Business Loan Options Blog

Your business is off the ground and you are able to pay on your business loans without your profit margin going into the red.  What’s next on your agenda to keeping your company going?  Training should be the answer to that question.  Training is something that most small businesses don’t usually consider and that is because there are a few myths that go along with it that may be steering you in the wrong direction. 

Training sessions tend to be tedious and boring but it really is an important part of any business.  This is the department that takes care of updating you on the newest office policies, how to use a new computer program in conjunction with IT and even training new employees in their jobs.  If you do it right, your training department could be a secret weapon you can unleash on your competitors.  But before you can do that, we need to dispel some myths about training that you may have heard and may believe. 

Myth #1: If I hire people who know their job, I don’t have to train them.
If you are a small business with only a few employees, you don’t need to train a quality employee.  But as you grow and your daily operations change, training is going to be essential.  You are going to have to admit that not everyone in your company will understand your practices, and in order to provide the best customer service possible your employees have to know how you want them treated. 

Myth #2: My highly trained workers will go to my competitors.
So?  Let them go.  But you will probably find that if you put together a good, comprehensive training program for your business that your retention rate is going to go up.  Training is actually considered a retention tool. 

Myth #3: It’s too expensive.
Not when you consider training to be an investment in your company.  Training your employees will reduce errors that can cost your thousands of dollars, it will help promote productivity, and your customers will remain loyal to you.  They will be able to serve your customers the way they need to with the right training. 

Myth #4: I’ll add training to my business later when I get a chance.
This really is a lame excuse.  If you start thinking about how you are going to train your employees from the day your business doors open and develop a plan then you will be able to have a comprehensive program in place right off the bat.  This is something that is going to pay off in the future, so investing in it now makes sense. 

Myth #5: On the job training is enough.
No it is not.  On the job training is great to train your employees how to use specific computer programs and the phone system.  But when it comes to in depth training that prepares your employees for everything they are going to face in their new job, you really need to combine the training with on the job and classroom exercises.  This will help them feel more at ease with the tasks they have been assigned and they will ease into the job much easier. 

Myth #6: I use a mentoring program instead of a training program.
No, you use on the job training.  A mentoring program is basically one employee teaching – or ‘mentoring’ – another in their job, and once the training is done the employee is left to sink or swim.  This is when the old employee is paired up with the new employee and basically told to follow along.  Unless your business is that repetitive, you need a good training program in place to help your employees. 

Training can be done in a variety of different ways to make it interesting and appealing.  You can use a combination of videos, PowerPoint presentations and audio tracks to help your employees learn everything they need to know about your business.  Plus, your new employees may know of a few tricks of their own that they may want to share with you.  Encourage open communications with your employees and utilize their talents to help expand your training program.  If you do, your competitors won’t know what hit them.

So you have an idea for a business that you would like to start.  What is stopping you?  Are you worried that you won’t be able to secure the necessary loans for business you require?  Are you afraid that no one will buy your products?  Don’t panic yet.  There are seven things you need to start your own business and here we are going to tell you what they are. 

Research the market you are interested in.
Before you can start your business you need to know what is going on in your potential market.  You want to make sure the market is not saturated with businesses similar to yours.  You want to find a good niche where products are needed and be able to define who your perfect customers are going to be.  These are things you need to research before you launch your business.  If you do not know who you customers are and what they want, you could easily find yourself running a business that doesn’t sell a thing. 

Know where your capital is coming from.
You need money to start a business.  You will need to determine whether or not you have enough to launch your business or if you will need to get a business loan.  If you think you are going to need investors or financing, put together a business plan and practice your sales pitch.  You will need to know how much your business is going to cost to run and how much money you need before looking for financing. 

Put a good attorney on retainer.
An attorney is one of a business’s best friends.  They will be able to guide you in drafting contracts, making sure you have a good rental agreement for your place of business, help you with licenses and regulations, and more.  They need to understand what you are planning for your business, what your goals are, and what issues you may be facing in the future. 

Hire a good accountant.
Your accountant will work with your lawyer and help you on deciding what kind of business you should run in addition to taking care of all of your financial records.  Accountants are also aware of the current tax regulations and can help you with the details of state law and tax issues.  They will be able to guide you with all of your startup needs and stick with you as your business grows. 

