Business | Where to Put Your Money

Applying for Bank Loans for Small Business

July 25, 2011 by Leave a Comment

There is good news and bad news for the small business owner looking for a loan. The good news is that the freeze on lending has seemed to ease up and loans are being offered to the small business owner again. The bad news is that the days of a half-baked plan and a lot of heart are long gone. If you aren’t coming in with a very well thought out pitch then you might as well pitch to a wall. You’ll get the same response.

Try to put yourself on the side of the lender. They want to give their money to a good business person with the right idea. You have to show them that you fit that criteria. This means that you have to start with a business plan that makes sense for you and your business. This includes a marketing strategy and estimates for profit. You have to convince them that you can market this plan and get the money back for the loan in the promised time. Perhaps you have a great prepaid Visa card but you may need more than that to get your business off the ground.

First, research your business. If you are going to write a business proposal, you have to do it correctly. Don’t assume they have never seen a business proposal. Assume they have seen a ton of them and that you have the right kind of proposal. Make it great and don’t settle for anything less. Look online and find one to model yours after.

Your business loan is vital to the business. Make sure you present yourself in the most professional way and you’ll be excited by the results.

Filed Under: Corporation, General Tagged With: Business, Loan, Small business

Is Business School for You?

June 4, 2011 by Leave a Comment

Whether you have been in business for a long time or you are just starting out, you may be thinking about attending business school. You may be looking to sharpen your management skills or learn what you need to expand or start a business. There are several considerations to take into account, including cost, availability of time, and if business school will provide you with the specific skills that you are seeking.

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If you are looking to brush up on your skills, you may want to try looking into management seminars to see if a short investment in time and minimal expense would give you what you want. If not, then make a list of priorities. What are you seeking? It is important to note that business schools are generally viewed as a way to advance through practical training, rather than a more liberal arts-oriented scholarly form of training that would lead to an academic post. You will learn about management, sales, marketing, accounting, and related practices.

To go to business school, particularly for a Master’s program, you will probably need to take the GMAT, or Graduate Management Admission Test. You will have to submit your transcripts, letters of reference, and attend an interview. Going through this process may give you exposure to the kinds of people you will meet in the business world, and will give you a good sense as to whether the process is right for you. It is important to go to a program where your teachers and peers share your priorities and values.

Filed Under: Investment, Small Business, Tips Tagged With: Business, Business school, management

Invest in Yourself: Become Your Own Boss

May 22, 2011 by Leave a Comment

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It is amazing how people are earning money by taking complete control of their lives. You just need an idea that can land you your dream life. The more off beaten the track your thought process is, the greater your chances of success. With the hoard of venture capitalists out there are eager to part with their money for a fancy idea that promises profits. Banks too are able to provide specialized loans for small businesses. The time to capture that niche market you have always wanted to has never been of greater essence than now.

People are very much aware of what is happening in the world around them and that helps them identify the specialized markets that are cropping up all over the place today. The world scene is very different than it used to be. In-depth market research, smart hiring, and a flair for management can land you the best job in your own world. Imagine being your own boss, wearing casual Nike Clothes to office and seeing your profit margins grow. What would be a greater investment than saving little by little towards your own company while you are employed at a full time well paying corporate job so that one day you can achieve your dreams.

After all, even companies like Nike started from humble beginnings but have made the right moves for expansion and have grown into the massively successful companies they are today. Many more will follow the same example because they dare to think differently and decide to act upon it.

Filed Under: Uncategorized Tagged With: Business, corporations, expansion, Finance, hiring, management, profits, small businesses, training

Tax Deductions for your Small Business

April 8, 2011 by Leave a Comment

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The government is talking about raising taxes on the wealthy to try to combat the nation’s deficits. Often, small business owners are considered wealthy because they own a business and could be hit with higher taxes in a time when business taxes and expenses are already high. Fortunately, there are certain tax deductions available to business owners that can hopefully lessen the financial impact of any increase in taxes.

IRS.gov provides an extensive list of common business expenses and, according to the Introductory Material link on that page, “explains what is and is not deductible” and “the general rules for deducting business expenses…”

The Small Business Association also has a great list of business expenses and tax deductions.

Business owners would be wise to study those lists, but, as this article comes to an end, here is a very small example of the sort of expenses that can be deducted.

The expenses associated with actually starting a business can be eligible for deduction.
The cost of new business equipment can be claimed as a deduction.
Software can be deducted or written off similarly. But if the software comes preinstalled on a computer, it’s considered part of the computer and not a separate deductible purchase. The whole computer can be deducted though.
Legal and professional fees can be deducted in the year their services are required.
Some taxes themselves can be deducted. Sales taxes, fuel taxes, real estate taxes, property taxes and more – when associated with the operation of the business – can be claimed as a deduction.

