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Been wondering what surety bonds are?

October 20, 2009

Being a twenty-something woman in today’s society one would assume that I would know the answer. However like many people I am actually quite in the dark when it comes to this topic. So, what are surety bonds? After a bit of research I compiled the following information. A surety bond is used in several different ways, but there is a basic formula for any situation. It is comprised of three parts; the principle, obligee, and surety. The first party, the principle, is a person or organization being secured against default. The second party, the obligee, is a person or organization who is owed either money or labor. This is where the third party, the surety, comes into play. The surety is a person or organization who promises to pay a certain amount if the “principle” defaults. For example, if after hiring a contractor he does not complete the job, providing he is bonded, one could get a portion of the moneys paid reimbursed. In this situation the contractor would be the principle, the person who hired the contractor would be the obligee, and the company bonding the contractor would be the surety. To answer the question “What are surety bonds?”, surety bonds are a guarantee that works in favor of the customer to ensure that an agreed upon service will be performed or product will be received.

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Seven Businesses You Can Start Tomorrow

January 6, 2008

Personal Concierge
A personal concierge handles “anything in the Yellow Pages as long as it’s legal, moral and ethical,” says Katharine Giovanni, founder of the International Concierge and Errand Association, now with 600 dues-paying members in 20 countries. Some established concierges act as general contractors who hire and manage a host of services, from cleaning to shopping.

Start-up costs: Minimal–other than basic liability insurance, perhaps a few hundred dollars per year.

Income: Dollars vary drastically depending on the client base, though six-figure incomes are not unheard of, says Giovanni.

Tip: Build a network of dependable vendors before you tackle bigger, more demanding clients.

Dog Walking
Yes, you can make a living cavorting with canines–it just takes a little scale, transportation and only a mild distaste for waste.

Start-up costs: A few leashes, some chew toys and maybe a vehicle, and you’re ready to go. You’ll also want a Web site and some insurance. One problem: Gas over $3 a gallon will sting walkers who round up their customers in sprawling suburbs.

Income: Depends on pricing and the number of dogs you can handle. Kevin Meadows, owner of Austin Dog Walkers, handles between 20 and 30 dogs a day. Annual pretax profits: about $60,000.

Tip: Take an animal first-aid course or volunteer at a shelter–if only to convince clients that they should trust you with their prized pets.

Wedding Consultant
You won’t find a more fanatical customer base than anxious brides, grooms and the parents writing the checks. Some consultants coordinate everything from scratch, while other parachute in on the big day to make sure things run smoothly.

Start-up and ongoing costs: All you need to get going is a phone, an Internet connection (for researching vendors) and a lot of patience. Consider advertising on wedding Web sites like TheKnot.com and WeddingChannel.com. Bridal trade shows cost as much as $5,000 per booth.

Income: Consultants charge $1,000 to $20,000 per event, depending on location and breadth of services. The best clear $100,000 a year.

Tip: Focus on the visual. Kerri Cooper, owner of Seattle-based Bliss Events, mails clients a formal, mock-wedding invitation when scheduling an introductory meeting.

Vending Machine Operator
Install the machines and let the masses snack to their hearts’ discontent.

Start-up costs: Between $2,000 and $3,000 apiece for new machines. Check out www.vending.org.

Income: A typical “45 Select” machine carrying 45 snacks (10 to 20 of each) generates $5,200 to $7,800 in annual sales; operators might keep 25% of that. In general, schools and hotels are the best locations. And don’t forget maintenance. “Half the battle with these machines is keeping them in working order,” says Lori Endres, owner of S & L Vending, an operator in Phoenix.

Tip: The more machines you own, the better pricing you’ll get from vendors. Note: Beware “blue sky” operators leasing machines at usurious rates.

Innkeeper
This one demands a bit of up-front capital, but not much more. Buy an existing business or rent out extra rooms in your house. In either case, you’ll be handling the cleaning and cooking (breakfast, mostly). You’ll also want to know something about the surrounding area to guide guests from out of town.

Start-up and ongoing costs: After liability insurance, you’ll need duplicate sets of linens, towels, dishes and silverware for all rooms. Ongoing expenses include gas, water, heating, food and cleaning (if you don’t feel like doing that yourself).

Income: Inns charge anywhere from $100 to $400 per room per day, depending on the location, amenities and season.

Tip: Run the largest inn you can afford–there is operating scale here.

Laundromat
Unlike a dry-cleaner, you don’t need to understand the art of stain removal to run a coin-operated laundromat. Nor do you have to spend all day at the office.

Start-up costs: Existing laundromats sell for up to several hundred thousand dollars, depending on location. Heavy-duty washers that can handle 50 to 75 pounds of clothes (four to eight typical home loads) cost up to $5,000 apiece; dryers, maybe $3,000. Maytag, Whirlpool and Speed Queen each have local distributors.

Income: Depends on the number of machines and how often they run. A 50-pound capacity washer will bring in up to around $7.50 per cycle (15 cents per pound of clothes); a 25-pounder, about $3. A busy laundromat can keep its machines running 30% of the time. Typical operating margins: 20% to 30%.

Tip: Downtime is a killer, so have competent maintenance people at the ready.

Nightclub Promoter
Socialites on steroids might like this gig, which involves rounding up partiers to drink and dance at local hotspots. And with all those viral social networking sites, you don’t even need a big Rolodex to start.

Start-up costs: Mainly your time. Work everybody–the doorman, wait staff and possibly the club owner–to land your first gig, says Noah Tepperberg, the owner of Marquee nightclub in New York City.

Income: Promoters get paid a flat rate or on a commission basis, depending on the number of people they bring in. Snag a high-roller and you might even get a percentage of what he or she spends. The best promoters in New York City pull in a few thousand dollars in one night.

Tip: It’s easy to get ripped off in this business. Work only with club owners you trust.
 

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