Understanding PO Financing
Many small businesses are just that, small, so they often hire other people to produce the goods needed to fulfill an order. The problem is, sometimes the small business does not have the money to pay for the goods until they get paid for them.
Debt vs. Equity Financing
If you are a small business, one of the things you have to understand is financing. Money makes the world go round, the business world at least. Knowing the difference between debt and equity financing is a must. Let's take a look:
AR financing
As a small business, if you are every struggling to keep cash flow, it is important to know your options. One such option is that of accounts receivable financing or AR financing.
4 things to know about PO financing
Purchase Order financing is a great option for those who do not have to working capital to fill the orders that have been made from their company. Of course, Purchase Order financing can blow up in your face, or backfire if you are not careful. Consider the following four things that you should know about PO financing:
4 tax tips to improve chance for financing
If you want to get approved for a loan for your business, you have to make sure that you know what to do tax wise to insure your chances of getting approved are better. Following these four tax tips will help improve your chance for financing, as well as help you get the best rates and terms possible:
4 tax tips to improve chance for financing
If you want to get approved for a loan for your business, you have to make sure that you know what to do tax wise to insure your chances of getting approved are better. Following these four tax tips will help improve your chance for financing, as well as help you get the best rates and terms possible:
What you should know about bootstrap financing for your small business
Many small business owners turn to bootstrap financing in order to get their new business up and running. Because of a lack of business credit history many small business use "bootstrap" financing in order to get the money they need to start and keep their business running. This is often the most viable option for a small business owner who has tried to get financing from traditional sources and failed.
How to manage the finances of your small business
How well you manage the finances of your small business will directly effect whether or not your small business succeeds for the long term. When a small business fails most of the time it was due to the fact that the management of the business failed to keep control of the finances. Studies have shown that this has been true even for businesses that have a large number of sales. You will need to avoid the problem of getting sidetracked by the daily demands of running your small business and not focusing on your business finances. The bottom line is that if you want your small business to grow you will need to carefully your small business finances. Here is what you need to know about how to manage the finances of your small business-
Commercial finance association
The CFA is an international trade association that provides financing based on current assets such as accounts receivable. It was founded in 1944. It has 300 members, which are organization members, rather than individuals. There are 16 chapters comprised of diverse groups. These groups are made up of commercial lenders, independent entrepreneurial finance companies, and several other asset based lenders. Membership is structured with 24% bank, 76% non-bank financial institutions. It includes both large and small independent finance companies, the asset-based lending firms of domestic and foreign banks, floor plan financing organizations, factoring organizations, and financing subsidiaries of major industrial corporations.
CDC small business finance
Certified Development Companies or CDC's are private, nonprofit corporations that fuel economic growth and development by providing SBA loans to small businesses for community economic development. CDC's offer SBA-504 loans. These SBA-504 loans are required to be structured with three elements:
How to keep your small business financially healthy
Small business owners are constantly on the lookout for ways to keep their businesses financially healthy. The reality is that no matter how great your business is doing, if the financial aspects of it are not managed correctly, you will soon find yourself having to close your doors. No longer can small businesses rely on credit in order to keep their doors open. Small business owners must be self reliant, when it comes to keeping their business financially sound. However, there are a lot of things that you can do to make this happen. Here is what you need to know about how to keep your small business financially healthy-
Where to turn for help when starting a small business
Starting a new business is a major undertaking and a number of people are often too embarrassed or too proud to ask for help. Whether they need money for financing the business or just help to get it running asking for help doesn't portray any type of weakness! Starting a business entails a lot of time, money, and paperwork. Having the right people around to help you up may alleviate some of the pressure you are feeling to get the financing and all the equipment you need to get started.
Where can you find money for your business?
Starting a business is hard work but one of the hardest parts about starting a business is finding money to finance it and to try and grow it in the future. Where can you find money for your business? Raising capital for your business is one of the first things you have to take into consideration when you are starting a business or looking to expand one. You don't have to only rely on the financing from a lender as you can also acquire financing from other sources as well like your personal savings, friends and family, along with venture capitalists that have a given interest in your company. This article will offer you insight into the different financing options that are available so you can understand what you want to try when you are getting money for your company.
Spending mistakes small businesses need to avoid
If you are a small business owner, you may have a lot of dreams. While you may be dreaming of sitting in a luxury corner office, of your business's building, the reality is that most small businesses fail due to mistakes they make with their spending. It is crucial that small business owners take a realistic view of their business spending. The bottom line is that the statistics show that this is vital to keeping your small business up and running. Just as living beyond your means, and taking on substantial debt is not productive, for your personal finances, the same goes for the finances, for your small business. Spending to much money, for anything in your small business, can be the mistake that drives your company into oblivion. However, the good news is that there is a lot of information to help you avoid doing that. Here are spending mistakes small businesses need to avoid-
Knowing how to find capital to start your business
As a small business owner, you will start to learn new skills and talents quickly. If you have never tried to raise capital for your business, it won't take you long to learn that this is something you have to learn if you want to continue to be successful in your industry. Raising capital is easy to do once you understand the basics of it and you are successful with it. Initially it's not going to be easy but over time you can overcome frustration and stress that is part of it and you will be able to smoothly grow your business.
How can the SBA help with business financing?
Are you seeking financing for your small business? Have you turned to the Small Business Administration (SBA) for help? The SBA specializes in offering financing opportunities like grants and loans, both of which will be able to help you get your small business up and running. The SBA is part of the Federal Government and their entire goal is to help you find the money you need to get started and to also help you stay in business. Since it is quite common for small businesses to fail soon after they get started, you don't want to place your business in a place where it's not going to repay the loans it borrows.
What type of collateral is needed for a loan?
Would you like to acquire a loan for your small business? When you head to lenders to find out what type of lending options are available for your company, you will quickly find out that not every lender is willing to offer you the money you need based on your lack of business experience, lack of collateral, or general weariness about your small business. A lot of business owners struggle to acquire the funding they need for a loan to get their small business up and running as lenders need something that will reduce the amount of risk you pose to their company.
Creating a breakeven analysis
There are so many different aspects you must consider as you are working on starting a small business or trying to manage one. Business finances are an important component of any business and the breakeven is one financial component you need to pay close attention to. The breakeven analysis allows you to see if you are producing and selling products for a fair cost and that you are getting a good return from them. The breakeven analysis can determine where you need to change prices in order to boost profitability for the business.
A crash course to business finances
Thanks to the large popularity of small business owners encouraging their friends to start their own companies, we have a lot of new small businesses on our hands. The problem is that not everyone is cut own to be a small business owner and they all do not come with the same type of skills when it comes to business finances.
What small business owners should know about equipment leasing
If you are a small business owner, who has a business with heavy equipment needs, you may find that leasing is a better option then purchasing. This is especially true, for businesses that have limited capital, or who need their equipment upgraded, every few years. There are many different advantages to leasing which include but are not limited to:
Understanding small business startup costs
If you are considering opening a small business, the first things you need to do is figure out how much money you need. This can be daunting since determining how much money you need to start your own business, can be a challenge. It is important to keep in mind, that in most cases, the amount that someone needs to start a business is vastly different,from what is actually spent. You should understand that while it would be nice to have some way of calculating exactly what amount you will need to start your business, it is nearly impossible to do so. It can leave you wondering where to start. But you shouldn't be discouraged, since there are a number of different thing,that you can do to get as close as possible,to what your actual start-up costs will be. Here is what you need to know about understanding small business startup costs-
How small businesses can better manage finances
Studies show that there are three main problems that many small businesses face. These problems can wreak serious damage on your small business finances. If you choose to ignore these business problems, they can seriously interfere, with your cash flow, and put your business on life support. Because of this it becomes crucial to understand these problems and know how to manage them. However, the first step is having knowledge of what can go wrong, and a plan to deal with it, when it does. Here are some things that small businesses can do to better manage their finances-
How to manage your small business finances
Managing your small business finances is just like anything else. You must have a plan as to what you want to accomplish. Many small business owners overlook the need to carefully have a plan on how to manage their finances. The bottom line is that failing to have a plan, in regards to any aspect of your business can be serious, failing to have a plan on how to manage your business finances, can literally bring about its downfall. In today's economy it has become crucial, for small businesses to have a tight hold over their finances. The finances problems of years past, that could just be ignored must now be dealt with immediately, to avoid serious ramifications. It is important to understand that your small business' finances are the underpinnings of your business's strength; as they go, so goes the business. There are several important steps you can take to manage your business finances. Here are a few of them-
How to keep your small business up and running
Once you have started your small business, you may think that you are through the worst of the challenges. The reality is that while it can be a big challenge to get your business up and running, once you establish your business (and you have a steady customer base), you are always subject to having challenges. Just running your small business on a day-to-day basis, can mean you will be faced with an assortment of challenges. You may be wondering how you can make sure your small business is going to last through the years. The good news is that despite the fact that there are no "sure things" in business, there are steps you can take that will help insure the long-term survival of your small business. Here is what you need to know about how to keep your small business up and running-
How to choose the right small business credit card
If you are looking, for additional financing, for your small business, you may be considering using a small business credit card. However, it is important that before you simply just choose the first one that is available to you, that you understand the intricacies of business credit cards. Small business credit cards provide you with a wonderful opportunity to meet unexpected expenses and keep your business afloat. However, there are certain things that you should be aware of, before you sign on the dotted line. Here is what you need to know about how to choose the right small business credit card.
What you need to know about getting a small business loan
At some point most small businesses, need a loan. This could be to get the operating capital for business startup, or to finance an expansion. It is important to keep in mind that whether you're approaching a bank, or a friend for a small business loan, the lender will have the same expectations. You will need to be able to satisfy these expectations, if you are looking to get that loan. In preparing for your business presentation, it can be helpful to put yourself on the other side of the desk for a moment. Remember that if you were being asked for a loan, you would want to know exactly why he or she, wanted the money, and what the chances were that he or she, would repay the loan in full and on time. Make your preparation from that point of view. The first step is to gather together the documents that will help persuade the lender that a small business loan is necessary and that you are a good risk. You will need the following documents:
Finding debt relief for your small business
The financial position of your small business may have taken a large hit over the past few years due to the recession and the current state of the economy. If your customers aren't ordering as many products as you like and you are struggling to attract new customers that can generate more revenue for your business, there are some easy ways to find debt relief for your small business.
Credit repair business
The credit repair business has become highly lucrative since our economy and the financing available for companies has tightened and become difficult to obtain.
Business credit is available to accommodate the seasonal demands of the ups and downs in your business cash flow. They enable business owners to anticipate future sales needs. But when your credit takes a hit, you'll need to find ways to repair it as quickly and efficiently as possible.
