What Are Small Business Administration Loans and What You Need to Know

Posted on July 13, 2016 in Business

Business AdministrationA small business administration loan or SBA loan is a loan offered by banks and various lenders in the US. These loans are easily accessible for small business owners, especially those looking to start up a new business and they need the financial backing that an extra sum of cash would provide.

The small business administration loan is easier to access than a regular business loan because it comes with a government guarantee. This is a plan by the government to encourage new businesses and assist current businesses expand and grow.

The advantage to this is that these are often available with longer repayment periods and those with poor credit scores are still able to qualify, growing their business to the next level.

The loan guarantee program is the ideal opportunity for small business start-ups and expansions, but as with any loan amount, being unable to repay the amount can be detrimental to your business.

Many business owners choose the small business administration loan because they know the chances of them being accepted is high. It’s difficult to start a new business in the current economic market, so that additional boost of cash can be used to purchase stock, necessary business machinery and tools and give the business the cash flow it needs.

The problem comes in that many business owners in a new business don’t understand how difficult the market is right now. They will use the cash they receive to design the perfect website, get their office up and running and produce quality marketing material. But if the customers don’t come flooding through the door, they do not receive the cash they need to repay the loan in a timely manner.

Before applying for any financing, whether you choose the government guarantee program or not, you must be sure that you will be able to make timely payments. The last thing you want to do is dig yourself deep in debt, before your business has a chance to grow.

Every business owner should put a business plan in place to not only help them run their business, but also assist them in achieving their goals. For those who choose to take out a small business administration loan, their business plan can ensure they stay on track and will also ensure they are able to make the timely payments to reduce financial difficulty before their business has a chance to really take off.

Working on a projected income and knowing what you can expect in sales turnover each month is another way to know whether taking out a loan is the right choice for your business.

If you have struggled with finances in the past and your credit score isn’t stellar, then you need to take special care. As you will probably be awarded a small business administration loan with a poor credit history, you need to have every step planned to ensure your business isn’t too deep in debt before you begin.

Remember that with this type of financing, you are often able to take the loan over a longer period, but with every month you owe on the loan, you have interest to pay. Paying late or not paying at all will incur penalties and leave your business in serious financial distress.

Before applying for a small business administration loan, take the time to work out your monthly expenditure and your expected monthly income. Ensure you have enough to pay your mortgage or rent, your basic costs and then take the financing repayments into consideration. If you strongly believe your income will cover everything and still offer you a monthly salary, then this is the right choice for you.

Second Wind Consultants offer assistance to small businesses, helping them improve their performance, get out of debt and have a second chance at success. By preserving the business assets in an ever changing market and helping business owners forgive their debt, Second Wind Consultants are changing the way small businesses perform. Second Wind Consultants offer a range of services from small business advice to small business loans and offers in compromise to so much more. Every step of the way this company ensures that the owner has affordable losses in a safe and secure way to give both the family and business the second chance they deserve. Visit: http://secondwindconsultants.net/services/sba-debt-loans/

Article Source: http://EzineArticles.com/expert/Harry_Greenhouse/1658441

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7 Faulty Reasons for Starting a Business

Posted on July 9, 2016 in Business

Business StartWith about 28 million small businesses in the U.S. and thousands more starting every day, it’s a good bet that if you’re not already in business, branching out on your own has crossed your mind somewhere along the way. And that’s good news since small businesses are the economic engines of the economy, creating most of the nation’s net new jobs and employing about half the nation’s workforce. In fact, my job is to help people start or grow a small business and I’m paid by our state legislature to do it. However, as much as I’d like to see my efforts come to fruition, I do have a few words of caution to those thinking about taking the plunge.

In my years of working with aspiring business owners, I’ve heard some reasons or motivating factors, that seem logical on the surface for starting a small business, but as the saying goes “the devil is in the details”

Here’s what I consider the top seven faulty reasons for jumping into business ownership. Statements I’ve actually heard:

1. “I’m tired of working for someone else. I’m going to quit my job and go out on my own.”