Filed Under: Investment, Small Business Tagged With: Business, Small business, Tax

Small Businesses Defined

March 17, 2011 by Leave a Comment

Small businesses are an important factor in guaging the health of an economy and a lot has been said recently about the role small businesses play in the U.S. economic picture, particularly in the area of employment and hiring. The definition of what constitutes a small business is broad and difficult to pin down.

The U.S. government’s Small Business Administration (SBA) defines a small business as, “independently owned and operated, not dominant in its field, and whose size falls within size standards established by the Small Business Administration.” The SBA has developed a Table of Small Business Standards that is used in conjunction with the North American Industry Classification System to establish standards for various industries by the number of employees or a company’s annual receipts. Generally speaking, the government sets less than 500 employees as one of its benchmarks for being considered a small business. Annual receipts as a indicator to qualify as a small business varies by industry, although less than $7 million is viewed as the industry wide norm.

A broader definition of a small business takes the following factors into account. The business is privately owned and operated; it has a small number of employees; and generates a low annual sales volume. Internationally, this definition is more clearly defined by each country. Compared to the U.S. benchmark of 500 employees, the European Union generally sets its mark at 50 employees and Australia considered less that 15 employees to be considered a small business.

Filed Under: Small Business Tagged With: Business, Small business, Small Business Administration

Strategies for Increasing Your Business Profits

February 23, 2011 by Leave a Comment

If you’re an ambitious business owner, you are probably searching continuously for ways to increase your profits. Growing your business can seem like an endless pursuit. Unless you have a product or service that takes off immediately, you will want to think of innovative ways to draw attention to your business. Here are a few strategies for increasing your business profits.

Do More of What is Working

The first step is to conduct an honest assessment of your existing strategies and processes. Identify what seems to be working well and do more of the same. If you have one extremely popular product, look to expand your reach for that product. Identify all of the various types of customers that would benefit from your product. Consider making minor adjustments to the product to meet the needs of varied clients.

Likewise, if you offer a particular type of service that is profitable, you might choose to specialize in that service and increase your expertise in that one area alone. For example, if your company offers educational products, technical services and tutoring, and you find that most of your profits come from tutoring, consider specializing in that service alone.

Diversify if Necessary

In some cases, the most profitable strategy is one that involves diversification. Say you are an online provider of children’s clothing and your site visitors are mothers. You might offer products that appeal to the mothers themselves. While they are on your site, they can buy a little something for their babies and see a product that they can treat themselves to as well.

Network and Market to Various Venues

The more you get the word out about your product, the more profitable your business will be. You might want to attend trade shows, conferences, community events and any other events relevant to your business to gain exposure. If you’re running an online business, seek out forums and discussion groups where you can form online partnerships and gain a reputation as a business that offers value to the marketplace.

Filed Under: Capital, Small Business Tagged With: Business, business profits, Strategy

Ways to Manage a Growing Business

February 16, 2011 by Leave a Comment

A growing business is a good problem to have. It means that you’ve done many things right. You are offering a service or product that is needed by the marketplace. If your business is expanding quickly, you might be in search of ways to manage the process as efficiently as possible.

Getting Organized During an Expansion

An expanding business can be stressful in its own way. You might find that there are not enough hours in the day to complete all tasks. Or, you are simply shorthanded and need to hire more help. The first thing you want to do is become more organized. Examine the structure and processes of your business. Are there areas that can benefit from more planning and organization? When making business calls, for example, do you have to call the same person more than once because you did not communicate everything the first time? Putting thought into better planning and organization will save you time.

Hiring Help to Assist Your Growing Business

Once you have implemented efficient and organized systems, you might still find that you are shorthanded. Hiring decisions are some of the more challenging aspects of running an expanding business. If it’s a relatively new business, you do not have enough history to know if the growth of your business is simply cyclical or representative of an ever-increasing uptrend. In these cases, you will want to proceed cautiously.

In general, you don’t want to hire permanent, full-time workers only to train them and then let them go when your business growth stalls or reverses. In such a case, an effective strategy is to hire employees who are willing to work temporarily with the possibility that a permanent position may open up. This strategy is only effective if you don’t have to spend too much time training temporary employees. A thorough interview assessment or relying on an agency to hire and test candidates might be the best strategy for finding people that can help you to effectively grow your business.