Continue reading "Credit repair business"Cost cutting tips for small business
In order to survive in this economy a small business must be able to take a look at their costs and expenses and find a way to reduce them. Since the economy is starting to rebound, many small business owners have hope that their sale will pick up and if you have been able to make it this far, you have a pretty good chance of making it into the future. Even though the economy is rebounding, you still need to take the time to undergo cost cutting to make sure you are doing everything possible to save money and provide for the needs of your small business.
The importance of business credit
When you initially start a small business you may be relying on your personal credit to get you the financing you need in the beginning. After some time, you need to start focusing on building your business credit. Why do you need business credit? Here are some things you need to know:
The cash flow needs of small businesses
A strong cash flow can make or break your small business. You need to watch your cash flow carefully and make sure it is not in the red. If you struggle to maintain control over your cash flow, it won't be long until you find yourself out of business. There are several solutions out there that can help you manage your cash flow and prevent you from losing your small business.
Small business credit cards
Are you seeking to find financing for day-to-day needs for your small business? Small business credit cards provide you with a wonderful opportunity to meet unexpected expenses and keep your business afloat. With small business credit cards, you need to watch out for the following:
- Interest rate
- Annual fees
- Limit
Sale leaseback
The sale leaseback is a form of business financing in which a company sells its real estate for cash and then simultaneously signs a long term lease with the buyer. This enables businesses to realize 100 percent of their true market value in real estate and then re-use that capital in other areas.
Purchase order financing
Business credit for start up companies is hard to come by.Traditional lenders are still unwilling and even unable to invest in new business initiatives. Because of this purchase order financing has become a common source of capital in our down economy.
Improve your chances of acquiring small business loans
Starting a small business is impossible without a small business loan. Acquiring the seed money for your small business can be extremely difficult as lenders will review a number of things like your personal credit, business plan, and even your education. Here are some tips on how you can acquire small business loans.
Bookkeeping tips for small business
Bookkeeping is essential to make your business run successfully. Basic bookkeeping consists of your cash transactions, purchases, and your sales. If you cannot hire a professional bookkeeper to help you properly manage your books, you need to find a good software program to use.
The money you need to start your small business
Determining how much money you need to start your own business can be a challenge.In most cases, the amount that someone needs to start a business is different from what is actually spent.While it would be nice to have some way of calculating exactly what amount you will need to start your business, it is nearly impossible to do so.So where can you start?Don't be discouraged, there are a number of different things that you can do to get as close as possible to what your actual start-up costs will be.
Get small business start-up money in a down economy
Having the right amount of money at the right time is a key to making sure that you can get your business started.This is even more important when you are starting a small business in a down economy.Getting money is only part of the process but is an essential part of getting a successful small business up and running.Here are some tips on getting start up money for your business.
Simple ways to meet your sales goals
Meeting your sales goals can be a bit of a challenge. If you have been struggling to meet your sales goals, we have some easy tips you can try.
Tip # 1 - Search for new customers
If you give up your search for new customers, you won't be able to last too long.
Preparing for small business taxes
There are 2 surefire things in life, death and taxes. This quote is definitely true for small business owners that are faced with paying taxes every quarter and dealing with all of the small details that are required by the IRS and their accountant. To help you out with small business taxes, here is a simple guide to follow:
Penny pinching tips
Small business owners understand the importance of tracking expenses because they can quickly get out of control and you will find yourself bouncing payments and even missing payments. With the economy focused on saving versus saving, it is important for small business owners to look at a few ways they can cut expenses and save money. Here are some great penny pinching tips for small businesses:
Improving your bottom line in 2 months or less
If you are not wise with your small business finances, your dream can quickly become one of those small businesses that fails within the first year of operating. When a small business starts to have problems with their bottom line, it can quickly fail if you are not careful and don't take action to fix it. Here are some simple tips that will help you fix your bottom line in 2 months or less.
Finding money to launch your business in a bad economy
Depending upon the size of your small business idea, you most likely won't need millions of dollars to get started. Even if you don't need a large amount of funding, it can be difficult to find the money especially when the economy is bad. During a bad economy, lenders will tighten their lending rules and unless you have a high credit rating, a solid business plan, and enough invested into the business, they will not take a risk by lending you the money.
Deciding to raise or lower your prices
Every business struggles with the decision to raise or lower prices. When an item is no longer selling, lowering your prices may be the only way to clear it out of your inventory. Raising prices will happen often as you need to compensate for the increase in prices of your supplies. Small businesses that are in the food industry often have to raise their prices because things like cheese will rise and the only way they can afford to keep buying it is to raise their prices. You may be able to ease some of your customers woes about the price increase by telling them about the increase in vendor prices and a few of them may be okay with paying more for the same product. Now, how can you make the decision to raise or lower your prices? Here are some easy steps for you to follow:
Cutting costs for small businesses
Every business is concerned with saving money right now, especially small businesses that have a smaller amount of working capital at their disposal. You can try to increase revenue, but this can often be extremely challenging when you are dealing with a struggling economy and customers that just don't want to buy. For small businesses, the phrase "stretching the dollar" really applies to their business. This article will explore some of the different ways you can work on cutting costs.
The benefits of small business microlending
Money is absolutely essential for your business to stay afloat.Many businesses are having a hard time getting the necessary funding with the economic crisis in full swing and while banks are gun shy and don't want to lend as much money to businesses in need.If you are a small business in need of money, then one of the methods you can consider is microlending.Here is a look at the different options you have with small business microlending.
How to start a small business
Starting a small business takes a lot of time and preparation. This article discusses much of the preparation that a person needs to do in order to start a successful small business.
Knowing your business ideas
Helping your small business grow through investing
Growing a small business requires hard work and managing growth plans in multiple areas of the business.One method to consider for growing a small business is through investing.Investing can add a significant boost to a small business and allow it to grow with demand.Here are a few tips for helping a small business grow through investing.
Getting a small business loan
Getting a small business loan takes a lot of time and preparation. This article discusses some of the essential information that a future small business owner needs to know in order for them to get a small business loan.
Finding the best small business insurance rates
Insurance is one of those things that you will likely just never be able to escape.This is true for individuals and businesses alike and can certainly be frustrating and challenging to find the best insurance rates.The concern for businesses seems to be even more pronounced for small businesses and here are some tips to getting better rates on insurance.
Managing small business finances
Once a small business is up and running it is essential that the finances are managed well so that the business can continue to run and hopefully will be a successful small business. This article discusses four tips to managing small business finances.
How to get funding for your small business
The money that a future business owner needs to begin their small business or to keep it running can be available to them in several forms. The important thing is that the business owner-or future business owner-knows how to get that money. This article discusses how a business owner can get funding for their small business.
Funding options for your small business
Starting up a small business can actually take quite a bit of money. And for a small business to continue to run and be successful it will also need money. This article discuses several of the options a small business owner has for funding their small business.
Financing options for small businesses
There are many different financing options available to small business owners. And all of these small business financing options have both positive and negative aspects to them. This article discusses more about four of these small business financing options.
Saving money on marketing
Successful small business owners understand the power of good marketing. However, marketing is a large cost to any business and it can literally cause you to go bankrupt if you aren't doing it correctly. There are some low-cost marketing strategies you can try that will save your small business money. Here are some tips to follow:
Financial resources for your small business
Before you can start your small business, you need to make sure you have enough money to get it up and running properly. You must determine your start-up capital needs along with your cash-flow requirements and determine how much money you need to store in cash reserves.
Cash flow basics for small businesses
Over 90% of business failures are directly related to problems with their cash flow. Having a positive cash flow is important not only for the success of your business but for the investment you have made in yourself. Cash flow boils down to 3 main things, accounts receivable, accounts payable, overhead expenses. This article will discuss how you can properly manage your cash flow so you can stay in business for a long time.
Money matters: how to manage your business finances and taxes
When it comes to running your small business, how you manage your finances is very important. Well-managed finances means better control over your money as well as less hassle when it comes to taxes.
If you are unsure of where to start, these are a few ways you can manage your business finance and taxes:
Continue reading "Money matters: how to manage your business finances and taxes"Getting financing for small business
Starting a small business is an exciting-but expensive-thing to do. There are many costs involved in starting a small business, from licensing to leasing a space and equipment to the day to day operating costs, such as payroll or advertising. Oftentimes, these expenses are too high for the average entrepreneur to be able to pay out of pocket.
What type of funding do you need for your small business
If you are planning to open a small business, you are going to need to know where you can go to get funding for your small business. Where you go for funding your small business is going to vary widely depending on how you plan to fund your small business. For example, if you plan on using traditional funding you will need to go to a bank to apply for a loan. If you plan to borrow money on your whole life insurance policy, you will need to contact your life insurance policyholder.
Here are the different types of funding that you can use to start a small business.
Continue reading "What type of funding do you need for your small business"Handling your business finances
Small business owners must track their business finances often if they plan to stay in business.Tracking your business finances can be time-consuming and tedious, but there are some great software programs out there to make it easy.Many companies find themselves hiring accountants to keep track their finances. Here are 2 of the most-important parts of business finance:
Grants, how to write them for small businesses
Unless you are luck enough to be loaded with cash, chances are that you will need some financial help in order to get all of the things that you will need to start your business. While writing a grant for your small business may seem overwhelming by following some simple steps you can succeed.Grant funding is available for small businesses you just need to know how to access it.
Should I Get a Postage Meter?
If you are a small business owner in today's world, you may have asked yourself, "Should I get a postage meter?" based on the amount of correspondence you send out on a regular basis.If you find that you are constantly making trips to the post office or other postage retailer, or that you have considered the convenience of online postage services, then a postage meter may be right for you.
A postage meter is used to indicate that Postage meters may be used for any class of mail except Periodicals.
Continue reading "Should I Get a Postage Meter?"Private placement memorandums
Private placement memorandums for the sale of stock
A Private Placement Memorandum is a document written up for the purpose of disclosing certain company information.In the case of a Private Placement Memorandum for the sale of stock, information is given regarding the pros and cons of investing with that particular company.This Private Placement Memorandum is for the benefit of potential investors.Although a Private Placement Memorandum is not required for the sale of stock (especially for smaller stock offerings) it is a good way to be upfront and open about the company.This is helpful if there are any future falsifications or failure to disclose complaints by unhappy investors. Investors are have no rights to refunded money if they were aware of and agreed to all risks upfront.
There are some important topics to keep in mind when you write your own private placement memorandum for the sale of stock.As was stated before, your whole purpose in creating this private placement memorandum is to present all information truthfully.Here are some other helpful tips to keep in mind:
Continue reading "Private placement memorandums"How to select a financial advisor for your business.
