what aren’t doing their math correctly.   It doesn’t matter earlier what the odds are of what was in the cases when you first picked the suitcase.  When you first pick the case you had a 1 out of 26 chance of getting the big money.  Let us say that the last two cases are yours and one other.  One has $500,000 and the other $400.  It doesn’t matter if you keep or switch.  Really, it doesn’t.  You have the big money case or you don’t at this point.  Either decision you make gives you a 50-50 shot of getting it right or making the wrong decision.

If the banker offers you $275,000 though I would take it!  The math is easy, here, huh?  That is more than half of what the sum divided by two is.  The problem might be if you are greedy and your friends and relatives are screaming at you that you are for SURE going to get the half a million bucks.  We generally and statistically see how well those decisions turn out (ugh).

Ah,and don’t forget to put at least at third aside of your winnings to cover income taxes.  I know that is on the high side but you won’t remember about it later on in the heat of the moment of winning.

So, if you have any other game show related questions as well, drop me a line and let me know how it works out for you if you make it on the show!  In the meantime, enjoy this image of french fries without ice cream.

Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

Kim talks about Deal Or No Deal sometimes determining Meal or No Meal

Is Bill Collecting Profitable?

Sunday, November 9th, 2008

Question from a reader:”Do you know anything about the collections business?  Is there any money in it?”

My answer is:Yes, there is money in it.  Usually a lot of it though is owed to somebody and they are having a hard time getting the debtor (the person or business entity that owes money to somebody else) to cough up the cash.  At a certain point, the business or person who for whatever reason didn’t get paid decides that they are tired of trying to get the money.  They may write it off as bad debt and then outsource it to a third party to try and collect the money due in exchange for a percentage of the debt. Let us say that you owed a credit card company $1000.  You could not pay it off and the credit card company wrote off the bad debt.  They either “sell” the debt for pennies on the dollar to somebody else or they look for somebody to try and collect it for say, $100, or whatever the going debt collection rate is.

There are rules and regulations that you have to follow if you are trying to collect bad debts.  If you violate the rules and harass the people that you are trying to collect from, you can get into trouble, get fined and in some situations some jail or prison time depending on how gung-how (and law disregarding) you are being.

You generally get the debt information, the last known address and information from the client and you usually are trying to find out where the person ran off to.  The technical term is that the person “skipped out”, hence you are skip tracing.  Clever, yes?

You would need to track the person down and start sending him, her or them letters – and the letters have to be drafted a certain way- asking for the money that is owed.  If you end up telephoning the debtor, there are strict time guidelines and things you can and cannot say.

Suggesting that the person “cough up the dough or you will send Big Jim over” sounds impressive but is not allowed.   Let us say that like a lot of other businesses, the marketing press sounds great but the reality is that it is a dreary,tedious job and a lot of leads go nowhere.   If you were trying to collect money from the man in the image, you would be hard pressed to find on any cash on him- though I love his hat and socks.

Start up costs vary and it depends on what state and city you live in.   As a rule, you will also be dealing with a lot of people so you better be a “people person”.  By people person I mean that a lot of people will be screaming at you, threatening you, treating you like you are a monster and if they aren’t hanging up on you will be running away from you.  Good times, huh?

If you seriously have the chops and want to try this, there are guides and seminars but beware.  There are a lot of scams out there because this was touted as an “easy way to make money”.  It is work – very hard work – and the rewards for it aren’t great unless you are doing a huge volume.  It tends to get competitive. You also might be dealing with desperate people. Larger debt collection agencies tend to make money. Perhaps you may want to try and get an internship with one of them and see if it is the right business for you. Just remember that in any business there are people who are good at what they do and others who aren’t quite as good at it.

If you don’t do it right on your own, you might end up like our friend in the picture!  Got any more questions or comments?  Let me have them!

 Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

 

Kim Isaac Greenblatt answers the question, is bill collecting profitable?

Too Late For Gold

Saturday, November 8th, 2008

Question from a reader: “I think I am too late to cash in on gold.  What do you think?”

I think that if you are looking for a short term quick turn around of money, you are right, this isn’t the sort of time for gold to have any drastic changes.  There is a retrenching and revisiting to paper currency and for the short term, barring any dramatic news events that might cause spikes-but you can’t factor that in comfortably as a profitable indicator-if anything, gold may be flat for a bit.

