SEVEN MOST OVERRATED BUSINESSES !!

The 7 Most Overrated Businesses
By Kelly K. Spors and Kevin Salwen
With roughly 6.7 million jobs lost since the start of the recession, it's tempting - and often a great idea - to launch your own business. That way, of course, you can take matters into your own hands. No more rolling your eyes at the boss; it's your show.

But many people do a lousy job of picking businesses they can realistically turn into a profitable operation.

"There's this very sad pattern about how people start businesses," says Scott Shane, an entrepreneurship professor at Case Western Reserve University in Cleveland, Ohio. "People are most likely to start businesses in industries where start-ups are most likely to fail."

The problem: Many would-be entrepreneurs are drawn to businesses they like to patronize or the ones that are cheapest and easiest to start. Instead, experts argue, aspiring entrepreneurs should create firms in which they have professional experience so they have a competitive advantage in the market.

So, what are most overrated businesses out there? We spoke with small business experts to find out. Here are seven you might want to think twice about - and then maybe twice more.

1. Restaurants. Dining out and cooking are among Americans' favorite pastimes. But "restaurants are among the toughest businesses to run," says Donna Ettenson, vice president of the Association of Small Business Development Centers in Burke, Va.

Far too many people assume their culinary abilities will lead to success in the restaurant business. Instead, about 60% of restaurants close in the first three years, according to a 2003 study at Ohio State University. That's quite a bit higher than the roughly half of all start-ups that close in the first five years.

The reason: Restaurants typically have low profit margins and need strong managers who can run an ultra-tight ship through seasonal fluctuations and other struggles. Most people don't have that kind of intense managerial ability to pull it off. By the way, the pitfalls are quite similar for restaurants' cousin – the catering business. In other words, Chef Emptor.

2. Direct Sales. It's a tempting pitch: Work from home and earn commissions by selling cosmetics, kitchen knives or cleaning products. But companies that recruit independent sales reps tend to attract new team members by pointing to the success of their highest earners.

A harder look shows that those high earners are making big money in large part by recruiting new reps into the organization and getting bonuses or a cut of their recruits' commissions, says Ken Yancey, chief executive of SCORE, a Herndon, Va., organization of current and retired business executives who volunteer time counseling entrepreneurs. The new reps then have a much harder job because they need to recruit more people on top of selling product even though the number of reps out there is increasing.

The result, Yancey says: "Most of them wind up with a bunch of jewelry or kitchen equipment sitting in their basement that they can't sell."

3. Online Retail. By far, one of the easiest businesses to start is selling items through online marketplaces such as eBay or Amazon. But as online commerce ages and these sites fill up with more established retailers, it's much harder for new, small sellers to compete for attention and generate a viable income.

"A lot of people are thinking it's the Web of five or 10 years ago and you stand out simply because you're on the Web," says Rieva Lesonsky, chief executive of GrowBiz Media, a content and consulting company for small businesses based in Irvine, Calif.

Instead, successful online retailers today must have a handle on sourcing their products at a low enough price, then layering on clever online marketing and fine-tuned logistics. These businesses won't generate much income if they can't be easily found in searches, maintain a good reputation among buyers or add enough value so that sellers can build profit margins high enough to take on bigger players and physical stores.

4. High-End Retail. Many people dream of opening a day spa, luxury jewelry store or designer clothing boutique – businesses they feel good patronizing. But specialty retail businesses close at higher rates than non-specialty stores, according to the Small Business Administration's Office of Advocacy, and are even riskier now that consumer discretionary spending has dried up and people are no longer spending money on little luxuries.

"It's going to be a long time before we return to the days of conspicuous consumption," says Ms. Lesonsky of GrowBiz Media. High-end retailers often suffer from poor locations and lack of understanding of how to source and market their products in an effective way. In today's economy and in coming years, she says, retail entrepreneurs should be looking to sell non-discretionary consumer goods or offer items at a value rather than high-end products.

5. Independent Consulting. Common advice for aspiring entrepreneurs is to stick with industries they know. So, for many looking to escape the corporate treadmill that means turning their professional expertise into a one-person consulting firm.

It seems practical – more companies are indeed relying on independent contractors and freelancers these days – but it's not as easy to pull off as many imagine, says Dennis Ceru, an entrepreneurship professor at Babson College in Babson Park, Mass. Many consultants struggle with time management problems, spending so much time scouting work that it's very difficult to earn steady income. "The difficulty many face is they go through peaks and valleys of having work," says Prof. Ceru. "When the engagement ends, they are frantically looking for work," which may take weeks or months.

A possible solution: "A successful consulting firm needs people to find the work, grind out the work and mind the work. Unless you know you can do all three yourself, you potentially expose your business to great risk."

6. Franchise Ownership. The idea of being handed a proven business plan without the uncertainties and headaches that come with building a business from scratch is understandably alluring. But too many people don't understand the risks associated with franchising and sign restrictive franchise agreements without thoroughly researching their franchisor and their contractual obligations, says SCORE's Yancey.