The decision to select a financial adviser for your business can seem like a rather complex decision.In today's financial driven world there are many options but with some homework and sorting out of the options a business owner can find the right financial advisor for their business.Selecting the right financial adviser for you is essential to set both short and long-term goals for your financial success and of course that of your business.
By consulting with a financial adviser, you will be able to access valuable information on loans, consolidation of debt, investments, securities, and standard regulations on your savings and other accounts. A financial adviser or representative can guide you towards smart decision making, secure investment strategies, and possible venture capital opportunities. They can also be a great resource for mapping out your retirement goals, as well as taking care of current interests, trends, and managing the debt of the company.
As in all major decision doing some prior planning and homework can be extremely beneficial.Before you approach a financial adviser, here are some key Do's and Dont's as you begin your relationship:
Continue reading "How to select a financial advisor for your business."How to manage the finance function and lender relationships
Look at any business around today. Whether they have been in business for years or if they are just starting there is some type of finance function and lender relationship. All businesses should know or learn how to manage the finance function and lender relationships to help build and grow that particular business.
The finance function of any business is perhaps one of the most crucial areas for that business. Properly managing the finance function enables the business to grow competitively and provide assurance to any investors or shareholders. A properly managed finance function can give you a better lender relationship. The lender relationship of any business is important because they are the people that a business or company will go to when more money is needed for any particular reason.
Continue reading "How to manage the finance function and lender relationships"The synergy circle, what is it, how to apply it to small business
The synergy circle is one way to run a business and create more business at near perfect levels. The synergy circle, what it is and how to apply it to small business is discussed further here.
Synergy by definition is the interaction of two or more agents or forces that when combined the effect is greater than the sum of their individual effects. In business a synergy circle is the cooperative interaction among groups that will create an enhanced combined effect. The idea of a synergy circle is that the value and performance of two companies combined will be greater than the sum of the separate individual parts. For example, if one company has a great product but lousy distribution while another company has a great distribution system but poor product they can create a synergy circle with a merger.
Continue reading "The synergy circle, what is it, how to apply it to small business"How to come up with a great small business slogan
Small businesses have a hard time in this world. They have little capital and they are severely affected by small changes in the economy. They can literally loose everything overnight. Many of them have limited reputations or experience, meaning that it can be difficult to get investors and for them to grow. They also rarely can bring in help from outside areas, so they have to rely on whatever they can get from the surrounding area. All of these problems and many more confront the small business owner. So how can you improve your small business? Obviously there is advertising and word of mouth. These are great methods, but you need to have a particular way of representing your business or your advertising might not do anything.
If you think about it, the best advertisements you see are not annoying. With so many bad commercials out there, people just hate seeing a bad one. They are bored by bad advertising and simply don't pay attention to it. The best advertisements are the ones that don't really seem to be advertisements. They contains some sort of entertaining slogan or story. They are more about life than they are about a particular product.
Continue reading "How to come up with a great small business slogan"How to get the most out of your small business meeting
The small business today is up against allot of difficulty. A troubled economy and lots of terrible competition are just a few of the difficulties a small business faces. With little capital and little representation it can be very hard to find investors. People want their investments to be sure things. They don't want to invest in a small company that could fold at any time. As a result, they invest in big firms that they think will always only get bigger. While it is certainly not true that all big firms get bigger, it is true that they are probably a better bet than a small business. But our world needs small business, both to supply local areas with products and services, and also to help us develop stronger communities. Because it is so difficult to get your small business going, or to keep it going, you need to use the limited time you have well. Any time that is waisted is lost forever, and when your business could die at any minute you want to use those minutes well. It would be very hard to look back after a business has closed and realize that you could have saved it by not waisting so much time. If you only could have spent another hour a day working you might have saved your business!
How to promote your small business
Keeping a small business going can be extremely hard. Many businesses fail in the first year of operation and others die soon thereafter. It is difficult to keep going when you have little capital and you have no reputation. How can you possibly attract investors to a venture that has no history and little behind it? There is no safety net. Many people who run small businesses feel constant stress because they never know when something is going to come along and take their small business from them. A competitor could ruing everything.
Ways you can optimize the performance of your employees.
As an employer, you know How to optimize employee performance
the expense that goes into hiring and training people. For that reason you want your employees to be productive. This is important for a number of reasons. First of all, when employee performance is not optimized, things don't get done. This could make you lose customers. Second, it results in lost money. You are paying employees for their time, when they are not really working.
The following are some ideas for optimizing employee performance:
Continue reading "Ways you can optimize the performance of your employees."How to strengthen your supply chain
Your supply chain for your business can become a drain on your profits or your supply chain can be strengthened and help your profits to climb.
A supply chain is exactly what it sounds like. A network of systems, organization, technologies, people, information, activities and resources that are all involved in some way to get your product to you out the door and thento your customer. Because of how big the supply chain network is there are many opportunities given to you for strengthening your supply chain and maybe even increase your profits.
Continue reading "How to strengthen your supply chain"Tips for setting up an inter office relationship policy
Given that about 20% of married couples met at work, it is not uncommon for employees to begin relationships in the office. However, not all employers are open to dating within the workplace.
If you have a business, this is an issue that may very well present itself sooner or later. The best thing you can do to handle interoffice relationships is to have a policy in place before the need arises.
Decide if you want to allow interoffice dating at all.
The first and most important step is to decide if you will even allow office relationships. The main problem that exists with this type of relationship is the after-effects in the event the couple breaks up. While most couples can act like adults about the manner, there will usually be a broken heart involved, and there may even be some bitterness and other employees taking "sides." Some companies would rather bypass the issue altogether and opt to forbid them at all on the grounds of termination.
How credit affects personal finance
The majority of people in the United States will use credit at some point (or many times) in their lifetime. Most people buy their cars using credit, make monthly purchases using credit, and buy their house using credit. Sometimes credit is thought of as a negative thing since it can easily affect someone adversely. But credit can also be a very good thing, helping to get people in to their dream house or afford a months worth of groceries or gas.
Loans
Many people have car loans and a mortgage loan. These loans are considered essential for most people so that they have a place to live and a way to get to their job etc. Loans are a line of credit. Loans can help people afford things, like a house and a car, which they wouldn't be able to afford otherwise. Loans are a part of most people's personal finances. Paying off loans on time can help people get better lines of credit in the future.
Continue reading "How credit affects personal finance"How to manage the finance function and lender relationships
Look at any business around today. Whether they have been in business for years or if they are just starting there is some type of finance function and lender relationship. All businesses should know or learn how to manage the finance function and lender relationships to help build and grow that particular business.
The finance function of any business is perhaps one of the most crucial areas for that business. Properly managing the finance function enables the business to grow competitively and provide assurance to any investors or shareholders. A properly managed finance function can give you a better lender relationship. The lender relationship of any business is important because they are the people that a business or company will go to when more money is needed for any particular reason.
Continue reading "How to manage the finance function and lender relationships"How to cut costs and improve your bottom line
Times are tough all over. This includes many businesses. If you are a business owner you may be looking for ways to cut your costs and improve your bottom line. Anytime you cut the costs of products or services your business uses it is improving your bottom line at the same time.
A major business cost you can look at cutting is to downsize any of the premises that you have for your business. If you have more than one location you might want to look at combining some of the businesses in order to cut costs. This is one of the best options for a smaller business that has a smaller amount of inventory if any.
Continue reading "How to cut costs and improve your bottom line"Finding funding for your small business
Small businesses often face challenges when it comes to finding money to buy equipment, fund projects, maintain operations, and fund any other needs that may arise. There are numerous small business funding options that you can take advantage of. The most popular small business options include small business loans and business lines of credit.
An unsecured small business loan is offered without any strings attached and you are free to use the money in whatever way you need. Because of the flexibility of an unsecured small business loan many businesses are using them for start up, debt settlement, purchase of materials, and business expansion.
Many businesses perceived that unsecured loans had a higher interest rate since the loan is not secured by anything. This is not true; in fact, unsecured small business loans may have lower interest rates than collateralized loans.
An unsecured small business loan provides your company with growing capital with the ease of flexibility. You can apply for an unsecured business loan in a matter of minutes, having a good credit score will also go a long way in obtaining a better loan rate. After you have applied, your lender will review the information and match you with a lender that best suits your needs.
How to avoid bankruptcy for your small business
The best way to save your business from bankruptcy is to begin by setting up your finances securely.By setting up your finances with solid original financing, along with a good budget and self-restraint, will help you save your business from ever falling into bankruptcy.
Saving your business from bankruptcy begins with solid financing
If you are going to save your business from financing, first, you need to consider your financing options.You can finance your business through a combination or a sole method: personal financing, friend and family financing, credit card financing, a commercial finance method, or possibly grants from local governments.Ensure that you research all of your options.Setting up your finances also includes determining what all of your expenses are, what your expenses will be, and using accounting software to help control and track your finances.
Business finances have so many different components and things to control that sometimes it seems impossible to keep track of everything.You have to know how much money is going to your expenses, your payables, payroll, inventory, cash, and more.You also have to track your cash flow and any profit that you make.When you make lists of all of your different expenses things become even more difficult to track.
How to attract new investors to help your small business' finances
Every business needs investors in order to ensure successful operating.It is difficult to get the initial money needed to start a business without investors who are willing to put up some money for you up front.However, you also need investors who will be willing to buy stocks of your company in order to support it, if you are going to go public and sell your stocks on the stock market.You do not have to be a company that is the size of Apple or Google or Dell or Ford in order to sell stocks and to get the public to invest in your business.Here are some ways that you can get investors to look at your business.
Finding a non-traditional source of funds for your small business
Starting your own small business is an exciting yet frightening experience.The thought of marketing your own product or idea and having the freedom to run your own business is as exciting as it is scary.One of the obstacles small business owners run into is finding sources of financing to back up their business.Banks will rarely fork out the money you need to start a small business because of the risk so small business owners are forced to look in other places.Finding a non-traditional source of funds for your small business is usually the best route to go.But where to start?Let's take a look at some non-traditional sources of funding for a small business.
Overcoming financing problems as a small business
Small businesses generally want to be in a position to grow or at least establish a healthy cash flow.However, in order to do this, many small businesses need to attract investors or get loans.For some companies, this can be a very difficult task, especially if the history of the small business has been a rocky one.Companies may have financing problems for a number of reasons.The small business may have a faulty business plan or business strategy, may not be looking hard enough, may not have established credit, or they may need to get out of their initial business debt.Here are a few ideas for how to get over financing problems as a small business.