For the long haul, that is a different story.  Eventually we will come out of the deflationary situation we are in.  As a commodity, gold is scarce and even now it is tough to find people who will sell you the actual gold you can take possession of without some kind of cash premium on it.  The next question is when will we come out of it and go back to inflation.  I have no idea and despite what fnancial analysts may blog or quip – they don’t have a clue either.

There are gold bugs (people who are great believers in the power of gold as a currency and who lament the loss of gold backing currency-something I somewhat share at times) who feel that now more than ever you should be loading up on actual gold. 

Honestly, at this point, if you are looking to put a small portion of your portfolio, I am not inclined to put anything in gold mines.  I would look for actual gold or funds where you can actually know if there is gold there (for full disclosure-I own some shares of CEF).  If you opt to take ownership of actual gold, make sure whoever you are buying from you can trust.  I would research the heck out of them and try talking to actual people who have bought and taken delivery of the gold.  The next step is to find somewhere safe to store the gold.  Doghouses, treehouses and under the bed generally shouldn’t be your first choice.

I am not a financial advisor and I don’t even play one on television.  Due your own due diligence and remember that when you see the peaks and valleys of commodities like gold or oil, remember that people are reacting on what they think the future might bring.  Your tolerance for risk and how much money you have behind you should be factored in. 

For the immediate future, I will go on record restating that cash is king for the time being.  If any business opportunities present themselves, if you have cash, you can jump in.  A lot of profitable events have happened because people had the cash at the right place at the right time.  Remember that during economic downturns there are a lot of bargains and opportunities.

Also, in case you are interested, here is a $100,000 gold note that use to be used for transactions between banks.

If anybody has any of these lying around that they want to send me, I will be happy to take them off their hands.  For the good of the economy, of course.

Always open to questions and thanks for asking!

Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

As of the writing of this article,  I owned shares in CEF.

 

Too Late For Gold?  Kim Isaac Greenblatt says it depends.

Here, We, Go-Vote!

Tuesday, November 4th, 2008

Here in the United States, it is time to quote the Joker from the Dark Knight Returns movie and say “Here, We, Go” to which I would add a hearty “Vote!”.

This is the big election, the big deal, the culmination of years of preparation, some would say financial pain, emotional heartache, grief, joy and it all boils down to one three letter word.

Y-O-U.

If you haven’t voted with an absentee ballot make sure that you plan on getting the polls early if you can.  There are expectations of record numbers of people coming to cast their ballot.  If you have any special needs requirements, make sure you allow plenty of time to get to the polling place and to get inside safely and comfortably so you can cast your ballot.

Here in America, it is a privilege to vote.  Those who end up in jail don’t get the right to vote (well, they shouldn’t unless there is something funny going on).  Of all times in the last few years, and for the next few, this is one of the more critical elections that you should be voting on.

If you haven’t taken a look at national or local issues, please take some time to read the promotional information and as unbiased info as you can get.  This is a time to seriously think about what you are voting for.  Your decisions will affect not only the White House, but our nation, our Supreme Court (the President nominates the judges if any seats open up), Congress (the President can introduce legislation), and our status as a player in the world economy.

If you have special needs or care for special needs people, re-visit the candidate’s position on funding and care.  There is a lot at stake and over the last few years there have been more cutbacks in programs for special needs then the addition of cash.

Some may argue that the President cannot do much.  He may have to move slowly, yes, but it is the ability of a President to take what is given to him and work with it.  If he is able to rise above the situations around him he will be remembered as a great leader. 

Make sure that you understand local issues as best as you can also.  In a lot of cases, the local issues will have a more immediate effect on your situation since some bond issues or taxes can affect you within months if the issue gets passed. Do whatever you can do research it as best as you can. You don’t want it to be too much of a risk.

My best to all of us here in the United States.  Keep saving money, watch your spending, remember to hug and appreciate those around you who are important to you. The cliche that tough times don’t last but tough people do is very true. A hello to my international readers and we will get back to business postings and discussions soon.

To a bright, profitable, happy and healthy future for us all!

