One of the biggest benefits of operating a home-based business is that it doesn't require any formal training or experience. After all, some of the most successful individuals never attended a single business-related class or workshop.
The only drawback to having a lack of experience and/or business education is that it can make tracking your company's finances difficult. Even accountants who spend their lives working with numbers often find bookkeeping a tedious chore.
But no matter how mundane keeping track of your company's revenue and expenses may be, it is also necessary for several reasons:
1) You need to know at a glance if your business is spending more than it is earning.
2) You need to have all of this information documented for tax time.
3) You can use this data to help you establish your budgets and to adjust your spending.
Of course, just knowing it's important doesn't make it easier to accomplish. In fact, you really have two options if you want to reduce your accounting stress:
A) Hire a professional to help you or
B) Invest in a helpful accounting software program.
While hiring a professional would be the easiest route, it's also more costly. For most home-based businesses, the most effective choice is to use an accounting software program.
Before you spend a dime, however, there are a few things you need to know.
1) Know What You Need The Program To Do
The accounting programs currently available can handle a wide array of business related tasks, such as tracking expenses, creating invoices, handling payroll, and printing checks. The more of these tasks a program can do, the more expensive it will be.
For that reason, you should know exactly what you are going to use it for. That way you can get a program that meets your needs without paying for features you'll never use.
2) Know The Details Of Your Computer
Before you buy any software, you need to know your computer's current statistics, such as what operating system you use, how much hard drive is available, and how much RAM your system contains.
If you buy a program that won't work on your system, you won't be able to return it and get your money back once it's been opened. Checking in advance will protect you from getting stuck with software you can't use.
3) Do Your Homework
Any type of business-related purchase requires careful consideration, so be sure to investigate before you buy. Explore all of the software programs available and find out what other people are saying about them. Sites like Epinions.com and CNET.com can provide you with product feedback from both consumers and reviewers.
Pay attention to mentions of difficulty levels since you want a program that is easy for you to learn and to use. Also, take advantage of software demos. Nothing beats a hands-on preview. You should do some research into the companies' technical support and customer service as well. If you ever need help, you want to know it's readily available.
4) Be Aware Of Costs
Another thing you need to know is how much you can afford to spend on the program. The costs for accounting software run from $30 to $600 or more depending on the features included.
Knowing what you need and can afford in advance will prevent you from paying too much. Shopping around for a particular program won't do much good, however. Whether you buy a program online, from an electronics store, or from a retail outlet, you'll pay about the same price. Watch for rebates or special offers, however, because they can cut your costs considerably.
Here are a few suggestions if you find it difficult to identify the right accounting software program for you:
* Peachtree Accounting 2003 Peachtree is one of the most recognized names in business accounting. This program allows you to manage your accounts receivable, accounts payable, inventory, payroll, job costing, fixed assets, even general ledger. Other valuable features perfect for small or home-based businesses, such as Internet postage, credit card service, direct deposit, and contact management are also included.
This version costs $199.95, but others are also available. You can learn more about Peachtree's line of accounting software at http://www.peachtree.com
* Quicken Home & Business At $89.95, Quicken Home & Business is one of the most budget-friendly accounting programs on the market. Even though its price is low, its packed with features, such as creating custom estimates and invoices, generating business reports, setting up a Merchant Account, managing taxes and expenses, and keeping track of your cash flow.
You can also use the program to download your transactions and pay your bills online. Other versions of Quicken are also available through the company's web site http://www.quicken.com/quickensw/
* Microsoft Monday 2003 Deluxe & Business With this software, you can take care of most of your accounting needs without breaking your business's budget. At only $64.95, the software still comes with a wide range of features including the ability to create customized invoices, estimate tax payments, compare financial data, balance your checkbook, track cash flow, and pay your bills. Additional versions of the the program are available for sale at http://www.microsoft.com/money
Knowing this useful information will help you find an accounting program that will make your job easier, less stressful, and more efficient. Vishal P. Rao is the owner of http://www.home-based-business-opportunities.com - One of Internet's leading website dedicated to starting, managing and marketing a home based business.
Written by: Vishal P. Rao
Showing posts with label business. Show all posts
Showing posts with label business. Show all posts
Saturday, May 2, 2009
Friday, April 24, 2009
How To Finance Your Business When The Bank Says No
Do you own a growing business that needs financing? If you are like most business owners, whenever your business needs money you head over to the bank. Unfortunately, as most small business owners soon find out, most banks do not lend money to businesses unless they have significant collateral and a history of successful operations. This presents quite a challenge for business owners.
When banks are not an option, small business owners turn to what is known as the alternative financing funding market. Although the financing options discussed in this article fall under the alternative financing category, they are actually quite widely used and should be considered mainstream. Most major companies (including public companies) have used this alternative financing at one time or another during their growth history.
Most of the tools described in this article can only be used by businesses that are already in operation, and whose main requirement is working capital. Although startups can benefit from these tools, the companies will need to be in operation for a little while and have a growing list of clients.
General Invoice Factoring
Invoice factoring (also known as accounts receivable factoring) is ideal for business owners who cannot afford to wait 30 to 90 days to get paid by their clients. It allows a business to sell invoices from commercial customers to a financing company for immediate payment. The financing company buys the invoices at a discount and waits for the customer to pay.
The main advantage of factoring your invoices is that the financing company makes its decision using the credit of the payer, rather than yours. That means that if you own a small company that is doing business with a large credit worthy company, you are almost certain to have the transaction approved. Another advantage of factoring is that it does not have set limits like lines of credit. The level of financing is limited only by the amount you sell to credit worthy clients. General factors can work with most industries, although there are two main industry subspecialties - freight bill factoring and medical factoring.
Freight Bill Invoice Factoring
Trucking companies tend to be very cash hungry businesses. The owners need money to pay their drivers, pay gasoline and pay suppliers. However, most trucking companies also work with a high volume of freight invoices from credit worthy clients. That makes freight bill factoring an ideal solution for their cash flow issues. Just like in general factoring, the factoring company buys the freight invoices from the trucking company for immediate cash.. Furthermore, the risk for these types of transactions is lower than in general factoring. This means that trucking companies can qualify for preferential financing terms.
Medica l Factoring
Most medical industry businesses (doctor's offices, hospitals, medical testing centers and medical supply companies) make the bulk of their earnings by billing 3rd party insurance companies, Medicare and Medicaid. Unfortunately, insurance companies are notorious for paying their invoices in 30 to 90 days, creating cash flow problems at the medical office. Factor ing medical offices is a subspecialty of general factoring. Given the complexities of the insurance industry, it usually requires the participation of a factoring company with extensive industry experience.
Generally speaking, the medica l factoring company will provide you with financing based on your NET collectables rather then your gross collectables. They will also need to be part of the billing process, to ensure that they finance the right amounts. Due to its complexity, medical factoring is only accessible to medical businesses making at least $100,000 a month. However, if your business qualifies for it, you will find that it is a great tool to streamline your cash flow and grow.
Purchase Order Funding (a.k.a PO Financing)
Most distributors and import/export companies tend to be very cash hungry businesses, in part because of how the sales process works. Usually, the process starts when the distributor gets a purchase order (PO) from a client. They then purchase the items from their supplier, who then drop ships it to the end customer. This works well as long as the company has enough money to pay the suppliers and wait for their clients to pay for the product. However, sometimes a payment can take up to 60 or 90 days to arrive, creating a big cash flow challenge for the distributor. Other times, the company may become too successful and get a purchase order that is too big for them to finance. In these instances, the company should consider purchase order funding financing. With PO financing, a finance company handles your supplier payments and ensures that the goods are properly delivered. Once the client pays for the product, the transaction is settled and all parties are paid. PO funding is a product that truly allows you to grow your company - sometimes exponentially - while using someone else's money.
Copyright (C) 2006 - Commercial Capital LLC - All rights reserved. Article MAY be reproduced provided it is not modified and it is published with live links.
About the author:
About Invoice Factoring Group
Invoice Factoring Group can provide you with an accounts receivable factoring, PO funding financing,
When banks are not an option, small business owners turn to what is known as the alternative financing funding market. Although the financing options discussed in this article fall under the alternative financing category, they are actually quite widely used and should be considered mainstream. Most major companies (including public companies) have used this alternative financing at one time or another during their growth history.
Most of the tools described in this article can only be used by businesses that are already in operation, and whose main requirement is working capital. Although startups can benefit from these tools, the companies will need to be in operation for a little while and have a growing list of clients.
General Invoice Factoring
Invoice factoring (also known as accounts receivable factoring) is ideal for business owners who cannot afford to wait 30 to 90 days to get paid by their clients. It allows a business to sell invoices from commercial customers to a financing company for immediate payment. The financing company buys the invoices at a discount and waits for the customer to pay.