Revise Business Plan or Strategy
Some small businesses may have a flawless business plan or strategy that has served to getting them to where they are.However, that same business plan or strategy could prevent them from growing the way investors would like to see them grow.Small business owners may need to seek an advisor to help them revise their business plan.Or, the company may need to explore new strategies for growth and expansion.This could help to attract investors or to convince a bank to approve a loan.
Continue reading "Overcoming financing problems as a small business"Need start up capital?Where to get it
The only way a business can be started is if the potential owner can find the money to front the start up costs.This can be a very difficult task for some potential business owners, while others may have the money already stashed away.No matter where the money is coming from, potential business owners need to create an in-depth business plan.Without this plan, it will be very difficult to attract start up capital.Once the business plan is created, potential business owners should know that there are many different ways to gain start up capital.Here are a few:
Bank Loans
One of the most well-known options for getting start up capital for a business is getting a bank loan.Many different types of banks will offer many different types of small business loans.Potential business owners should do their research.Companies may decide to go with a local or community bank.These banks are usually in less of a position to bargain and demand high interest or collateral.Some say this is the best option as far as bank loans go when it comes to getting a loan for starting a new business.
Continue reading "Need start up capital?Where to get it"How to improve small business credit
If you own a business, and also happen to have a lot of debt associated with that business, you might want to consider consolidating your business debt in order to make your life easier, reduce your payments, and improve your credit.Small business debt consolidation can help achieve the following for you and your business:
How to handle payroll for a small business
Owners of small businesses must make many administrative decisions while the business is first starting.They will find that they have not planned for everything in their business plan, or that they do not have a policy for certain situations.One aspect of a small business that owners should consider is how to handle payroll.While not always the most pressing need, having an effective payroll system is essential to any small business.A small business owner will have many options when it comes to handling payroll.Here are a few:
Hire a Private Company
Some small business owners decide up front that they will hire a private company to handle their payroll.The private company is usually an accounting firm that has experienced accountants handling accounts for many different companies.The positive side to this decision is that the new business owner will not have to worry about the tedious act of doing payroll.However, on the negative side, small business owners will not have much control over how the private firm handles their payroll.Owners should be sure to find a firm that will do things similarly to the way the owner would do the payroll to avoid problems or miscommunications.
Continue reading "How to handle payroll for a small business"How to get a good business loan.
Here are some tips and guidelines on how you can get competitive rates and terms for your business loan.
Here are the steps that you need to go through in order to find competitive rates and terms for your business loan:
1.Prepare your application.
2.Interview potential lenders for your business loan.
3.Shop around for the best loan and the best rates and terms.
1.Prepare your application.
Putting together a fantastic loan proposal that will demonstrate to investors and lenders that your business is worth the risk of their investment and that you will be able to pay back your loan.A good written loan proposal can also help you get better and more competitive rates and terms.
So here are the components and the necessary inclusions for your written loan proposal.This is where you are going to make your first and your only impression, so you should make it as good an impression as you can.
Continue reading "How to get a good business loan."Best loan products for small businesses
Small businesses have a wide variety of loan products to choose from when looking for financing options.Many of these products have certain specifications that must be met.For instance some may require collateral, while others want a strong credit score.Each of the following loan products poses an excellent opportunity for a business to get the necessary capital to begin their business or improve their already existing business.
Bank Loans
Bank loans are a great way for small businesses to get start-up capital or money for improvements to the company.Banks are generally in a position to loan a higher amount of money than other loan products, but will most likely require more in return.For example, banks often want to see a well developed business plan, a good credit score, and may require collateral. If a potential business owner is in position to meet all of these requirements, a bank loan is a great way to go.
Continue reading "Best loan products for small businesses"Where to find small business credit counseling
Where to find small business credit counseling can be a daunting task. If you have considered credit counseling as an option for your financial problems, then you probably aren't able to: create a budget you can stick to, you can't work out repayment plans with your creditors, or can't keep track of your endless bills. Luckily there are companies out there that can help you repair those problems. The big question is what credit counseling company is right for you? There really isn't an easy answer to this question, but here are some things to consider that might make this decision easier.
Things to look for in credit counseling companies:
Do they charge?
If you are struggling financially, you probably don't have a lot of money to use on counseling. Don't worry a lot of companies are reputable non-profit organizations who help you solve your financial problems for free. Some non-profit companies charge extremely high fees that may be hidden, so research them carefully.
The benefits of a small business credit card
There are many benefits of why a business owner should have a small business credit card.Many do not have a business credit card for various reasons, but knowing the benefits will most likely change your mind if you are thinking about getting one.
A small business credit card works like an individually-owned card but there are a few perks. They include a lower APR, more flexibility in the credit limit, and other benefits that individual bank card holders don't always get. Business establishments can benefit greatly from using these cards, here a few reasons why.
Improving small business with higher cash flow
Improving a small business with higher cash flow is one essential key in building a better business. The cash flow is the amount of money that is coming into the business, not the amount that is being spent. There are many ways to improve your overall cash flow and in turn improve your business. Here are a few steps in getting your small business on track to increase its cash flow:
Stick to a budget:
It's critical to map out your business expenses in as much detail as possible. Know what you are paying for: insurance, utilities, lease payments, rent, payroll, and inventory. Prioritize these things and make sure that you have sufficient funds. It is important to make and stick with a budget. Know how much money you have to spend on the businesses' advertising, marketing, products, projects and so on. If you stay within your budget then you will not be overspending money that you don't have. Overspending a couple hundred dollars on a particular project may not seem like a big deal, but it will quickly add up if there are multiple projects going on at a time.
How to secure financing for your small business
How to secure financing for your small business is a crucial point to succeeding. There is a variety of ways this can happen. This all depends of course on your credit and how established your business is. Raising capital is hard to come by, especially if:you don't have a good business idea or business plan that will make investors come to you in hopes of making some kind of gain, or you may have a good business idea, but you do not know who to turn to for help. Finding the right sources to turn to for financing can make or break your business.
First, start contacting and talk to people, and make appointments to discuss your plans with the people who have money to invest.When you're looking for money, it's very important that you let as many potential investors know as possible.
Continue reading "How to secure financing for your small business"Best credit card options, rates, fees, etc. for small business
Having a credit card for your small business can be very important in running your business effectively. There are a variety of credit cards with all kinds of options, rates fees and perks. What credit cards are right for your small business? Researching these credit card companies is important to make sure you are getting the most out of your business purchasing.
Here are the top 10 best rated credit card options with rates, fees and rewards for a small business:
Advanta Platinum Rewards Business Card MasterCard
This consolidates business expenses into one credit card account as it earns both rebates and rewards for business related purchases.
0% APR on balance transfers for 15 months and a 7.99% fixed APR after that
7.99% variable APR on purchases
Choice of 5% cash back or rewards on travel
No annual fee and no limit on how much you earn
$0 for fraud liability
Personalized card
Working with a consultant to secure financing.
Working with a consultant to secure financing for a small business can take some of the guesswork out of making a business prosperous. A small business has so many unknown factors where financing is concerned.A consultant can give expert advice and guide a small business through the financing process.If a small business owner has little or no experience with business finances, working with a consultant is a great business decision.
A consultant will be able to help the small business find the financing institutions that will best suit the small businesses financing needs.Working with a consultant will also allow the small business to have the proper applications and information ready when obtaining financing. When a small business works with a consultant it frees up some time for the small business owner.This can prove to be more productive for some small businesses.
Using factoring to help improve cash flow
Cash flow has always been an issue for small and growing businesses. Factoring is a fast, easy and flexible way to provide your business with cash. Factoring improves cash flow and creates working capital for your company by allowing you to raise capital from the unpaid invoices owed to you. Through the power of factoring, you obtain immediate flow of cash that is usually held back for terms of 30, 60 or 90 days in your many accounts receivable. This instant cash flow can help improve your chance of business growth, reduce debt or help pay for operating costs. Contrary to a traditional loan, factoring does not add to your overall existing debt and does not need to be repaid. As you sell your accounts receivable invoices to a factor, up to 90% of the value of those accounts can be released to you in form of cash within 24 hours. Once payments on those outstanding accounts are made from your customers, the remaining 10% percent less a percentage in reserve for his fee is paid to you. This is probably the fastest and easiest way to get your hands on much needed cash rather than borrowing from a bank. You simply convert one asset, accounts receivable invoices, into another asset which is cash.
For so many businesses, outstanding sales invoices are their largest assets. These unpaid accounts can greatly impact the potential growth of a business and sometimes may force a business into bankruptcy. Because most of the smaller businesses don't have the appropriate resources or information to efficiently collect their unpaid invoices, factoring can be the only best way to avoid debt collection and help manage the books. The factor chases and collects outstanding invoice payments on your behalf. New companies can benefit from factoring as well since there is no requirement for a long term credit history. Funding is basically based on the depth of the companies' invoices and is available as soon as a company raises its first invoice and grows in line with its sales.
Continue reading "Using factoring to help improve cash flow"The ins and outs of small business loans
w much does it cost to start up a business? Some business owners use their savings to start their firm while a few strive to continue working a full time job for someone else and use their free time to build their business. But often times most business owners are required to borrow the necessary money to finance the start-up period of their company including marketing, purchasing and developing their ideas. Borrowing money to invest in expanding or improving your small business is very common practice. Short-term loans can provide quick cash to increase your uncertain cash flow to help you in this competitive market world. If you manage your loans properly, they can provide you with long term power of buying and creating increasing your potentiality to do well. When the planning goes poorly, the financial result and the state of your company can add stress and headaches and sometimes bankruptcy.
Usually, banks provide short-term loans as line of credit that works much like an ordinary credit card but with better and improved features. The bank makes a certain amount available to you with the option of interest only with principal payoff at a later time in the future. With the amount available, you only draw what you need and pay the interest solely on the amount you are using and not the entire line of credit available. Interest rates on lines of credit are mostly adjustable, meaning they can go up or down based on the U.S. prime rate. You should consider a business line of credit over personal lines of credit for all your company's financial needs simply to avoid losing your personal assets such as your home, your cars or your furniture in case you struggle to make your monthly payments. Make sure you understand that using the borrowed funds will promote and increase your revenue in the future, allowing you to meet your monthly payments including the final principal payment at the end of the agreed term. For this reason, you need to plan carefully now your business needs. Of course, you should discuss with your personal financial advisor before you make any decisions.
How to get unsecured financing for your small business
Starting up a new business requires ideas, a product or a service, and creativity, but most importantly, cash. For many people, owning a small business is the definition of the American dream. Complete control of all aspects of your business and the chance to reach new opportunities of prosperity are just a few of the benefits of small business ownership. Unfortunately, most business owners don't always have the necessary funds to get them started or improving on what they presently have. They most often rely on financial institutions to help them out with some cash. One of the best ways to get their hands on money is to apply for unsecured business loans. What does a business owner need to know about unsecured business financing and why this might work for him?
