Small Business Blog

Posts Tagged ‘Getting’

Have a Brilliant idea for a business and want to get started? A SBA start up loan may be just want you need to begin.

The Small Business Administration is offering two distinct loans for future business, heck they will also help by giving you technical advice, and if your company qualifies they may offer analysis and sanction to take to commercial lending companies.

The primary program of the SBA is to offer a Basic 7(a) Loan Guaranty which of course is their first type of start up loans.  Basically this is a guaranty for start up companies with a proper and fiscally solid business plan. This is the SBA’s most flexible loan program, and the amount of funds available can vary on a case by case bases. The loan is intended to help you buy things like of equipment, furniture, fixtures, construction, and working capital.

But what if you don’t need a great deal of money, and your sure your business will take up quickly? Well the second type of a loan, the 7(m) “micro loan,” is what you need. It offer new companies like yours ,000 a short term loan for things like supplies, machinery, furniture, fixtures, and inventory, but not for bigger things like real estate.  The 7(m) is not as available and can only be found in select areas.

Now SBA only acts through intermediaries, the 7(a) through a commercial lending institution and the 7(m) normally an experienced non-profit intermediary. The SBA either pays the principle(the 7(a)) or directly pays to the loan to the intermediary(the 7(m).)

Now there is a third option for start up businesses from the SBA start up services, The Loan Prequalification Program. This program is only available for under 0,000, and you have the opportunity to have your credit, experience and character analyzed and potentially sanctioned by the SBA before going to a commercial lending institution to obtain your loan.

You know your businesses will be great and so does the SBA, that’s why their advice, their loans and guaranteeing of those loans are their to help you business thrive and grow to its true potential.

Business plan.

If you are planning on getting a secured loan (tied to your collateral and assets) a business plan is very important to show the lender how you are gong to spend the new money from the loan, how it benefits the company, and how you are going to repay the loan.  Your plan should concisely tie together all the strings of your business so that the lender does not have to try and figure out how things work.

Basically, you should already be one step ahead of more than half of the many entrepreneurs who are initiating on their direct marketing campaign. This is why you’ve landed here and are reading this article; which will detail to you the many ways in which you can get new business lists the hassle free way. At the end of the day, there are only two main ways that you can get QUALITY business lists, and not just a batch of names picked up from any random corner of the internet.

We’re talking about an extensive list of business contacts whose names have gone through rigorous processes of research, compilation and market allocation, according to the product or service that you have chosen to sell. We’re talking about a business list that will get you to the right contact and will help you generate leads, and eventually for you to either make a sale or to return a call at a later date.

Where are you going to get this list of business contacts? Certainly not from any of the free databases that are available on the internet as part of either an opt-in process or even worse, a free gift that comes with your purchase of a product. No, these lists are diluted and not targeted, mostly taken from old databases or picked up from web crawlers that go online and compile as many contact names and addresses as they can. Also, many times they’re reproduced from old business lists previously used by other marketers, who will then compile the old names and addresses for additional profit, selling them as a way to recoup their original cost. For a business list to be responsive and give you the opportunity to generate leads and make sales, it needs to be from a currently updated national business list database. What you should do is order a new business list every 90 to 180 days or so, or depending on the time it takes you to use the entire business list.

This means finding a source where you can gain access to fresh, new business lists that are targeted to your product. While it sounds like quite a feat, there are actually ways to do this. One of the ways is to do it yourself, which means taking the time to set up satellite websites and even e-surveys that can narrow down the people who would most likely buy your product and services. This sort of data mining will take ages to accomplish – taking you away from the very valuable selling time that you need. So what is the other alternative if you cannot trust pre-made business lists that you find online?

But there are legitimate sources (reliable business list providers) online that have the staff dedicated to updating their lists through multiple sources, and can be targeted to your product, and these lists will be updated four times a year. This is the sort of edge that you need to get the momentum of your marketing campaign going. Quality targeted lists from direct marketing companies ensure you have the start you need. Like any business or any investment, you need to put a bit in before you can get anything out of it.

