• 10Mar
    Happy African American businessman offering a handshake.

    When you are getting ready to start a business, you have to think about how you will obtain financing. In fact, this is one of the most important parts of your decision and it can be one of the most challenging. There are several ways to obtain financing for a new business or to obtain financing for an existing business. However, you have to think about these things in advance. There are various things to consider when you are thinking about business finance. What type of financing is appropriate for your particular business? Are you aware of crowdfunding? Are angel investors available to you? If so, what is going to be your approach? You have to be well prepared and armed with a good business plan to consider these options.

    The Options

    There are some financing options that require the business owner to relinquish a percentage of full ownership to the investor or funder. Some investors have strict guidelines and limitations before they will consider a loan or investment in someone’s business. There are also some financial investors that will require the borrower to adhere to certain rules and if broken, they will apply substantial consequences financially.

    The Wrong One

    If you have been searching for that business loan and it seems to be elusive to you, then you are not alone. Have you had a rejection when you tried to apply for a business loan? You are still not the only business that has ever been declined. It happens all of the time. Why? Many business owners are not prepared and sometimes, it is because they approach the wrong financial investor or lender. Most banks take a conservative approach to lending and these come with a wide range of requirements, which tend to be stringent and sometimes unnecessary to the normal person. If you are choosing to deal with a bank, you have to provide up to three years of financial statements, collateral, cosigner and the demonstration of business profitability.

    Not All Equal

    Not every business owner is able to meet the stringent requirements and this is especially true for most small businesses since they put so much of their savings into the business. Many of them have little or no collateral to put up. Under such conditions, how does a small business owner able to see financial growth? Let’s take a look at the most common financial issue.

    Outstanding Payment

    For most companies, a payment term has to be offered to the clients, but some clients do not honor those terms. This is one condition that indicates business owners have to wait for up to three months after delivering the product to be paid. This is a problem for many small business owners because there are little resources left to pay expenses while waiting for almost two months to get paid for an invoice. It is an easy thing to overextend yourself financially when you have clients not paying their invoice. In the same way that the client forfeits the agreement to pay, it is the same way that small business owners operate with vendors and suppliers – waiting longer to pay. This is the not the ideal business practice.

    The Bottom Line

    No matter what the issue, small business owners need money to survive the business. You have to be creative when it comes to funding. The first option is asking family members and friends to help financially. When that fails or is exhausted, turn to other means of financing.

  • 03Mar
    business finance (1)

    Most business owners don’t realize the importance of having a pitch and rehearsing it when they are seeking funding for the company. You don’t want to approach an investor and make it seem as if you don’t know what you are talking about. Once you have rehearsed that pitch, it will be like a breeze when delivering it to an investor. It won’t seem as if you are rambling on and catching for straws. You will be taken seriously.

    The Delivery

    It is frustrating for an investor to hear a business owner ask for ten minutes to deliver a pitch and only to find them going on and on for half an hour. You will lose the interest of any investor by doing so. You should have your business plan in hand, just in case the investor asks for it and more importantly, so that they can read it at their leisure once you have completed your pitch. You want to make sure that a powerful pitch is delivered and at the end, the investor should be asking for more information from you in the form of a business plan. In preparing your pitch for business funding, there are some essentials to consider. Let’s take a closer look.

    Your Story Told

    Your pitch should always tell a story and the story must be compelling. That means you will have to engage the investor as soon as you start speaking. Don’t wait until you are in the middle of your story to come to life. Be animated, passionate and excited about the prospect of having a business and receiving funding to make it more successful. With your story, you should be able to address some problems and the solution; altogether.

    The Solution

    You should know the unique value of your product and discuss the solution or solutions it will provide. This segment of your pitch should be brief, simple and concise so that the investor will be able to provide an explanation to others. Stay away from industry buzzwords. Use them only if you know that the investor has some familiarity with your industry.

    Your Credibility

    Build your credibility in the early stages of your presentation. Talk about your successes in business, not necessarily your immediate business venture. You now have the chance to toot your own horn. Try to give a good impression to the investors of your accomplishments so far. This could include strategic business moves, secured contracts, sales figures and various product launches, if any.

    Target Market

    Not all consumers will buy your product or service. You must be marketing to a specific audience. These are your target audience and they usually exist in a specific target market. You should know what that is. Give a realistic answer when asked about your target audience. A target audience should be taken from specific demographics, age group, buying tendencies and location.

    The Competition

    One significant aspect of your pitch is to know your competition. Who are they? What sets you apart from the competition? How is your product and service different? How much more experienced are you in that field or industry? Your pitch should answer all of those questions.

  • 26Feb
    financial clean

    When it comes to starting a small business and to aim for its success, you only need a unique idea. After the idea comes the financial affair. You must have some kind of capital to start with. If you don’t have the cash up front, you can acquire it from various financial sources. Your business can become a reality, if you have a plan and if you kept your financial house in order before the business idea came. Yes, before you open shop, it is time to review and assess your personal finances because if you don’t know how to manage your personal finances, how are you going to manage your business finances? Let’s take a look at the next step.

    Startup Money

    Once your personal finances are in order, you can try to get a business startup loan because your credit should be in good shape. Lenders will now look at you as being financially safe. Remember, no lender wants to embrace any type of business risk. So, lenders will take a look first at your personal credit history. This provides the lender with information about your repayment history, debt balance and shows the lender how financially responsible you are. With a solid credit rating, you will be able to show the lender that you take your finances seriously and you will repay the loan, whether your business goes through a rough time or not.