Determine the best business structure for your business.
Do you want to be the sole owner?  What about a limited liability company?  There are many different types of business structures you can choose from which is why a lawyer and an accountant come in handy from the start.  Each type of business has its own paperwork, tax regulations, personal liability issues and legal structures.  Use the one that will work the best for you. 

Decide on a name for your business.
Your company name is your public face and it should reflect what your company is all about.  List all of the potential names that you may want to use and then narrow this list down to the one that describes your company the best while still being catchy.  It should be easy to pronounce and remember as well as easy to spell.  If you are planning on adding a website to your business, think of how this name will transfer to a domain name.  You will need to make sure there is no business with the name you choose as well as no one with a similar domain name. 

Research and put into place all of the necessary licenses and permits your business needs.
Once again your accountant and lawyer will be able to assist you.  You will need a business license as a minimum, but depending on what products you are selling or services you offer you may need additional documents.  Check into any zoning laws that may affect where your business resides and don’t forget to check out state and local regulations in addition to any federal ones that may affect you. 

Once you address these issues you will be well on your way to launching your new business.  From here you will need to consider technical aspects of running your business as well as the day to day activities.

Advertising is an essential part of your business no matter what you are offering your customers.  It doesn’t matter if you sell merchant cash advances or specialty toilet paper; you need to make sure people know what you are offering them.  Even during an economic slump you should always make sure that you have your advertising intact.  Never cut your advertising budget.  You need it to sell your product.  Instead, look for ways of attracting new customers that cost you absolutely nothing.  Here are a few suggestions to help you keep your advertising intact without killing your entire businesses budget. 

Become the expert in your business.
This is actually easier that you think.  You can write and submit articles about your business to local newspapers, professional organization newsletters and even trade journals.  Pick a subject that shows your expertise on the subject that is related to your business and mention your company in the article.  You can host columns on the internet on related websites.  If you get your article published, make copies and give them to your customers and potential customers. 

Learn how to be a good public speaker.
Meeting planners are looking for people to speak at workshops and conferences all the time.  Contact your local Chamber of Commerce or Rotary Club for the names of planners or research them in your local yellow pages.  Call around to a few planners and offer your services to them.  If you are tapped to give a speech, collect business cards to increase your network and offer a prize drawing of something related to your business. 

Teach others.
Consider teaching an adult education class about your business, especially if you are a service related business.  Many schools and community colleges teach adult education classes and they may be interested in hiring your services to teach a class.  You can also teach free classes at your library, senior citizens center, or other places where you can arrange a medium to large gathering. 

Offer rewards for any referrals you get.
Your customers are the biggest source of advertising you have and they will talk about your business to their friends and associates.  Offer them a reward for referring a friend, such as a free item from your product line or a free service.  If you use a catalog, add a referral card to it.  Whenever you get a new customer from a referral, send the source a thank you note with the reward they earned. 

Write you own e-zine.
You want to keep in touch with your customers at all times so consider sending out a newsletter or e-zine.  Get permission from your customers to send them this information and ask them about what they would like to see in it.  Keep the newsletter simple with a few photos and graphics and make it engaging. 

Look for free public relation opportunities.
If there is going to be a major event in your business niche, send out a press release about your company to the organizer and contact your local newspapers and television stations about it.  These organizations will want to hear about it and they may be interested in talking to you about how these events affect your business. 

Give back to the community.
You can donate or sponsor an event in your community, such as a local softball team or fundraiser.  Let the media know about your participation so that you are mentioned as an event participant. 

Start your own blog or join an industry forum.
If you have a website that you want traffic to come to, start your own blog or join a forum where you can engage your customers in a one on one conversation.  Post news about your company, promotional messages or interesting information about the products and services you offer.  You want to do this without seeming like you are actually advertising.  This is discouraged.  If you want to advertise, there are forums for this so look for those as well. 

Partner with a local organization.
Do you sell or offer services that families in your community can use?  Consider contacting your local PTA and offer special shopping nights or services that they may be interested in.  Any proceeds you receive you can then take a percentage of and donate back to the school

Running your own business from home is a very freeing experience, especially after working for big companies most of your life.  While you still have deadlines to meet, you are now the boss and that means you can sit in your living room working in your fuzzy bathrobe all day if you want to.  However, working from home means that you still are working.  Someone has to pay the business loans and the utilities and produce quality work. 