Some franchisors, for instance, allow franchisees to open stores too close together, oversaturating the market. Or they simply require their franchisees pay so much in royalties and fees or other operational costs that it's very difficult to be profitable. Beyond that, when a franchisee fails, a franchisor may make it extremely difficult and costly to get out of its contract.

It's a myth that franchises are far more successful than independent businesses. A 1995 study by a researcher at Wayne State University found that 62% of franchises were open for business after four years, compared with 68% of independent businesses. And franchises were also found to be less profitable in those early years.

7. Traffic-Driven Web Sites. Everybody has witnessed the success of social-networking sites like Facebook and popular blogs that generate all their revenue off advertising. But as the Internet ages, that's much harder to accomplish, says Martin Zwilling, a start-up consultant in Fountain Hills, Ariz., who specializes in helping entrepreneurs find angel investors.

Zwilling says he hears pitches for new social-networking sites about once a week, but actively deters people from starting them. "I say, skip it," he says. "You need to invest $50 million to get any presence" in the social-networking space right now and it's very difficult to get people to leave established sites. What's more, he says, the amount of traffic needed to build a lucrative traffic-driven Web site is far more than most new Web entrepreneurs realize: "Until you get to the point where you have a million page views a day, you're nowhere."


Kevin Salwen
As a reporter, columnist and editor at the Wall Street Journal for nearly two decades, Kevin wrote two columns, helped cover two presidential administrations and launched two publications (including a small-business quarterly).

An expert on the issues that matter to small businesses, Kevin Salwen advises and invests in small, growing companies. He has written about and mentored entrepreneurs, and he has built and run successful businesses. A former reporter, columnist and editor.

Laugh Out Loud !!

A cowboy named Bud was overseeing his herd in a remote mountainous pasture in California when suddenly a brand-new BMW advanced out of a dust cloud towards him.

The driver, a young man in a Brioni suit, Gucci shoes, RayBan sunglasses and YSL tie, leans out the window and asks the cowboy, 'If I can tell you exactly how many cows and calves you have in your herd, Will you give me a calf?'

Bud looks at the man, obviously a yuppie, then looks at his peacefully grazing herd and calmly answers, 'Sure, Why not?'

The yuppie parks his car, whips out his Dell notebook computer, connects it to his CingularRAZR V3 cell phone, and surfs to a NASA page on the Internet, where he calls up a GPS satellite to get an exact fix on his location which he then feeds to another NASA satellite that scans the area in an ultra-high-resolution photo.

The young man then opens the digital photo inAdobe Photoshop and exports it to an image processing facility in Hamburg , Germany

Within seconds, he receives an email on his Palm Pilot that the image has been processed and the data stored. He then accesses an MS-SQL database through an ODBC connected Excel spreadsheet with email on his Blackberry and, after a few minutes, receives a response.

Finally, he prints out a full-color, 150-page report on his hi-tech, miniaturized HP LaserJet printer and finally turns to the cowboy and says, 'You have exactly 1,586 cows and calves..'

'That's right. Well, I guess you can take one of my calves,' says Bud.

He watches the young man select one of the animals and looks on amused as the young man stuffs it into the trunk of his car.

Then Bud says to the young man: 'Hey, if I can tell you exactly what your business is, will you give me back my calf?' The young man thinks about it for a second and then says, 'Okay, why not?'

'You're a Congressman for the U.S.Government', says Bud.


'Wow! That's correct,' says the yuppie, 'but how did you guess that?'

'No guessing required.' answered the cowboy. 'You showed up here even though nobody called you; you want to get paid for an answer I already knew, to a question I never asked.. You tried to show me how much smarter than me you are; and you don't know a thing about cows...this is a herd of sheep.

Now give me back my dog. Have a wonderful day ! Fran and Lois

Who's Your Daddy?

Coincidence is when God Chooses to remain anonymous.
A seminary professor was vacationing with his wife in Gatlinburg , TN. One morning, they were eating breakfast at a little restaurant, hoping to enjoy a quiet, family meal. While they were waiting for their food, they noticed a distinguished looking, white-haired man moving from table to table, visiting with the guests. The professor leaned over and whispered to his wife, 'I hope he doesn't come over here.' But sure enough, the man did come over to their table.

'Where are you folks from?' he asked in a friendly voice.
' Oklahoma ,' they answered.
'Great to have you here in Tennessee ,' the stranger said. 'What do you do for a living?'
'I teach at a seminary,' he replied.

'Oh, so you teach preachers how to preach, do you? Well, I've got a really great story for you.' And with that, the gentleman pulled up a chair and sat down at the table with the couple.

The professor groaned and thought to himself, 'Great .. Just what I need ..another preacher story!'

The man started, 'See that mountain over there? (pointing out the restaurant window). Not far from the base of that mountain, there was a boy born to an unwed mother. He had a hard time growing up, because every place he went, he was always asked the same question, 'Hey boy, Who's your daddy?' Whether he was at school, in the grocery store or drug store, people would ask the same question, 'Who's your daddy?'

