But the worst has yet to come, particularly for small businesses and consumers like you and me. The federal minimum wage, previously at $5.15 an hour, went up to $5.85 last summer, and this summer, starting on July 24, will go up to $6.55 an hour. And next summer minimum wage rises to $7.25 an hour.

Don't get me wrong. I'm all for people making a living, and Lord knows with the way the prices of everything has gone up, one can't make it on $5.85 an hour. But the effect won't be marginal, but widespread on the way we currently live.

As the minimum wage goes up, so does the cost of a $5 value meal at McDonalds. You think Adriens or Piggly Wiggly or Wal-Mart or Albertsons or Winn Dixie or whomever isn't going to pass that cost on to me and you.

Put any business in the blank space here ____, and the cost of goods or services from that business is going to go up starting July 24 this year, and next.

I don't have the stats right in front of me, but I know generally, since we got over the oil bust of the 80s, the economy red line has been going up, with one major exception, and that is wages.

People, particularly those on the lower portions of the rung, will make more money. But they also will be spending a whole lot more of what they earn. Particulary if they want to go fishing with a box of worms.

For the changes that have taken place in businesses over the last many years, a valuable resource seems to have been forgotten, Industrial Engineering (I.E.). Today's popular concept of Lean seen as Lean Manufacturing, Lean Management, Lean Enterprise, and Lean Principles is widely used because of its effectiveness in eliminating waste and its positive impact to a company's productivity. A little know fact to many, is that the Lean approach is heavily based on Industrial Engineering principles. If Lean is a great thing then perhaps Industrial Engineering has something to offer as well.

I.E. offers a wide range of skills permitting the understanding of an entire operation and the relationships of the different groups in that operation. For this reason, I personally had been approached for the position of General Manager at the specific request of a company for an I.E.. Specific skills of I.E. are used in Lean, and other skills of I.E. support Lean within the different departments and functions in an operation. It's a great one-two combination which is not commonly known.

Lean eliminates waste and promotes efficiency; I.E. does the same and goes one step further to scientifically look at the waste and determine the impact of removing it. The old idiom “Throwing the baby out with the bathwater.” is apropos. An informed look at changes to systems, methods and product costs can be eye-opening.

I.E. has historically been charged with the responsibility of being the bridge between Finance and Production/Manufacturing, where the costs of a product are generated. This is for a reason; that I.E. once again, has the skills to understand where the financial figures originate in terms of processes, materials, production, machinery, and infrastructure systems. In fact it is I.E. that studies all these aspects of an operation to determine the inputs to calculated costs; a great companion to Finance. It is called scientific management which has been around for a hundred years.

For small and big businesses, missed opportunities often show a cumulative behavior. I have seen missed opportunities range in the scale of hundreds of thousands of dollars.

Without an I.E. using the skills of scientific methods in an operation, you are left to wonder what is really happening and what is not. People are busy with the mandates of their function and their specific goals to meet; who is looking at how it all comes together? The I.E. if there is one, or often no-one if your enterprise has forgotten I.E.

These skills are not isolated to manufacturing companies but are applied just as effectively to service providing companies and any enterprise which adds value to a product or service through activities.

Remember Industrial Engineering and keep your eye on the ball to manage opportunities and maximize profits.

If you are the owner, the story can be a little different. Most owners live in or near their bed and breakfast. This can be a part of the hidden costs of a bed and breakfast. You can never really be away from work. It cost you more than a week's profits to hire someone to take care of things when you need a vacation or become ill. To be profitable, the B & B has to stay relatively booked most of the year, and you have to be the primary source of labor.

You will need deep pockets to afford to survive the first year unless you can raise the money to buy a thriving B & B. That will cost you premium dollars. Like most new businesses, a bed and breakfast has certain initial costs that cannot be circumvented. You have to buy or build a building that will adequately house your business.

You probably will not find a large house with 5 or 10 bedrooms that someone will rent to you for a hotel. It also needs a large dining area and a kitchen that approximates being commercial. This size building is not normally free. You will need a large pile of cash to get this place. Plan on a payment unless you are sinking a lifesavings into to buy it outright. Either way, it is a financial risk. If you can avoid a loan, it will leave you more breathing room in the profit margin. However, it might create cash flow problems later it you drained your cash reserves too low.

If the kitchen is not already up to health department standards, you will need to make extensive modifications to bring it up to par. The equipment needed can be very expensive. It would be wise to do your homework before laying out the money for the house or building. You may have to install special sprinklers or other fire related equipment also. An exterminator will have to be kept on a retainer to make sure that the bug population stays low to non-existent.

You will have to buy food. There will also be the potential for a lot of food to be wasted. This will be by guests, overcooking, and spoiling because you overbuy. Pots, pans, plates, flatware, cups, etc. will all have to be purchased before the first meal is served. Spices, storage containers, table coverings, and furniture are also big cost items. This is just for the breakfast part of the deal.

Each of those guest rooms has to be adequately decorated and furnished if you want customers to stay the night, return for future stays, and tell their friends to come to your establishment. The televisions need to have a good signal from cable or satellite. This will have a hook up cost and a monthly fee. The utilities have to be on. This means deposits and pay ahead costs on the first bill. Most of these costs will hit before one cent of revenue is makes it to the cash register.

If you want guests, you will need to advertise. This will be risky at first because you will have to advertise as though you are open before you actually are. The advertising will force you to finish preparing to open by a set deadline. This deadline can create costs because you may not be able to shop for bargains and open on time, too. If you want to fill up from the beginning, you will need to finish a room or two to have pictures for the ads. You will have to spend for advertising in several types of publication and probably pay to have a website established with plenty of keywords to get into the search engines.

You will need a hard surfaced parking area because most travelers today are not very understanding about walking in mud or gravel. You will need to pave about twice as many parking spaces as you have rooms. If you sell breakfast to people who do not spend the night, you may need even more spaces.

Laundry is another key area. You need to be able to keep up with all of the sheets and towels that are soiled by the guests. You will need about three times as many towels and linens as you have beds to start. More is better. Depending on your physical condition, you may need help to make up rooms and do the laundry. There will be training costs before you open.

