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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: , ,

Tax Deductions for your Small Business

April 8, 2011 by Leave a Comment

Image courtesy of www.flickr.com.

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: , ,

Small Business Needs: Loans and Rewards

April 6, 2011 by Leave a Comment

Image via Wikipedia

It was meant to be a triumph easily won and easily kept. A business was to succeed; a profit was to be earned. You had a plan and that plan always ended in victory. There was no other consideration given. There was only the assurance that your company would be everything you wished.

Wishes, as you’ve discovered, don’t always come true.

Your small business is struggling. The costs of marketing goods and seeking customers are staggering, the demands of employees are endless, and trying to create a budget seems to be an impossible thing when expenses prove to be so fickle. Finance is a challenge you didn’t expect.

It is one you can conquer, however.

With the use of a payday loan, you can help your small business regain its balance. These aids, which often extend to $1,000 dollars, can provide relief for emergency costs such as overdue utility bills, health insurance payments or essential office supplies (technology is all too willing to falter and replacements will eventually be needed). A lender can offer you the ability to answer minor debts and relieve worry.

And this relief is especially imperative for the early days of a company. Complications can (and will) arise. Choosing a payday loan can help to offer stability and reduce stress.

It should be noted, however, that these loans must be repaid within a specified time. Plans will be crafted to ensure you return all dollars (as well as offer interest). Don’t confuse the payday philosophy with charity. It’s instead a transaction, and a vital one in times of need.

Filed Under: General, Small Business Tagged With: , ,

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: , ,

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: , ,

How to Manage Telecommuting Employees Who Procrastinate

February 1, 2011 by Leave a Comment

With the increase of work-at-home opportunities, many employers are in a position of hiring employees who work out of their own homes. While such an arrangement benefits both the company and the worker in many ways, employees who are prone to procrastination do not necessarily thrive in this type of situation. This can be damaging to business productivity and profits. Here are ways to help the procrastinating employee to overcome his tendencies.

The Need for Structure

Many human beings need structure in order to be productive in their lives. Growing up, people attend school where teachers and administrators create a schedule and hold students accountable. In the traditional work environment, structure is generally created by management. Reporting to someone in person, being available to answer the phone during specific hours, or punching an office time clock are ways that traditional employees are held accountable. Without these requirements, telecommuting employees are often left to devise their own daily structure. For those who are lacking in motivation, discipline or organizational skills, a pattern of procrastination can emerge.

Establish Clear Deadlines

When managing telecommuting employees, you want to create structure as much as possible. Many workers are deadline oriented. Avoid leaving tasks open ended. When you issue an assignment, clearly specify the date and time of the deadline. Also build in a time cushion in the event that unavoidable issues, such as an illness or an emergency, arise for the employee.

Encourage and Reward Accountability

Establish daily or weekly check-in requirements. This can be via phone, email or instant message. Telecommuting employees can easily feel disconnected from the employer, so establishing regular contact will remind them that they are, indeed, employed and obligated. Depending on the nature of your business, you can also implement productivity rewards. Your telecommuting employee will know that his assigned tasks are important and he will feel encouraged to perform his best.

Filed Under: General, Small Business Tagged With: , ,

De-Stressing the Small Business Process

January 30, 2011 by Leave a Comment

Opening a new small business can be stressful. After all, you are embarking on a journey into the unknown and it can be stressful trying to make sure that everything works out for the best. While every small business owner is different, every business owner has the same worry and concern. Every business owner worries about what to do when it comes to business finances. If you are considering starting your own business, here is a look at some of the most important financial features that every business owner should focus on.

The first financial feature you should consider having as a small business owner is an accountant. Accountants can help you figure out where you stand when it comes to finances and what you need to do to get into a good financial state. Many small business owners hire an accountant for the first few years to guide them through the process and then will sever the ties as they learn more on their own.

The second financial feature you should consider is a lawyer. A business or financial lawyer is a must-have when trying to start a small business. A lawyer can help make sure that all your finances are covered on the legal aspect. They can also help you figure out the complex world of taxes.

The third financial feature you should consider is an emergency savings account. You can never know what will happen to your business and you need to be prepared financially. A small emergency savings account can provide you with funds should something unexpected happen. It is even recommended if you don’t have the money to start an emergency fund that you consider applying for a loan at GreatPlainsLending so that you can start an emergency fund.

Having some of these financial features will take some of the stress out of starting up your small business.

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

Things To Research Before Investing In A Business

November 8, 2010 by Leave a Comment
Business Plan in a Day book
Image by Raymond Yee via Flickr

It’s important to closely examine several factors before investing any money in a small or startup business. The possibility of promising returns can often make investors overlook risk factors. Before you are ‘sold” on an investment opportunity, take an objective look at the following factors.

Age of the Business: Start-up companies may not have a long track record of success simply due to their age. A business that has been operating for a substantial length of time, particularly if the business has been profitable, demonstrates that the business model is likely to be viable over the long term. A new company may be viable, but it has not yet proven its ability to weather seasonal changes or other external factors.

Experience of Key Players: Credentials are valuable and create credibility for investors. However, it’s important to look closely at actual experience in the industry. Some skills, such as management or human resources, transfer well between industries. Look closely to see if managers have a track record of management with similarly-sized companies. Other fields may require more specialized knowledge, and a prospective investor should examine the depth of stakeholders’ hands-on experience in a particular field. Years of experience in the same field as well as experience in different companies within the sector can provide a solid foundation for success.

Business Plan: The company’s business plan should demonstrate a viable business model as well as realistic goals. In addition to the business model, the plan should illustrate sustainability and the ability to handle contingencies and other unpredictable factors. A business plan should explain how the business will handle supplier challenges, market volatility and other scenarios. This shows that the plan’s creators have a firm grasp on the industry and have experience in dealing with similar challenges. A weak business plan does not address “what-if” factors such as cost increases or new technologies that may render its product or service inadequate or obsolete.

Filed Under: Investment Tagged With: , , , , , , ,

Elements Of A Business Plan To Research Before Investing

November 7, 2010 by Leave a Comment

One of the most important things to research before investing in a company is the business plan. This business plan is the outline of how the business will operate, the anticipated size and scope of the business, the potential profits and its viability in the marketplace. There are several key factors to examine to determine if the business plan is sound.

A good business plan will have a realistic assessment of the demand for the product or service. While the product or service might be innovative, it still needs to be marketable, which means affordable to its target market. The business plan should outline what kind of market research has been performed and by whom. The business owners should be able to substantiate their claims, and should demonstrate a thorough understanding of their target market. Sales claims should reflect an understanding of he business climate, and should not look like they were designed simply to generate investor interest.

A sound business plan will also address marketplace competition. Many product creators are so invested in their product development that they develop a distorted and inaccurate view of their competition. When researching a business plan, do not be afraid to question claims regarding competition, or to do your own research. Many business owners are simply not aware of competitors’ methods.

Never hesitate to ask questions regarding market research. If the business owners and stakeholders have conducted all the market research and analysis, it increases the chances that the results are biased and inaccurate. Also, if the company is unwilling or unable to engage outside consultants, you may need to investigate further. If they cannot afford to hire consultants or claim that they do not need objective analysis, it’s worth questioning why. Sensational claims that can’t be affirmed by anyone unconnected with the business should not be relied on heavily when making an investment decision.

Filed Under: Investment Tagged With: , , , , , , ,