The main advantage of factoring your invoices is that the financing company makes its decision using the credit of the payer, rather than yours. That means that if you own a small company that is doing business with a large credit worthy company, you are almost certain to have the transaction approved. Another advantage of factoring is that it does not have set limits like lines of credit. The level of financing is limited only by the amount you sell to credit worthy clients. General factors can work with most industries, although there are two main industry subspecialties - freight bill factoring and medical factoring.
Freight Bill Invoice Factoring
Trucking companies tend to be very cash hungry businesses. The owners need money to pay their drivers, pay gasoline and pay suppliers. However, most trucking companies also work with a high volume of freight invoices from credit worthy clients. That makes freight bill factoring an ideal solution for their cash flow issues. Just like in general factoring, the factoring company buys the freight invoices from the trucking company for immediate cash.. Furthermore, the risk for these types of transactions is lower than in general factoring. This means that trucking companies can qualify for preferential financing terms.
Medica l Factoring
Most medical industry businesses (doctor's offices, hospitals, medical testing centers and medical supply companies) make the bulk of their earnings by billing 3rd party insurance companies, Medicare and Medicaid. Unfortunately, insurance companies are notorious for paying their invoices in 30 to 90 days, creating cash flow problems at the medical office. Factor ing medical offices is a subspecialty of general factoring. Given the complexities of the insurance industry, it usually requires the participation of a factoring company with extensive industry experience.
Generally speaking, the medica l factoring company will provide you with financing based on your NET collectables rather then your gross collectables. They will also need to be part of the billing process, to ensure that they finance the right amounts. Due to its complexity, medical factoring is only accessible to medical businesses making at least $100,000 a month. However, if your business qualifies for it, you will find that it is a great tool to streamline your cash flow and grow.
Purchase Order Funding (a.k.a PO Financing)
Most distributors and import/export companies tend to be very cash hungry businesses, in part because of how the sales process works. Usually, the process starts when the distributor gets a purchase order (PO) from a client. They then purchase the items from their supplier, who then drop ships it to the end customer. This works well as long as the company has enough money to pay the suppliers and wait for their clients to pay for the product. However, sometimes a payment can take up to 60 or 90 days to arrive, creating a big cash flow challenge for the distributor. Other times, the company may become too successful and get a purchase order that is too big for them to finance. In these instances, the company should consider purchase order funding financing. With PO financing, a finance company handles your supplier payments and ensures that the goods are properly delivered. Once the client pays for the product, the transaction is settled and all parties are paid. PO funding is a product that truly allows you to grow your company - sometimes exponentially - while using someone else's money.
Copyright (C) 2006 - Commercial Capital LLC - All rights reserved. Article MAY be reproduced provided it is not modified and it is published with live links.
About the author:
About Invoice Factoring Group
Invoice Factoring Group can provide you with an accounts receivable factoring, PO funding financing,
Tuesday, April 21, 2009
How To Finance a Business for Your Children
First, how not to go about it:
A cash loan is not the way to go.
Neither is signing as surety for a bank loan
A gift of the amount required? Again, not the best approach
But these are the three most common but wrong ways by which parents try to help their children get started in business.
So what is the best way?
For US residents and citizens, Internal Revenue Code 1244 provides the answer.
If you give your daughter $50,000 say to start a new venture, and the business goes belly up with the loss of the $50,000, there is no way that the IRS will allow you to claim this loss as a deduction.
Or suppose you loan her business $50,000. Again, if things do not work out, the business will keep paying you the interest until it runs out of cash, leaving you with a worthless note.
Tax-wise, you have a capital loss, which is deductible at the pitiful rate of only $3,000 per year against your ordinary income. Or you can use the loss to offset capital gains.
The same sad tax fate, a capital loss, results if you sign as surety and must pay Sue's $50,000 loan from the bank.
Tax-wise, a gift to your daughter is even worse. The $50,000 is hers. As a result, the tax loss is hers, not yours. Under the circumstances, chances are that Sue has little or no income, and the loss is almost totally wasted.
Note too that a loan or a bank surety is often questioned by the IRS. Why? The IRS contends that the $50,000 was a gift because you never intended to try to collect in the first place. You had no reasonable expectation of being repaid is the way the IRS puts it.
But now let's look at IRS Section 1244 - the right way.
Section 1244 allows you to claim an immediate deduction for a loss on stock in a small business corporation. Your loss is fully deductible against ordinary income, rather than a limited capital loss.
And you can claim a maximum Section 1244 loss of $100,000 (joint return) in a single year or $50,000 on a single return
The maximum amount you can claim as a Section 1244 loss in a single year is $100,000 on a joint return or $50,000 on a single return.
So instead of a gift, a loan or a bank surety, you and your daughter set up a corporation for her new business. You get $50,000 of stock in the corporation that qualifies for Section 1244 treatment. Your daughter, who runs the business, draws a salary
If the business succeeds, your daughter can gradually buy back your stock (or, better yet, you can gift it to her) over time. Any profit you make on the buyback will be a low-taxed capital gain.
If the business fails, your loss will be fully deductible under Section 1244 (up to the $100,000/$50,000 limits).
Here's another nice thing about Section 1244: The tax benefits are easy to get. The beneficial tax treatment is automatic and no written plan is necessary.
A final point: Section 1244 is the way to go not only for your kids, but also for your spouse who might want to start a new business. And the same strategy applies if you want to venture into something new while keeping your present business.
SEO Solutions and one-way link publicity services provided by Link Acquire.
David C Skul - CEO
LinkAcquire.com
and Relativity, Inc. can provide global market exposure and solutions.
About the author:
None
Written by: David C. Skul
A cash loan is not the way to go.
Neither is signing as surety for a bank loan
A gift of the amount required? Again, not the best approach
But these are the three most common but wrong ways by which parents try to help their children get started in business.
So what is the best way?
For US residents and citizens, Internal Revenue Code 1244 provides the answer.
If you give your daughter $50,000 say to start a new venture, and the business goes belly up with the loss of the $50,000, there is no way that the IRS will allow you to claim this loss as a deduction.
Or suppose you loan her business $50,000. Again, if things do not work out, the business will keep paying you the interest until it runs out of cash, leaving you with a worthless note.
Tax-wise, you have a capital loss, which is deductible at the pitiful rate of only $3,000 per year against your ordinary income. Or you can use the loss to offset capital gains.
The same sad tax fate, a capital loss, results if you sign as surety and must pay Sue's $50,000 loan from the bank.
Tax-wise, a gift to your daughter is even worse. The $50,000 is hers. As a result, the tax loss is hers, not yours. Under the circumstances, chances are that Sue has little or no income, and the loss is almost totally wasted.
Note too that a loan or a bank surety is often questioned by the IRS. Why? The IRS contends that the $50,000 was a gift because you never intended to try to collect in the first place. You had no reasonable expectation of being repaid is the way the IRS puts it.
But now let's look at IRS Section 1244 - the right way.
Section 1244 allows you to claim an immediate deduction for a loss on stock in a small business corporation. Your loss is fully deductible against ordinary income, rather than a limited capital loss.
And you can claim a maximum Section 1244 loss of $100,000 (joint return) in a single year or $50,000 on a single return
The maximum amount you can claim as a Section 1244 loss in a single year is $100,000 on a joint return or $50,000 on a single return.
So instead of a gift, a loan or a bank surety, you and your daughter set up a corporation for her new business. You get $50,000 of stock in the corporation that qualifies for Section 1244 treatment. Your daughter, who runs the business, draws a salary
If the business succeeds, your daughter can gradually buy back your stock (or, better yet, you can gift it to her) over time. Any profit you make on the buyback will be a low-taxed capital gain.
If the business fails, your loss will be fully deductible under Section 1244 (up to the $100,000/$50,000 limits).
Here's another nice thing about Section 1244: The tax benefits are easy to get. The beneficial tax treatment is automatic and no written plan is necessary.
A final point: Section 1244 is the way to go not only for your kids, but also for your spouse who might want to start a new business. And the same strategy applies if you want to venture into something new while keeping your present business.
SEO Solutions and one-way link publicity services provided by Link Acquire.
David C Skul - CEO
LinkAcquire.com
and Relativity, Inc. can provide global market exposure and solutions.
About the author:
None
Written by: David C. Skul
How To Finance Business
How to finance a business is one of the main concerns that every new business person has to resolve. There are two main ways of financing a business, equity financing and debt financing.
The majority of start-up or small businesses use limited equity financing. As with debt financing, additional equity often comes from non-professional investors such as friends, relatives or colleagues.
However, the most common source of professional equity funding comes from venture capitalists. These are institutional risk takers and may be groups of wealthy individuals or major financial institutions. Most specialise in one or a few closely related industries.
Venture capitalists are often seen as deep-pocketed financial benefactors looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns which will return higher-than-average profits. Venture capitalists may scrutinise thousands of potential investments each year but only invest in a few.
Different venture capitalists have different approaches to management of the business in which they invest. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.