Sometimes dealing with all of the aspects of working from home includes daily interruptions that you would prefer not to have.  Think about it.  You have a sink full of dishes.  The living room floor needs to be vacuumed.  The dog needs a walk.  You’re hungry.  The coffee in the kitchen smells heavenly.  The doorbell is ringing.  Your children won’t leave you alone.  It sounds like an advertisement for Calgon Bubble Bath, but this is the reality of working from home.  Â
How, exactly, do you avoid these home office interruptions and actually get anything accomplished?  Here are five tips to help you remain calm and focused while you build your business working from home. 

Make a to-do list and follow it.
Your to-do list is the best tool you have towards combating the chaos that comes with working from home.  It will give your day structure and will help you focus on the things that you have to accomplish before moving on.  You can make a list on a simple piece of paper, put it on your handheld PDA, or even enter everything you need to do in Microsoft Outlook for the rest of the month.  The point is, whenever you finish something on that list and check it off, you will feel good and organized. 

Make a daily schedule for yourself.
This is as important as your to-do list.  You want to make sure your time is organized so that you can utilize it more efficiently.  If you are a morning person, consider using this time of day to complete all of the phone calls you need to make.  If you find that you actually accomplish more by working at three in the morning then do it.  Keep to your schedule regardless of if you’re a morning sunshine or a night owl. 

Close your door.
Okay, you are going to have to get used to doing this.  You have boundaries.  That boundary is the threshold of the door to your office.  Close your door.  When you do this you are sending a clear message to your family that you are working and you do not have time for distractions.  You also need to resist the temptation of getting up and listening at the door to what is going on in the rest of the house.  If you think distractions of this nature will be a problem, sit down with your family and explain to them how important it is for you to be able to work in relative peace. 

Get a babysitter.
You can afford a babysitter and work from home at the same time.  It is understandable that you want to save money on child care, but it is not feasible sometimes.  You cannot accomplish anything of value while your children are napping, and as your business grows you will find yourself putting in more and more hours.  If a babysitter is financially unaffordable then talk to another home based parent you know to see if they could help you, work only on the weekends, or wait until your spouse comes home to watch the kids while you work.  None of these suggestions are the best, but when you are building your own home business you have to make compromises at times. 

Buy a good set of headphones.
Working at home will keep you from getting away from the noise of your home and the world around you.  Sometimes you just need to drown out the noise.  A good set of headphones will allow you to do that.  It will provide you with the buffeting you need from the chaos while you work.  Oh, and consider setting up a mirror on your desk or computer while wearing them so someone does alert you when they walk in.

Being a business owner brings you a lot of joy and satisfaction but you really need to make sure you have a lawyer on retainer.  You will have a lot of things to worry about from a legal standpoint, such as operation, rental agreements, business loans, customers, suppliers, taxes, and more.  Having a lawyer on your side is going to be a benefit to your business. 

While you may not think that as a small business you will need a lawyer there are particular times when you will.  Your particular business could also require the services of a lawyer.  When would it be good to consult a lawyer in your business?  When you are: setting up a corporation or partnership; negotiating business loans; trying to comply with regulations; tax planning; attempting to obtain a trademark or patent; looking into buy-sell agreements; setting up pension plans for your employees; needing forms to be reviewed; reviewing employee contracts; dealing with real estate matters; exporting or selling products in other states or oversea; and in the need to collect on bad debts.

No matter what size you business is you will need a lawyer’s advice at some time or another.  Lawsuits are brought up every day in the business world for one reason or another and it’s a good idea to have a lawyer on retainer before a problem arises.  Some businesses wait too long to hire an attorney which is why their lawsuits fail.  Even if all you need is a lawyer’s advice on a tax concern while laying out your business plan, it is better to hear what they have to say than to pay the consequences later down the road. 

Additionally, having a lawyer on retainer when you start your business will help you avoid having to rush to find one in the event of a crisis.  Crises will have you turning to whatever lawyer is available in your local telephone book and you will not have the chance to find a lawyer who specializes in your particular type of legal case.  It takes some time to develop a report with your lawyer so it is a good idea to research lawyers and get to know them before you discover that you need them. 