An unsecured business loan is fairly easy to get these days and many lenders are offering competitive rates and features to get you to sign up with them. This is a convenient way to access a large amount of money. Unsecured lines of credit offer business owners the flexibility to access the money any time they need it. This can be the perfect money resource for taking care of routine business as well as unexpected expenses. This type of loan allows you to borrow cash right away and as often as you need without high fees.An unsecured business line of credit provides immediate access to much needed funds by simply writing a check. Most often, the interest rate is far less than using your credit cards to make your business purchases. Unlike a loan, you don't have to borrow it until you decide you need it. One the main advantages of an unsecured business line of credit is that you don't have to put up an asset to get your hands on much needed funds. You don't want to think that you may lose your home or your business assets if your business is suffering.
Continue reading "How to get unsecured financing for your small business"Questions to ask when hiring an accountant
When it comes to hiring people for your company you are going to want to hire the very best people for the job. Basically what this means is that you are not going to want to hire just anybody you are actually going to want to hire top notch people, and this includes your accountant. Whether you are going to be hiring a full time accountant or you are going to be outsourcing your accounting you are still going to want to take the proper things into consideration so that you can hire the best person for that job.
Most of you who have ever had to hire somebody for any type of position already know how hard it can be to find the right person for the job. Many people seem to look like the perfect candidate on paper, but when you get them in for the interview everything seems to fall apart. The good news is that there are some tips and tricks that you can use to make sure that you are hiring the perfect person for a senior accountant or any other position that you need to have filled.
Tips for figuring out how much house you can afford
Buying a house is an exciting time. But before you can begin your house hunt, you must first know how much house you can afford so you can look for homes that are in your price range.
If you are not sure how much house you can afford, there are a number of ways you can go about figuring this out. Mortgage brokers and financial experts estimate that most homeowners should expect to spend roughly a third of their total income financing their house.
What you need to do to be able to have people pay by credit card
Many small business owners are aware of the fact that if they accept credit cards on their websites or in their stores they are going to see an increase in sales and profits. The main reason behind this thought is that when you allow people to pay by credit card you are increasing how many people will actually make purchases on your website or at your small business. But something else that not very many small business owners are aware of is that by accepting credit cards you are going to be able to take advantage of two types of specific customers: the two types are impulse buyers and international customers. The reason that you are going to attract your impulse buyers is because you are giving them a way to make a purchase immediately rather than having time to stop and think about it. The reason that accepting credit cards will attract international customers is that it will take care of all of the currency problems that can arise, not to mention it gets rid of the time it takes to send a check. Because of those reasons and numerous other reasons many small business owners find allowing their customers to pay by credit card a great business decision. But the problem is that not every small business owner knows what you need to do to be able to have people pay by credit card.
What you need to know about merchant accounts for payment
One of the most important things that you are going to need to know about merchant accounts for payments is what exactly a merchant account is. Basically a merchant account is a specific kind of bank account that is provided to your business through a financial institution. Most merchant accounts require that you sign a contract that will provide exact details of what is included and what is not included with the merchant account and the contract like other contracts must be renewed during after so many periods. Something else that separates merchant accounts from regular bank accounts is that merchant accounts are an approval based product that has separate fees and terms as well as conditions in regards to your regular style bank accounts.
Here are some other things that you need to know about merchant accounts for payment.
Continue reading "What you need to know about merchant accounts for payment"Getting a low interest start up loan
Many people realize the costs that go into beginning a business, which can include such things as licensing and other fees required to make your business legal, costs for equipment and other start-up necessities, marketing and advertising costs, and many others.
These expenses can be difficult to cover if you don't have a consistent, positive cash flow yet or if you are just starting out but can't afford to cover all of them. If this is the case and you don't want to wait any longer to begin your business until you have saved up some money, you many want to opt for a loan when starting a business.
Continue reading "Getting a low interest start up loan"Handling payroll and taxes for a small business
Handling payroll and taxes for a small business. Taxes and payroll even in a small business is not something you should take lightly. The reason is that if you slack off in any area where these responsibilities are concerned, you can find yourself in both financial problems, along with possible legal problems.
Where you are looking at payroll and taxes, you will find there are a couple different ways to handle them. You can either do them yourself, hire someone to do your payroll and taxes, or outsource to a company to handle these things for you.
How to hire the right additions for your small business
How to hire the right additions for your small business? That question is one that often times evade many employers. At least for the first while they are hiring people for their small business. Even if they had experience in hiring in the past, there can still be questions about hiring the right person.
Though it is never going to be a sure thing, there are a few things that can be done in order to make it a surer match. The thing that is more different and harder to work around with the small business employees are; will that person fit into the team. Do they care about the business enough to give 100% and more sometimes? That is what a business manager will be looking for.
Small business credit card loans; what you need to know
One of the biggest obstacles most people face when it comes to starting a business is funding. Starting a small business usually requires start-up costs in the thousands, and many people don't have the necessary funds already sitting in their bank accounts to start up a business.
If you can't get money from any other source, but you've done your homework and are certain that your business will recoup its start up costs and then some, credit cards are an option for helping you to cover some business related costs.
However, there are risks when it comes to getting
Continue reading "Small business credit card loans; what you need to know"Getting low interest financing for your small business
Whether you're opening a shop, expanding your building, or moving your business from the basement to a real building, chances are you'll eventually need to get a business real estate loan.
Also called commercial loans, business loans differ from residential loans in that they usually have higher interest rates and a much shorter term. They are also more difficult to obtain, as certain banks prefer specific types of property for lending money.
Continue reading "Getting low interest financing for your small business"Tips for getting investors for your small business
Have you ever wanted to open your own business? Have you dreamed about opening your own business but can't seem to find people to invest in your business? If you have ever dreamed of opening your own business then you have probably thought of the fact that you were going to need some kind of money to get your business up and running, what you might not have realized is that this money is actually referred to as capital. In the business world without capital you are not going to be able to open and run a successful business, which is why so many people don't even try to open their own business. But then you have people who look at ways of raising capital to open their business. These people will approach banks for loans, sell their personal assets, take out a second mortgage on their home or anything else that they can think of to open up their business.But the problem is that not everybody can get financing through the traditional methods so they need to approach investors to get money for their small business. Basically there are two types of investors that you can approach for your small business venture capitalists and angel investors.
Here are some tips to keep in mind when getting investors for your small business.
Continue reading "Tips for getting investors for your small business"The pros and cons of allowing people to pay with credit cards when you have a small business
One of the decisions that a small business owner has to make is whether or not to accept credit cards.Just like any business decision, you have to weigh the pros and cons.Sometimes the decision is an easy one and other times it is more stressful.
Here are some of the pros and cons for accepting credit cards.This will help you to weight your options.
Joining unions when you have a small business
Joining unions when you have a small business? Labor unions are sometimes something that causes a wary feeling for small business owners. You think you are doing a great job managing your employees. You train them well, pay them decent, and offer advancement when possible. Then all of a sudden you hear that the union has been approached.
Do not let this get to you. Every person has the want and the right to improve their work environment. Though the labor unions are not as powerful and plentiful as they were a couple of decades ago, you will still find that they have their uses.
Can you use small business loans for a home business?
Everybody knows about small business loans and that some of those loans are even backed by the federal government. But what many people don't know is if they can use a small business loan to start a home based business. The good news is that the answer to this question is that yes you can use a small business loan for a home business. The reason for this is actually really simple; regardless of where you are opening your business it is still considered a business, even if you are running the business out of your basement. But the thing about small business loans is that they are not the easiest things to obtain so before you can use a small business loan for a home business you are going to need to understand a few things about small business loans.
Here are some tips to keep in mind on what you need to know about small business loans and what you are going to need to have to get a small business loan.
Taxes and business licenses, how to take care of the legal mumble jumble
You are so excited to get your small business up and running.You have laid out your business plan and are ready to take off.Make sure that you have all of the licenses, permits and taxes that are required.You don't want to be shut down before you take off because you didn't have everything you needed.
Start at the top: federal level.Check with your state government and find out what permits or licenses you need on a federal level.A good place to check would be www.sba.gov or www.business.gov they both have great resources for starting a new business.Just a few of the businesses that will require a federal license are businesses that deal with meat, firearms, alcohol or tobacco.There are also federal licenses required for businesses in telecommunications and investment advising.These are only some of the businesses that have a federal requirement.Check to see if your business qualifies.
Continue reading "Taxes and business licenses, how to take care of the legal mumble jumble"How to set up a business bank account with banks
One thing that every small business is going to need is a business bank account. The reason for this is that your business accounts should always be kept separate from your personal accounts for tax reasons, not to mention other legal reasons. Many small business owners tend to think that it is perfectly fine to mix the two accounts because they own the business and need to get paid, when in reality nothing is further from the truth. Not to mention the fact that setting up a business bank account is actually rather easy so there is no excuse not to do it.
Difficulty rating: Easy to moderate
Step one:
The very first thing that you are going to want to do is to pick a bank that has a great reputation. One of the best ways to find this kind of a bank is to go to a bank that you have done business with before. For example you had a car loan through them or they have your personal accounts. But something else that you need to consider when choosing a bank is that they are located in a spot that is convenient for you, not to mention that is easily accessible, meaning it is not so far out of the way that you dread going to the bank when needed.
How to register for a tax ID
Before you can register for a tax ID you are actually going to know what one is and what it is used for. A tax ID is actually called a Federal Tax Identification Number or an Employer Identification Number. The purpose of a tax ID is to identify your business, which means that pretty much any business is going to need a tax ID, but there are exceptions. And in some case business are going to need to apply for a new tax ID. But whether you need are a new business or an established business you are still going to have to follow the same steps when registering a tax ID.
Difficulty rating: Easy
Getting a short-term loan to help
Operating a business is expensive. Many people realize the costs that go into beginning a business, which can include such things as licensing and other fees required to make your business legal, costs for equipment and other start-up necessities, marketing and advertising costs, and many others. But in addition to that, sometimes money is needed immediately for a short term to cover other expenses.
These expenses can be difficult to cover if you don't have a consistent, positive cash flow yet or if you are just starting out but can't afford to cover all of them. If this is the case and you don't want to wait any longer to begin your business until you have saved up some money, there are several types of funding options available for financing.
Funding for your small business comes from where?
You want to start up a new business and you are trying to come up with the money you need to open your doors.Here are just a few of the ways to get the money you need, and different ways you can pay it back.
Always start looking at your own finances.Try to come up with the money you need from your personal credit cards, home equity, cash and where ever else you can dig up some money.You might be able to start your business on your own.Make sure that if you are married that your spouse is okay with this.