Banks are one of the most common sources of debt financing. There are many other sources for debt financing including: savings, loans and commercial finance companies. It is also possible to ask for funding from family members, friends or colleagues, especially when the capital requirement is small.
Traditionally, banks have been the major source of small business funding. Their principal role has been as a short-term lender offering demand loans, seasonal lines of credit, and single-purpose loans for machinery and equipment. Banks generally have been reluctant to offer long-term loans to small firms.
In addition to equity considerations, lenders commonly require the borrower's personal guarantees in case of default. This ensures that the borrower has a sufficient personal interest at stake to give paramount attention to the business. For most borrowers this is a necessary evil.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
Written by: John Mussi
The majority of start-up or small businesses use limited equity financing. As with debt financing, additional equity often comes from non-professional investors such as friends, relatives or colleagues.
However, the most common source of professional equity funding comes from venture capitalists. These are institutional risk takers and may be groups of wealthy individuals or major financial institutions. Most specialise in one or a few closely related industries.
Venture capitalists are often seen as deep-pocketed financial benefactors looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns which will return higher-than-average profits. Venture capitalists may scrutinise thousands of potential investments each year but only invest in a few.
Different venture capitalists have different approaches to management of the business in which they invest. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.
Banks are one of the most common sources of debt financing. There are many other sources for debt financing including: savings, loans and commercial finance companies. It is also possible to ask for funding from family members, friends or colleagues, especially when the capital requirement is small.
Traditionally, banks have been the major source of small business funding. Their principal role has been as a short-term lender offering demand loans, seasonal lines of credit, and single-purpose loans for machinery and equipment. Banks generally have been reluctant to offer long-term loans to small firms.
In addition to equity considerations, lenders commonly require the borrower's personal guarantees in case of default. This ensures that the borrower has a sufficient personal interest at stake to give paramount attention to the business. For most borrowers this is a necessary evil.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
Written by: John Mussi
Sunday, April 5, 2009
Getting Your Finance Ready for a SSD cASE
Financial security is what everybody wants in life; that and emotional and spiritual security. However, without the sense of being financially secure for the years to come, this has disastrous effects on a person’s general well being.
Now American working class citizens have come to believe that the Social Security is an institution to protect them when the need finally arises. What do we need then is to rest a weary body and soul from the long years of hard work. Or the need to settle down again as burdening illnesses and frustrating restrictions troubled your body. The vision held for everybody – the Social Security disability (SSD) benefits program and supplemental security insurance (SSI) is something for them all to built on dreams of a secured, life after their years of hard work.
Alas, when they first applied for the Social Security Disability Benefits, very few claimants were ever told how long the process of eventually securing their claims might take. .
A sad and commonplace scenario is what occurs to these persons, employed for many years, perhaps at just one job, suddenly find that their medical condition has worsened and they can no longer do their job, or any other job. Either by their initiative or advice taken from others, they contact the social security office and file a claim for benefits. However, instead of finally being able to reap the fruits of the many years of their labors, they realize that they have to wait.
Two months in the process, they check the status of their claim and are told that “evaluation will take 90 to 120 days”. Later on, after several months, they get a letter, unfortunately, denying their claims. They file an appeal and another long wait commence, only to receive another denial letter after several months upon their appeal. They would then be informed that another appeal may be processed which involves a hearing before an administrative law judge.
And of course another long wait for a hearing and even after a hearing has been held, it may take yet another innumerable weeks or even moths before a decision is made by a judge. And if ever the disability benefits are ever received at all, it had taken them 2 ½ years from the day their claiming process began. As 21/2 years had passed they may never realized that during all that time all their savings are exhausted, bills and loans are still waiting to be paid, valuables are lost in order to pay for other debts. They have been reduced to drastic living conditions and still, they still haven’t taken hold of their benefits.
Learning a lesson from the situations, it is extremely important to know how long the application and appeal process of the SSD system would really take before the eventuality of being awarded by the benefits.
By having advanced knowledge of how long a social security SSI/disability application might take, claimants could plan their assets and finances and avoid instantaneous financial downfall.
Also, practical rules may apply in planning financial aspects while still in the process of applying and/or appealing for your disability claims. On top of everything else, it would be wise not to take on additional debts or obligations. Get the cooperation of your family and list down other ways which would greatly minimize financial burdens and obligations. With regards to the bills and payments that have earlier compromised you, find out a way of restructuring them so that your budget would not suffer greatly as each day passed, still without the approval of your benefits. Who knows, sacrificing but a little more is what it probably takes.
About the Author
For questions, comments and additional info about the articles visit http://www.socialsecuritylawattorney.com
Written by: Lala Balattan
Now American working class citizens have come to believe that the Social Security is an institution to protect them when the need finally arises. What do we need then is to rest a weary body and soul from the long years of hard work. Or the need to settle down again as burdening illnesses and frustrating restrictions troubled your body. The vision held for everybody – the Social Security disability (SSD) benefits program and supplemental security insurance (SSI) is something for them all to built on dreams of a secured, life after their years of hard work.
Alas, when they first applied for the Social Security Disability Benefits, very few claimants were ever told how long the process of eventually securing their claims might take. .
A sad and commonplace scenario is what occurs to these persons, employed for many years, perhaps at just one job, suddenly find that their medical condition has worsened and they can no longer do their job, or any other job. Either by their initiative or advice taken from others, they contact the social security office and file a claim for benefits. However, instead of finally being able to reap the fruits of the many years of their labors, they realize that they have to wait.
Two months in the process, they check the status of their claim and are told that “evaluation will take 90 to 120 days”. Later on, after several months, they get a letter, unfortunately, denying their claims. They file an appeal and another long wait commence, only to receive another denial letter after several months upon their appeal. They would then be informed that another appeal may be processed which involves a hearing before an administrative law judge.
And of course another long wait for a hearing and even after a hearing has been held, it may take yet another innumerable weeks or even moths before a decision is made by a judge. And if ever the disability benefits are ever received at all, it had taken them 2 ½ years from the day their claiming process began. As 21/2 years had passed they may never realized that during all that time all their savings are exhausted, bills and loans are still waiting to be paid, valuables are lost in order to pay for other debts. They have been reduced to drastic living conditions and still, they still haven’t taken hold of their benefits.
Learning a lesson from the situations, it is extremely important to know how long the application and appeal process of the SSD system would really take before the eventuality of being awarded by the benefits.
By having advanced knowledge of how long a social security SSI/disability application might take, claimants could plan their assets and finances and avoid instantaneous financial downfall.
Also, practical rules may apply in planning financial aspects while still in the process of applying and/or appealing for your disability claims. On top of everything else, it would be wise not to take on additional debts or obligations. Get the cooperation of your family and list down other ways which would greatly minimize financial burdens and obligations. With regards to the bills and payments that have earlier compromised you, find out a way of restructuring them so that your budget would not suffer greatly as each day passed, still without the approval of your benefits. Who knows, sacrificing but a little more is what it probably takes.
About the Author
For questions, comments and additional info about the articles visit http://www.socialsecuritylawattorney.com
Written by: Lala Balattan
Getting The Goverment to Help Finance Your Home Base Business
You’ve got the concept. You even have the consumer base. But how do finance your home based business? One of the great ways to finance your home based business is by obtaining a government loan. The process is fairly simple, as the government is big on trying to support small business owners like you by helping to finance your home based business.
The biggest benefit of using the government to help finance your home based business is that it offers significantly lower interest rates than any other type of private loan. Also, you can obtain a loan that stretches over a longer period of time, helping you not only finance your home based business, but also to keep it running during those months in which money is a little tight. Plus, the government does not have the same stringent criteria to qualify for a loan to finance you home based business. The more mild criteria means that more people will qualify for loans to finance their home based businesses.
The obstacle to financing your home based business through government loans is the paperwork itself. There is often much more paperwork involved when you are trying to finance your home based business with government loans than when you apply for private loans. If you can, you may want to use an agent to complete your government loan paperwork so that you can finance your home based business with less hassle.
Having a good understanding of the loans available through the government to finance your home based business is also important. In a broad definition, there are basically two types of loans available to finance your home based business. The first is a VA loan, which is only available if you are a veteran looking to finance your home based business. The other type of government loan that you can use to finance your home based business is an FHA loan. Both types of loans have fixed rates and are not subject to rate changes, which is helpful if you are looking to finance your home based business and are on a budget.
Take your time to consider your options to finance your home based business. However, if you are looking for a stable way to finance your home based business and you are willing to do the paperwork, the government may be a great option for you. You can contact your local Small Business Association to find out more about how the government can help finance your home based business.
Hopefully this articles has proven useful to you. Download my Free E-Book and receive valuable tips, strategies and techniques designed to grow a successful Home Based Business. Receive The Free Quick Start Workbook.
Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.
I grant permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way.
About the Author
Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.