A business planning template can be an invaluable tool for a first-time entrepreneur or any entrepreneur working in an unfamiliar business sector. Using a template that is specific to your business sector can shortcut the work and formatting you have to do significantly. Here are three steps to make the best use of a template.

Read Through the Entire Template

First, read through the entire business plan template to understand the guidance it gives which you may make use of. Read both the sample text and financials and all comments and instructions given by the creators to help you along. By reading the template through, you get a sense of what the finished product might feel like and what type of work you must do to get your plan to this level.

Adjust the Financials

Before you do any writing, work on the financials to make them consistent with your plans. Enter your startup costs (after you have researched them) cost of goods sold, operating expenses, and revenue projections. The financial model with the template should help by automatically updating the financial statements of the plan based on the changes in these basic drivers. Check that the financial results (profit, return to investors, and cash reserves on hand) are appropriate for your business before moving on to the next step.

Customize the Plan

Next, customize the text of the plan starting with the company overview, working through to the end of the plan, and ending with the executive summary. As the executive summary pulls from every other section of the plan it is always best written last. Be sure that the language you use is entirely your own. Use sample text from the business plan template only as guidance to the tone and type of content you should use. Refer to guidance within the template to be sure you are fulfilling the purpose of each section as you write.

Setting up My LLC – Getting a Business Address

So I decided to setup my new company as a Limited Liability Company.  I used the internet to research the subject of setting up a company and found what seemed to be many very good recommendations.  One very important recommendation about having your own business is to make sure you completely separate the business from your personal affairs.  A Limited Liability Company is only protective if you do not mingle the business with your own personal finances and assets.  This means the business should be a clearly separate entity with a clear paper trail of its own.  Without this clear separation, the LLC may not provide the personal liability and asset protection which is one of the main reasons for me to have this type of business structure in the first place.

Getting a business address

The first thing I set out to do was to get a business address which was separate from my own personal home address.  (Remember that I do not have a retail business or service location at this time so I do not have a physical business address such as a store or building)  If I had an office or other physical business address then this would be a no-brainer, but I don’t.   Often a U.S. Post Office box will not suffice for many transactions and doesn’t appear to be as professional as a physical street address.  I had read about setting up an account at my local UPS Store which allows me to have a physical street address and not just a PO Box.

My approach to my business address

Using the UPS store approach for my business address also had other advantages.  I can have someone receive packages which may require a signature without having a hit or miss approach regarding delivery times.  I can then pick up any packages at a time that is more convenient for me.  This service is not something I could have received from the U.S. Post Office.  They have many other business services which I may utilize in the future also.  A full list of their services can be found by going to www.theupsstore.com.  Many of you may have other options or businesses with similar services to choose from.   I would recommend just comparing and contrasting each of them to see which one would be better for you.   In my area, the UPS Store was the best option for me.

What it cost me

I chose to rent just the smallest mailbox for the time being because at this point I do not have a need for a larger one.  I also wanted to keep the expenses lower.  I paid 4.00 for 12 months of rent for my mailbox.  Simple math breaks this down to around dollars a month.

This mission accomplished

So to recap, the goal I had set out to accomplish was available for a month (not bad in my opinion).    Number one, I was to get a physical address for my company separate from my personal address (this was by far the most important).  Number two, I was able to now receive packages and mail requiring a signature without me being present.  And number three, I have convenient access to many other small business services when the need arises.

In my next post I will go over the steps I took in getting my LLC paperwork completed.

If you’re an executive or business owner who has decided to send one or more of your strongest leaders to business management training in Vancouver, you can be assured that you’ve made the right decision.  By giving your top people a chance to excel and learn, you’ve ensured that your departments are likely to run more efficiently and profitably than ever.  And that will translate to happier customers, a stronger corporate culture and other positive results.

