Small Business

Debt and Equity Financing: Two Options for Financing Your Small Business

Whether you're preparing to launch a startup or want to grow your business, one thing is for certain: You’re going to need money. Debt and equity financing are two different financial strategies: Taking on debt means borrowing money for your business, whereas gaining equity entails injecting your own or other stakeholders’ cash into your company. Debt Financing Business owners may have some trepidation about borrowing from a financial institution, as it means relinquishing some cash profits. But it could be a good option so long as you expect to have sufficient cash flow to pay back the loans, plus interest. The major benefit for debt financing, unlike with equity financing, you'll retain full ownership of your business. The interest on business loans is also tax-deductible, and you’ll build your credit. Small businesses frequently take bank loans. They are usually easy to obtain – so long as you have good credit, enough equity to cover the payments and you're not Continue Reading

5 Small Business Loan Tips

As most business owners will come to know, obtaining a small business loan can be a trying ordeal. Learn what you need to know about getting a small business loan for your business. An important source of funding for your business in the future can be the bank. Relationship banking has been the cornerstone of small business financing. A good relationship between the business owners and bankers allows for the free exchange of knowledge and the ability to meet the needs of business. A banker informed of your business can not only provide you with a small business loan but also offer practical advice on financial matters. Banking Relations and Your Small Business Loan Setting up a relationship with your banker begins with following five tips: Set up a bank account at a bank that deals with your size and type of small business. Manage the account effectively and avoid overdraws, bounced checks, and low balances. Borrow a short-term loan and pay quickly to establish your business Continue Reading

Small Business Funding and Financing: Finding the Money for Your Business

Finding small business funding is one of the survival skills needed for small business success. Whether you're a start up or growing business, learning the basics of raising capital will go a long way to ensure you stay in business. There are a variety of money sources for small business including grants, small business loans, SBA loans, angel investors and much more. Debt & Equity Financing: Debt and equity financing are two different financial strategies: Taking on debt means borrowing money for your business, whereas gaining equity entails injecting your own or other stakeholders’ cash into your company. Small Business Grants: Small business grants are often a hot topic among entrepreneurs with limited funds and access to capital. There are many misconceptions when it comes to grants for small business. First Time Small Business Loan: The best place to start when it comes to finding your first small business loan or credit is not with your banker, accountant or lawyer but Continue Reading

Small Business Time Management

A great job, wonderful family life and a successful part-time business. Until her employer fired her for poor quality of work and her business clients went elsewhere for better service. This scenario can happen to any part-time business owner. This is not to say working full-time while running a part-time business is impossible but balance and knowledge are key factors in business success. Part-time businesses allow entrepreneurs to "test the waters" and see if the business is viable while still earning a full-time paycheck. But there are many traps to avoid when moonlighting. Learn the 6 keys to avoid part-time business disaster. 6 Keys to Avoid Part-time Business Disaster 1. A Conflict of Interest?: The first question to ask when starting a part-time business is "Does your venture conflict with the interests of your employer?" If your part-time business and employer markets and serves the same industry, there may be a conflict. Examine your hiring package to see if there is a Continue Reading

Break the 5 Barriers to Starting a Business

Many cubicle workers hate their jobs and secretly wish to start a business. It’s the Dilbert environment with a overbearing boss watching every move and taking credit for good ideas that feeds the dream of entrepreneurship. If ever there was a better time to start your own business now would be it. Entrepreneurs today have access to a wealth of knowledge, a variety of support sources and reduced startup costs. Break the 5 Barriers to Starting a Business No Money: Having enough money to start a business is claimed by many entrepreneur wannabees to thwarting their dreams. The reality of a successful business is to bootstrap it in the beginning and accomplish the most critical mission of any startup… finding a customer. Forget the fancy office, the cool CEO chair, or glossy four color brochures. It doesn’t take big dollars to start a small business. Over 48% of the Inc. 500 started their business with less than $20,000. No Time: Working a full-time job, raising a family, and Continue Reading

Stress-Test-for-Your-Bank: Personal Finance News

Five ways to evaluate how your bank is serving you in this economy. Talk about headaches. Having to come up $75 billion in new capital is a stress test in itself for the banks deemed to be in the worst shape by the Federal Reserve. Compared with that, resolving issues you're having with your own bank seems like a walk in the park. Still, dealing with financial institutions nowadays can be a major source of irritation. Ask these questions to determine how well your bank is serving you -- and learn what to do to lower your own stress level: Are my deposits safe? As long as your bank is insured by the Federal Deposit Insurance Corp., your money is guaranteed -- up to $250,000 per depositor. That's the case even if you have an account with Bank of America, which tops the bad-bank list and needs to raise $34 billion in capital. Call 877-275-3342 to verify that your bank is covered by the FDIC, which is backed by the full faith and credit of the U.S. government. The $250,000 limit was Continue Reading

How To Get A Small Business Loan

Sooner or later most small businesses need to get a small business loan, whether to get the operating capital for business startup or to finance an expansion. But whether you're approaching a bank or a friend for a small business loan, the lender will have the same expectations. You can greatly increase your chances of successfully securing a small business loan by being prepared to meet those expectations. Put yourself on the other side of the desk for a moment. If someone asked you for a small business loan, you'd 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. So the key to getting a small business loan is preparation. First, 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: A business plan - The business plan show the lender not only why you want a small business loan but what you plan to do Continue Reading

8 Sources of Business Start Up Money

So you’ve got a killer business idea and want to start a business. How are you going to get the business start up money you need to take your new business from idea to success? This rundown of where to look for the start up money you need and the most popular sources of business start up money will help. 1) Your own pockets. This may be daunting at first glance, but it’s the most popular source of business start up money. Don’t have a start up money nest egg? Many people get the business start up money they need by mortgaging or remortgaging their homes, or selling property or possessions – even those who do succeed in getting a start up business loan. Lending institutions and investors usually expect the person starting a business to make a personal financial commitment. 2) Family and friends. The second most popular source of business start up money. Family and friends are often willing to provide a business start up loan or sometimes even an outright gift. After all, Continue Reading

Steps to Starting a Small Business

Determining if a small business is right for you can be manipulated by other factors that you need to be aware of. So let's begin the process by establishing your responsibilities in this. First things first, learn as much as you can about the industry, the product and the demand of the service. The worst thing you can do prior to joining a network is repeat quotes about their industry that isn't true. For example, I was introduced to someone who asked me what industry my business was in. Since I own multiple businesses, I said travel, referring to one of them. Then the guy rambled on about how the travel industry was dead and assumed I wasn't making a profit. I thought this was so hilarious because the travel industry is the largest industry, even bigger than oil and my team is one of the top producers in the company. So don't be foolish, do your research and ask lots of questions and make sure to get the answers. It's time for you to accept running a business is going to be more Continue Reading