    Vendor Trust

    Having a good personal finance record will also impress vendors and build a trustworthy relationship between your business and the vendors. With no track record when starting a business, you have to rely on your reputation and good name in order to reassure vendors of your sincerity, reliability and trust. With a not-so-good personal financial history, vendors will be more cautious in doing business with you.

    Initial Survival State

    For a new business startup, it may be a several months to years before you see a profit. If you can survive the initial stage of starting a business by living conservatively on a budget, you could do well in the future. Create a realistic business and financial plan to get you through the initial stage. Try to reduce your personal debt as much as possible so you won’t be overwhelmed by expenses and debt.

    Family Relationships

    Be sure to handle any tension in the family as it relates to finances. You and your spouse have to come to an agreement about your standard of living. Once you are on the same page financially, it will make it easier because you will now have the support needed to progress. Tensions caused by financial trouble can impede your business.

    The Immediate Solution

    Create a finance checklist of things that you will do to clean your financial house. These include pulling your credit report to view your credit history. In so doing, you can fix any mistakes that you might see. You should also have an emergency fund for paying living expenses up to three months. Create a budget in your household and stick to it. However, be sure to discuss this with your entire family first.

     

  • 22Feb
    business advicee

    As a new entrepreneur in this era there are a lot of resources out there that can be taken advantage of and you do not have to do it alone. Some of the most successful businessmen and women can attribute their success to solid advice they got from mentors, friends, and family. The ability to take advice and know when it is either good or warranted is a crucial skill to have.

    It allows them to be objective and to learn what advice that should be taken and other things that should be ignored. It is a way to think on your own and come to the hard decisions through logic and feeling out any situation.

    A problem business owners face is that they know what they are doing in their business because it is probably something that the individual is talented in. Experienced people take their talents and then apply that to the business that they want to run. The problem is that the business aspect gets put to the wayside when it is one of the most important things to focus on.

    There are precautions and things to keep in mind when starting a business and here is some advice on what to do and what to avoid.

     

    Helpful Tips

    The first thing is to be humble and realize that you are not going to know everything when starting a business and it’s best to consult other experts in your field. There are many ways to do something and it’s not about finding what works best for others but what works best for you.

    A major facet of running a business is managing cash flow. If there is no money in the bank then the operations will cease to exist. It is imperative that there is a steady flow of money coming in with at least some reserves so that as a business owner you will not be constantly under the gun. It seems basic but it is a fundamental that many newcomers completely forget, thinking that the money will come to them from a slew of product ideas. It is better to focus all of the company’s energy on one product that is going to sell then ten other ones that are cool and will make money in the future, but it’s about the now.

    Also something to keep in mind is dealing with employees. This is a business and should be treated as such. Bad employees cannot be ridden of fast enough. It is not a charity case. As a new entrepreneur you want to surround yourself with people who are going to get the job done and do it right.

    As a business leader you are at the top of the chain commanding others below you but also listening to their input as well. This can then be transferred to customers who are the whole reason the company exists in the first place. Listen to your customers early on and the repeat business will propel your new venture forward.

     

  • 03Feb
    Business growth

    So you are just about to start your very own business. Being your own boss. Couldn’t get any better than this. Well have you made any money, have plenty of clients, and are you getting the word out about your business? Sure you may have made some money and slowing are getting the word out but, what if you were able to know wholeheartedly that you are taking all the correct steps to set your business up for success. Many people have started business and only last so long before throwing in the towel. It’s not easy and not for everyone. You may not know where to start and could just be winging it. If so, good luck to you is all I have to say. You may want to read this little bit of information to give your business and extra leg to stand on. This information may even help you avoid failure. The five things listed below will help guide to the path of financial success.

     

    What’s Your Business Idea?

    Is your business unique? Will it attract a wide variety of people? Do you know who your customers are? Can I afford this? Will I make money? These are questions you should ask yourself before doing anything. You need to sell something that people want and, that would make their lives easier. You want to be able to also expand and grow as a business. Hopefully you answered yes to the question above because if so then you have something to offer people and a good idea. Now that you have decided what you are selling then it’s time to create a business plan. Organize and plan out what you need to do to get started. There are even online platforms that can be used as a guide to help you plan.

     

    How To Keep Your Savings and Get Your Business Started

    Tapping into your savings account just to start your business is a big no no. That is the worst thing you can do. Either you have money to start or you need to figure out a way to get some money. Think about how you are going to market your business. Use Social Media to get what is called crowdfunding. Another thing to remember is that profits are what keep your business going. Profits are not something that should be in your personal bank account. Make another account just for your business. That way you will never take advantage of those earnings and know what is yours personally and what is the business’s.

     

    Know You Might Fail

    Accepting the fact that many people are going to tell you no. Time and time again. You must believe in your business and have full faith in the fact you are going to be a success. No matter how many times you hear the word no. Someone will say yes. Investors want to work will someone that is fully invested into their company with confidence. Learn from each time someone says no. Move on and improve your tactics.

     

    Fake It Till You Make It

    What I mean by this doesn’t actually have to do with lying at all. That will get you nowhere and lead to a bad rep. You never want a bad rep. Think about words you can use when marketing your business. Think innovatively and make people understand why your product is the best.

     

    You Will Need Help

    Being a business owner completely on your own can run you down. You may get confused and overwhelmed. Think about like minded people you know that could potentially help you with success. Keep the jobs you want and are good at. Give the rest of the other jobs out to the people you have so carefully picked.

     

    So use these tips, get out there. Be a successful business owner and live up to your full potentional.