Life itself is only a vision – a dream…RSS
Getting your own business up and running involves a bit of money in the early stages, and investors must be convinced that your operation is a worthwhile opportunity before they hand over the bundles of cash. With only a minority of small businesses being approved for a loan from financial institutions and other misc. lenders, you should still find other ways to get the money you need to get things going. Personal credit history is what trumps up the majority of entrepreneurs who want to create something for better, but never let that keep you from going forward with your dreams. Even though lenders have a plethora of resources at their disposal to look into your past, you should still go ahead with it so that you know what they know about you.
Have you noticed a slight decline in sales or web traffic? It’s true, most businesses experience a slight drop in sales and traffic when the weather warms up. This is the perfect time for any business owner to spend time working on their “must” lists. These lists should include financial tasks that greatly affect your bottom line. Therefore, instead of wasting time watching videos on Hulu and downloading movies in your spare time, make it a mission to conduct the following:
Outsource administrative work
Are you looking for some extra cash to keep your business ahead of the competition? Maybe you’re looking to hire extra help, lease that office, diversify your inventory, or step up your business game to another level, whatever that is. Take a look at this, it’s about banks that have plenty of money to lend.
Here are some thoughts you should really think about before you go about the funding process:
How much are you worth, right now?
This is probably the most important thing when it comes to bankers and investors. Are you worthy enough to cover any losses? Hiring the right people is a motivating factor in today’s work environment. Even with the help of a loan or investment, paying new people means maintaining a workable business model that lasts for at least two years. New hires want long-term stability anyway, just like your investors.
The majority of companies never stick to their budgets to help them exceed their profit goals. Why? Because the owners believe that the time it takes to learn how to create and implement budgets isn’t worth it. They think that learning how to adjust to a new budget is annoying and hope that everything will fall into place–if they only keep selling more products, services, or anything, everything will be fine.
This is a big mistake. The point is that budgeting is the way to go about increasing profit margins and minimizing any costly mistakes. Budgeting lets you move your resources to places that give you the edge over your competitors rather than making decisions on a gut feeling.
Here are the things that every lender considers before they even think about loaning you money for your business:
How Soon Can You Pay Them Back?
Investors love to see several sources of income–money coming from your business and a back-up source–usually some form of collateral. They will also look extensively into your financial statements, as well as any previous partnerships. They will ask to see your:
If your business has brought in a pretty penny, you’re probably going to get approved right away. But, if you have struggled to keep in the black, you can help your cause by including extensive information about potential opportunities, newly acquired contracts, or other positives that shows you’re not a risk.
The majority of businesses grow past the point where the owners seriously have to think about borrowing money to keep operations going. You might experience a brief shortage or you might not be able to keep up with the rising demand for your products and services. Maybe you want to jump on an opportunity to buy new office equipment, warehouse inventory, or stock up on basic materials, or possibly buy another business.
So, do you think borrowing money for you business is a good idea? There are no straight answers. If you play your cards right, and in ideal circumstances, borrowing can be just what you need to learn how to manage better and expand even more. Sure, there is a price to pay, and paying too much or struggling through payments that aren’t organized properly can become the thing that slowly backs you into a financial corner.
Here is a simple guide to various forms of payment.
Plenty of small business owners realize that bringing in enough sales to survive can be a burden in its own right, so thoughts about the way your customers pay for your products or services usually get overlooked. You have to understand all the options for payment–and the pros and cons of each–for you to be successful in the long run. And believe me, there are plenty of ways for customers to pay. So, if people are choosing one payment method over the other, so should you, if you want to accommodate them.
In the second half of this year, a couple of new payment options have popped up that lets you accept credit card payments via smartphone – your new best friend as a small business owner.
Actually, when using any of the services, businesses of any size – even a babysitter, lemonade stand operator or your run-of-the-mill vendor – have the ability to sell their product and/or service to anyone with a credit card.
I will take a look at several merchant services that were born from qualified entrepreneurs and hardened veterans, and each offers their own unique angle on the same process of accepting payments from anyone, anywhere.
Owning a credit card for your business will make things easier for you by managing your expenses and tracking any other accounting costs. However, business credit cards, just like your own personal credit cards, must be spent sensibly. Everybody knows that owning business cards has its perks, there are many risks involved as well. We will take a look at the benefits and detriments of business credit cards.
It’s way easier to qualify for a business card than your own personal line of credit or even a bank loan. If you have a solid history, or your business is somewhat established, several credit card companies will be more than willing to give a card to use.