A good rule of thumb in opening any business is to estimate the costs and double them. You will need to plan on a slow ramp up on the business. It may require up to three months before you business is steady. Not planning for this will only guarantee that you will not have enough cash to hold on until a profit can be made. Do not forget things like bookkeepers, computers and software, and other fees that may arise like building permits for construction and modifications.

Being your own boss gives you control over your time, money, and a lot of perks. Wouldn’t you love to pick your own hours? Be able to work around your kids’ schedule so you don’t have to pay a babysitter or so you can attend school functions? Not have to answer to a boss and be able to stay home if you are sick or the weather is bad? Best of all make as much as you want while still being able to write off things like your vehicle, computer, supplies, and much more.

There are many businesses out there that promise to make you tons of money but they want you to invest in their parent company and then you are expected to sell their products or get others to invest in their business. In the end you do all the work and if your lucky enough to sell whatever your cut is minimal, not the tons they claim.

So this is a way for you to be in the money, do something you like, and control your time. So Read on and I am sure you will find something that catches your eye and makes you say, “ I can do that and make money?!”

I will try to give you as much info for each business that I can and the rest is up to you!

One word of advise before you start reading though, Don’t be afraid, jump in with both feet, give it one hundred and ten percent, don’t back down, think positive, and most of all don’t give up, you can do it!

To start any business I first suggest you take at least a business start up class at a local community college. Here you will learn how to set up books, to register and get a state business license, what you can use for income tax write offs, and other things needed to start your endeavor. There are more classes for small businesses offered but this is the most important I feel. If you don’t want to do the school thing you can get books from the Small business division in your state. They are listed in the government section under State, then under Small Business. Call and ask them to send you a packet that explains the how to’s of starting a business in your state. They can also tell you how to get low interest loans to start up if you need help. In this info you will also learn how to set up your business as a self proprietor, a limited liability co., or others.

I also suggest that you find an accountant to work with so you don’t write off things you can’t and miss things you can write off. You can pay them to do all your books or you can do them yourself and have them check them quarterly or at the end of the year have them do your taxes for you so they get done right. Income tax is so much more complicated when a business is involved so this is important. And remember this is a tax write-off in itself.

Also once you get started make up some cheap business cards that you should leave everywhere you go and put on every bulletin board you see. Also flyers are a great way to get the word out in certain areas you want to work. Say you have two jobs in close proximity and want more, flood that area around with them for better exposure. You can always put a small ad in a local paper or service type paper. Another good place for some jobs is at the local senior centers, they are always looking for help in many areas. Make sure to tell everyone you know about this new thing you are doing and again hand out those cards everywhere!

Remember the more business you get the more you will make. Your goal is to get to a point where you can or have to say I am totally booked with the time I have to give. Make sure you don’t let your business take over your life. Set boundaries such as devoting this much time a week to this business and stick to it or it can and will take you over. You can always expand by hiring people to help but keep an eye on them, don’t lose control of your business. Make sure people working for you represent your company in a positive way.

Some of these businesses are ones you can start that take a minimum amount of investment. Others may take bit more but you should be able to make enough to pay your start up investment off in the first year.

1. A Lawn Mowing Business

   Not just for kids anymore! This business takes a minimum amount of investment, especially if you already own some equipment or if the people you contract with have equipment you can use. One thing I do suggest though, is if you take on very many yards invest in a self-propelled mower. If you want it get into it deeper you can buy a rider mower and do large yards, fields, or sometimes you can even contract with parks. In the fell depending on where you live, you can make a killing cleaning up leaves and cleaning out flowerbeds And let me tell you this is a good work out job! No extra working out is needed.
   
   Bare amount needed is a mower, trimmer, and blower. To move this equipment you can use a van, truck, or small trailer. All equipment, vehicle, and gas used is a tax deduction.
   
   There are many people that need this service. The elderly, people who work full time, and realtors that need to have property maintained.
   
   You charge per yard and a minimum for your area is easy to find by contacting a couple of other companies and asking their prices. Put out flyers, let yourself be known at senior centers, advertise in the Thrifty Nickel.(Good money, good exercise)

2. Yard Grooming Service

   This is a great job for people who love to garden and weed. You can do this business with or without mowing. The equipment is extremely minimal. Small rakes, shovels, hoes, and gloves. This is a great job if you live in areas where grass is not found. I have some friends living in Arizona around a retirement community where they clean yards that have rocks, cactus, etc. They make a killing because these people all want their yard to be the best looking!
   
   There are many people out there that either can’t, don’t have time, or hate yard work but want beautiful yards.
   
   You can charge per job or per hour that is something to work out yourself or with your client. Flood areas with flyers. Contact senior centers, put ads in papers, pass out cards and flyers, and check with Realtors.

3. Trimming Bushes and Trees

   Most people have no idea or refuse to trim bushes, grasses and trees. If this is something you do well you can make a bunch of money because people who can’t trim but like their shrubs groomed are willing to PAY to make them look good. This business takes hardly nothing to start up. Trimmers (hand or electric), some tarps, and trash bags.
   
   Make and put out flyers on homes with shrubs especially unruly ones and wait for the calls.
   
   This is a business you can make a lot at if you are good at what you do! (My husband does this and can name his price)

4. Housekeeping

   Do you love to clean and are good at it? This is the right job for you! There are millions of people that hate to clean and are willing to pay well to have someone else do it. This is a job that you can bring your own supplies to, let the client provide them, or a combination of the two.
   
   You can offer a variety of services(windows, deep cleaning, laundry, etc.) or be a basic cleaner. Just remember the more you do the more the pay. You can offer an hourly rate and have set pricing for extras.
   
   I would recommend to get bonded for this type of job not only for your own welfare but also it helps your client to feel comfortable having you in their home. Bonding is something you can find out how to get done through your state and works like insurance. It assures the client that you are not going to steal from them. Again contact senior centers, advertise, and put out flyers.(can be interesting/ good money)

5. Painting

   Are you good at painting walls and not messy? Do you have a knack for doing all the new and exciting wall techniques? Can you free paint murals or stencil well? Then this is the right ob for you. Many people can’t paint well, hate it, or don’t know how. This is where you come in!
   