Practical Money Making-Surviving Recession, Layoffs, Credit Problems, Generating Passive Income Streams, Working Full Time or Part Time and Retirement

Kim Isaac Greenblatt

 

Here, We, Go, Vote!

A November To Remember

Saturday, November 1st, 2008

Welcome to November.  This November is going to be a November to remember at many levels.

The American and world economies are reeling from financial issues and are starting to get a handle on how to get a handle on making their people and nations profitable again.

It seems internationally every nation has been hit with one catastrophe or natural disaster (some countries got hammered several times with different issues-flooding and earthquakes, for example).

People are trying to hold onto the things they have and take care of their loved ones, people with special needs and friends.

Oh, yes, we have this little thing going on called the American presidential election going on as well. 

Events that are taking place now may not have an immediate effect on our daily lives but rest assured that a few months, even a few years from now, whatever actions we have taken now will have reactions later on.

Start implementing your own plans to make this a November to remember.  Please don’t wait for new Year’s to make any resolutions.  Do it now.  Start making money now.  Start saving now.

Putting off seeing a doctor because you can’t afford it?  Find the money and take care of it now.  If there are critical things going on in your life, please take the time to do it now.

Use the psychological downtime that the world is going through for reflection as to what you want to do with your life and what you think you can do to help the world around you.

If you have special needs or are caring for somebody with special needs, take a minute and take an inventory of what you are doing, what you are getting and what you need to plan for.  Expect that there will be change in the near future and sometimes change isn’t easy.

My thoughts go out to all of us and do what you can to make this a November to remember!

Kim Isaac Greenblatt

Make this a November to remember!

Changing Drought to Big Dry

Monday, October 27th, 2008

As a follow-up to my last blog on exhaustion of resources, we get news from Australia.

My thoughts and prayers go to the people of Australia.  Australia has banned using the word “drought” to explain why there hasn’t been a lot of rain lately.  Weather conditions all over the world are in a state of flux – which is a thirty dollar word for “change”.  Because so many farmers are in trouble because of the bad weather (families are having to split up to find other work, some are possibly suicidal, etc)  the government figures that it would make things easier for them in dealing with the global climatic changes by letting their people what is going on and trying to remove situations which would result in people going out of control.  It is never pleasant when segments of your society are starting to meltdown due to environmental or economic conditions.  Governments have been established to help their people.  The international news media and bloggers have picked up the information and are letting the world know what was said.  How does this relate to business?

Changing words has often been used to introduce concepts or situations that aren’t going to well accepted.  In the 1980s, the word “firing”, was changed to “downsized” and then to the equally goofy word “rightsized”.  When I read words like that I think of McDonald’s shrinking the size of hamburgers or candy bar companies shrinking the size of Hershey bars down to “fun size” – those are the sizes of candy that you would normally throw out after you ate a “super-sized” candy bar.  Sometimes changing words works and sometimes it doesn’t.

Changing the words may help get some of the tension away from the situation but what is more important is the second step that they are doing. The Australian government  is trying to get the farmers use to the idea that they are going to be in for tough times and act accordingly.  What does that mean for them as business people?  For some families that have been multi-generational farmers, they may have to learn other vocations and it is tough for older people.

For some cities that have agricultural revenue, times will be tough for awhile.  This is similar to what happened here in the United States when we went through our Dust Bowl in the early 1900s and families had to move to where they could get food and employment because the farmlands were drying up.

Here in America we are going through some tough times as well with the financial meltdowns, problems we have had with hurricanes, tornadoes and tension over our elections.  The government has stepped in to help their people.  I am sure Australia is doing the same.  Loss of one’s population isn’t an option.

The take away is that people and their government have to work together to try to get through this and in the business world you have to change sometimes whether you want to or not. 

Best of luck to us all!

Kim Greenblatt

 

You are reading Kim Greenblatt’s blog, profitable.

Exhaustion of Resources

Saturday, October 25th, 2008

Question from a reader:”I’ve heard about exhaustion of resources, what is that about?”

My answer is:

What do you do when you run out of oil, money, gold, wood or any resources in a business?  You look for other sources of resources or substitutes.   You hope that you can get the resources at a reasonable price or else you have to raise your prices or seriously think if you want to stay in business.  If you take a look at any types of small businesses, they mirror governments and big businesses.