Written by: Charles Fuchs
The biggest benefit of using the government to help finance your home based business is that it offers significantly lower interest rates than any other type of private loan. Also, you can obtain a loan that stretches over a longer period of time, helping you not only finance your home based business, but also to keep it running during those months in which money is a little tight. Plus, the government does not have the same stringent criteria to qualify for a loan to finance you home based business. The more mild criteria means that more people will qualify for loans to finance their home based businesses.
The obstacle to financing your home based business through government loans is the paperwork itself. There is often much more paperwork involved when you are trying to finance your home based business with government loans than when you apply for private loans. If you can, you may want to use an agent to complete your government loan paperwork so that you can finance your home based business with less hassle.
Having a good understanding of the loans available through the government to finance your home based business is also important. In a broad definition, there are basically two types of loans available to finance your home based business. The first is a VA loan, which is only available if you are a veteran looking to finance your home based business. The other type of government loan that you can use to finance your home based business is an FHA loan. Both types of loans have fixed rates and are not subject to rate changes, which is helpful if you are looking to finance your home based business and are on a budget.
Take your time to consider your options to finance your home based business. However, if you are looking for a stable way to finance your home based business and you are willing to do the paperwork, the government may be a great option for you. You can contact your local Small Business Association to find out more about how the government can help finance your home based business.
Hopefully this articles has proven useful to you. Download my Free E-Book and receive valuable tips, strategies and techniques designed to grow a successful Home Based Business. Receive The Free Quick Start Workbook.
Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.
I grant permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way.
About the Author
Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.
Written by: Charles Fuchs
Friday, April 3, 2009
Getting Business Finance
Surprisingly, despite current trade, there are still large numbers of people who are setting up in business. Proof perhaps that the well ingrained entrepreneurial instincts of the American people live on. However, you might think that with all the stories in the press, that the banks are now completely unwilling to lend their support by way of finance, loans and line of credit. But in actual fact, you would be wrong. It is true that banks are now, thankfully, much more cautious about whom they are lending to. And that is a good thing for the rest of us. However it still remains the case that the banks make their money by lending it in the first place, and they simply could not afford to stop lending money to people who want to be in business.
Of course it is not like the late eighties or nineties, when getting finance was sometimes as easy as buying a snack for lunch. Those were the times when house prices apparently only appreciated and often at a tremendous rate. The banks were more than happy to grant loans if you were happy to use your house as collateral. Nowadays house prices are as liable to fall as rise, and your bank manager knows that this is not such a great form of security as it once was. So just how do you go about getting the finance you require from the banks in the economic climate that now prevails?
First remember that if you speak to anyone high up in the banks they will tell you that there is still money to be lent, so don't be put off when your associates tell you that you'll never get financed.
Once you have developed your business plan in detail, make sure that it is presented in a first-class manner. Ensure that the plan looks as if it has been created an already successful business. Remember presentation is still incredibly important.
Next, think about how you are putting yourself over. No matter how well you have detailed your business plan, your own appearance and attitude will still mean more to the bank than anything else. Prove that you have your head screwed on straight by being business like and highly professional in all your communication with the bank.
Once you have presented yourself and your plan to the bank, remember to keep in contact with the bank as much as possible. This may sound like strange advice, but oddly enough, banks, rather like most organizations, are prone to pushing less important work to the back of the pile. Your business plan, for which you are desperate to get backing, could well be sitting unattended on the corner of a busy manager's desk. So don't be annoying be leaving persistent messages, but do keep the pressure on to get a result.
About the author:
Alan is the site owner of www.dezeinfo.com, which is a loan site with a lot of useful information on many different types of loan, and it also provides a lot of useful loan tips to help loan searchers to avoid scam.
Written by: Alan Luong
Of course it is not like the late eighties or nineties, when getting finance was sometimes as easy as buying a snack for lunch. Those were the times when house prices apparently only appreciated and often at a tremendous rate. The banks were more than happy to grant loans if you were happy to use your house as collateral. Nowadays house prices are as liable to fall as rise, and your bank manager knows that this is not such a great form of security as it once was. So just how do you go about getting the finance you require from the banks in the economic climate that now prevails?
First remember that if you speak to anyone high up in the banks they will tell you that there is still money to be lent, so don't be put off when your associates tell you that you'll never get financed.
Once you have developed your business plan in detail, make sure that it is presented in a first-class manner. Ensure that the plan looks as if it has been created an already successful business. Remember presentation is still incredibly important.
Next, think about how you are putting yourself over. No matter how well you have detailed your business plan, your own appearance and attitude will still mean more to the bank than anything else. Prove that you have your head screwed on straight by being business like and highly professional in all your communication with the bank.
Once you have presented yourself and your plan to the bank, remember to keep in contact with the bank as much as possible. This may sound like strange advice, but oddly enough, banks, rather like most organizations, are prone to pushing less important work to the back of the pile. Your business plan, for which you are desperate to get backing, could well be sitting unattended on the corner of a busy manager's desk. So don't be annoying be leaving persistent messages, but do keep the pressure on to get a result.
About the author:
Alan is the site owner of www.dezeinfo.com, which is a loan site with a lot of useful information on many different types of loan, and it also provides a lot of useful loan tips to help loan searchers to avoid scam.
Written by: Alan Luong
Saturday, March 28, 2009
Finance Your Small Business: So Much Money - So Little Time
$47.4 million venture capital funded projects today. $86.4 million yesterday. $51.4 million the day before.
These amounts are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.
These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.
And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.
All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.
So how come you’re still looking for financing?
Perhaps you aren’t presenting your company effectively.
Or perhaps you haven’t located the right lender.
It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.
So where do you go to find all these investors? Here are some starting points:
For standard business financing, talk with the local office of the Small Business Administration. It’s a different agency, with different programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer all companies.
Also talk with your local banks. (That was plural “banks”, not singular “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.
As for venture capital and angel investors, there are several options.
One option is to go to online sources. There are a number of online services, such as VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once the entrepreneur gets the list of 200 or 2,000 names in hand that he/she will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick. For most entrepreneurs, patience is not a strong suit, so sitting and waiting for a response is not quite their cup of tea.
Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again the entrepreneur is faced with the prospect of sending out written material for each one, and waiting for a response.
A third option is to take a more proactive approach. Savvy entrepreneurs identify the best prospects themselves from a number of reliable sources. They get introductions where possible. They learn everything they can about their target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary.
Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors.
Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you. Get the “No’s” out of the way and go for “Yes!” The exhilaration of the handshake sealing the deal is unlike any other transaction in business. Go for it.
http://www.businessplanmaster.com
http://businessplanmaster.blogspot.com
About the Author
Ms. Shank is founder/president of www.BusinessPlanMaster.com. She has worked in business finance in good times and bad, and will rapidly tell you that good times are a whole lot better.
Written by: MaryAnn Shank
These amounts are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day after day, rain or shine.
These numbers are a constant reminder to me that companies – lots of companies – are getting funded every day.
And these numbers just reflect the reported venture capital funding. There is probably double that amount from angel investment and unreported fundings, and millions more from the $16 billion pool that SBA has this year.
All in all, it’s a lot of money. That’s a lot of companies and banks and groups and individuals actively investing in small business.
So how come you’re still looking for financing?
Perhaps you aren’t presenting your company effectively.
Or perhaps you haven’t located the right lender.
It’s also possible that your concept just isn’t very good, but I doubt that. The fact that you are reading this article means you are a serious entrepreneur, with a serious business.
So where do you go to find all these investors? Here are some starting points:
For standard business financing, talk with the local office of the Small Business Administration. It’s a different agency, with different programs and services, and lots of money to lend. Although much of the focus of the SBA is on minority business enterprises, the SBA still has a lot to offer all companies.
Also talk with your local banks. (That was plural “banks”, not singular “bank”.) Talking with a number of local bankers will rapidly bring into focus the wide ranging priorities of the various banks, and where your company fit in.
As for venture capital and angel investors, there are several options.
One option is to go to online sources. There are a number of online services, such as VFinance, that sell the names and addresses of possible investors. It’s not expensive, perhaps $2-5 per name. The idea is that once the entrepreneur gets the list of 200 or 2,000 names in hand that he/she will contact each with a written executive summary or business plan, and then wait to hear from one of them. This is a very passive approach, roughly akin to throwing paint on the wall and hoping that something will stick. For most entrepreneurs, patience is not a strong suit, so sitting and waiting for a response is not quite their cup of tea.
Another option is to go to one of the many directories of venture capital firms. These directories typically include addresses, phone numbers and emails, along with the geographical areas of interest and the types of investment that each is seeking. Most businesses can narrow down their list of prospective investors to several hundred venture capital firms this way. And again the entrepreneur is faced with the prospect of sending out written material for each one, and waiting for a response.
A third option is to take a more proactive approach. Savvy entrepreneurs identify the best prospects themselves from a number of reliable sources. They get introductions where possible. They learn everything they can about their target investors, and then go after it. Typically a phone call is the first contact, not an anonymous executive summary.