   For this job it is better to bring all your own equipment because it is easier to paint with things you are used to. It is also a good idea to bring along some samples of different types of techniques and pictures of places you have painted. See if you can advertise at paint stores, and all the above mentioned ideas.(fun, good money)

6. Dog Walking

   Are you crazy about dogs do you love to play with them, and do you love to walk? Why not make money if this is your passion. There are tons of people that live in apartments and condos and own dogs. A lot of time these people have such busy schedules and don’t or are just to lazy to take their dogs out. They are willing to pay you to do this for them.
   
   You can take one dog at a time or be brave and take out a herd, that’s up to you and your client. Also how your charges run is up tot you, too.
   
   Easiest way to find clients is to advertise in condo, apartment, business, and grocery lobbies. This is another job I recommend being bonded for. Advertise at Vets, dog parks, and pet stores.

7. “Taxi Service”

   Drive a taxi you say? No way I say. I am talking about shuttling people from place to place. There are so many elderly people that have no means of getting to a doctor’s appointment, the hairdresser, grocery store, etc. They would rather pay a person driving a private car that they can chat with than to call a cab or ride a bus. Also offering to take people to and from the airport is a smart thing to offer. This job can become overwhelming if you don’t keep to a schedule. People prefer being dropped off and picked up at the door instead of having to wait for a shuttle bus, RTD, or a cab. With this job you can make as much in tips as you charge. I have a friend I set up in this type business and she has hired two more helper drivers to keep up and is making serious money.
   
   This job takes someone who loves driving, talking and helping people. You can multi-task this job by dropping off one client and going to get another while that one is being taken care of. Remember with this job the more personal you make the more you will make.
   
   A great place to find clients would be a local church, office buildings, or senior center.(interesting job)

8. Delivery Service

   Almost like the above except you are moving things in your vehicle instead of people. You could do grocery shopping for a shut in, pick up take out, things from the cleaners, and so on. I have a neighbor that started a delivery of take out food business. He picked ten restaurant in his area and talked to them about letting him promote through them with flyers. He now has 10 drivers delivering and he just coordinates the whole thing form his home.
   
   This is a great job for anyone who likes to drive and doesn’t have a problem talking to others. Your charges can be hourly, by mileage or a combo of both.

9. House Watcher

   Do you like being in other people’s houses and don’t mind sleeping in different environments? This would work for you. It entails you either going by daily when the client is away and watering plants, gardens, animals, picking up mail, and whatever they need done. In some instances you are asked to actually stay at the home while they are gone. This is a very adventurous job and needs to be taken on only if you are able to be alone in strange places. It is not a job where you can take your girlfriend/boyfriend, husband/wife, child or friend with you to. Talk to travel agents about letting you advertise with them. And this is another job that you would need to be bonded.(fun job)

10. House/Animal Sitter

    This is a job that requires sitting. You go to someone’s house and wait for the cable man, furnace fixer, appliance repair man, etc. Some people even want someone to stay with their pet a day or two a week. There are many people that would pay you to stay there and watch or wait so they can get things fixed or their pets can get attention and still be able to go to work. They don’t want to use their precious comp time to wait and this is good for you especially if you love to read, knit, or watch TV. Not many jobs where you can get paid to do things you like. Also a job that needs you to be bonded. This business takes minimal investment.

11. Antique/Collectible Seller

    Do you have an eye for antiques and collectibles? Do you have many items you would like to sell? This is a fun and interesting to make money. You can either sell the items on online auctions, sell at flea markets, rent space in an antique co-op booth, or go all out and rent a building to sell your precious items. It just depends on how much you have and how deep you want to get into it.
    
    It can be a very lucrative business if you know about how to buy low enough to be able to sell for a profit. This is a business that requires a good eye and a lot of knowledge. This business takes a bit more investment but is not as physical as some of the jobs listed above. Best bet for getting an inventory together is yard sales, flea markets, and second-hand stores. Get a bunch of things together before starting and remember to keep buying!

12. Clean-outs

    What is a clean out you ask? Simple, it involves cleaning out garages, attics, houses, etc. People hate to do this! But if you find going through tons of stuff as fun this is for you. And the big benefit is sometimes you find something great! You get paid per job or per hour and a lot of times you’ll find things you can resell or you can also recycle things for extra money.
    
    There are many elderly, people moving, and spring cleaners also Realtors and landlords that are in need of the house clean out service. If you live in a area where there are a lot of foreclosures this can turn into a goldmine because the banks will usually pay well to get these places back on the market asap.
    
    This job takes a strong back, will and sometimes a strong stomach, but you can make a ton. This job works best with a truck and a trailer but you can always rent a dumpster to be brought to the location (just remember to add the rental price into the total you charge.) (Good money in this!)

13. Daycare/Preschool

    Do you love kids, have kids of your own, a big child friendly space and have patience galore? This is the business for you! Many people prefer the homey type daycare to the big business ones.
    
    This is a great business if you have kids of your own and need to make some money but either can’t afford daycare or don’t want to put your kids in one. Check with your friends and family to see if they or their friends are in need of this service. I watched many fiends kids so I could stay home with my own and enjoyed it immensely. You can even micro manage this job by watching only a certain age group. You can also make it a lets play and have fun place. Or do creative things like learning things, doing art, etc. and making it into a preschool with shorter hours and setting it up for certain age groups at specific times.
    
    Many states require a license and have other rules involving running a daycare in your home so be sure to check all this out before starting this up. The lady that did my girls preschool made a good living, had her summers free and was loved by all who used her, thus bringing her in more kids each year. (never a dull moment)

14. Catering

    Do you love to cook and create great foods? Do people tell you your food tastes exceptional? This is something you can start and run from your own kitchen! You don’t need anything extra to start this job and you can write off your income tax part of your home, cooking utensils, public service, appliances, car, and many more things.
    