If you do not have a lawyer in mind, ask other business owners in the same industry for recommendations.  You can ask you financial advisor, accountant or even your banker for a name that they trust.  Ask them what the lawyer’s strengths and weaknesses are to get a good idea of who you will be dealing with.  You can also ask other lawyers who they recommend if they do not deal with cases similar to the one you have.  They know others in their field from working with them on a regular basis.  If you still have trouble finding a lawyer call your local Bar Association.  They usually have some type of referral service in place specifically for instances such as this. 

Take the top five lawyers you are interested in using and set up an appointment with them.  Tell them that you want to find a lawyer you can build up a long-term relationship with and see if any of them will set up a consultation with you without charging a fee for their time.  Some of the areas you should cover during this interview include but are not limited to the following:

Experience.  While you do not necessarily need a lawyer that specializes in your field, you do need to find someone who specializes in small business needs and problems.  The lawyer you select should be willing to take on small problems as well as larger issues and they should charge you accordingly.

Understanding.  Your lawyer should be interested in what your goals are for your business.  This is important because you want to establish a partnership that will grow with you and your business.  They need to be able to share your vision of the future for you business.

Communication.  A good lawyer will be able to speak to you in regular laymen terms so you understand what they are saying.  If they simply throw legal terms at you, find someone else.

Availability.  Your lawyer should be available to conference with you when you need them to and they should return your phone calls on a timely basis.  If you have to consistently pursue your lawyer, you need to find a new one.

Rapport.  You will know if the chemistry between you and your lawyer is good.  If you do not feel comfortable with them, then they are not going to work to your advantage.

Reasonable charges.  A good lawyer will charge between $90 and $300 per hour depending on the firm and their reputation.  Get quotes from different lawyers to gauge their fee schedule but choose one that you feel comfortable with.

Reference.  You can ask for references from the lawyer so you can get a feel of the type of cases they have worked on before.

If you are a young entrepreneur setting up your new business you may discover that it’s harder than you realized.  It takes more than a good idea, a business loan and stubbornness to get your business off the ground.  It takes patience, dedication, and the ability to walk away when the business simply will not fly in the current marketplace.  To that end, here are ten pieces of advice we think will help you when you get ready to launch your new business into the world.

Focus on what you are trying to accomplish.
It is very easy to get side tracked from your main objective when you are starting a business because so many opportunities will come and knock on your door.  It is not a good idea to try and manage more than one venture at a time.  When you do your productivity and effectiveness in running your business suffers.  Instead, focus on your single business and get it off and running.  If you still feel the urge to jump into something else, you may need to reevaluate your original idea.

Your business should be based around something you love and know.
There is more to launching a successful business than jumping on the current trends coat tails.  You should never start a business because you think you will get rich doing it and it will be easy.  You may not get rich and it won’t be easy.  If you have a passion, though, and you feel you can create a profitable business from it – say, selling sports cards – then you will have a better chance of making it a success.

Your pitch should be 30 seconds and no more.
You should always be ready to talk about your business to potential customers and investors.  Keep your pitch short and make sure it includes your mission, goals, and services clearly.  You can fit your pitch to the person you are talking to but don’t overdo it.

Remember that you do not know everything.
The quickest way to turn off a person is by coming across as a know it all.  You don’t know it all.  Accept that.  Instead, surround yourself with people who can help you nurture your business as well as yourself.  They can be people you share common interests with who are knowledgeable in their field and can guide your every step.

If you’re a startup then act like one.
Just because your business is in the basement of your house doesn’t mean that you will be looked upon negatively.  All businesses start somewhere.  You need to watch your every dollar and being frugal as a new business simply makes sense.  Keep your overhead as low as possible and count your pennies.

Become grace under fire.
Accept the fact that you are human and you cannot predict the future.  With that being said you need to be prepared to face challenges in your business.  There is no perfect road which will take you from startup to success.  You will make mistakes and the best thing you can do is simply learn from them.  The better you handle being under fire, the more success your business will have.

No one is going to hand you money.
Keep your business plan straightforward and easy to execute because no one is going to invest in you right away.  Find a way to make your business work on a shoestring budget and then prove that your business model is worthy of a business loan.  If you can do that then you will have no problems raising capital.  If you can’t, go back to the drawing board and start over.

