Entrepreneurs

Entrepreneurs are often naïve in creating a business, and instead of convincing the bank of why they should invest; they show them how great they personally think their product or idea is. Inventors and new business owners don’t know how to go about the process, because of their lack of experience.  New business owners are often misled or misinformed because of this inexperience, and not knowing the process can cause hours of time to be wasted on a lost cause.  Being mis-informed often causes entrepreneurs to present the wrong information, and cause them to not be correctly prepared.  Movies make it look so easy, but in real life, it’s an endless and complicated process that most people aren’t able to take on, so why go down that road? Seeing as there are so many ‘tricks of the trade’ to getting a bank to believe in your ideas, why not raise capital in a way that is much easier?

Small Business Loans

For new business owners, the hardest thing to do is to find money to fund their ideas. The process of obtaining working capital, however, is necessary.  Taking out a small business loan can be an easy way to get your business up and running, and has a simple process.  A good business pitch and credit history can be all you need to get a loan to start your business. In this process, you will pay back the money you borrowed with a small cash increase (interest), in small customizable intervals, such as once a month.  So if you don’t want to have to deal with banks anymore, look into getting a business cash advance.

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1.  Get control of cash flow and short term financing with a plan for Crisis Stabilization.  Understand all of the resources you have at hand, including your small business loan and funding resources.

2.  Perform a thorough assessment and make sure your leadership team is the one that is going to get the job done for your small business.

3.  Keep the lines of communication open with stakeholders, and make sure you have their support.

4.  Focus existing resources – be willing to sell peripheral assets to generate cash.

5.  Make any structural changes needed, including laying off unneeded employees.

6.  Understand the reasons your small business got into trouble in the first place, and focus on changing those processes.  Figure out how to be efficient and lean.

7.  Restructure the business financially, if needed.  Only make commitments that you can meet.  Raise working capital, or find other sources of funding.

Cash management is also critical to turning around a failing business.  Don’t spend cash unless it leads to generating revenue directly.  Prioritize payments.  Develop plans so that suppliers who aren’t getting paid understand when they will receive payment.  Communicate constantly with your creditors.  Implement a cash-only basis with your customers.  Provide status and updates for everyone involved in your business process.

The stress on communication is critical; creditors know that if your small business ends up in bankruptcy, they will likely receive very little return on their invoice, so many will be willing to work with you AS LONG AS you keep the lines of communication open.

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As most small business owners know, it can be both extremely frustrating and time-consuming  to chase down your clients and get them to pay their outstanding invoices.  If even a small number of your customers are late in paying their accounts, then as a small business owner, you will soon find yourself in the position of not being able to pay your own creditors, payroll, and accounts.

Often, when finding themselves in this position, a small business owner will consider taking out small business loans – which is a sound strategy.  However, business finance offers another method for small business owners to seize the value of outstanding invoices – Invoice Funding.  Invoice funding is both efficient and easy to accomplish, as alternative method of business finance.

Invoice funding works as follows:  a business submits outstanding invoices to an outside agency, commonly known as a ‘factoring agency’, who then assumes responsibility for collecting the debt.  The factoring agency is responsible for following up with the client, and is also responsible for starting legal proceedings to recover the debt if the client refuses to pay.  The factoring agency will give the business upfront capital for the invoices, often as quickly as in one business day, and often at a value of up to 90%.  When the agency receives payment on the invoice, they deduct a commission and give the rest to the small business.

Of course, a small business that chooses to hire an outside agency to administer invoice funding will have to pay a commission to the agency, but in the event that your small business finds itself in need of immediate capital and thousands and thousands of dollars in outstanding invoices, a 10% commission is a smart investment to save your business.  Being in a strong financial position, without an overwhelming balance in outstanding invoices, will allow the small business owner to be able to face sudden or unexpected expenses with relative ease.

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Are you one of the many people who find themselves in need of working capital, but have a history of bad credit scores?  If so, you may find no lending institution will consider your loan application, even for amounts as small as $1000.  Faced with this dilemma, many people run out of ideas on how to get the cash you need to run your business.  Don’t despair, however – spending a little time researching the subject, you may find that you can get a business loan from the very same bank that previously denied your application.

Research and Network

Start by networking with people you know, as poor credit scores are common in today’s economy, and many people are in the same situation.  Through networking, or through an Internet search, you may very well find valuable suggestions on how to get the loan you need.  Many lending institutions understand the economy and are willing to give small business loans to people with poor credit scores but strong working ethics.  You should be willing to offer any assets your business has as collateral, such as your home or other equity.

Get Someone to Co-Sign for your Loan

Alternatively, look for a friend, family member, or business partner with good credit who will agree to co-sign on the loan for you.  Often you will need to offer these individuals collateral (such as a percentage of your business) as well, but this is a small price to pay to get the loan you need and keep your business afloat.  The bottom line; small business loans for business owners with bad credit are available, if you’re willing to do your homework.

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Start Planning in January

Start outlining the plan of attack for 2011 in the beginning of the year.  It provides a clear picture of what the goals are helping the entire company stay focused on reaching them throughout the rest of the year.

Examine the Little Pieces that Make Up the Big Picture

You cannot solely concentrate on the main goal.  You have to consider what it takes to reach it.  Think about the little steps it requires to attain the final achievement then break it down into daily, weekly and monthly tasks.  Think of it as your checklist keeping the entire team on the right track.