    To start make up some samples and take them to local businesses in office buildings, or go to trade shows for weddings, home & garden, etc and show off your goodies. This is a business where samples will work better than flyers. Offer snacks for meetings, sack lunches, or full out catering for parties, receptions, luncheons, and so on.
    
    This job is not one that is always going to work on your time because you need to deliver your at the times they are needed, but you can get help from someone you trust and build their pay into the cost of the job.
    
    Take a cue from Monica on the show Friends. Start up is nothing, because you probably have it all already.(gets creative juices flowing)

15. Cake Decorating

    Can you decorate cakes or have you always wanted to? Here is something for you to turn into your own business. I would suggest that before you start this business you should take a class or two on decorating to learn the secrets. The price you pay for these classes will be a deduction when you start your business.
    
    For clients to start off approach family and friends. Most people would rather pay someone they know and trust for a “personal” cake than a store. Make sure to give them business cards to set by the cake for advertisement. If you want to expand into wedding cakes make sure you sign up for the wedding trade shows, show your products to planners, and see if you can advertise a boutiques.
    
    This business is not as easy to make your own hours as the others because they involve getting cakes to places at specific times you can always pay someone as an assistant to do deliveries you can’t just build that cost into the cake.

16. Pooper Scooper Person

    This sounds like a crappy job and it is but it’s a money maker. No one likes to clean up after their pets so they will pay you to do it for you. I know it sounds like a horrible job but hear that after awhile you become de-sensitized and smell nothing. You don’t have to touch anything and just need a rake and shovel. You can wear your mp3 player while working and get loads of exercise. I don’t know how else to pitch this one, except I have been told people pay bundles to have their poop picked up. So at least give it a try!
    
    To promote this one go to vet’s, pet stores, dog parks and hand out cards and in papers.( Just remember...Good money) money.

17. Wedding/Occasion Singer

    Is your singing voice amazing? Do you love to sing? Then go forth and sing! This is a great business and can be fun, too. You can set up to sing at weddings and parties or if you want to be creative become a mobile singer. Then you can deliver balloons, flowers, or whatever while using those magnificent chords.
    
    This business can be promoted with flyers at party stores, wedding shows, karaoke places, or start an online website. If you are good and promote yourself well you could even get to travel. (My cousin did this and made enough to pay for college)

18. Meal Cooker/Meal Preparer

    Are you good at making meals and enjoy doing it? This is a relatively new business area and could become potently a huge one. Many people work and don’t want to or don’t care to make dinner. So they go though a drive-thru and grab some fast food wishing they could have a real meal. That is where this business comes in! You make those good to eat wholesome meals for these people. You offer ones cooked for a bit more or ones that they just need to pop in their oven.
    
    You can do a delivery service or make them come to you. Offer a weekly menu with a couple choices or a certain meal each day. You can make up many meals at one and freeze them. There is so much potential to this business that it could become one where you will need to hire help!
    
    Advertise in business newspapers, lobbies of office buildings, churches, and leave business cards everywhere. (Two friends are doing this and now it is huge)

19. Presser/Steamer

    This is a hot one! But if you love to press or steam women out there will love you and be willing to pay you to do it for them or their corporate husband. Cleaners charge an arm and a leg while leaving scorch marks, creases where they don’t belong, and missing buttons. The human touch is always better. Office lobbies, bulletin boards, and word of mouth will promote this business.

20. Window Washer

    This is a great business and you don’t ever have to go up high. There are so many businesses, apartments, and even houses that pay to have their windows cleaned. I know one woman who started washing a couple of tire stores and now does over 25! It takes a long brush, a pail, window cleaner, and along handled squeegee. There are classes you can take to learn the art of window washing, but that would be a decision you could make. It could be a fun and exciting way to make a living. To drum up business go around and give free demonstrations.

21. Voice/Instrument Teacher

    Are you a good singer or play instruments well? Then this is a good way to make a living. Kids in any type of music are always trying to get better. And many of them want to get to the highest level, or they are told by their teachers that they must take outside lessons to get to a higher group. I know my daughter is in that position and when I checked into a voice teacher the prices are quite high! And what’s more they all seem to have a waiting list!
    
    This is one that I would promote through schools, theaters, and churches.

22. Truck Caterer

    These are the people that have a catering type truck that they drive to businesses with prepared food to sell the workers for snacks and lunches. I have a friend that makes her own sandwiches, burritos, cookies, etc to sell and has a huge following. But if you don’t want to be that involved you can buy pre-packaged food, it sells well also. You have to invest in a truck or van, but it is a tax write-off and a small business loan can help you out here. You then need to set up a route, and take flyers to each business to let them know what you will sell, prices and a time you will be there. It can be a fun business and profitable, too

23. Event Planner

    I have a cousin that plans weddings, proms, birthdays, etc. Are you good at planning and setting things up? Then you can do this too. There a so many people out there that can’t or won’t take the time to plan these type of things, you would be amazed! She started with her daughters prom, when no other parents wanted to help. From there she was approached by many parents and teachers for help planning things for them, and hence her business started!
    
    You can approach this with flyers, business cards at places where people go for wedding things. Or you can do shows such as Home and Garden, Kid Expo, Wedding Expo, etc. This is a fun job because you get to dream through others eyes and spend money that is not your own. Being a person that has a calm persona also is a big help.

24. Ebayer For Others

    Do you eBay and do it well? Do you have time to keep up with actions you are running and answer questions in a timely fashion? Do people always ask you to help them learn to EBay or sell things for them? This is a great job for you, then. I was always having people ask me for this help and I finally decided to make it a business. I will give lessons on how to eBay but now I charge a fee for the lesson and any additional help I charge for, too. If they just want to have me eBay their things I charge an up front fee and also take a 10% cut from anything that gets sold. I make them write their own descriptions and set their own prices. I will take pictures for them, which I also charge a fee for. If they want me to take care of the mailing part, I charge for my time. The one thing I don’t do when I eBay other’s things is list it under my account. This is because if someone sells something that is not as they represent it or they decide to take care of the mailing part and it doesn’t get out in time, I am not getting the bad feedback.
    