Watch your health.
This is something people don’t think about.  Take care of yourself so that you can take care of your new business.  Eat the right foods, exercise, have some ‘me’ time and get plenty of sleep.  Exhausting yourself is only going to reduce your productivity and that could hurt your company.

Endorse your business with action.
You probably know the saying ‘don’t talk the talk unless you can walk the walk’.  It’s true.  You need to be able to endorse your business with the right actions, such as discussing your business with others tastefully.  Don’t exaggerate.  If you can’t be honest about your business, don’t say anything.

Don’t go down with the ship.
Sometimes no matter what you do you cannot save your business.  When this happens, let it go and walk away understanding the mistakes that were made and how they can be fixed the next time around.  You will prevail as long as you remember that failure is a simple fact of life that can be learned from.

Shoppers are skittish during this recession, there’s no doubt. With the loss of wealth in their 401K’s, the loss of equity in their homes, and their employment at risk any second, many consumers have tightened their spending habits and adopted a new frugal outlook. Many experts believe that these habits may even outlast the recession, as customers begin to adopt a leaner and meaner lifestyle. This is not good news for business owners and if they do not adapt their offerings to this new frugal customer, they will see a trickle downward of sales as consumers opt for businesses that appeal to them more.

Changing Your Strategy, Keeping Your Business

One of the main things to keep in mind is that the average consumer has less disposable cash and little credit. They may opt to buy more of items that are less expensive and reserve their big cash purchases for when they feel more secure about the economy. That’s why candy and lipstick are hot sellers during a recession. They offer a large sense of gratification to the consumer who spends relatively little to obtain that product. In the same vein, you should promote your lower priced products more than your higher priced ones at this time, creating more small opportunities for purchases, rather than trying to bank on one large purchase.

Another way to take the loss of cash or credit in the economy into account is to offer payment plans that give the consumer a way to pay a little at a time for a larger purchase. We are now seeing the resurgence of layaway programs in some popular stores, and they make a great deal of sense of a cash-strapped consumer.

Creating A Perception Of Value

Frugal customers aren’t just about paying less, they are about buying items that have a large value in comparison to cost. If your inventory has a number of large ticket items, the way to sell those to a frugal customer will be to accentuate the value versus the price. Value is very subjective and can be manipulated through clever advertising. Some customers find value in education, others find it in quantity. Understand what your customers value about your products and services and what makes your product better than your competition’s. Then, instead of lowering a price or offering a cheaper product, make sure that your customers see the same value you do in your products and services.

A high quality product that has a long life, returns something on the investment, or improves the potential to create income in a person’s life is something that is of high value right now. People want their money to buy quality products that they do not have to maintain or replace frequently and that offer some genuine payback for the purchase. Sometimes you can sell value through specific programs that reduce the costs of maintenance or repairs, like leasing. If your customer sees a high value in that, they will be willing to pay to have that option. Other times, you might have a customer that sees more value in ownership, to retain an asset for a longer life, then that’s what will sell your product to that customer. The key is offering many different options to buy that will appeal to the many different types of frugal customers and their buying habits.

Tax season can be a stressful time of the year for everyone, but for the small business owner, it can be dreadful. Dealing with taxes can be a difficult maze with plenty of dead ends, so making the right choices and considering the right options can make all the difference.

If you are a small business owner and you know the headaches of dealing with taxes, then take into account these tips. While the actions mentioned may be small things that you can change, they will have big repercussions. Use these tips to have a much less stressful tax season this year.

Estimated taxes are important. While it may seem feasible now to wait until tax season to pay your owed taxes, you will be in for a big problem. If you do not make payments toward your taxes, you will be facing stiff penalties on top of a very large tax bill.

You can avoid those penalties simply by making estimated tax payments. These payments are easy to set up and they can be paid quarterly. Even if you do not pay the whole amount you will owe, you can cut penalties greatly by making some type of payment.

Make sure you consider all of your deductions. When you are busy with running a business, it may become easy to overlook things that can be deductions. Even small charges can add up quickly, so make sure you keep track of anything you think may be a deduction. Your accountant can help you sort through them.

One deduction that is often overlooked is the charitable donation. Make sure to donate business services, goods, time, or money to a charity a few times a year, and it can have a great impact on your taxes.