Not so fast. You may no longer have your current boss once you start a business, but you’ll probably end up with not one but dozens of “bosses,” maybe hundreds-they’re your customers and they can take you to task as no one boss could. Keeping everyone happy, including shareholders or a board is no picnic.

2. “I don’t need a business plan. I have it all in my head.”

Not having a written plan outlining what you’re planning to do and for whom, where you’re going and how you plan to get there can wind up costing you more than you can imagine. And remember hope is not a plan.

3. “I know there’s a government grant out there for me. I just have to find it.”

Grants do exist, but generally not for a for-profit business. A grant may be available for an industry specific enterprise, high-risk technology business, a non-profit expanding program or a municipality for revitalization. Saving enough money for your start-up will probably take less time than finding a grant, not to mention applying for it and receiving it.

4. “I’ve been unemployed for a while, so I guess it’s time for me to start my own business.”

While for some people starting a business once unemployed can be a solution, for the vast majority, it’s best to have a source of income while getting your business off the ground. Starting a business takes money and it may be a year before you see a profit from your business.

5. “All I need is an investor. Surely they’ll want 10 percent of my profits. That’s more than they’ll make in the stock market.”

Unless you’re in a high-growth technology business and have an exit strategy of between five to seven years it may be tough to find an investor. Also think about how much control of your business you’re willing to give up.

6. “I have a great deal on a location-six months free rent! I need to jump on this right away.”

Letting a location drive you to start a business before you’re ready is one of the quickest ways to go under. Plan the business first then fit the location to it. With vacancy rates being what they are, you’ll be able to find a property owner willing to negotiate good deals. Don’t be lured into a property with the offer of free rent-remember, there may be an underlying reason why the property has been sitting vacant to the point of a free rent offer.

7. “Because I’m successful at (you can fill in the blank about the skills), I’ll be successful as a business owner doing this.”

Yes, passion is good, but keep in mind that a good cook does not necessarily make a successful restaurant owner, just like a great football player doesn’t automatically make a good coach. Having success at one level doesn’t mean success at the next level. Even with passion and skill, you still have to have the know-how of the business side.

Starting a business can be the best decision you’ll every make-or the worse. Whatever your reason for going into business, the most important point to remember is there are a ton of free resources available locally and nationally to help you. Take advantage of them!

Barbara Hall is director of the Small Business Center at Rowan-Cabarrus Community College in North Carolina where she counsels business owners and prospective owners and plans small business educational programs. She is also currently enrolled in the Master’s of Entrepreneurship Degree Program at Western Carolina University. Webmasters and other article publishers are hereby granted article reproduction permission as long as this article in its entirety, author’s information and any links remain intact. Copyright 2013 by Barbara Hall.

Article Source: http://EzineArticles.com/expert/Barbara_L_Hall/1750683

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Small Business Advice Every Business Owner Could Use

Posted on May 30, 2016 in Business

Small Business 2Starting up a new business in the current economic climate is not an easy task and small business advice isn’t easily accessible to help the business grow to a successful and profitable empire that you can rely on.

For every business owner, their business should be an asset, a way to plan for their future. Most business owners will rely on their business to fund their retirement in their old age, but without the right structures and knowledge in place, this is a very difficult goal to achieve.

There are a number of companies dedicated to offering small business advice, giving businesses that second chance they need to succeed. As a new business owner you are so busy concentrating on getting your name recognized, that it’s easy to bypass some of the important factors that could help your business reach the successful level you are looking to achieve.

The first mistake many business owners make is they go and spend a fortune of their startup costs on expensive equipment and machinery. In fact many of these items can be leased over a set period of time. Leasing comes with its own advantages. Besides not being the owner of the equipment, when the contract period ends, you are able to upgrade the equipment staying up to date with the latest technological trends.

This is some of the small business advice you would be offered by a professional Rather than spending a large portion of your starting budget on computers, you would lease them and then upgrade them in a year, so you always have the latest equipment on hand to ensure your business runs smoothly.