    You can make a great amount of money doing this but I do suggest that you make up some type of contract that you have them sign for each thing you sell and have them pay their fess up front.. That protects you from getting stiffed, stuck with things, or whatever else comes about.
    
    You can promote this through family, friends, churches, and so on. You can do this with only people you know or if you know what you are doing you can offer you services to anyone.

25. Tow Truck Driver

    This is a bigger investment type job in the beginning BUT it will make you a good living. This is a more physical type job than the ones above. There is certain ways to hook up cars and the best way to learn this business would be to work for someone for a bit. Once you learn, though you need to invest in a tow truck of your own because why make someone else rich? Your best advertisement is your business name and phone number on your truck.
    
    You need to realize that this job will require nights and weekends to make the bucks but it only takes a few hours and your done. If you want a real challenge and a good income this is what you want to invest in. This business will also take extra insurance and check with your state because they will tell you anything else that is required. This is one business that you would want to check into a small business loan.

26. Vending

    This is another of the bigger investment type jobs and this is a very physical if you are looking at doing soda pop. But you can invest in the gum type machines instead. Either can bring you a hefty income depending on location and the amount equipment you have out. Small gum machines are something that won’t take a lot of time, don’t have a lot of repairs needed usually someone gets a coin stuck.
    
    The bigger machines take more time, can have a few more problems at times but yield a better income. You can go out and find locations and machines on your own, you can go through a vending placement service, or you can find venders that are selling in the paper.
    
    This is a great business but you need to put back 50% of what you make to cover restocking and any repairs that come along. You need to fix things right away in this business or else you make no money and you loss clients.
    
    This is my main business and I get a lot of clients this way. This business takes a friendly, conscientious, strong person who is willing to work all types of weather. You can work this business with a truck, van, or trailer and some coolers to get started. A small business loan would be a big help for this one, too. This job can make you a good living as long as you remember to make your clients happy.

There should be enough diversity and information above for you to go out and become a small business person and with time and perseverance you can turn your business into a big one. Just remember you have to jump in with two feet and don’t get discouraged.

If you need to make more than you are when you start up or need to have someway to get insurance, you can always work somewhere part time until your business gets so big you have to devote full time to it. There are many insurances that are set up for small businesses so just check in the yellow pages.

Please don’t forget to check with the Small Business Bureau in your State Government index and order a packet to start your own business.

It is a big step to go out on your own but if you really want to work for yourself you can do it!

Why not use the power of your local Chamber of Commerce to market your business? If you haven't discovered this marketing venue, you may be missing out on an effective and low cost marketing technique.

How can the Chamber of Commerce help you market your product or service? The Chambers of Commerce in most areas holds regular meetings where members can network. You'll be able to exchange business cards and promote your products in a relaxing and stress free environment to other entrepreneurs. These meetings are usually heavily attended and give you an opportunity to interact with other like minded entrepreneurs.

When you attend these meetings, you should take along a healthy supply of business cards and literature about your business to give to other interested business owners. Be prepared to describe your product and service to your fellow entrepreneurs at the Chamber of Commerce meetings.. It will be important to let them know how what you have to offer can help them achieve their own business and personal goals.

Another benefit of joining the Chamber of Commerce in your area is you'll get a list of members along with their contact information. This can come in handy if you want to approach particular members who might be interesting in doing a joint venture or a co-marketing arrangement with you. Look for businesses that are complimentary with what you're offering and see if you can work out a plan for mutual promotion.

Your local Chamber of Commerce may also offer free conference space where you can host your own business meetings. If you run a small business out of your home, this gives your business a more professional look. Some other benefits of membership include the opportunity to get health insurance at a discount, discounted workman's comp insurance, as well as the chance to attend specialty seminars on building a small business. Services offered by a particular Chamber of Commerce will vary by location.

Your local Chamber of Commerce can be a great, low cost marketing tool for your small business. Why not give your local Chamber a call and see what they have to offer

Wouldn't it be great if you could market your business while driving in your car around during the day? It's easier than you think. Why not place a domain plate on the back of your car? A domain plate is a simple sign that advertises the name of your business, your domain name, contact information or anything else you want to say about your business. The domain plate is attached to the back of your car using automotive adhesive tape. Your car becomes a low cost, moving advertisement for your small business.

Using this cheap advertising technique, information about your small business may be seen by hundreds or even thousands of people every day. All for an initial investment of under $50.00.

To make this technique effective, you should have a short and memorable business name as well as a descriptive dot com domain name. If it can't be short, at least make sure it's clever and easy to remember. People are innately curious. If they're parked behind you at a traffic light, their eyes will naturally wonder to the back of your car where they'll view your domain name. Because they're inquisitive or they genuinely need your service, they'll access your website when they get home.

These unique car signs are working for you all the time whether you're driving or parked in front of your house. Be sure to park your car in an obvious place so you can maximize the number of eyes who see it.

How do you track how well your car advertising is performing? To track the effectiveness of this low cost advertising method, offer a discount to customers if they mention your car sign when they place their order on your website or by phone.

If you're serious about growing your business and you need low cost marketing ideas, find out how effective car advertising can be for you.

• Exposing local industries to imported goods ? more competitiveness.
• Focus resource on areas of economy where Australia has a comparative adv.
• Benefiting from Globalization ? consumer and business has access to goods and services on global market at lowest price.
• Aim of encouraging efficient firms to produce what the world economy demands ? structural changes in the economy ? economies of scale in production.

Policies:

• Historically one of the most highly protected country in the world, because manufacturer found it hard to compete because of small population + ?cost
• 1970-1980: Program to phase out all tariffs
• 1974: Whitlam Government, 25% cut on all tariffs.
• 1988: Hawke Government, reduces most tariffs to 5% by 1996 & abolish quotas + tariffs to 15% on cars, and tariff on textile, clothing and footwear (TCF) to 25% in 2000.
• Howard Government slowed the schedule of Hawke Government in 2000 because of concern for job losses in Passenger motor vehicle (PMV) and TCF.
• 1999: several hundred “nuisance tariffs” we abolished.
• Australia's reductions on protection have gone beyond the requirement of WTO and APEC.
• Australia now tends to reduce trade barrier in exchange for greater access to markets in other countries.