Let us say for example that you make wooden tables.  You set up in a lush forest a house and you start making wooden tables.  They get to be pretty popular and everybody from the village starts to buy your tables.  Other craftsmen see that you are making money with your tables and set up houses near you.  Pretty soon, business is great and there are more craftsmen near you and you end up using all the wood from the forest.  No problem, you start getting wood carted in from a nearby forest.  The problem is that it starts to cost a little more so you start to raise your prices just a bit.

A craftsman in another town sells tables cheaper than you because he hasn’t exhausted his forest yet.  People start to go there.  What can you do to compete?  You need to find a cheaper source of wood to make your tables with.  So you start working deals with other places to get cheap wood in exchange for some free tables.  You can lower your prices a bit.

Now, let us add another layer.  Let us add a marketplace that actually places values on your wood and causes the value to go up and down.  You may go this marketplace and buy promises or futures that the price for wood will be fixed at a certain point to guarantee that you will have wood to make your tables with.

Now, suppose that there are other buyers and sellers who sell imaginary shares of bundled futures of wood and they ultimately have to make due at one point or another and buy the wood they are claiming they own or sell wood that they own.

Let us now assume that everybody has enough wooden tables.  People don’t need as many anymore.  Your inventory of wood starts to grow and you have to drop prices to start moving tables.  Your competitors do the same and some of them go out of business because they can’t pay their bills. 

The preceding example was an oversimplified one but that pretty much sums up the marketplace for resources.  Prices, unless managed by market makers, tend to adjust based on supply and demand for goods and services.  Once a resource is exhausted, some sort of cost has to be expended to start getting fresh resources, or to research new ways of making tables (maybe stone or plastic instead of wood).

Kim Isaac Greenblatt

The profitable blog talks about exhaustion of resources.

International Sales

Friday, October 24th, 2008

Judging from the emails that I get, a lot of people in other countries read my blog.  Today’s blog is for my readers in Europe, Asia, South America, Africa and within that the UK, Turkey, Russia, Japan, Norway and anywhere else I have missed.

I get emails with questions about how to get more international sales whether it is actually selling something, offering services or even getting somebody from another country to click through to their website.  The bottom line is are you selling a good product at a good price.

If people can order your product or service, get it in a timely manner, find that you did what you said you would or that the product works, that is it.  As I am fond of saying, there isn’t anything magical or supernatural about it.

When people order my books on tax preparation or money management (which deals with how to get jobs and what to do if you are laid off),  they can see samples of my writing style and they generally know what they are getting into.  The problem with dealing with people in international sales is sometimes you don’t know what is on the other side of the ocean, or shipping costs are prohibitive, or there is sometimes problem in the delivery method.

It is up to you as the seller to insure that the supply and distribution chain that you are using is a sound one so that you can get your product to your customer or client.  Anything else than that will result in a bad deal for both you and your customer.  Sure, you might make a sale but if you lose repeat business or word-of-mouth is that you aren’t a good place to get things from could kill your business.

Another problem is that if you have failed to do adequate localization, you might not be understood.  Localization is a fancy word for tailoring your sales, your business to what the people in your target audience in their part of the world expect to see in their advertising and you need to insure that you don’t use any slang that might be considered offensive, cultural references from another country that don’t make sense, etc.  Have you ever watched a television show from another country and even if you understand the language, get some slang that doesn’t make sense?  Even watching some tv from the BBC here in the US I have to think about what was said, jot down some notes and research what some of the slang is to get some jokes.   A lot of video games go through localization because some nations don’t like the level of violence in a game so the game producers have to tone down or remove or redo certain aspects of games.  Same holds true with movies that are R rated and need to be edited with PG scenes.

Well, either that or stop watching BBC.

Test marketing is a good idea as well and if you know any people that speak the language or know the country you are selling to, it doesn’t hurt to ask them for help.  People all over the world will forgive you if you don’t get their language straight in speech or print if you are trying to communicate with them.

In the meantime, hello to all my readers and friends from around the world and thanks for reading!

Kim Greenblatt

You are reading the profitable blog about international sales.