Knowing that you are calling your best prospects, you know too that they are open to hearing from you. You have names, you have investment histories, you have everything in hand to make a real connection with the target investors.
Getting your company financed is one of the hardest things you will ever do as an entrepreneur. It can be hugely frustrating, disappointing and genuinely discouraging. But lots of entrepreneurs do it. And so can you. Get the “No’s” out of the way and go for “Yes!” The exhilaration of the handshake sealing the deal is unlike any other transaction in business. Go for it.
http://www.businessplanmaster.com
http://businessplanmaster.blogspot.com
About the Author
Ms. Shank is founder/president of www.BusinessPlanMaster.com. She has worked in business finance in good times and bad, and will rapidly tell you that good times are a whole lot better.
Written by: MaryAnn Shank
Thursday, March 26, 2009
Don't Let Finances Rule Over Your Self-Esteem
I know a barber who had the opportunity of buying one of the oldest and best barbershops in his city. He had worked there for a few years, and knew it was a good investment. So, he made arrangements with the owner, and took the plunge.
However, it wasn’t long before he realized he was in serious financial difficulty. Actually, he was in trouble before the purchase of the shop, and the added debt put him in way over his head.
Prior to obtaining the barbershop, this fellow had several bad business ventures. They were all legitimate. Just bad choices! Generally, they all involved selling, in which he was not exactly a shining star. Oh, he did manage to sell a few things such as his house and his car. It was not quite that bad, but almost.
About the same time as the business failures and the purchase of the barbershop, his wife and two daughters were in college. So the debts really began to pile up, as the pressure became intolerable. Also, fatigue set in because of the three jobs he was working so that he could continue to tread water.
The barber/entrepreneur did a couple of things he thought might relieve some immediate pressure. He borrowed on credit cards and from the Internal Revenue Service (by not paying estimated taxes). Eventually everything started to come apart, as the IRS threatened a tax lien.
For lunch one Saturday the barber’s family came to his shop after hours, as they often did. He was so overcome with worry and stress that he verbally threw them out. Then he went home, closed his bedroom door and considered how he might end his life without destroying his family or disappointing his God. As it turned out, only thoughts of God and family keep him from doing the unthinkable.
As you might guess, I know the fellow’s story so well because I’m the fellow. Today, I’m pleased to say that, because I obtained the help I needed emotionally and financially, I’m well on the way to being completely debt free in few years (except for a home mortgage). And, I lead a happier, fuller life than ever. However, I’ve been left with some lessons I’ll never forget.
The first lesson is: “Debt robs a man of his self-respect, and makes him almost despise himself.” (P.T. Barnum). Thus, there’s a need to use credit wisely. Self-esteem is at stake. And, while you might buy things on credit that you can’t afford, because it temporarily lifts your spirits or gives you something to show to others, it’s not worth the shame and loathing when debt becomes overwhelming. Learn to live within your means even if it involves doing without!
The second lesson is how a loss of respect due to financial woes affects one’s attitude toward others. Sherry can always tell when I’m not happy with myself. That’s when I’m unkind to her. I’m the same way with customers. In fact, there’s no telling how much business I ran off while I was drowning financially and emotionally. I could easily have lost both my family and my business.
The third lesson I will pass along is that “…there is more satisfaction in rational saving, than in irrational spending.” (P.T. Barnum). As per the financial advice I received for turning our circumstances around, Sherry and I began a consistent, well-planned investment, retirement program. That, combined with the fact that the barbershop is now paid for, is very satisfying. It’s much more satisfying than new, showy things that we don’t need or can’t afford. I’m no longer interested in a big hat. I want the cattle!
Lesson number four is to learn from others. Experience (the school of hard knocks) is a great teacher, but not the best. That’s because much of its value is lost in the time it takes to learn the lessons. Time-tested principles are the best teachers, and they can be discovered in writings, seminars, counseling and advice from those who have been there.
Yet, it still takes time to learn these things. And, as John Wayne said, “We’re burnin’ daylight.”
BARBER-OSOPHY: Control your money or it will control you.
Copyright 2004, Sumerlin Enterprises.
Permission is granted for you to copy this article for distribution as long as the above copyright and contact information is included. Please reference or include a link to www.barber-osophy.com.
About the Author
Terry L. Sumerlin, known as the Barber-osopher, is the author of "Barber-osophy," is a columnist for the San Antonio Business Journal and speaks nationally as a humorist/motivational speaker.
Written by: Terry L. Sumerlin
However, it wasn’t long before he realized he was in serious financial difficulty. Actually, he was in trouble before the purchase of the shop, and the added debt put him in way over his head.
Prior to obtaining the barbershop, this fellow had several bad business ventures. They were all legitimate. Just bad choices! Generally, they all involved selling, in which he was not exactly a shining star. Oh, he did manage to sell a few things such as his house and his car. It was not quite that bad, but almost.
About the same time as the business failures and the purchase of the barbershop, his wife and two daughters were in college. So the debts really began to pile up, as the pressure became intolerable. Also, fatigue set in because of the three jobs he was working so that he could continue to tread water.
The barber/entrepreneur did a couple of things he thought might relieve some immediate pressure. He borrowed on credit cards and from the Internal Revenue Service (by not paying estimated taxes). Eventually everything started to come apart, as the IRS threatened a tax lien.
For lunch one Saturday the barber’s family came to his shop after hours, as they often did. He was so overcome with worry and stress that he verbally threw them out. Then he went home, closed his bedroom door and considered how he might end his life without destroying his family or disappointing his God. As it turned out, only thoughts of God and family keep him from doing the unthinkable.
As you might guess, I know the fellow’s story so well because I’m the fellow. Today, I’m pleased to say that, because I obtained the help I needed emotionally and financially, I’m well on the way to being completely debt free in few years (except for a home mortgage). And, I lead a happier, fuller life than ever. However, I’ve been left with some lessons I’ll never forget.
The first lesson is: “Debt robs a man of his self-respect, and makes him almost despise himself.” (P.T. Barnum). Thus, there’s a need to use credit wisely. Self-esteem is at stake. And, while you might buy things on credit that you can’t afford, because it temporarily lifts your spirits or gives you something to show to others, it’s not worth the shame and loathing when debt becomes overwhelming. Learn to live within your means even if it involves doing without!
The second lesson is how a loss of respect due to financial woes affects one’s attitude toward others. Sherry can always tell when I’m not happy with myself. That’s when I’m unkind to her. I’m the same way with customers. In fact, there’s no telling how much business I ran off while I was drowning financially and emotionally. I could easily have lost both my family and my business.
The third lesson I will pass along is that “…there is more satisfaction in rational saving, than in irrational spending.” (P.T. Barnum). As per the financial advice I received for turning our circumstances around, Sherry and I began a consistent, well-planned investment, retirement program. That, combined with the fact that the barbershop is now paid for, is very satisfying. It’s much more satisfying than new, showy things that we don’t need or can’t afford. I’m no longer interested in a big hat. I want the cattle!
Lesson number four is to learn from others. Experience (the school of hard knocks) is a great teacher, but not the best. That’s because much of its value is lost in the time it takes to learn the lessons. Time-tested principles are the best teachers, and they can be discovered in writings, seminars, counseling and advice from those who have been there.
Yet, it still takes time to learn these things. And, as John Wayne said, “We’re burnin’ daylight.”
BARBER-OSOPHY: Control your money or it will control you.
Copyright 2004, Sumerlin Enterprises.
Permission is granted for you to copy this article for distribution as long as the above copyright and contact information is included. Please reference or include a link to www.barber-osophy.com.
About the Author
Terry L. Sumerlin, known as the Barber-osopher, is the author of "Barber-osophy," is a columnist for the San Antonio Business Journal and speaks nationally as a humorist/motivational speaker.
Written by: Terry L. Sumerlin
Thursday, March 19, 2009
Commercial Collections:Business Finance Booster Shot
If commercial collections is not part of your B2B business plan, you're losing money. Get your cash flowing again with these commercial collections secrets.
Commercial collections: fixture of the new B2B culture
If you're in the business-to-business field, or even if you're a consumer products business that works through third-party distribution channels, you probably know what it's like to check your mail anxiously each day, sifting through all the bills for that payment that was supposed to have been in months ago.
It wasn't supposed to be like this. If you were a good, honest businessperson who dealt with other good, honest businesspeople, "commercial collections" wasn't supposed to be part of your vocabulary.
Back in the good old days, an invoice or purchase order that had an established company listed in the "bill to" field was almost as good as a cashier's check. Nowadays, if you're in the business of serving other businesses you may find that your cash flow is less reliable than a small-time bookie's.
Commercial Collections: A Personal Story
This past April I finally got the $2,000 a client owed me for work done in December, after spending almost as much money's worth of my time reminding them to pay.