Implication of Australia's Policies

Firms:

• Forced to compete in world stage ? more efficiencies and economies of scale.
• Firms will restructure and reallocate resources to areas where Australia have a comparative advantage and also find new export market as the domestic market ?
• Some firms benefit because of cheaper capital goods and commodities in the world economy.
• More diverse export base.

Individuals:

• Dislocation of jobs as firms restructure ? unemployment.
• Import competing industries will close (mostly labor based), workers will need to retrain and find new jobs. This could be especially hard as most are non English speaking.
• This is short term, workers from manufacturing industry move to service industry.
• Consumers will be able to have access to more variety of goods at cheaper prices.
• Increased living standards, because of higher comp between firms.

Government

• ?tariffs ? ?revenue
• Government need to assist structural changes ? ?Govt spending.
• Policy is unpopular as the costs are visible, like structural unemployment, but the benefits are not as visible.

Impact of International Protection Levels on Australia

• Protection policies and Government subsidies in other countries cause hardship for Australia exporters. For example USA subsidies 21% of US farmer's income, causing our agricultural goods to have ?demand.
• Australia largely affected by protection of Agricultural products, ie. India tariff at 30%.
• WTO though made an agreement of 36% tariff cut on agricultural products, some country find loopholes in the agreement, causing hardship for our agricultural exporting country.
• Service sectors in many countries are closed to outside entrants, for example banking, telecommunication.
• In the WTO meeting (Doha round) Australia is pushing for agricultural trade liberation and arguing against the loopholes that countries exploit in the agreement to reduce agricultural tariffs.

1. Unemployment
2. Inflation
3. External Stability
4. The Distribution of Income
5. The Environment

Unemployment

The demand for labour is a derived demand as it is determined from the demand of goods and services. During periods of low economic activity or downturns in the economy, the level of total demand in the economy is reduced, domestic consumption and investment spending decreases and therefore unemployment increases as workers are not needed and are therefore "fired".

The current level of unemployment, as of March 2005, is 5.1%, which is close to the government's aim of full employment. Full employment indicates a level at which the quantity of labor demanded is equal to the quantity of labor supplied. This doesn't mean zero unemployment as there is always going to be some unemployment due to frictional unemployment (workers changing jobs) or hidden unemployment (people doing unpaid work). The Howard government has been able to achieve this low level of unemployment through its concentration on policies to implement flexible workplace relations and expansion of enterprise bargaining between workers and employers.

Inflation

High levels of economic growth can result in price increases and larger wage claims contributing to a rise in the level of inflation. This occurs when spending is growing and the economy is close to its full capacity and growth in aggregated supply cannot keep up with demand for growth in aggregated demand. High levels of inflation is undesirable for an economy as it results in rising prices which in turn results in a decrease in the amount of disposable income of consumers. Consumers then seek higher wages, which further push up prices of goods and services. Inflation causes the countries currency to depreciate as investors lose confidence in the countries economic markets and results in a worsening of the balance of payments as exports become less desirable and imports become more desirable.

In 1992 the Reserve Bank of Australia (RBA) stated its aim to keep inflation between 2-3% by changing interest rates when inflation is too high or low in order to slow or speed up the economy. This was designed to reduce inflationary expectations and therefore reduce inflation. This has been why the RBA increased interest rates in March this year from 5.25% to 5.50%.

When this strategy is combined with increased competition and enterprise bargaining inflation can be kept too acceptable levels like was done in Australia during the 1990's and early 2000's. Inflation can also be kept low by ensuring that all factors of production are in sufficient supply and that there are enough markets for these goods and/or services to be supplied to.

External Stability

Australia's external stability is determined by a number of factors:

• Current Account Deficit (CAD)
• Australia's Foreign Debt
• Australia's Foreign Liabilities
• The size of the CAD as a proportion of GDP
• The size of Australia's net foreign debt as a proportion of GDP
• The value of the Australian dollar
• Australia's interest payments on its foreign debt

During periods of strong economic growth, individuals increase their spending as their wages increase. This leads to an increase in the amount of imports imported into the country, and therefore worsens our terms of trade. If the price of exports becomes unable to cover the increase in imports then the current account increases. In Australia this would lead to an increase in the Current Account Deficit (CAD), which would then mean that further repayments will be needed to be repaid to the loaning country resulting in the "debt trap". As of December 2004 the CAD is $53.8bn

Net foreign debt represents the total liabilities that we owe to overseas minus the foreign liabilities that are owed to Australians. Australia's net foreign debt has been increasing for some time as Australian borrow money for consumption of more goods rather than saving money as was done in the 1970's. In December 2004, our net foreign debt was $421.9bn up $15.7bn from September 2004's figure of $406.2bn. Economic growth increases the amount of money in which individuals can spend their money. This leads to further purchase of goods and therefore further debts as they spend too much money. In order to reduce the net foreign debt Australians would need to reduce their spending and start saving their money to reduce the massive debt before the debt become unserviceable and Australians go bankrupt.

The size of the CAD as a percentage of GDP is the best measurement of external stability. If CAD as a percentage of GDP rises above 5% this is seen as externally unstable as it results in

• The net foreign debt rising quickly
• Increased capital inflow require to finance the CAD and
• Debt servicing becomes more difficult

As of the 2003-04 financial year the CAD was $46.7bn, which was 5.5% of GDP meaning that Australia's economy was becoming more externally unstable as foreign debt, and capital inflow are increasing and servicing the debt becoming harder to achieve.

The size of Australia's net foreign debt as a percentage of GDP is another way of measuring external stability. Economists usually consider net debt in excess of 40% of GDP as an indicator that net foreign debt is very high and may become unsustainable - in that the interest rate repayments on the debt are too large to sustain. As of December 2004, Australia's net foreign debt was $421.9bn or 51.1% of GDP meaning that interest repayments would be becoming unable to manage. However nearly all of that debt is private debt so the government is unable to reduce anything except for their $16.3bn part of the debt, which is only 1.9% of GDP.