Filed Under: Investment, Small Business Tagged With: Business, Market research, Small business

The Characteristics of a Quality Small Business Manager

February 10, 2011 by Leave a Comment

Being an effective manager of a small business requires a distinct combination of skills and characteristics. Exceptional managers are effective communicators. They are able to focus on the bigger picture while simultaneously grasping the logistics of business processes. To sell a product or service, relationships must be developed with people. Even in an online business, customer questions and conflicts may arise. An effective manager has solid interpersonal skills and an ability to effectively resolve conflicts.

Effective Communication is Key in Management

It is not enough to have a solid product or service. A quality manager communicates clearly and frequently. Whether overseeing employees or just a business process, knowing how to communicate with people in a way that solves problems and meets needs is critical. Some managers are clearly smart and organized, but if they do not know how to bring out the best in employees through effective communication, misunderstandings may arise and bad feelings may fester.

Establishing Business Structures that Make Sense

Whether it is for the purpose of increasing quality communication in the workplace or streamlining business processes, a high quality manager establishes structures that make things easier. The structure may take the shape of regularly scheduled team conference calls. Or, it may be related to using spreadsheets and databases to keep everyone informed of the progress of a project or next steps.

Delegating and Empowering Employees

In addition to establishing communication and structure, an effective manager has an understanding of the bigger picture and what it takes logistically to carry out a plan. He may not be skilled in every aspect of the project himself, but he has a keen awareness of the core competencies of his team members and delegates the right tasks to the right employees. Through delegating carefully and empowering employees, he demonstrates that he appreciates their hard work. Employees who feel valued and appreciated tend to work harder and perform higher quality work.

Filed Under: Capital, Small Business Tagged With: Business, Business Manager, Communication

Getting Cash During an Emergency

February 10, 2011 by Leave a Comment

Everyone once in their life will find themselves in a financial bind. Most money problems can be easily fixed by getting help from family or friends. However, in other situations the emergency might be too steep or there just might not be anyone to turn to.Under such circumstances, it’s imperative to find a cash alternative. One easy solution to cash during emergencies are payday loans.

Application Process

The application process is very simple and can be completed online or over the phone in a matter of minutes, and you can receive a decision soon after. Upon approval, the money is typically dispersed the following business day.

Terms and Conditions

The interest rates for payday loans will vary from state to state. The average rate will run into the hundreds, but loan amounts in times of an emergency are usually small so the percentage seems larger than it really is. Plus, the loan repayment process is very flexible consisting of a bi-weekly installment plans.

When to Get One

There are many instances where a payday loan is an excellent solution. For one, they provide quick relief when you are sure to fall behind on bills and accrue substantial late fees. This is especially important when it comes to credit cards where your score could be adversely affected. They can also help avoid bounced checks or overdraft fees that result from overdrawing your checking account. The amount you pay in fees could be more than you pay in interest on a loan.

Ultimately, they can help in when the unexpected happens, everything from car trouble to medical problems.

When Not to Get One

However, they are not for everybody and for every circumstance. It would be reckless to take out a loan for the sake of entertainment purposes. To help buy groceries before the next payday, yes…for caviar, no.

With a cash loan there is always help in an emergency.

Filed Under: General, Small Business Tagged With: Business, Financial services, Payday loan

Making Hiring Decisions During an Unstable Economy

February 8, 2011 by Leave a Comment

An unstable economy creates challenges for individuals at all levels of a business. If you’re a business owner, you may be tasked with deciding when you should resume your previous hiring practices. It’s common during recessions for businesses to lay off workers and overload the remaining staff members. This solution only works to a certain extent, particularly if your business is continuing to grow.

Managing Fewer Workers During a Recession

If your business is going along smoothly, your profits are rolling in and your workers are productive and healthy, you have nothing to worry about. The challenge arises when your business starts to improve and your existing workers are clearly overloaded. This is usually apparent when they start calling in sick more often, exhibiting negative attitudes, complaining regularly or becoming apathetic about the quality of their work. If you see these signs, it’s time to take some action. This is especially critical if these issues arise with workers who were previously motivated and high performing.

Hire Freelance Employees

If the work is clearly too much for your existing staff, consider hiring freelance employees. These employees are generally willing to work hard and keep the employer happy. You won’t have the obligation of paying for health insurance, time off or other benefits. Your regular staff will become energized by having to work fewer hours. You may even find that with more time off and rest, your salaried staff will be more productive than they were working long days.

Hire Short-Term Contract Employees

If your business is clearly bringing in profits but you are not ready to commit to hiring full-time salaried people, contract employees might be the solution. Contract employees are technically freelancers who sign a contract with you for a specific time period (e.g., three to six months). With this arrangement, you get the full-time help that you need without the long-term commitment. You might also have the option of hiring the contract employee as a salaried employee if it becomes mutually beneficial.

Filed Under: Capital, Corporation, Tips Tagged With: Business, Business and Economy, Employment