Set Realistic Goals

Thinking a small business is going to earn a million in the first year is a bit exaggerated.  Even if you have an extraordinary product, services, and employees there are other bills that deduct from the bottom line.  There are payroll dues, taxes, and accounting costs.  Marketing, promotions and advertising budgets subtract from it too.  You need to set realistic goals.  Ones attainable ensuring you experience a successful year with lots of growth and expansion potential.

If you are opening the year in a financial slump, then talk to one of our unsecured business loan or small business loan professionals today!  You need proper cash flow to operate effectively.  Otherwise, you are starting where you left off and that is not a good place for any business to be.

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Donate a Percentage of Profits

It is time to give back to the community, causes and non-profits.  Choose one that means something to your business, staff, employees and give a portion of profits to it.  This is a win-win situation.  It drives public attention to your product and the cause.  It lets people know when they buy your product they are also helping raise funds for a worthy foundation.

Provide Giveaways

By placing your product as a giveaway for a local company holiday party, you are putting your product in the face of potential consumers.  It is an effective way to spread the word about your services.  If your target market includes teenagers, donate to a high school holiday event.  If your business caters to college students get involved with a well-known sorority or fraternity on campus.  Is your product for working parents?  Donate a gift giveaway to a daycare.

There are different tactics to get your product in front of your target market.  Use these holiday marketing ideas to lure potential and repeat clients.

To receive additional funding for holiday marketing plans, talk to one of our small business loan or unsecured business loan experts today!

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Benefits to an Unsecured Business Loan

No Collateral Required

There are many benefits to acquiring an unsecured business loan through the holiday season.  For one, you do not have to put down any collateral.  Therefore, your personal assets are not at-risk.  This is essential in maintaining a level head through the holiday rush.  It allows you the freedom to concentrate on your business without the burden of worrying about losing your car, house or home office.

Cash Received Quick

Another advantage is the loan provides cash flow in your hands quicker than a traditional loan.  This is important during the holiday season.  You may need to hire additional staff for the holiday rush, but are unable to pay for the extra labor.  An unsecured business loan ensures this occurs immediately.  Your business cannot afford to wait months before seeing any money.  If you do, then you lose out on sales and profit opportunities.

To find out more about what an unsecured business loan can do for you, talk to one of our small business loan experts today!

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Create a Focal Point

Every retail store window has a focal point. This can vary depending on your products. If you specialize in shoes then highlight winter boots for sale in the window. The idea is to make a consumer’s eyes go straight to the specials, and the merchandise you want moved out of the store during the holiday rush.

Use lights and signage to reel the client in. Think of what makes you stop and look when walking by a store window. Adapt these same techniques to your store.

Produce Signage Promoting Bonus Gifts

The holidays are the time for small businesses to outshine large department stores. Provide bonus gifts with the purchase of something from your boutique making you stand out.

The bonus gifts could also be in the form of buy 2 get 1 free or spend $50 and get $10 off entire purchase. Consider what tactic to use prior to creating your storefront. Then stage it accordingly. It is a great way to get people to enter, browse and buy from you.

No matter what holiday promotion, sales or deals you advertise, your small business needs the funds to execute it properly. Talk to our small business loan expert today!

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Unsecured Business Loan Provides

Cash for Holiday Promotions

An unsecured business loan provides the additional cash you need for the holiday promotions and marketing expenses.  It helps facilitate these plans without a hitch allowing you to entice customers to come in and spend money.  The results are increased profits at a time when businesses are struggling to remain open.

Unsecured vs. Traditional Bank Loan

There are many different types of funding available, but finding the one that works the best for your company is the way to go.  You need money for expansion plans, holiday hiring, holiday promotions, supplies, lease, bookkeeping, vendor expenses and more.  A traditional bank loan may be able to do this but it would take a long time before money reaches your hands.

A traditional bank loan takes months to go through the application process.  Then it is additional time before you receive notification of approval or rejected.  The timing could be horrendous.  Holidays are a time when additional funding is necessary to run a business successfully.  Without it, you drown in debt.

To find out more about an unsecured business loan, talk to one of our small business loan experts today.

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Schedule Automated Advertising

There are many tools available to small businesses today that allow you to run ads online without having to schedule adjustments on a daily basis.  There are programs, such as Google Adwords, which has the capability to be set and run.  For instance, you could designate your online ads to run between 7 A.M.-3 P.M. Monday through Friday.  Of course, you still need to check ad pricing and results on a regular basis.  Nevertheless, having the ability to set a specific schedule frees up your personal time.  Please note, besides designating times and days, you may choose a daily spending limit ensuring you do not go over budget.  This provides peace of mind, and the chance to be liberated of checking the information nonstop.

Find Someone to Create, Write and Send a Newsletter

It is essential to stay in touch with current and potential clients.  A newsletter is the perfect way to attain this goal.  Additionally, you want to stay in contact with professional referrals too.  These people send you business.  A newsletter is a means to remain in contact without being overbearing.  You may also include seasonal specials grabbing the reader’s attention and charming people into your business.

If you are just starting up and need additional cash flow, talk to a small business loan expert today.

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