Because you’re making an investment in business management training in Vancouver, you want to ensure that you get the biggest return.  Thus, it’s critical to implement the five steps below to maximize the benefits related to the outcomes of business management training.

1.  Ask Questions about Your Employees’ Business Management Training in Vancouver

Don’t be satisfied to simply send an employee to business management training and then assume that changes are happening.  Ask him or her to periodically tell you about what he or she has learned and how it has made a difference in his or her management style and/or processes.  This type of tête-à-tête doesn’t have to be in a formal setting.  Schedule a coffee meeting or lunch once a month.  Just remember to be open to what you are hearing… and don’t be surprised if you learn something new, too.

2.  Provide Time for Your Employee to Implement What He or She Learns

Too often, businesses that send their people to management training expect results overnight.  This is completely unrealistic and will only serve to frustrate attendees.  Typically, it takes more than a month for companies to see major changes, especially changes in sales and marketing.  Have patience and look first for smaller changes which may be less obvious but are nonetheless important.

3.  Provide Opportunities for Your Manager to Make Changes within Their Departments and/or Teams

Nothing is more frustrating for an attendee of a management training program than to come back to the office and discover that his or her employer will not allow changes to be made.  If you’re sending your employee to training, be aware that you’ll need to be open to revising the way the company has approached business.

4.  Offer to Help the Employee Work with His/Her Newfound Tools

If you’ve been through business management training yourself, you may be in an excellent position to mentor a new business management attendee.  Often, managers are unable to figure out where or how to start applying their newfound tools and knowledge.  You can play an extremely important role in helping him or her bring new information and ideas to life.

5.  Have the Employee Train Others

There’s nothing wrong with putting a graduate of business management training in Vancouver in charge of mentoring other up-and-coming employees.  Although he or she should not be expected to be a formal training coach, he or she can nonetheless provide assistance and guidance to workers with leadership potential.

Never forget that the more emphasis you put on and time you put into your employees’ business management training experiences, the more your company will get out of the process.

For more information on sales management coaching programs in the Vancouver area, visit www.dynamicachievement.com.

The global financial crisis has made it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You may need to get small business loans to acquire a better business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.

Most Small Business Loans Require Collateral

To get business loans, even small business loans, is a major challenge.

First you need to identify which among the many types of small business loans you need. Small business loans ranging from $5,000.00 to $35,000.00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are qualified for small business loans guaranteed by the U.S. Small Business Administration or SBA.

Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to prove your credit worthiness through a personal credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will put up to secure the loan.  

Quick and Easy Small Business Loans with No Collateral

For smaller acquisitions or day to day business needs, there is a way for entrepreneurs to get small business loans easily and quickly with no collateral. This is through merchant services.

Merchant services provide credit card services to businesses. This enables them to accept and process payments through credit cards or debit cards either through face to face purchases, online transactions, or even by phone or fax. Merchant service providers supply terminal equipment for card swiping, as well as the necessary software and high speed IP solutions.

Most businesses need credit card services since consumers routinely pay for goods and services through credit cards and debit cards these days. If your business has not taken this step yet, you may have been missing out on more than half of your income potential.

These same merchant services also provide the solution for your small business loans. Collateral-free loans can be availed of through their cash advances, with the loan amount computation based on the monthly credit card revenue your business generates. Credit card sales requirements may be as low as $3,000.00 a month. You will not be asked for collateral since your future revenue is your collateral.  

The best types of merchant cash advances do not require fixed monthly payments nor do they impose deadlines on loan payment. A certain percentage is instead deducted automatically from your credit card revenue each month to go towards loan payment. This way, you never have to worry about loan amortization.

Once your cash advance has been fully paid, you may apply for another one. It is like having a revolving credit line. Make sure that you compare the terms of several merchant service providers, though, and read the fine print on contracts. There are so many merchant service providers competing for your business that you’ll surely find one that fits your needs.