The value of the Australian dollar compared to the country of which our repayments on debt are owed to can also determine our external stability. Since the debts accumulated by Australian are in foreign currencies (E.g. $US) the principle and interest owed to the foreign country has to be paid back in their currency. When our dollar appreciates this means that more of the debt can be repaid for the same amount of money than if the dollar was depreciating. Appreciation usually occurs when economic growth is strong and is accompanied by decrease in CAD, increase in net capital inflow or increased confidence in Australian dollar while depreciation occurs when economic growth is falling, CAD is increasing, and there is a decline in net capital inflow. Below in

Diagram 1

The Australian currency exchange rates for 27/05/05. This means that for every $1 owe to the US we have to pay $1.31182 Australian dollars.

• American Dollar: 0.7623, 1.31182
• Brazilian Real: 1.82647, 0.547504
• British Pound: 0.418226, 2.39105
• Canadian Dollar: 0.959354, 1.04237
• Chinese Yuan: 6.30917, 0.158499
• Danish Krone: 4.51304, 0.22158
• Euro: 0.606541, 1.64869
• Hong Kong Dollar: 5.92818, 0.168686
• Indian Rupee: 33.0914, 0.0302193
• Japanese Yen: 82.2369, 0.01216
• Malaysian Ringgit: 2.89674, 0.345216
• Mexican Peso: 8.29763, 0.120516
• New Zealand Dollar: 1.06735, 0.936901
• Norwegian Kroner: 4.84228, 0.206514
• Singapore Dollar: 1.26473, 0.790682
South African Rand: 5.0045, 0.19982
• South Korean Won: 762.3, 0.00131182
• Sri Lanka Rupee: 76.1919, 0.0131248
• Swedish Krona: 5.57576, 0.179348
• Swiss Franc: 0.939458, 1.06444
• Taiwan Dollar: 23.8524, 0.0419246
• Thai Baht: 30.7817, 0.0324869
• Venezuelan Bolivar: 1634.83, 0.000611685

The Distribution of Income

Economic growth raises living standards by providing more goods and services for consumption. However, not all people in the community benefit from economic growth. Sometimes the benefits of economic growth flow to one particular group in society. This inequality of income can result in many social and economic costs to the community in which it occurs. These social and economical costs include:

• Discouraging people who have little opportunity to improve their skill
• Employees working harder and longer
• Insistence on labor mobility
• Production of failed entrepreneurs
• Creation of unequal savings
• Higher levels of crime and therefore criminal judgment cost
• Health problems for those in the lowest percentile who can't afford medical supplies
• Increase social welfare costs for the government who have to support those who can't earn their own wage or are part of the working poor in which they don't earn enough cover their basic needs
• Higher costs for policing to control increases in crime

The Gini Co-efficient, which is a precise measuring the income distribution, has been used to measure inequality levels and compare changes over time or between countries and regions of the world. A measurement of 0 means that everyone in the economy shares the same amount of income while a measurement of 1 would mean that just one household holds the whole amount of income for the country.

As shown in Diagram 3 below, Australia's Gini Co-efficient is 0.352 for 2004, which has increased from the levels in 1997-98 of 0.302 and 0.295 in 1989. This indicates that although economic growth is occurring at high rates over the 25-year period, the distribution of this income has gone towards the high-income earners and therefore has increased the gap between rich and poor. Also in Diagram 3, one can notice that although our Gini-coefficient is half the size of that of countries like Namibia there is still large improvements that can be made to get to the size of Denmark's or Hungary's Gini-coefficient.

Diagram 2 - Gini coefficient

• Hungary: 0.244
• Denmark: 0.247
• Japan: 0.249
• Sweden: 0.250
• Germany: 0.283
• India: 0.325
• France: 0.327
• Canada: 0.331
• Australia: 0.352
• UK: 0.360
• Italy: 0.360
• USA: 0.408
• China: 0.447
• Russia: 0.456
• Guatemala: 0.483
• Hong Kong: 0.500
• Mexico: 0.546
• Chile: 0.571
• Namibia: 0.707

Environment

Economic growth has the potential to create negative impacts onto the environment. When growth is pursued with little regard to its impact on the environment it results in:

• Pollution.
• Depletion of non-renewable energy sources .
• Damage to the local environment through externalities.

Pollution can come in any form; noise, untreated rubbish, chemical substances, toxic fumes and almost any other by products of goods or services. They all affects the atmosphere, water supplies, the land all human activity and we live on seems to contribute to the problem. Pollution is often felt quite a distance away from the original source and this can affect all people in the community and in communities all over the world.

One example is the amounts of CO2 being pumped into the air every year contributing to the global felt affects of global warming. Pollution can lead to costs being paid by the firm to help repair the environment affected. Firms can also be liable to pay for compensation to individuals who are found to have been injured or have become ill directly from externalities from a firm producing their product or service. These costs may include costs paid out to cancer patients who may have received radiation poisoning.

As firms produce goods they use up resources, whether they be steel, electricity, coal, wool or wheat. Some of these resources are not able to be reproduces very quickly, like coal and other non-renewable energy sources like oil and natural gas, or unable to be produced again indefinitely like steels and ores. This increases the rarity and value of these resources compare to other resources that can be reproduces quickly like wheat or wool. One major resource that Australians have been noticing recently is water. Due to the massive drought experienced by millions of people all over Australia, people are beginning to realize that we won't always have water on call if this continues.

Firms are able to lower production costs, as they don't have to take into consideration the effects their business has on the surrounding community. These costs or benefits that the community is left with are called externalities and may include damaged creeks or roads or something good like produce more business in the surrounding area. Land degradation can lead to a loss of potential production as problems, like salinity and mudslides, can leave the area unable to continue producing the good or service. E.g. Farmers are unable to continue growing grain crops if their lands experience salinity from ground level water tables. Land degradation can also reduce environmental biodiversity of an area, as bush land is cleared or farming purposes.

