How to Start an Online Dating Service Business

Making new friends and finding the person of your dreams is not as easy as it used to be. With the busy daily life of singles in the US, there is no available time for socialization outside of work.

Why is online dating service considered a profitable business? Here are some of the facts:

* Almost .5% of the US population is either single or divorced. The largest online dating websites have over 700,000 personal advertisements and profiles all enthusiastically searching for a partner. There have been thousands of marriages resulting from internet introduction.

* Internet-based dating services receive millions of dollars in revenue every year. There is guaranteed money in this business.

* Basic emotional needs are the easiest to sell. These needs include dating, love and romance. You will be paid by marketing romance to the increasing number of single web surfers.

If you are thinking on starting up your own online dating service business, here are four important factors to consider:

1) Online dating business plan: Organizing a plan would allow you to operate the business and ensure your company’s growth. A business plan is crucial for organizing and seeking potential clients. A business with development potential is always a safer investment than a business that settles for breaking even.

A plan would provide you with a clear view of your business’ future. It summarizes the company’s goals and provides your future staff to have information that is vital to the daily function of your company.

2) Website management method. You should plan for a presentable and quality web design or hire the best web designer in the industry. Determine which web hosting service is the best and enroll in it. For your website to attract thousands of visitors, you would need web hosting that could accommodate all the traffic and database of your members. You could also consider being your own web host that would enable you to manage your own server.

3) Marketing and advertising. The online dating service would require a large amount of advertising money to be able to set your company apart from the thousands of other dating services in existence.

4) Financial plan. Organizing your financial plan would help you establish the budget necessary to cover your daily operating costs. This plan would also help your company to develop long-term financial goals.

If you have successfully achieved all of your plans necessary for the company to run, you could now start your own online dating service business and give the singles a chance to meet their dream partner.

How to Define a Business

Businesses are everywhere. They are the units that perform most of the economic activity in our economy. Most businesses exist to generate a profit. There are some businesses that exist to perform a function other than profit, such as cooperatives and non-profit organisations. The traditional definition of a business is an entity that brings together time, effort and capital in order to produce a profit.

There are many different ways of classifying businesses but here are the main types:

  • Manufacturer. These take raw materials and make finished products, which they then sell. They make a physical good such as a car or a sofa.
  • Service businesses do not produce a physical product but offer a service to consumers. They make a profit by charging for their skills and labour.
  • Retailers and distributors. These businesses facilitate the chain of supply. They buy goods from the producers or wholesalers and sell them on to consumers at a higher price.
  • Agriculture and mining. These businesses are also known as extraction industries as they make their profit by taking raw materials out of the ground. Forestry, fishing and coal mining would be in this group.
  • Financial businesses include banks, insurance companies and investment funds. They offer financial services to consumers and other businesses and generate a profit by managing capital for others.
  • Utilities are companies that provide vital public services like heat, electricity, gas, water and sewage treatment.
  • Real estate is the business of buying, selling and developing land and buildings. These can range from homes to commercial properties to factories.
  • Transportation businesses move people and goods around the world. These would include taxi and bus companies, freight companies, shipping companies and airlines.

    Businesses can either be privately owned or publicly owned by the government. Government usually regulates business for a variety of purposes. This will include collecting corporate taxes. Also certain business pose a risk to the public and so must be regulated. Some businesses, especially extraction and manufacturing but also others, have a significant impact on the environment. If they were left unregulated, they could, while carrying out their functions for profit, do irreparable harm to the environment. Others, such as drug companies and pharmaceuticals must be regulated so that safety and health standards can be maintained. Drugs must be monitored so that any that begin to cause serious side effects are quickly taken off the market.

    Most people hold the view that it would not be successful to have businesses regulate themselves when it comes to vital areas of the public interest.

  • Selling Business Notes for Quicker Cash

    In about 85 percent of all business sales, sellers accept a cash down payment and a promissory note to pay the balance in installments. The note is personally guaranteed by the buyer, and it is secured by the business and its assets in case the buyer defaults. Providing owner financing allows sellers to cater to a broader pool of potential buyers.