No, this wasn't one of those hand-shake deals-we had a 5-page contract specifying net-30 payment terms. Nor was this some guy with a lemonade stand. It was the media division of one of the largest retailers in the United States.
The worst part was, I trusted this client based on my experience working with them a few years before. I actually spent the money on Christmas presents, fully expecting the payment to come in before my credit card statement.
Avoiding Outstanding Invoices
Of course, you can nip this problem in the bud by cultivating strong relationships with clients who pay on time. But those clients are getting few and far between-and, as I found, the good can go pretty bad pretty fast.
Worse, it seems that the larger the business, the less likely they are to pay on time. "Net 10 days" might as well be a foreign language in Fortune 500 land. The long-standing advice given to B2B businesses and self-employed people is that the money is in big corporations. But good luck getting it from them before your rent is due.
What I Should Have Done
Looking back on my experience with the deadbeat corporate client, my biggest mistake was doing it all myself, with writing the letters and making the phone calls. With an hourly rate of about $75, I ended up spending the time equivalent of a large chunk of my $2000 fee.
I should have gone to a collection agency. I just didn't know then that were collection agencies that would take on small business debts and run the whole process for you for as little as $20 per debt.
Of course, I also didn't know that going to a collection agency didn't necessarily mean "putting an account in collections." Many collection agencies are in fact refashioning themselves as "accounts receivable management" specialists; they'll even manage your invoicing from end-to-end if you want. The client may not even realizing that the person on the phone is from an outside agency and not your own personal assistant.
When I think of all the value of the time I spent collecting that last $2,000, I could kick myself for not handing it over to a collection agency. But, I can always look forward to putting this knowledge into practice the next time I have a client who's slow in paying.
About the Author
Steve Austin is a regular contributor to Let No
Debt Remain Outstanding (http://www.let-no-debt-remain-outstanding.com/),
a website with articles on choosing a collection
agency, along with recommended the best collection agencies.
Written by: Steve Austin
Commercial collections: fixture of the new B2B culture
If you're in the business-to-business field, or even if you're a consumer products business that works through third-party distribution channels, you probably know what it's like to check your mail anxiously each day, sifting through all the bills for that payment that was supposed to have been in months ago.
It wasn't supposed to be like this. If you were a good, honest businessperson who dealt with other good, honest businesspeople, "commercial collections" wasn't supposed to be part of your vocabulary.
Back in the good old days, an invoice or purchase order that had an established company listed in the "bill to" field was almost as good as a cashier's check. Nowadays, if you're in the business of serving other businesses you may find that your cash flow is less reliable than a small-time bookie's.
Commercial Collections: A Personal Story
This past April I finally got the $2,000 a client owed me for work done in December, after spending almost as much money's worth of my time reminding them to pay.
No, this wasn't one of those hand-shake deals-we had a 5-page contract specifying net-30 payment terms. Nor was this some guy with a lemonade stand. It was the media division of one of the largest retailers in the United States.
The worst part was, I trusted this client based on my experience working with them a few years before. I actually spent the money on Christmas presents, fully expecting the payment to come in before my credit card statement.
Avoiding Outstanding Invoices
Of course, you can nip this problem in the bud by cultivating strong relationships with clients who pay on time. But those clients are getting few and far between-and, as I found, the good can go pretty bad pretty fast.
Worse, it seems that the larger the business, the less likely they are to pay on time. "Net 10 days" might as well be a foreign language in Fortune 500 land. The long-standing advice given to B2B businesses and self-employed people is that the money is in big corporations. But good luck getting it from them before your rent is due.
What I Should Have Done
Looking back on my experience with the deadbeat corporate client, my biggest mistake was doing it all myself, with writing the letters and making the phone calls. With an hourly rate of about $75, I ended up spending the time equivalent of a large chunk of my $2000 fee.
I should have gone to a collection agency. I just didn't know then that were collection agencies that would take on small business debts and run the whole process for you for as little as $20 per debt.
Of course, I also didn't know that going to a collection agency didn't necessarily mean "putting an account in collections." Many collection agencies are in fact refashioning themselves as "accounts receivable management" specialists; they'll even manage your invoicing from end-to-end if you want. The client may not even realizing that the person on the phone is from an outside agency and not your own personal assistant.
When I think of all the value of the time I spent collecting that last $2,000, I could kick myself for not handing it over to a collection agency. But, I can always look forward to putting this knowledge into practice the next time I have a client who's slow in paying.
About the Author
Steve Austin is a regular contributor to Let No
Debt Remain Outstanding (http://www.let-no-debt-remain-outstanding.com/),
a website with articles on choosing a collection
agency, along with recommended the best collection agencies.
Written by: Steve Austin
Thursday, March 12, 2009
Business start up Loan-Script Your Own Success Story With The Right Finance Method
If you thought generating ideas for your business was a difficult task, then arranging necessary finance in the form of business start up loans would seem even more difficult. Many entrepreneurs succumb at this stage, only to lead their idea to dumps. Entrepreneurs, who withstand the challenges of the process, continue to shine in the world of business.
Capital has been rightly referred to as the lifeblood of any business. Business starved of capital during the initial stages of its formation, would be similar to malnourished children who were not fed properly during their childhood. The growth of the business will be stunted, often affecting negatively its productivity and efficiency.
Entrepreneurs no longer have to depend solely on their own resources for purposes of capital. Many loan providers are ready to finance promising business ventures. The loan is referred to as business start up loan. Amounts on business start up loan ranges from £30,000 to £250,000. Entrepreneurs can qualify for more loan amount, provided the business plan is very attractive. Loan proceeds will primarily be used for purchasing the necessary machine and equipments, paying for legal documentation, maintaining office and any other expenses that crop up during the initial formative period. Moreover, business start up loan contributes towards the working capital.
Borrowing through business start up loan is fraught with a number of challenges. The very first task in the process will be to generate faith in loan providers that the amount lent on account of business start up loan will be safely returned. Preconceived notions about new entrepreneurs make the task difficult. The negative notions are further strengthened through two factors:
* Firstly, borrowing entrepreneur has zero or very less credibility in the market at the particular point of time. Loan providers fear risking the loan amount on borrowers with low credibility.
* Secondly, the borrowing entrepreneur is still to form business or the business is still to show results. Lending at this stage, without having knowledge about how the business fares in the long run, is perilous for the loan provider.
The borrowing entrepreneur is thrown into a dilemmatic situation wherein they cannot prove their worth till they start business. They cannot start business until they get the necessary finance. And they cannot get the necessary finance till they are able to prove their worth.
However, not all loan providers look at new venturists with suspicion. New venturists are considered a unique group of people who have a unique set of characteristics. A sound and foolproof business plan works well for new entrepreneurs. Bankers study the plan well and then decide if it will be viable to lend.
Guaranteeing payback through collateral is another important method of getting good deals in business start up loans. These are referred to as secured business start up loans. As a part of this method, the borrower will have to offer lien on certain asset/assets to the loan provider. This process is also referred to as hypothecation. Though the asset will continue to be in possession of the borrower, loan provider has every right to claim the asset in case of non-payment of loan.
Loan terms for business start up loan ranges from 5 to 25 years. Given the unique income structure of businesses and self-employed individuals, wherein income is not guaranteed, flexible repayment schedule will be especially helpful. Under a flexible repayment schedule, the borrower gets to repay in the manner that he chooses. Monthly repayments can be increased, reduced and discontinued altogether depending on the entrepreneurs finances. The arrangement will have to be accepted by the loan provider. Sometimes, regular payments for a certain period may be the prerequisite for flexible repayment schedule.
Business start up loans may exceed personal loans in terms of interest rate. The typical APR on a business start up loan will be anywhere between 7-13%. Online comparison and searching loan providers will ease the process, besides improving the quality of deals. Rates may go upwards depending on the presence and value of collateral and the credit status of the borrower.
Business loans will not suit borrowers who want full control over their business. Some loan providers would like to dictate terms and thus curb the control of the entrepreneur over his business. The borrowing decision must be made only after an impartial and impatient study of the pros and cons of the method.
About the author:
Michael T. Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. If you are interested in Michael's financial advice, you can visit www.find-business-loans.co.uk.
Written by: Michael T.Brian
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Capital has been rightly referred to as the lifeblood of any business. Business starved of capital during the initial stages of its formation, would be similar to malnourished children who were not fed properly during their childhood. The growth of the business will be stunted, often affecting negatively its productivity and efficiency.
Entrepreneurs no longer have to depend solely on their own resources for purposes of capital. Many loan providers are ready to finance promising business ventures. The loan is referred to as business start up loan. Amounts on business start up loan ranges from £30,000 to £250,000. Entrepreneurs can qualify for more loan amount, provided the business plan is very attractive. Loan proceeds will primarily be used for purchasing the necessary machine and equipments, paying for legal documentation, maintaining office and any other expenses that crop up during the initial formative period. Moreover, business start up loan contributes towards the working capital.