The next piece of small business advice you would probably be given is about small business administration loans. These are loans which are guaranteed by the government, which means that there is a higher chance of being accepted. The additional funding can be a blessing for a new business or a small company looking to expand.

The advantage to these loans is that they have longer payment periods and they are easily accessible, even being awarded to those that have a poor credit history. This is all because the guarantor is the government, which ensures the loan will be repaid taking the risk away from the bank or lender.

Other essential small business advice that every business owner should have is how to get out of debt with ease and relieve any debt the business may have. As long your company is in debt, it will never really make a profit, you need to find a way to repay that debt in the shortest space of time to get past the red and start enjoying the rewards of your success.

One of the most important pieces of small business advice that many business owners could do with is offers in compromise. You have probably heard this term a lot lately, but are unsure on whether your business qualifies or how to go about applying.

An offer in compromise enables small companies to reduce their taxes that are due. While there are strict qualifying criteria, the right professional will be able to give you the necessary information you need which can assist your business in retaining a small cash flow to continue operating.

Lastly is the one topic that many company owners don’t really want to discuss, but it’s a reality and should be taken into consideration. That is bankruptcy. Before filing for bankruptcy and thinking there isn’t any other alternative, find a company that can offer you the information and support you need. In many cases there are other options available which won’t tarnish your own personal name.

Second Wind Consultants offer assistance to small businesses, helping them improve their performance, get out of debt and have a second chance at success. By preserving the business assets in an ever changing market and helping business owners forgive their debt, Second Wind Consultants are changing the way small businesses perform. Second Wind Consultants offer a range of services from small business advice to small business loans and offers in compromise to so much more. Every step of the way this company ensures that the owner has affordable losses in a safe and secure way to give both the family and business the second chance they deserve. Visit: http://secondwindconsultants.net/

Article Source: http://EzineArticles.com/expert/Harry_Greenhouse/1658441

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Building a 6-Figure Business From Scratch

Posted on May 13, 2016 in Business

Business 5As a woman entrepreneur, building a six-figure business from scratch could not be any easier. You have all that you need at your fingertips.

The truth is that you’re probably doing a lot of what you need, to build a six-figure business already, the only difference being the way you’re thinking about it.

By re organising your thoughts and your business systems and strategies, you can easily leverage everything that you’re doing and create a business that is far more profitable than what you currently have. I’ll probably call this process re purposing your business.

Now, there are four key elements that you need to have in place when thinking of six-figure business success.

1. An entrepreneurial mindset
This simply means that you have to stop seeing yourself as a business owner; you must see yourself as an entrepreneur. It takes having an entrepreneurial mindset if you are going to build a six-figure business from scratch. You need to begin to think as an entrepreneur thinks: smart. An entrepreneur is looking at what they’ve got and is trying to optimise their current resources for the maximum gain.

2. A six-figure business model
I always say that not every business model is equal; there are businesses and there are businesses. Now to be able to unleash the financial potential of your business, you need to make sure that you have the right business model to do that. You need a six-figure business building model.

3. A marketing strategy and system
Now the engine that runs any business is its marketing. Marketing is everything you do, from the conception of your business idea, to the delivery of services to the client and redelivery of those services. You need to be able to think about this as a system and think of it strategically.

4. A six-figure pricing strategy
Realise that without the right pricing model for your business, you may be working hard but you many not be making any profits. However, with a six-figure pricing strategy you’re able to unlock the profit potential of your business.

There’s no point in building a business you’ll end up working for, which is what most solo business owners end up doing. There is no point in building a business that will keep you trapped. You need a business model that will help you free up your time and at the same time unlock your profit making potential.

The whole idea about building a six figure business is that you are able to free up your time while building a business that works for you.

Davida is a Small Business Coach [http://kingdom-wealth-creation.com/] and an advocate for women who loves empowering women through enterprise. She helps Women Entrepreneurs build 6-Figure businesses. Davida helps Experts such as: coaches, trainers, mentors, consultants, speakers, authors, etc. build their businesses strategically, helping them to get more clients and make more profits.