Continue reading "Funding for your small business comes from where?"Finances are all important, keeping your small business on budget
For some small businesses creating a budget is a big problem.For even more small businesses it is staying on the budget that causes the problems.Make sure that your business doesn't come across those problems, or if you already have, get away from them.
There are some small things that small businesses can do to keep on budget.Many of these things won't take too much effort, but all of them will take a desire to do what is best for your business.
A look at how the mortgage loan industry has changed and how that affects you
For many people, the American dream is owning a home. However, this dream is becoming harder and harder to obtain for many people who have fallen on hard times as a result of recent changes in the mortgage loan industry.
What has changed in the mortgage loan industry
Recent changes in the mortgage loan industry include a sharp pullback in a lender's willingness to supply subprime lending. A subprime mortgage is a mortgage intended for those who have poor credit histories, typically with collections or bankruptcies, or who barely qualify for the ability to pay their mortgage each month because of incomes that don't allow them to do so.
Why controlling finances and staying ahead are what keep you in business
Controlling finances and staying ahead keep a business afloat because they know what the company is lacking, areas that need to be strengthened, what the business is delivering, and what the total revenue of the company is. Knowing these things is extremely valuable because a business can get into trouble when it starts losing money over unnecessary spending, bad products, and poor planning for the future. Taking all of these things into consideration will decide whether or not a company has what it takes to run its business in the marketplace and be a competitive force in the business world.
Having a financial plan will help direct spending of the company into the business. Knowing what the needs of a business are based on its goals and will help direct spending into the appropriate facets and avoid frivolous expenditures. Financial plans need to be meticulously made and followed. It is a map to success if taken seriously. Handling money is serious business, especially when the money is coming from sources that want it back with interest. Know where that money is ending up, and in it will be obvious where the business is heading.
What you should know about securing a small business loan
Securing a loan from a bank isn't as cut and dry as the imagination may make it seem. There are many options of going about starting a business in this way. The time to get a loan should be in the early years of the business in to help it early on to have the funds necessary to get in off the ground. Once it's matured and become self-sufficient, no matter what kind of loan has been used, pay it off immediately to keep interest rates from making the debt larger than it needs to be. Here are some of the options available you know about when securing a small business loan.
Getting a small business loan from the bank is the first obvious choice. What is not obvious is to avoid commercial banks as they do not like to assume risk for the money lent. If they do, they have extremely high interest rates for the use of the money. A better option is to use local banks because they are always looking for local businesses to do business with directly. Most often, local banks will even have benefits available for small businesses to lure them into the bank. Get to know the loan officer that works in the bank. Plan to make several visits to that office so they can get to know who you are and what you are all about. If they have a good feeling toward you, they will more than likely have an ok feeling about lending money to your endeavor. Doing this will make work with them much easier.
Tips for raising necessary financing for your small business
Starting a private business is a daunting task to tackle. It seems that every little thing in a business needs to be done perfectly for it to be successful. And what about all that money? Who has money to start a business? Well, here's a question: is money necessary to start a business? The answer to that can be "yes" or "no". Let's focus on yes and come up with some ideas of raising the capital necessary to either start or just help the thriving business along.
Any entrepreneur knows that getting the money to back the idea can be the hardest thing to accomplish. Putting on that negotiation smile and business game face is part of the process to convince people to put their money into the company of a potential business. The job of the individual is to use their imagination to come up with most sensible way to get the money or resources necessary to start. Most of the time, however, even the most imaginative entrepreneur will skip over taking imaginative steps for building capital. Here are some ideas:
Continue reading "Tips for raising necessary financing for your small business"Tips and tricks for creating a cash-flow forecast
This article is going to try and teach you how to make a cash-flow forecast. Before we move forward and do all of that, you need to know what cash-flow is. In any business, there is always money leaving the business. That money is gone forever. It went to pay for all of the employees, taxes, cost of materials, blah blah blah, you get that right? The whole goal of a business is to have total revenue to be much larger then the cash-flow. The revenue is the total income of the company after everything has been paid for. If the cash-flow number is bigger than the revenue, which means the business is in debt and that is just not what a businessman wants for himself. In order to make sure that never happens, a cash-flow forecast can prepare a business so they never have to face a situation like that. It's all about the preparation that saves a business. Cash-flow forecast is a good tool to use to ensure your own business's success.
Making a cash-flow forecast all starts with keeping a good financial journal of everything the business does. These financial journals are referred as the financial book of a business, or, a business book. By keeping track of all of these numbers, important information can be extracted to help prepare a business for possible troubles, opportunities, and to just know what the current state the business is in. Most small business owners despise keeping books and find it to be a horrible chore. The reality is that a financial book is an important tool in keeping in tune with where every cent is going, in and out of the company. Using an accountant to go over monthly financial reports can help you immensely in major decisions that are faced at any given moment. What people don't realize is that working with these numbers doesn't need to be a crazy hassle. There is software available that will work with these numbers and extract all of the information for you.
Mistakes to avoid when raising financing for your small business
You have your big idea for a business all worked out in your mind and you have written out a top notch business plan that will pull in any possible funding that may come your way. All you need now is to secure the money necessary to build this business into something lucrative and satisfying. There are mistakes that have been made when raising money for a company that can be avoided if you know what to look out for and if you know exactly what you want out of your business. Here are some mistakes to learn from when raising financing for you small business.
One of the major problems people run into after they have started their businesses is that before they started their business, they didn't acquire enough capital for the business to expand. If your company is going to need materials to rent out, for example, there needs to be enough money available to buy the equipment to generate revenue. When going to investors, don't under ball the big idea that is in your head. If it's good, don't make it a waste of time by under funding the business. Remember to start with room to grow. Don't make it a restrictive environment for your business, otherwise, it will die, quite growing, or if it's a good idea, you will be forced to sell it to a larger corporation who will probably expand that idea and make millions of dollars from it. So remember, don't sell the idea for the sake of selling it. Sell the idea and what it can become to the investors and do it with proper funding.
How to put together a cash-flow forecast
If you own a business, you want to know exactly where your money is going. Having money slip through the cracks is a waste. If there was a way to make sure that this didn't happen, wouldn't you want to know about it? The money that is leaving your business is called cash-flow. Wouldn't it be nice to not only know what the cash-flow is now, but to have an idea of what it will be in the future? Think of all the things you would be to be prepared for. You would know how high to set prices, where to go to for better priced materials and how much to money you would make afterwards. Knowing an idea of these things is not magic. In fact it is just plain logic. Using the numbers and figures that are being kept in your business book with a little investment into market analysis will help unlock a forecast of your business's cash flow.
The first thing to do when creating a cash-flow forecast is to know exactly where funds are coming from, going to, and how much profits are being made. All of these things should be written down into a financial book. This book is valuable in that it has not only all of this information, but it protects from business fraud and if it is kept well, will be the deciding factor later on if you decide to sell the business, whether or not they will buy the business. From these numbers of how the business is doing, make a report that can be easily referred to in a meeting with an accountant.
Continue reading "How to put together a cash-flow forecast"Determining your pricing do's and don'ts
Determining your pricing do's and don'ts in a small business. This is a hard area that takes a little homework. The reason is that pricing incorrectly cannot only cost you sales, but worse, it can end up costing you money.
In order to come up with competitive pricing, you will need to shop around. It is necessary to figure what you pay, what your profit needs to be, and what you can ask for in pricing. It will also be necessary to know what your competitors are offering and for what quality of service.
When you should consider using a venture capitalist to fund your small business?
When you should consider using a venture capitalist to fund your small business? Using venture capitalists should be done when you know you are prepared, skilled and ready to make a small business work.
When a small business needs capital to get going, or to keep going, it is a good time to consider using venture capitalists for your small business. There are banks that can help you get some funding for a small business. However it is easier to deal with the private investment organizations.
Continue reading "When you should consider using a venture capitalist to fund your small business?"The key to minimizing overhead and expenses
They key to minimizing overhead and expenses is to lose the waste. Ok, I know this is easier said than done. You know though it is possible. The largest businesses in the market have learned the way to do this. The waste that can happen in any business can become horrendous if there is not a plan in place to keep it under control.
Start first by looking at the overall supply costs, labor costs, and business tax expenses of your business.These areas are where you will find that the most waste will occur. Following these hints will make it easier to minimize that overhead and those pesky expenses without lowering the profit of the business.
Continue reading "The key to minimizing overhead and expenses"How to handle capital gains tax if you own a small business?
How to handle capital gains tax, if you own a small business? First of all in order to handle capital gains, you will need to know what capital gains are. The capital gain is the money you would make from purchasing something and then selling that something for a profit. This would be like a stock and then selling it for a profit. Capital gains are based on the assets value that you will make after you pay for it at an earlier cost.
The main thing to look at with capital gains in your small business is the loss or profit. Then the taxes you will need to take into consideration for that profit or loss.
Capital gains is the opposite of capital loss. The gain is if you make money and have to pay taxes from the profit. The loss is if you take a loss from declining values and profits, then you will be able to write off these losses in your taxes.
In order to handle capital gain and capital loss, you will need to track the financial transactions properly. This will be what you will need to give your accountant at the end of the tax season, to make sure you do not get ripped off when the final taxes come around.
There are two different types of capital gains
Continue reading "How to handle capital gains tax if you own a small business?"It's all about the money where will you get your financing?
Small businesses are really all about having enough money to actually run your small business.That's why many small business owners find themselves constantly wondering where they will get their money. There are actually a number of options available to help you fund your small business.
Generally speaking, there are a few different ways that you can approach financing your business.They are as follows:
1.Personal financing.
2.Friends and family financing.
3.Commercial financing.
4.Angel investors
5.Venture capitalists
6.Business to business financing
Funding from equity financers
Getting an Equity Loan or Funding from equity financiers. Some lenders offer funding for equipment purchases, up to 100%; for equipment leasing also up to 100%; and up to 90% for small business cash flow etc. Interest rates vary per program from 4.75% to 8.75%. Typical loans begin at $25,000 up to $350,000 by one firm advertising on the Internet.
The time to pay back can vary from 12 months to 10 years. These are loans written by the banks etc. in the towns or over the Internet. There are numerous Internet banks available.
Continue reading "Funding from equity financers"Tips for bank presentations to get funding for a small business
Starting a small business is an exciting thing. Being your own boss, making money doing something you love, and unlimited income potential drives millions of people to attempt to start a small business.
But starting a business can also be very expensive. Many find that starting a business has start-up costs outside of the reach of their own personal expenses, and when this is the case, they apply for small business loan.
5 cash flow management tips for a small business
5 cash flow management tips for a small business. In order for your business to maintain their existence, there must be a flow of cash coming in to cover the overall expenses that occur in a small business.