Borrowing through business start up loan is fraught with a number of challenges. The very first task in the process will be to generate faith in loan providers that the amount lent on account of business start up loan will be safely returned. Preconceived notions about new entrepreneurs make the task difficult. The negative notions are further strengthened through two factors:
* Firstly, borrowing entrepreneur has zero or very less credibility in the market at the particular point of time. Loan providers fear risking the loan amount on borrowers with low credibility.
* Secondly, the borrowing entrepreneur is still to form business or the business is still to show results. Lending at this stage, without having knowledge about how the business fares in the long run, is perilous for the loan provider.
The borrowing entrepreneur is thrown into a dilemmatic situation wherein they cannot prove their worth till they start business. They cannot start business until they get the necessary finance. And they cannot get the necessary finance till they are able to prove their worth.
However, not all loan providers look at new venturists with suspicion. New venturists are considered a unique group of people who have a unique set of characteristics. A sound and foolproof business plan works well for new entrepreneurs. Bankers study the plan well and then decide if it will be viable to lend.
Guaranteeing payback through collateral is another important method of getting good deals in business start up loans. These are referred to as secured business start up loans. As a part of this method, the borrower will have to offer lien on certain asset/assets to the loan provider. This process is also referred to as hypothecation. Though the asset will continue to be in possession of the borrower, loan provider has every right to claim the asset in case of non-payment of loan.
Loan terms for business start up loan ranges from 5 to 25 years. Given the unique income structure of businesses and self-employed individuals, wherein income is not guaranteed, flexible repayment schedule will be especially helpful. Under a flexible repayment schedule, the borrower gets to repay in the manner that he chooses. Monthly repayments can be increased, reduced and discontinued altogether depending on the entrepreneurs finances. The arrangement will have to be accepted by the loan provider. Sometimes, regular payments for a certain period may be the prerequisite for flexible repayment schedule.
Business start up loans may exceed personal loans in terms of interest rate. The typical APR on a business start up loan will be anywhere between 7-13%. Online comparison and searching loan providers will ease the process, besides improving the quality of deals. Rates may go upwards depending on the presence and value of collateral and the credit status of the borrower.
Business loans will not suit borrowers who want full control over their business. Some loan providers would like to dictate terms and thus curb the control of the entrepreneur over his business. The borrowing decision must be made only after an impartial and impatient study of the pros and cons of the method.
About the author:
Michael T. Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. If you are interested in Michael's financial advice, you can visit www.find-business-loans.co.uk.
Written by: Michael T.Brian
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You
Business Loan-A Source Of Finance For Your Business
Have you been planning to start a new business but lack of sufficient funds has been stopping you? You need not worry; Business Loans are here to help you realize your dreams.
Business Loans are the loans granted for the use of a business. Business Loan can be used to start a new business, expand the existing business, to buy a new machine or equipment or for any other business related activity.
Business loans can be a secured or an unsecured one. Secured Business Loan is a loan that is provided in exchange of property, machines or plants that serves as collateral such as houses, cars, savings accounts or bonds. Secured Business Loan also provides finance for working capital, which can be used to purchase raw material, paying the labour charges etc. Unsecured Business Loan is granted without keeping a property as a security with the lender. Business Loans can be taken for short, intermediate or for a long term, it depends on you which one do you want to take and for what purpose. Short-term loans are given to businesses that need cash to start operating, this loan is granted for one or less than one year. Intermediate term loan helps businesses to buy equipments and cover initial large expenses, this is granted for a period of one to three years. Long-term loans are used to assist start-up businesses with initial costs and are granted for a period of three to seven years. Now you would say why only, Business Loan, when other loans are available in the market. Business Loans are tailored specially for people who want funds for their business. Business Loan provides the flexibility to preserve your cash and working capital. Business Loan also helps in managing cash effectively by offering flexible repayment options. Capital forms an integral part of every business. If you are planning to apply for the Business Loan you need to look into three key issues: -
* Cost - You need to check the cost and risk involved in taking a loan.
* Loan Size - You need to decide the amount of loan you want that would satisfy your need.
* Payback Program - It is very important to decide at the time of taking a loan that how will you repay the loan amount and the monthly installments, otherwise it may create problems for you in future.
You can get a Business Loan from a bank or a financial institution. But shop around and search for as many lenders as you can, you can also look for online lenders. Collect quotes from various lenders and make a comparison among them to get the best deal. When applying for a loan you need to keep in mind that you must make a loan proposal. Lenders will grant you the loan only if they find your proposal worth because no lender will be interested in taking risk. While writing a loan proposal you should always give industry-specific details so that the lender is able to know in-depth about what business do you want to start or how your present business is run and what market trends affect it.
You should also give details about the existing or proposed business, collateral which you want to keep as a security with the lender, loan repayment plans, personal financial statement and projection of your future operations. The possibility of getting a loan will be higher if you have a good loan proposal and are able to convince the lender about your future business plans. You can get a secured business Loan if you have CCJs, arrears or bankruptcy. Your bad credit history cannot stop you from getting the cash you needed to invest in your business or to start up your own business.
Business Loan provides funds to businessmen who want to expand their business or people who want to start a business of their own. Success has no limits. Business loan provides you with the funds now it depends on you how use this money to climb the ladder of success.
About the author:
A loans borrower/user demands for timely, reliable, accessible, comprehensive, relevant and consistent loan service.Pamella scott is constantly trying to help you find such a loan service online.To find Secured loans,secured personal loans,secured debt consolidation loans in uk that best suits your need visit http://www.easyfinance4u.com< /a>
Written by: Pamella Scott
Make $1000 per day with Google Adsense Treasure
Wednesday, March 11, 2009
Business Finance Expert Series;"What Every Business Should Know About Factoring"
Factoring is a promising way to stimulate the cash flow of a company. Its growing popularity can be gauged from the statistics that factor finance approximately amount to $70 billion in United States each year. In United Kingdom it represented a total volume of £104.4 billion in 2002.
However, before leaping on the factoring (http:// www.hjventures.com/factoring/factoring.html ) bandwagon it is important for the business owner to know what makes a business suitable for factoring?
- Before making any decision the owner should have a list of his customers and they should be in sufficient number
- No customer should contribute over third of the turnover
- Customers are needed to accept the standard payment terms of the industry.
- Period of credit given to the customers should be reasonable
Following factors make a business unsuitable for factoring:
- When there are too many small invoices ( http://www.hjventures.com/factoring/invoice-finance.html )
- Factoring is unsuitable when it is sold to the public. It is only available for sales to commercial customers
- There is a provision for the customers to make part payments
- When there are many disputes and queries
- The business is not reliable, credible and sound in its operations
It is very important for the business owners to have a good understanding of these factors as they will be sharing important financial information of their business and will be in direct contact with the customers too. Earlier factoring was not widely used due to the ignorance of business owners regarding the benefits factoring could bring in to the company. Thus it is important for every business owner to be aware of benefits of factoring before using it in their business.
Learn more about factoring / business finance : http://www.hjventures.com/factoring/factoring-glossary.html
About the author:
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds.For more information: http://www.hjventures.com/factoring/factoring-glossary.html
Written by: Howard Schwartz
Business Finance Expert Series:'Comparing Factoring of other Financing Options"
There are a number of financial options in the market and you need to analyze each in detail to determine which suits you the best. A business can be financed with help from private investors, lenders and financial institutions depending on your needs and priorities.
Varied Commercial Financial Options
Credit Lines: In this the lender is actually a bank. The bank gives c redit lines to ( h ttp://www.hjventures.com/factoring/credit-analysis.html ) fill the temporary shortages of business like inventories, receivables etc. These shortages are mostly due to the time difference between the payouts and the collections. Unlike factoring, financing through credit line requires a good credibility record along with the collateral. Banks also require business owners to maintain the obligatory balance of funds in their accounts.
Short-term Loans: As the name suggests these are the loans that are sought for term of a year or less and are generally secured. They are taken to meet expenses like insurance or to cash over the discounts offered by the supplier and are mostly paid back in lump sum at the maturity.
Asset-Based Loans: Similar to factoring, asset-based loans are raised on current assets like inventory or accounts receivables ( http://www.hjventures.com/factoring/accounts-receivables.html ) . However its ambit goes wider to include varied current assets while in factoring it is limited to account receivables. The lender has a security in the assets of a company and are mostly sought to meet the working capital needs.
Contract Financing: In this kind of financing funds are advanced in accordance with the work performed till date. Criteria on which finance are provided under contract financing is the credibility of business to complete a contract and its ability to perform. Under this contracts are used as collateral to get short-term loans.
When it is difficult to obtain finance through banks factoring is a promising option. The method also relieves small companies of the expenses involved with collection of receivables. It is not a one-time transaction and is generally provided on a contractual basis.