    However, many sellers don’t want to be in the lending business and would prefer not to hold business notes. The good news is: they don’t have to. If you created a business note to unload your company, you can sell the note to someone else. This way you can get instant cash out of the business, instead of waiting to receive periodic payments in the future. You can use the cash for a variety of purposes, including: capitalizing on other investment opportunities, paying off debts, funding college tuition and making major purchases.

    How Selling Business Notes Works

    Business notes are purchased at a discount–like all notes sold on the secondary market–to make them attractive to potential buyers. Without a discount, there is no incentive for investors to incur the risk of waiting three to five years or even longer to recoup their money. Historically, more than 90 percent of new business owners fail within the first five years. Therefore, there’s considerable risk attached to the purchase of any business note.

    You may receive less than the full balance of your note when you sell it. However, the total cash you receive from the down payment and the sale of the note will usually be about the same as you would have received from an all-cash sale of your business. That’s because all-cash buyers can insist on a much lower selling price.

    The amount of money you’ll actually receive for your note depends on a number of factors. But as a general rule, for a full purchase, you can expect to be paid 50 to 80 percent of the balance of the note. More specifically, the amount of cash your note can be sold for will be determined by three general components: the current economic environment, the terms of the note (payment amount, interest rate, length of payback, etc.) and the degree of risk or probability that the note holder will lose his/her money.

    Criteria for Purchasing Notes

    Certain guidelines must be met in order for a business note to be purchased. Naturally, first-position liens are eligible. Here are some other elements investors like to see:

    o The business is in a profitable position, with evidence of operating cash flow.

    o The buyer has good credit, which generally means a FICO score of at least 625.

    o The buyer put down at least 30 percent of the purchase price in cash, which signifies that he/she is truly committed and able to weather down cycles.

    o The principal owners have made a personal guarantee on the note.

    o The note has been “seasoned,” meaning the buyer has made payments for at least two months. This shows that the buyer is happy with the purchase.

    o The note should have a minimum face value of $15,000.00.

    Structuring the Sale

    There are a number of ways to structure the sale of your business note. You can sell the entire note, or only part of it. The most common way to sell a note is through a “partial purchase,” which involves selling only a certain number of the remaining payments on your note.

    Note buyers can purchase any number of the remaining payments in a variety of ways. For example, let’s say you have a note with a balance of $80,000 payable in 240 monthly installments. If you need just $20,000 now, for whatever reason, the note buyer would calculate how many payments would need to be purchased to provide you with that specific amount of cash. Exactly which payments would be purchased would depend on your personal financial situation. You could sell:

    o A certain number of the beginning payments on the note. (The note buyer might purchase the first 60 payments, and then you would receive the final 180 payments.)

    o A certain number of the final payments on the note. (The buyer could purchase the final 180 payments, passing the first 60 payments through to you.)

    o A certain percentage of each of the remaining 240 payments on the note. Perhaps 50 percent of each of the 240 installment payments could be purchased. (You would receive one half of each of the 240 payments.)

    So which option in the above example would be best for you? It would depend on your current financial needs and future concerns. All of the alternatives would provide you with an immediate $20,000 cash payment. However, you might choose the first option if you need $20,000 today and require a future monthly cash flow beginning in five years. You might choose the second scenario if you needed $20,000 now and a monthly payment for the next five years until you start receiving your retirement benefits. Or you might choose the third option if you need $20,000 today and also want/need the monthly 50 percent payment for the next 20 years.

    The Purchase Process

    To purchase a business note, buyers will need to take an assignment of the security instrument (UCC-1 Financing Statement) and receive an endorsement of the promissory note.) But before getting to that stage, they will do the necessary due diligence and closely examine all aspects of the sales transaction of your business. The note buyers will handle all the paperwork for the purchase, from verifying all aspects of the deal and preparing/having recorded all of the necessary documents to make the change.

    The note purchasing process takes an average four weeks to complete. If the sale of your business and the creation of the note was “typical,” then you should have your money within four weeks.