In addition to looking out for deductions, make sure to consider any tax credits available. There are plenty of credits that many people may overlook. Speak with your accountant to make sure you are taking advantage of any tax credits you can.

You can even make small changes to your business to add further tax credits. Adding handicapped accessible options or power saving options can actually benefit your business and give you a tax credit to use.

Look for ways to reduce income. For example, make sure that you are contributing to a retirement plan for yourself. This is important for your future, but it can also help with your taxes since it will reduce your overall income.

Speak with a financial planner to determine how much you can contribute and what would make the best impact on your future and on your taxes each year.

Deadlines are very important, and to avoid fees, make sure you know and understand all of your due dates. This includes sales taxes, which can vary from state to state, estimated tax payments, which you will need to make quarterly, and filing dates, which are based on your business type.

Just by making sure to meet all deadlines, you can avoid thousands of dollars in fees. If you are concerned at all about deadlines and due dates, speak with your accountant for a breakdown.

On a similar note, it is important to hire a good accountant. Since you will be dealing with taxes throughout the year, an accountant who is accessible at any time is invaluable.

It is better to hire a professional than to try to do your taxes yourself. You already have enough responsibilities vying for your time without dealing with your company’s taxes, which can be a full time job all on their own.

You can work with your accountant to make sure all of your bookkeeping practices and computer systems are keeping the right information. You can shave a good deal of time off the process by making sure all of your records are kept correctly. You will also be helping yourself avoid discrepancies that can lead to audits.

Make sure to keep all of your records for seven years. This includes past tax returns, customer and employee files, and transaction and sales tax records. When in doubt, keep it. It is better to have too much information than too little in the event of an audit.

One last tip to consider involves big purchases for your business. If you are thinking about a purchase, but were waiting because of cost, year end can be the perfect time, since the expenses can have a great deal of impact on your taxes. Just make sure to make the purchase before any deadlines.

Although taxes will always be a point of stress for a small business, most likely, you can take away a great deal of that headache just by taking small actions and making little changes. If you follow these tips, you will be doing quite a bit to help you and your business with taxes.

Being a small business owner means wearing too many hats. First, you are the accounting, then the next minute you might be the marketing manager. Whether you are just starting out or having to lay off needed people due to the economy, being a small business owner can sometimes resemble being a one man marching band, and it can be exhausting. Learning how to balance the varying needs and requirements of a business can be made easier by picking out smart tools to help you organize and supercharge your efforts, for a relatively small cost.

Accounting Needs

Money is the life blood of a small business. That means micromanaging expenses, income, collections, debt, and taxes. Tax software for business people is a great boon to people who want to track all those expenses and income on a monthly basis as well as at year end. Organizing and planning acquisitions and expenses at the beginning of the fiscal year is one way to gain control of a large number of details ahead of time.

Credit and debt is especially hard to manage during a recession. The rules may keep changing, limits decreasing, and options narrowing. Exploring different ways to get credit in a pinch via quick online loans, to keep your cash flow moving, is essential in a down turn.

Marketing Demands

Another place where online tools can be helpful is in your marketing demands. Contact managers and email marketing is a smart way to keep in touch with customers during a dry spell and helps to spur sales. Online affiliate programs can create an army of advertisers in your corner for a minimal expense. Even local businesses can benefit from Internet advertising, if they do it right. They can locate online directories that highlight local businesses and add their profile to the mix. When people look for a restaurant online in a particular city through some of these city portals, your establishment will also be there for them to review. Add some coupons and good deals, and it can be a great way to create new customers and maintain an Internet presence at minimal cost.

Hiring Tools

Other types of marketing may demand too much time away from actual income generation. Things like copy writing can be outsourced to freelancers who not only have the talent, but are willing to use that talent to promote your business, for a small fee. Instead of hiring a marketing manager full-time, many small businesses can make do by outsourcing many of the same functions to temporary or freelance workers, saving lots of money on benefits and hiring costs. Luckily, there are a ton of online services that allow business people to locate quality freelancers and create jobs that are open to competitive bid. Some online tools for hiring freelancers are elance.com and guru.com. At rentacoder.com, you can even find great programmers and web designers to help you get your online presence up to the best standards without having to hire in-house help.