In order to maintain a positive cash flow, there needs to be clients or customers who are willing to pay into your small business for the service or products you offer.
Ways of reducing overhead for your home or small business
When you're running a home or small business, every penny counts.You need to think of ways in every aspect of business that you can save money and make your business prosper.But this is easier said than done.Luckily, this article will teach you a few way of reducing overhead for your home or small business.So keep reading and improve your financial situation.
There are many areas in which you may reduce overhead for your home or small business.They include bartering, networking, buying in bulk, looking for opportunities for free stuff, borrowing or renting rather than buying, going to auctions, buying used stuff, and eliminating unnecessary spending.
How to determine allowable expenses for your home business
How to determine what are allowable expenses for your home business. This is a difficult task because; in the beginning of starting a home business three factors weigh in to what your expenses will be.
1. Needs to get started
2. Wants to make it happen
3. Excited purchases
Can you use a venture capitalist to fund a home business?
Can you use a venture capitalist to fund a home business? For the majority of venture capitalist funds it is a fund that is provided on the basis that a company can get off the ground and have a return of 20% of investment return.
The amount of money that is usually loaned from a venture capitalist is in the millions. So most small home businesses would not fit the criteria that the investors are looking for.
The link between controlling your finances and staying in business
One of the important keys to making a small business work is finding a balance between managing finances and staying in business.A lot of small businesses will run into some tight financial times at one point or another.Most of the hardest financial times for a small business are right at the beginning when the business is starting to take off.When the times are getting tight, it is especially important that you keep your finances in good shape.Here is a little bit of information on the link between controlling your finances and staying in business:
- Work more than you spend:Although this is actually a hard rule to measure, you can kind of get the idea of what is meant.You need to be consistently working to make sure that you will have the earnings you need to keep your business going.One of the hardest things for a lot of small business owners is to consistently keep working. When you are your own boss, it can be easy to get distracted and do things that take you away from your work.You really can't let this happen if you want to stay in business!Make sure that you are working hours and making more money than you are spending on your business.You need to make a good profit (and also put some money aside for a rainy day) if you really want your business to STAY in business!
Continue reading "The link between controlling your finances and staying in business"Why staying on top of your finances is so critical for your small business
Staying on top of your finances is very important for your small business.If you stay on top of your finances you will not experience cash flow problems.When you have cash flow problems you will experience other problem with your business as well.You will experience problems with pay roll.You might have to borrow money from other resources to make up for lost money.If your accounting gets out of hand you will feel disorganized and discouraged.Let's talk about ways that you can become more organized with your finances.
If you are trying to take care of your finances all by yourself and you are getting confused and upset because you can't seem to keep your finances straight, get some out side help.You could spring for an accountant.There are accountants available that specialize in small business finances.A personal accountant for your business could get expensive so that might not be a good idea for a small business owner.
How to test the financial side of your business idea
How you can test the financial side of your business idea in 5 easy steps. Many times people run a financial test on their business through the financial forecast and cash flow. The reason they do this is to find out where their business is heading and what is working or not.
These areas of your business plan or business idea will translate everything as far as what numbers are included. These numbers will then give you the bottom line of how your financial side of your business idea is going.
How to handle foreign currency payments for online small businesses
How to handle foreign currency payments for online small business sales? Small businesses are venturing more and more to the foreign money available through the Internet. However, there is that little that is called foreign currency that needs to be dealt with.
You can work with most merchant banks like Wells Fargo to work with the exchange of foreign currency payments. There are also options like PayPal. There are different payments processing software that you can purchase to make these payments easier.
How to get letters of credit for your small business
How you can get letters of credit for your small business. In order to understand how to get letters of credit, it is necessary to know what they are. A letter of credit is a document that is issued through your bank, which will act as a guarantee of funds to a beneficiary.
The letter of credit acts as the source or repayment of the transaction meaning that the exporter will get paid with the redemption of the letter of credit.
Everything you need to have before you go to the bank for a loan
Unless the funding for your business is coming from your own pocket, getting a loan from a bank is something that most businesses will have to go through.This is not an easy process and it should not be taken lightly.Banks will not just give loans to just anyone who asks for a loan.The banks are taking a huge risk when they give up money to fund a business.There are several things that you as a potential business owner will need to bring to the bank when you apply for your business loan.Some of these things include:
A detailed business plan
You as the potential business owner must present your business plan.You business plan must be detailed and to the point.You are selling this plan to the banker; you are trying to get the banker to believe that you will have a successful business.The banker wants to know that if he/she gives you money to finance your new business that they will make their money back.When you go to present your plan you must present the best o your self as well.A person's image will make a great impact on the decision of giving you the loan.Make sure that you know the answers to those important questions, like: "what are you using the money for?"If you are confident in your business the banker will be confident in you.
How to recognize potential budgeting problems
One of the most important steps in running a small business is to prepare a budget for your business. Businesses prepare budgets to help keep better track of their money and where it is being spent. While the entire idea of a budget is a great idea it does not guarantee that there won't be any problems with the budget. No matter how well prepared a budget is, many businesses find problems in the budget. Problems in the budget can be due to numerous factors, such as not allocating enough money to a certain part of your business or transposing numbers. Regardless of what the problems they can be managed as long as you can recognize the potential problems before they get out of hand.
Here are some of the more common problems that can arise when preparing a budget.
Continue reading "How to recognize potential budgeting problems"Getting the right funding for your small business
When you are starting a small business you will most likely need some type of funding, but the problem soon becomes what kind of funding is right for you. Because your business does not have a credit history it might be rather difficult to get traditional funding for your small business. But the good news is that there are many methods for funding your small business you just need to choose which method is right for you. The type of funding that is right for your small business depends upon what kind of personal credit history you have, how much capital you have already invested, and how much money you are going to need to fund your business. But keep in mind whether or not you go with traditional or nontraditional funding you should prepare a cash flow forecast and a business plan, so that you can show your investors how you plan to make money and how you plan to pay back your debt.
Here are some different types of funding that is available for your small business.
Continue reading "Getting the right funding for your small business"How to master the financial side of your business
Ah finances. Or should we say, Oh, finances. Finances plague us in all walks of life, whether it be home or business or school or whatnot, but business finance especially can be a plague, especially if we allow ourselves to get sloppy. Thank goodness that business is an old, old art, because we have plenty of good examples to follow, and plenty of little tips and tricks on hand for mastering the financial side of business. Let's talk about a few of them, and take one step closer to mastering the financial side of business.
- A rather obvious step for mastering the financial side of business is: hiring the right accountants. Putting together an accounting team is a crucial part of mastering the financial side of business. If we're leading a business, we'll have to become a master of every single aspect of it. We won't have time to focus on one area alone; this means we need to find good, hard-working, intelligent, innovative, creative people to do the detail work. This is especially true of the financial aspect of business. One way to familiarize ourselves with the best accountants available is to first do a little research and discover the top-rated schools for accounting. We need to know why they're top-rated-what sort of accountants are they churning out, what are the unique skills possessed by these accountants. Finding one good accountant, and slowly, over the years, adding to this number as we need to, is of paramount importance if we desire to master the financial aspect of business.
Continue reading "How to master the financial side of your business"How to determine the financial requirements of funding your small business
While many people envision starting up a small business they might not be able to realize their dreams because they are not aware of the financial requirements of funding for a small business. You might think that getting a small business loan is a simple process, but what you might not realize is that although most small business loans are commercial loans they are still backed by the United States Government. While the Small Business Administration is not a direct lender for small business loans, commercial loans specialists will seek a guaranty from the Small Business Administration to support their loan to you; this means you must meet the Small Business Administrations guidelines before your loan will be approved.
Tip one:
The first thing that you must have when it comes to financial requirements for funding is a good credit score. Because you are a start-up business your business will most likely not have very good credit, most likely it won't have any credit at all. Due to this factor the commercial lenders you are seeking a loan from will look at your personal credit score to determine if you can qualify for a SBA loan.
How to create a realistic cash flow forecast
One of the most important things you are going to need to prepare in order to get financing for your new small business is a realistic cash flow forecast. With established businesses you have historical information that you can use to help produce more realistic cash flow forecasts, but when preparing a cash flow forecast for a start-up company all you have to use is your own estimates. Trying to make these estimates, especially the sales forecast, is the most difficult part of building your company's financials.
Here are some tips for creating a realistic cash flow forecast.
How to increase profits by lowering your bills
Every business wants to increase their profits and many people think that the best way to increase your profits is to increase your sales. But there is a small problem with that. If you do increase your sales you are going to increase the costs of running a business because of the increase in the amount of work that is now having to be done. So that leaves with you with one other option, you must lower your costs in order to increase your profit.
In business there are two kinds of cost types: fixed and variable. Fixed costs are costs that do not change in relation to the amount of production or sales. Fixed costs can include but are not limited to insurance, rent, and utilities. Another thing about fixed costs is that they can become change over time, but the increase and decrease is not related to production. Variable costs are costs that change depending on the activity of the business. A great example of a variable cost is inventory and raw materials. If you are in the retail industry you have to keep inventory on hand and when your sales increase so does the amount of your inventory. The same holds true for raw materials, the more items that you are producing the more raw materials you are going to need.
What is a financial statement, and how do you prepare one that meets the legal requirements
Financial statements are the actual records of a business' financial activities. Financial statements provide an overview of a company's profitability and their financial condition in both the short and long term. Financial statements are used by both internal and external users.
Internal users are owners, managers, or other people who are directly connected with the company who is preparing the financial statements. Some internal users use the financial statements to help them make important business decisions that can affect the operations of the company. Employees will also use financial statements in discussing their compensation, promotion, and rankings, which is known as collective bargaining. External users, such as creditors and potential investors use the financial statements to determine if the company will be able to pay any loans or if they company is a good choice to invest in. The government actually uses the financial statements to ensure that the right amount of taxes and other things declared by the company have actually been paid by the company.
Continue reading "What is a financial statement, and how do you prepare one that meets the legal requirements"Using a business letter to increase revenues
There is definitely a certain amount of skill involved when writing a business letter to increase revenues.After all, a simple letter can mean a big difference in the financial future of a company.You want to make sure that you do it right and hopefully in reading this you will be provided with useful information.
For a company, the total amount of money received for goods sold or services provided during a certain time period is referred to as their revenue.Obviously, every business owner is looking for ways to increase revenues and decrease expenses.Important components of acquiring revenue include sales and the exchange of assets.Naturally, there must be at least two parties involved in a sale or an exchange of assets (whether material or otherwise).Many of these exchanges are the result of a well written business letter.
