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Starting Your Very Own Small Business

There are a great many things that need to be considered before a small business can be started. If you are looking to start a small business there are some things that you will need to do to ensure that you get off to a good start.

The first thing that you will need to do when you are starting a small business is decide what the business will do. A small business can be a service related business or one that makes a product. It should be something that you enjoy and can devote a great deal of time to without realizing much profit in the beginning.

Many small business owners will tell you that the early years of a small business can be very rough. The business owner will have to spend a lot of time working in the business without making much of an income. This should not be expected for the life of the business, of course, but it is the norm for new businesses. Most businesses do not become profitable right away and you should not expect that yours would.

You should also create a good solid business plan. This is part of starting a small business. You will need something to bring to the bank or to investors to show them your plan for running your company. The business plan should include financial planning, marketing plans and plans for future growth.

A small business will require a budget to be successful as well. You should plan out every expense and the amount of money that will be allocated to marketing and advertising your business. Many people plan to spend a percentage of the profits on advertising and marketing. This will mean that as the profits go up so does the advertising and marketing budget. Including these things in your budget will ensure future growth.

A successful entrepreneur will also need the support of their family to help them through the difficult phases of the business. In the beginning there will be a lot of long hours spent on the business and your family will have to understand. There will also be a decrease in your income in the beginning stages of a business. A family will have to make sacrifices for the success of the business.

Starting a new business can be very exciting and liberating for someone who has been dreaming of the day when they would work for themselves. Being your own boss is the highest aspiration of a great many people. Not many actually attain that dream, but with careful planning and hard work, anyone can own their own business. All that is required is a determined attitude and a good plan.

When you are considering starting your own business you should look into your current situation and your ability to work on your own. You should be truthful with yourself and determine if you have the ability to work without supervision. It is a lot harder than many people realize. You have to be the sort of person who is self-disciplined and able to get the job done without being told. Finances will also have to be considered. Can your family withstand a drop in income? If you have a spouse that is working, you should find out if they are willing to get behind your business plan. Having the support of the family is one of the crucial things that a small business owner needs.

Choosing the Business Loan That Best Suits Your Business

Most business owners know that running a business requires, planning, hard work, dedication and education. But even with all of those elements present, one of the main necessities for business success is money. Usually, for a business owner the question is not “Should I get a business loan?” but “What type of business loan should I get?” Finding a business loan that is suitable for a particular business is very important. The right business loan will allow the borrower to get the most he/she can possibly get out of the money that is lent. Listed below are a few types of businesses and the business loans that work best for them.

Business Type: Merchant
Best Business Loan Option: Merchant Cash Advance

A merchant business is a business that sells merchandise and/or services. Some examples of merchant businesses are retail stores, restaurants, and automobile repair shops. A merchant cash advance is a purchase of a business’ future credit card receivables, making it the best business loan option for merchant businesses.

Any business that regularly processes credit card transactions can use a merchant cash advance, although a business will usually be required to process a minimum of $2,500 a month in credit card sales in order to be considered for a merchant cash advance.

Merchant cash advances work well with merchant businesses because the repayment is taken as a small percentage of the business’ daily credit card sales, allowing merchants to continue business as usual as their merchant cash advance is repaid.

Merchant cash advances can be used for inventory, advertisement, working capital, or anything else that a merchant business may need, as there are usually no restrictions on how a merchant cash advance can be used.

Business Type: Startup
Best Business Loan Option: Startup Business Loan

The initial costs of starting a business are quite often more than accepted. For this reason, startup business loans can sometimes be a necessity.

When providing startup loans, most lenders will require an applicant to submit a business plan, present a proposal, and provide personal financial statements. Lenders want to know that a business has a good chance of surviving and producing funds in order to repay the loan. And in a worst case scenario, they want to know that they can count on the borrower to repay the loan if the business fails.

Startup business loans grant potential business owners access to a sum of money that will finance or assist in financing the building of a business from the ground up. Starting a business usually takes more than the money saved, raised and scrapped up from friends and families. The startup business loan can fund the initial expenses that businesses produce.

Type of Business: Manufacturing
Best Business Loan Option: Equipment Leasing

Some businesses do not make many credit card transactions, and may not need money for inventory and other costs that merchant or startup businesses may have. Instead, they use lots of equipment in their daily activities. A manufacturing business converts raw materials and component parts into consumer and industrial goods, and therefore requires the use of a variety of equipment.

For these types of businesses, equipment leasing may be a good option. Rather than lending money, equipment leasing companies lend equipment, providing most borrowers with the option of purchasing the equipment after a certain period of time.