He would hide at recess and lunchtime from other students. He would avoid going into stores because th at question hurt him so bad. 'When he was about 12 years old, a new preacher came to his church. He would always go in late and slip out early to avoid hearing the question, 'Who's your daddy?'
But one day, the new preacher said the benediction so fast that he got caught and had to walk out with the crowd.

Just about the time he got to the back door, the new preacher, not knowing anything about him, put his hand on his shoulder and asked him, 'Son, who's your daddy?'

The whole church got deathly quiet. He could feel every eye in the church looking at him Now everyone would finally know the answer to the question, 'Who's your daddy?'

'This new preacher, though, sensed the situation around him and using discernment that only the Holy Spirit could give, said the following to that scared little boy.. 'Wait a minute! I know who you are! I see the family resemblance now, You are a child of God.'

With that he patted the boy on his shoulder and said, 'Boy, you've got a great inheritance. Go and claim it.'

'With that, the boy smiled for the first time in a long time and walked out the door a changed person. He was never the same again. Whenever anybody asked him, 'Who's your Daddy?' he'd just tell them , 'I'm a Child of God.''

The distinguished gentleman got up from the table and said, 'Isn't that a great story?'
The professor responded that it really was a great story!

As the man turned to leave, he said, 'You know, if that new preacher hadn't told me that I was one of God's children, I probably never would have amounted to anything!' And he walked away.

The seminary professor and his wife were stunned. He called the waitress over & asked her, 'Do you know who that man was -- the one who just left that was sitting at our table?'

The waitress grinned and said, 'Of course. Everybody here knows him. That's Ben Hooper. He's governor of Tennessee !'

Someone in your life today needs a reminder that they're one of God's children!

'The grass withers and the flowers fall, but the word of God stands forever.' ~~Isaiah

YOU'RE ONE OF GOD'S CHILDREN!!!
HAVE A GREAT DAY!










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Meaning of Flag Draped Coffin

All Americans should be given this lesson. Those who think that America is an arrogant nation should really reconsider that thought. Our founding fathers used GOD's word and teachings to establish our Great Nation and I think it's high time Americans get re-educated about this Nation's history. Pass it along and be proud of the country we live in and even more proud of those who serve to protect our 'GOD GIVEN' rights and freedoms.


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I hope you take the time to read this ... To understand what the flag draped coffin really means ... Here is how to understand the flag that laid upon it and is surrendered to so many widows and widowers.


Do you know that at military funerals, the 21-gun salute stands for the sum of the numbers in the year 1776?







Have you ever noticed the honor guard pays meticulous attention to correctly folding the United States of America Flag 13 times? You probably thought it was to symbolize the original 13 colonies, but we learn something new every day!

The 1st fold of the flag is a symbol of life.



The 2nd fold is a symbol of the belief in eternal life.

The 3rd fold is made in honor and remembrance of the veterans departing the ranks who gave a portion of their lives for the defense of the country to attain peace throughout the world.

The 4th fold represents the weaker nature, for as American citizens trusting in God, it is to Him we turn in times of peace as well as in time of war for His divine guidance.

The 5th fold is a tribute to the country, for in the words of Stephen Decatur, 'Our Country, in dealing with other countries, may she always be right; but it is still our country, right or wrong.'

The 6th fold is for where people's hearts lie. It is with their heart that They pledge allegiance to the flag of the United States Of America , and the Republic for which it stands, one Nation under God, indivisible, with Liberty and Justice for all.

The 7th fold is a tribute to its Armed Forces, for it is through the Armed Forces that they protect their country and their flag against all her enemies, whether they be found within or without the boundaries of their republic.



The 8th fold is a tribute to the one who entered into the valley of the shadow of death, that we might see the light of day.


The 9th fold is a tribute to womanhood, and Mothers. For it has been through their faith, their love, loyalty and devotion that the character of the men and women who have made this country great has been molded.

The 10th fold is a tribute to the father, for he, too, has given his sons and daughters for the defense of their country since they were first born.

The 11th fold represents the lower portion of the seal of King David and King Solomon and glorifies in the Hebrews eyes, the God of Abraham, Isaac and Jacob.



The 12th fold represents an emblem of eternity and glorifies, in the Christians eyes, God the Father, the Son and Holy Spirit.


The 13th fold, or when the flag is completely folded, the stars are ! uppermost reminding them of their nations motto, 'In God We Trust.'



After the flag is completely folded and tucked in, it takes on the appearance of a cocked hat, ever reminding us of the soldiers who served under General George Washington, and the Sailors and Marines who served under Captain John Paul Jones, who were followed by their comrades and shipmates in the Armed Forces of the United States, preserving for them the rights, privileges and freedoms they enjoy today.

There are some traditions and ways of doing things that have deep meaning. In the future, you'll see flags folded and now you will know why.


Symbol of Freedom and Liberty !!!



MAY GOD PROTECT US ALWAYS.



ONE NATION, UNDER GOD, WITH LIBERTY AND JUSTICE FOR ALL.