What is a cash flow statement and how do you use it
A cash flow statement or the statement of cash flows is one of the financial statements that many companies use to inform the public about their business, it can also be used for internal purposes in small businesses. The statement of cash flows is used to report the company's cash receipts, cash payments, and the net change in the company's cash resulting from the company's operating, investing, and financing activities for the period it is prepared for. Some companies prepare a statement of cash flows once a year, while others prepares them once a quarter. The statement of cash flows is used to reconcile the company's beginning cash balance to its ending cash balance.
One of the statement of cash flows purposes is to help investors, creditors, and any other interested party understand what is happening to the company's cash throughout the year. Every cash transaction is accounted for on the statement of cash flows and the other financial statements are used to help prepare the statement of cash flows. The statement of cash flows also provides answers to the following questions.
Continue reading "What is a cash flow statement and how do you use it"8 tips for approaching banks for finance
Approaching a bank can be rather intimidating so here are some tips to help you approach a bank for financing.
Tip one:
Why do you want the money. Before you approach any bank for financing you should have valid reasons as to why you want the money and be prepared to answer that question when looking for a loan. Some of the most common reasons that you want to borrow money from a bank is to pay off debts, buy equipment, vehicles, or buildings, to expand your business through more advertising, inventory, hiring new employees, etc. Before you go to a bank to borrow money you should try all of your other options first.
How to pinpoint retained profits
Before we start to pinpoint retained profits it is a good idea to understand what retained profits are. Retained profits are profits that are earned by the company that have not been divided among the partners or shareholders. Rather these profits are being put back into the company for use at a later date, whether they are being saved for an expansion or for lean times these are profits that have not yet been spent. Retained profits are also known as retained earnings.
Almost every company uses a form of financial statements to help keep track of how their company is doing financially. It is in the financial statements of any company that you will discover the company's retained earnings. The most common place to find retained earnings is in the Income statement. Every year dividends or a share of the profit are paid to the shareholders or owners of the company, this is usually a set amount of the net earnings, such as thirty percent or ten percent, which is then taken away from net earnings to give you the amount of retained earnings a company has.
Continue reading "How to pinpoint retained profits"How to calculate your product profitability
Product profitability is used to let your company know how profitable a certain product is. You can figure product profitability by multiplying the unit sales volume by the profit margin of the product. The result will give you the overall profit for that product but to find its direct product profitability (how much the product makes compared to how much shelf space it uses) you need to divide the overall profit by the shelf space that it uses. For example if your profit for the product is two thousand dollars and you use one hundred centimeters of shelf space your direct product profitability is twenty dollars per centimeter. While this does not seem that hard to do product profitability can get more complicated if you sell numerous products and it can get complex because of all of the different costs that are associated with the product, etc.
Because some many businesses are using product profitability to determine if they should continue using a product or to help determine what their better products are, computer software has been created to help you determine product profitability.
How to make accurate predictions of income
If you are a business owner who is trying to plan a budget you might be looking for a way to accurately predict your income. Or you might be thinking about expanding your business and would like to find out if the it will be worth it, honestly who wants to expand their business if they are not going to increase their overall profit? No matter the reasons making predictions of your income is not an exact science, which means there is no sure fire way of getting the right numbers. Your only way to figure this is to look at your historical data or in the case of a new business what you think your business is able to do and make an estimate of sales and expenses to figure your net income.
Here are some basic questions that you will need to answer to help make accurate predictions of your business income.
6 tips for raising financing for your small business
At some point in the life of your business you will most likely need to get third party financing, whether it be for startup costs, launching your product, expanding your sales force, implementing new manufacturing methods, or for any other phase of business.Although getting money is not difficult, getting the right money at the right time on the right terms can be a challenge.Here are six tips that you may want to keep in mind when raising financing for your small business.
1. Decide how much capital you need and ask for more than that.Figure out how much money you have to raise to achieve your next business goal and then add that number to your overall operational costs.Take that number and factor in six to nine months worth of operational costs to add to that.The sum is roughly how much capital you need to raise.The point is to have enough money to both keep the company running and achieve specific milestones in order to demonstrate increased value before you need to seek more finances.
4 ideas for controlling your finances
One of the most serious mistakes that small business owners often make is failing to control their finances.Financial planning is crucial for your small business because without a cash flow and a good plan on how that cash flow will be spent, your business can go under fast.By creating cash flow projections, you will be able to avoid problems and create the financial success you need.
In order to effectively control your finances, you will need to develop a plan.You will need to know how much cash is coming in and be able to budget where that money will go, whether in be into producing more inventory, wages, overhead, etc.There needs to be a plan developed so that you don't have too many surprise expenses and for those that do come up unexpected, you will have a plan for them as well.
Continue reading "4 ideas for controlling your finances"How to pass venture capitalist due diligence.
There are two main types of venture capital due diligence.The types of due diligence are business due diligence and legal due diligence.These represent aspects of an investigation that a potential investor or venture capitalist will want to conduct before investing in a potential company or business opportunity.There are many tools that are available to use in conducting due diligence but the basic structure is broken down into two parts.
Business Due Diligence
Continue reading "How to pass venture capitalist due diligence."How to start an online business with no money
Internet businesses are as diverse as the people who run them.Some people have loads of money just laying around that they can put into their internet business and do so with great ease.Others have money but are not willing to invest it in an online business that may or may not be successful.And then there are the rest of us who are dirt poor and are looking to starting an online business as away of making money.
So how is a person like you, with absolutely no money at all, supposed to get a business up and running?Well, it is going to take hard work, but it is very possible.Here are some helpful tips to starting an online business with no money:
Continue reading "How to start an online business with no money"The True Cost of Self Employment
So you want to start your own business?Great! There are many successful and happy business owners all around the world.However, many new or potentially new business owners forget to take all of the costs of self employment into consideration.Consider the following true costs of operating your own business.
- Do you have a plan for health insurance? Retirement? Investing? - One of the benefits for working for someone else is that you don't have to worry about the details.Well, as the proud owner of your own business, you are going to have to start thinking about how you are going to find medical coverage for yourself, how you will invest for your retirement, etc.In the united states the typical United States self employed business owner should expect to pay 35-40% of his salary towards medical, dental, visual, life, unemployment, disability, long term care, and worker's compensation insurance.This is quite the chunk of money.35-40% may seem high when you consider what you paid for benefits before you started your own business.The reality is that when you work for someone else, that company is paying a large chunk of your premium for you.Furthermore, those premiums under your employer were taken from pre-tax dollars.When you work for yourself, there is no one else to help you with your costs.
Continue reading "The True Cost of Self Employment"Getting auto insurance for your business:
If you are running a small business there are many things that you have to pay for. There are many costs to consider such as the products you will be selling, where will you get them, how much will you pay for them? One thing that you will have to pay for is business auto insurance.
Some people will just cover their business cars under their personal auto insurance because it is also their personal car. This could be fine in some instances, until you got in a car accident. If you were involved in a car accident and they found out that you were using the car for business purposes at the time, the insurance probably would not cover the accident and you would have to pay those costs out of pocket. That would be a real bummer.
Continue reading "Getting auto insurance for your business:"Starting a business with your retirement funds.
You have been thinking about starting up your dream business with your retirement funds. Nevertheless, the questions remain.
What options are available to obtain funding to start a small business? Is borrowing from retirement funds a good place for funding to start a business? How much will be needed to be borrowed? Are there penalties?
Borrowing from your retirement savings may not be a bad idea. Most plans allow you to borrow up to 50% of the value of your account. Generally, this is penalty free, as long as you pay the loan back in a timely manner.
Continue reading "Starting a business with your retirement funds."SBA basic section 7(a) loan guarantee program components
Congratulations on starting up your own small business.Of course there are a lot of things that you need to do as a new business owner.One of those things may be to give your company a boost with a small business loan. The SBA basic section 7(a) loan guarantee program is designed to provide small businesses with financing opportunities with reasonable terms, while at the same time reducing the risk to lenders.Any such relationship is normally beneficial to all parties involved.
The SBA basic section 7(a) loan can be used for building or acquisition of property, expansion, renovation, machinery, equipment, furniture, refinancing debt and increasing working capital.Reasonable collateral or liens on personal assets will be required as they are available.
Business auto usage is not covered under your auto insurance:
Running a small business costs a lot of money. There are many expenses that you have to pay. Many people see businesses and they do not consider all the costs. They only consider the costs of things they can see such as the building you run it in, the products you sell (you had to get them from somewhere), etc. But there are many more costs than just the things that are visible to the eye.
Once such thing that is not visible to the eye but does cost money is insurance. Businesses have to be covered by insurance so that they can be protected against potential lawsuit. They have to have insurance to protect them against possible damage to their business. They also have to have insurance for any business cars that they drive. If they were to get in an accident while delivering products to customers, they have to have business auto insurance to cover them in that accident. Personal auto is not enough!
How to get out of a commercial lease:
If you have a commercial lease and you want to get out of it, it may be because you did not anticipate how fast your business would grow and you need to get into a bigger place. It could be for this reason or others. Maybe you got into the lease and then found that you do not trust your landlords and you want to get out of the lease because you do not feel that you can trust them.
There are many reasons that you may feel that you want to get out of a commercial lease. No matter what the reason you want out, there are ways that you can get out of the lease. But, all of such ways that allow you to get out of your lease, stem from the landlord and whether or not they are willing to let you. Take a good look at your contract, and determine whether or not you have an out option. In not, then if your landlord wants, they can make it so you cannot get out of a lease. At the time you sign the contract they can already have it set up so that if you ended up wanting to get out of it at a later period, you could not.
Continue reading "How to get out of a commercial lease:"Starting a business with your retirement funds.
You have been thinking about starting up your dream business with your retirement funds. Nevertheless, the questions remain.
What options are available to obtain funding to start a small business? Is borrowing from retirement funds a good place for funding to start a business? How much will be needed to be borrowed? Are there penalties?
Borrowing from your retirement savings may not be a bad idea. Most plans allow you to borrow up to 50% of the value of your account. Generally, this is penalty free, as long as you pay the loan back in a timely manner.
Continue reading "Starting a business with your retirement funds."How do you get tax exempt status?
What is tax exempt status?
Tax exempt status allows certain organizations within the United States the privilege of not having to pay income tax. In addition, some organizations don't have to pay other types of taxes, such as property, sales, or other state taxes. Rules vary depending on the state. Most of these organizations are non-profits organizations such as churches, schools, and charity organizations. The ability to get tax exempt status depends on a number of things.
Non-profit organizations aren't the only ones, however, that can have tax exempt status. Organizations such as sports leagues, labor unions, farm and agricultural organizations, veteran and military groups, and some businesses are also sometimes exempt from taxes.