In conclusion it can be seen that there are many factors that contribute to and affect the outcome of economic growth of a countries economy. Economic growth usually results in lower levels of unemployment, higher levels in inflation, more external instability, more inequality in the distribution of income and higher levels of environmental degradation of the environment. However with correct intervention by governments and other organizations, like the Reserve Bank of Australia (RBA), these effects can be lessened to a point at which sustainable economic growth can occur.

Your business as an entity is an “individual” like you. The life blood of your business is capital. Too much of it will hemorrhage your business to death through pilferage or cash losses, wastage or stock losses, mark down of prices because of inability to sell on time cum market price fall, and obsolescence. Inadequate capital can create coma in your business as well-a situation of having little and paying more. This way you are not able to take advantage of discounts on bulk buying, overdue debts not being paid on time, fines and penalties incurred for not making mandatory payments, etc. If you are like me, you need to understand or read the pulse of your business financials inside out (you must not necessarily be an accountant/expert or be very good with figures to do this) to be able to plug holes in whatever area(s) you deem important. This way your business will never go into coma or suffer high blood pressure as the case may be under your nose. If you can buy and sell you can x-ray your business too.

Now let's get down to brass tacks. Your business came about with a seed in the form of an idea. Usually this idea is seen as an intangible asset. It cannot be quantified immediately you commence business operations. Over time we can call this idea “goodwill” because it has gone from idea to a business with your reputation attached. Here people can believe and see what your business is and worth. The business can now be valued on the basis of Best Of Judgment (BOJ). It may be subjective but quite understandable.

The money you personally introduce into the business via savings to run it daily (i.e. working capital) or buy assets is treated as equity in the business. You may “borrow” from friends, relations, banking institutions, and so on to augment your equity contribution. This we will call “debt capital.” You will pay this debt at an agreed future date but not without a price to pay (i.e. cost of capital or interest). The lender's willingness and risk of lending you that money is the interest you have to bear. This is the opportunity cost of the lender not using that money elsewhere. That interest is simply an expense in your operations.

We will then translate the foregoing into a simple arithmetic:

(1.) EQUITY= ASSETS No Liability to Creditors or Lenders

(2.) EQUITY + DEBT= ASSETS Have Liability to Creditors or Lenders

From (1) above if your business fails (God forbid!) you are On Your Own (OYO). But with a good business plan from the outset and religious adherence to it you are sure to succeed. From (2) above you are not only responsible to yourself but to your lenders and creditors. You MUST not fail because the headache of having to explain to outsiders what went wrong will add insult to injury!

I am going to explain another important part of this article-Profitability and Cash flow. Profit is Revenues/Sales/Turnover(less returns) minus Cost of Sales. The profit here is because Sales is greater than Cost of Sales. Loss is possible and do arise. That is Sales is less than Cost of Sales using the above formula. Please you can always substitute either “Revenues” or “Turnover” where I have “Sales.”

PROFIT = SALES - COST OF SALES, sales > cost of sales

LOSS = SALES - COST OF SALES, sales

The above explanation is GROSS PROFIT/LOSS only. A step further will give you NET PROFIT. This is Gross Profit minus Expenses reasonably incurred in bringing in sales.

NET PROFIT = GROSS PROFIT - EXPENSES.

NET LOSS = GROSS LOSS + EXPENSES.

Mind you, “overhead expenses” will be added to “gross loss” to arrive at “Net Loss”. Your expenses simply increased your loss during a specified period. In computing Gross Profit/Loss many expense items are taken into consideration-those involving “cash” and “non-cash” items.

Cash Flow, on the other hand, determines how cash buoyant you are at any giventime-itis your liquidity level status. Cash flow is the movement of cash “in” and “out” of your business. It shows at any point in time how liquid your enterprise is. The importance of cash to the healthy growth or survival of your business should be taken seriously. This single factor can either make or mar your business. There are cases of business failures resulting from cash flow problems. This is also what is known as liquidity problem- i.e. no enough cash to do business when the need arises. Again the simple arithmetic for this is:

Beginning Cash Balance + Cash Inflow (Receipts) - Cash Outflows (Payments) = Ending Cash Balance

Therefore, there is no way the “Profit/Loss” of a business operation for a particular time period will always be the same as the “Cash Flow” of that same period. It is imperative to note that profit is actually a function of the judicious management of your business cash flow. The flow of cash- inflow and outflow- should be properly managed. The rule is: Cash Inflows should be accelerated while Cash Outflows should be decelerated when necessary.

In summary, if you understand why doctors examine and check their patients thoroughly, then you too need to examine your business operations in order to save its life! Always remember that your entrepreneurial, leadership and excellent skills will determine the level of your success and wealth in your business.

You Will Excel!

The new coins are up to 60% lighter than the old ones and are smaller in size. They will retain the same original designs on the coins and the only major difference will be for the 10 cent coin which is copper coloured. The one and two dollar coins will remain the same. The Reserve Bank has consulted with several of the communities who would be directly affected by the changes and after much discussion and numerous consultations about the changes; the outcome is set to be a success.

The old coins will no longer be legal tender as at the 1st November, 2006. Some retailers are already refusing the old coins as it is too time consuming working with both sets of coins. This is perfectly acceptable as long as the customers have been made aware of this fact and there is signage stating that this is so. There have been fervent discussions about the coinage and dairy owners are not happy that there will no longer be five cent coins. Others are concerned it will just mean that the prices will increase and the cost of living will just go up because of it. The Retailer’s Association concerned that it will have an adverse effect on the profit margins of small business owners. However, you will be able to redeem any coins at the Reserve Bank for the face value of the coin.

There has been much activity caused by this change, vending machines, game machines, pool tables, juke boxes, laundromats, parking meters and the pokies have all had to be modified to cater for the new coins. For the game machines at Timezone, it takes approximately twenty minutes for each machine to be altered, so it has been a major task for those involved. This new money gives off a magnetic signal so as new machines come into being, this will be an important feature and make life easier for tellers and other people who handle money in large quantities. Eventually when we all get used to them and they are the only coins in use, life ought to be easier.

All the old coins are being sold to Korea to be melted down and could possibly end up as coins for countries such as Australia. The new coins are cheaper to produce than the old ones were and should save the taxpayer around two million annually.