Archive for December, 2009
Tips on How to Apply for a Small Business Loan
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Many small businesses are struggling for money and one way to finance business expenses during these rough times is to apply for a small business loan. Deciding where and how to start is a struggle on small business owners, but the more prepared you are the easier the application process becomes.
Tweak Your Business Plan
Before beginning any loan application process, you need to start with a business plan. A business plan is the essential outline for your business. It should include financial statements, revenues and expenses. The business plan should address office equipment and leasing costs. In addition, how the business will benefit from the loan needs to be included. Describe how the business will grow due to the loan’s presence. The financial institution requires this information regarding the purpose of the loan to be stated. Make it clear. If you already have a business plan written, then change it to meet suggestions accordingly.
Prepare Paperwork
Financial institutions need credit history documents, expense sheets, and tax records. Stacks of paperwork are sometimes required to move forth in the process. Nevertheless, you do not want to hand over a box of paperwork and assume the financial institution knows what to do with it. Organize it. Include the business loan, then a cover letter. The cover letter should state the purpose of the loan. Attach financial statements. Obtain recommendation letters from vendors, and other businesses you have worked with on a long-term basis. These letters should prove your expertise and long-term standing within the industry the business is involved. After completing these steps, fill out the loan application paperwork as much as possible. If anything is turned in with blank spaces, then financial institutions may reject it completely.
When choosing a financial institution, do your research. Check out payment options, costs, and investigate if there are any added extra fees. Be sure the financial institution is suitable for your small business loan.
Save the Company Money by Making Smart Businsess Travel Decisions
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Travel expenses add up quickly. However, with a few adjustments every business traveler is able to save his/her small business travel money in the end.
Book Travel Arrangements in Advance
One adjustment is to book travel ahead of time rather than last minute. In general, airline reservations are cheaper when you reserve in advance. Therefore, if you already know your out-of-town business-meeting schedule, then reserve your ticket from now. Every little bit helps.
Avoid Internet Fees
Check with your mobile internet service and find out what options you have regarding internet service for your laptop and mobile devices. Ask if there is a package deal available to the company that would result in a cheaper fee than if you pay for hotel internet service while on the road. This may save more money than originally calculated.
Buy Local Produce
During travel, there is great temptation to eat out constantly. Alternatively, why not save the company a few dollars, and your waistline a few inches, by cooking numerous meals rather than eating out. Purchase food from the local grocery store, and grill out at the corporate apartments provided. Additionally, if you are staying in a hotel with a kitchenette warm up something on the stove rather than grabbing food from a restaurant. This will benefit your company’s travel expenses budget, and your body will thank you for the healthy food options.
Park it Yourself
It is easy to choose valet parking options while traveling, but the cost of valet parking can be quite expensive. There is the hourly valet charge, tax and the tip. Thus, if you are staying at a hotel with valet and self-parking is available, then make the smart choice and select self-parking.
How to Avoid Small Business Owner Mistakes
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There are basic obstacles every small business owner must cross, and here are a few of the top mistakes made.
Do Not Underestimate Start-Up Costs
Some people jump right into wanting to create a business without fully reviewing, outlining and strategizing start-up costs. There are marketing expenses, promotional materials, advertising, facility leases, office supplies, liability and permits that need tabulating within the expenditure required to start a business. Furthermore, there are employee salaries, shipping costs, network servers, computers, software, and sometimes outsourcing services needed to launch, properly, a business. All of these elements should be deliberated when configuring what it takes to start a small business.
Remember to Count Taxes
When first-time entrepreneurs are debating on whether to go forth with a business idea, they tend to think about profits, earnings, expenses, but forget a vital factor, taxes. Taxes need serious consideration when deciding if you should start your own business or not. Do not wait until after you start the business to take into account tax payments for you may get yourself into a bind. It is a government obligation unavoidable by all. Therefore, do not forget to consider tax payments.
Over-Calculate Scheduling
Some new business owners forget to plan regarding the length of time it will take before their company is up and running. Some businesses endure a long duration dedicated to preparation that occurs prior to earning profits and having the ability to sustain itself. This specific period, in general, is underestimated. Therefore, make sure you do not find yourself in the same predicament and overestimate how long it will take before the company is earning on its own.