Article Source: http://EzineArticles.com/expert/Davida_Yemi_Akanle/785917

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Business Exit Strategies

Posted on May 7, 2016 in Business

Business ExitIt may be time to get out of the business. Maybe you’ve made enough money, or maybe you’re just tired. Maybe you’d like to build a different business. Whatever your motivation, you’d like to pursue this new path while you still have your health and ambition. You need a business exit strategy.

If the business is a good one, you may want to see it survive. Rather than selling it off to the highest bidder, you may prefer to “keep it in the family” and pass the business to your children or another relative, or sell to an employee.

Family succession

Many entrepreneurs dream of passing their business on to the next generation. Unfortunately, family succession usually does not succeed. It’s been reported that 70% of family businesses do not survive the transition from the founder to the second generation.

Family rivalries and other dysfunction often intrude to derail the business. The founder refuses to cede control. Founder/parent installs his favorite child as the leader, who is unsuitable for the role. The next generation leader and managers are poor decision-makers. The sibling denied the role of chief executive feuds with the chosen one.

Founder/parent must take carefully considered steps to create the conditions for second generation success to occur. It will be important to distinguish between company leader, managers and owners and make certain that no one feels devalued. It will be incumbent upon the founder/parent to preserve not only the business, but also family relationships and remember that family gatherings ought to be happy occasions that all family members want to attend.

If you’d like to pass the business along to family members, start by asking them if they’d like to become the second generation of owners. If any or all agree to that proposal, then consult a family business specialist to help with the process.

The ability to groom your hand-picked successor is a wonderful thing and recruiting a specialist to help you choose the candidate who is best qualified to assume the reins will go a long way toward ensuring next generation business success. Check with the graduate management program of a local college or university to find out if a family business specialist is available to help with the transition and follow-up family business coaching.

Sell to employees

If no family members are interested in owning and running the business, you may find that one, or several, of your employees may be interested in buying you out. Don’t be shy about raising that possibility. What better way to boost confidence and morale than letting valuable employees know that you trust them enough to place your treasured achievement into their capable and caring hands?

Selling to employees can be a great exit strategy. The employees will be able to invest in a business that they know and trust. They know the challenges and opportunities that the business may encounter. They know the customers and the customers know them. They have institutional memory and know how things run.

Encourage employees whom you know would make successful business owners to consider a buy-out proposal or an employee stock option plan (ESOP)? Call your business attorney and/or accountant and make sure that you have the best legal structure for the exit strategy that you select.

Exiting the business

If the business has tangible assets and healthy sales, your exit strategy can provide for you either a retirement nest egg or start-up capital to create yet another business. Keep your options open and start the preparations early.

Maintain detailed and credible financial records: demonstrate profitability; show good cash flow; keep your debt to equity ratio low. Expect to show a prospective buyer or your family members 5 years of data. If the business owns property and/or equipment, ensure that all is in good working order.

To sell your business for a price that accurately reflects its value, speak first with your accountant and business attorney, next with a business valuation expert or appraiser and then with a business broker. Your accountant or attorney may also know the right buyer for your business.

An accurate appraisal is a must-have when planning to exit your business. There are three methods to explore:

I. Asset Valuation. The value of the inventory and equipment, business property, the client list and even the company’s reputation.

II. Industry Valuation. Based on the sale prices of similar businesses in your industry and geographic locale.

III. Cash-flow Valuation. Based on the expected future cash flow of the company, as demonstrated by past performance.

Remember that the best time to sell your business is when both you and it are healthy!

Thanks for reading,


Kim L. Clark is a business strategy and marketing consultant who works with for-profit and not-for-profit organization leaders who must achieve business goals. She is the founder and principal of the consulting firm Polished Professionals Boston and she teaches business plan writing to aspiring entrepreneurs. Learn how Kim’s expertise can benefit your organization when you visit http://polishedprofessionalsboston.com.

Article Source: http://EzineArticles.com/expert/Kim_L._Clark/647250
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Using A Legal Writing Service For The Books And Articles

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