Learn more about factoring / business finance:
http://www.hjventures.com/factoring/factoring-glossary.html
About the author:
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding. For more information
Varied Commercial Financial Options
Credit Lines: In this the lender is actually a bank. The bank gives c redit lines to ( h ttp://www.hjventures.com/factoring/credit-analysis.html ) fill the temporary shortages of business like inventories, receivables etc. These shortages are mostly due to the time difference between the payouts and the collections. Unlike factoring, financing through credit line requires a good credibility record along with the collateral. Banks also require business owners to maintain the obligatory balance of funds in their accounts.
Short-term Loans: As the name suggests these are the loans that are sought for term of a year or less and are generally secured. They are taken to meet expenses like insurance or to cash over the discounts offered by the supplier and are mostly paid back in lump sum at the maturity.
Asset-Based Loans: Similar to factoring, asset-based loans are raised on current assets like inventory or accounts receivables ( http://www.hjventures.com/factoring/accounts-receivables.html ) . However its ambit goes wider to include varied current assets while in factoring it is limited to account receivables. The lender has a security in the assets of a company and are mostly sought to meet the working capital needs.
Contract Financing: In this kind of financing funds are advanced in accordance with the work performed till date. Criteria on which finance are provided under contract financing is the credibility of business to complete a contract and its ability to perform. Under this contracts are used as collateral to get short-term loans.
When it is difficult to obtain finance through banks factoring is a promising option. The method also relieves small companies of the expenses involved with collection of receivables. It is not a one-time transaction and is generally provided on a contractual basis.
Learn more about factoring / business finance:
http://www.hjventures.com/factoring/factoring-glossary.html
About the author:
Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard's business plans have secured several million dollars in funding. For more information
Tuesday, March 10, 2009
Becoming a Certified Success In The World of Business and Finance
There’s no denying that today’s business and finance sectors have become more competitive than ever. It has become critical for professionals to not only have the necessary skills to succeed, but the certification employers are looking for.
This challenging environment has always posed a potential problem for the busy professional trying to take a step up in the business world, or transition into another career in the sector. A full-time return to school to enhance their knowledge and credentials means leaving their current position behind -- and investing substantial time and money pursuing an additional degree.
For these individuals, Kaplan University’s online Business and Finance Sector programs may be the ultimate solution to reaching their goals. With deep roots in higher education that date back to 1937, and a flexible schedule that lets you study anytime, anyplace, Kaplan University’s certificates in Financial Planning, Risk Management, Project Management and Executive Coaching can be completed in as little as 12 months – without interfering with your job or disrupting your life.
“The fields of financial planning, project management, risk management, and executive coaching are experiencing exponential growth, providing a wealth of opportunities in the evolving business world,” said Kristina Belanger, Dean, Kaplan University’s School of Continuing and Professional Studies. “These rewarding occupations are leading choices for individuals seeking professional growth and diversity, and Kaplan University’s online, self-paced programs provide busy professionals with a flexible learning environment to gain competitive skills for more rapid career advancement.”
Financial planning, for starters, has been repeatedly described as among the most prestigious of modern professions – supported by statistics from the U.S. Department of Labor forecasting job increases of more than 34 percent by 2012. The same reliable source states an average annual salary of $79,990 for personal financial advisors in 2003. Not only that, but proven expertise in the field can allow you the option of either working for yourself or a world of high-end firms throughout the country.
To win the trust of potential employers or prospective clients in the business world, however, you’ll need applicable skills and proper certification. That’s where Kaplan University’s Certificate in Financial Planning comes in. The course teaches you all you need to know about analyzing a client’s financial situation – strengths, weaknesses, and how to best achieve their financial goals. From savvy tax management to smart investing to retirement planning, you’ll be steeped in all the crucial information necessary to be a certified financial planner.
Project management is another area where Kaplan University can help open doors to a variety of new career opportunities. Learning how to increase a company’s chances for maximum profits by optimizing time, money, and personnel, is a skill respected by organizations everywhere. From business to information technology to real estate and more, project managers may earn from $60,000 to $100,000 annually on average, with senior project managers holding yearly salaries ranging from $70,000 to $150,000.
As a Project Manager you’ll be respected in your industry as someone capable of leading important initiatives as you advance your career. You’ll be the one CEOs and company presidents turn to as a leader for their organization’s most critical undertakings. Perhaps best of all is the universal applicability of the knowledge and skills that Kaplan University can provide with this program – which can be put to use for the rest of your working life, regardless of the direction your career may take.
If you hold at least an associate’s degree, and have an interest or background in such fields as business, human resources, accounting or finance, Kaplan University’s Certificate in Risk Management can help you earn from $66,000 to $110,000 annually. Risk control, loss prevention, and adhering to today’s stricter compliancy laws have made risk management an essential aspect of doing business in today’s corporate world. A Certificate in Risk Management from Kaplan University will give employers the confidence that you know your stuff inside and out.
Risk managers recognize and review an organization’s loss exposures including property, liability, personnel, and net income in order to promote growth through profit, continuous operation, and stable earnings. Kaplan University will teach you all this, plus other critical skills such as enterprise risk management (ERM) and creating risk management programs. You can then apply your knowledge and skills toward pursuing a top position with a number of companies, or entering the field as an independent consultant. Like Kaplan University’s other certificates, this program can be completed in as little as 12 months, learning at your own convenience.
Executive coaching is now a major growth industry. More and more businesses are employing executive coaches to instill leadership development among managers and executives to bolster an environment of ongoing organizational change. Executive coaches thoughtfully listen -- and ask the right questions -- to assess an individual’s attributes, needs, and coachability. Kaplan University’s Executive Coaching Certificate offers the necessary skills for observing, recognizing, and intervening for full business effectiveness. It can teach you to teach leaders to better comprehend organizational dynamics and to climb up the corporate ladder.
In a recent summary poll of executive coaches, 65 percent of respondents reported yearly compensation of $85,000 or more. Opportunities exist in a number of business environments, including corporations, non-profits, government offices, and independent consulting.
Whether you study financial planning, project management, risk management, or executive coaching, you’ll have the chance to expand your employment and career opportunities. Through developing your professional acumen and abilities you will be able to explore new job prospects with virtually any professional industry where business skills are valued. Should you choose to go into the market on your own, you’ll hold the certification and skills needed to win over prospective clients.
Perhaps best of all, Kaplan University online programs allow you the flexibility and convenience to quickly improve your skills and resume without compromising your current daily life. For the working professional striving to reach their career goals, this might be an ideal option.
For more information about Kaplan University, visit http://kaplan.searchforclasses.com or http://www.searchforclasses.com/ To read more of his articles and to learn more about online education visit http://www.searchforclasses.com/newsletter/ or http://searchforclasses.blogspot.com/
Written by: Matt McAllister
This challenging environment has always posed a potential problem for the busy professional trying to take a step up in the business world, or transition into another career in the sector. A full-time return to school to enhance their knowledge and credentials means leaving their current position behind -- and investing substantial time and money pursuing an additional degree.
For these individuals, Kaplan University’s online Business and Finance Sector programs may be the ultimate solution to reaching their goals. With deep roots in higher education that date back to 1937, and a flexible schedule that lets you study anytime, anyplace, Kaplan University’s certificates in Financial Planning, Risk Management, Project Management and Executive Coaching can be completed in as little as 12 months – without interfering with your job or disrupting your life.
“The fields of financial planning, project management, risk management, and executive coaching are experiencing exponential growth, providing a wealth of opportunities in the evolving business world,” said Kristina Belanger, Dean, Kaplan University’s School of Continuing and Professional Studies. “These rewarding occupations are leading choices for individuals seeking professional growth and diversity, and Kaplan University’s online, self-paced programs provide busy professionals with a flexible learning environment to gain competitive skills for more rapid career advancement.”
Financial planning, for starters, has been repeatedly described as among the most prestigious of modern professions – supported by statistics from the U.S. Department of Labor forecasting job increases of more than 34 percent by 2012. The same reliable source states an average annual salary of $79,990 for personal financial advisors in 2003. Not only that, but proven expertise in the field can allow you the option of either working for yourself or a world of high-end firms throughout the country.
To win the trust of potential employers or prospective clients in the business world, however, you’ll need applicable skills and proper certification. That’s where Kaplan University’s Certificate in Financial Planning comes in. The course teaches you all you need to know about analyzing a client’s financial situation – strengths, weaknesses, and how to best achieve their financial goals. From savvy tax management to smart investing to retirement planning, you’ll be steeped in all the crucial information necessary to be a certified financial planner.
Project management is another area where Kaplan University can help open doors to a variety of new career opportunities. Learning how to increase a company’s chances for maximum profits by optimizing time, money, and personnel, is a skill respected by organizations everywhere. From business to information technology to real estate and more, project managers may earn from $60,000 to $100,000 annually on average, with senior project managers holding yearly salaries ranging from $70,000 to $150,000.
As a Project Manager you’ll be respected in your industry as someone capable of leading important initiatives as you advance your career. You’ll be the one CEOs and company presidents turn to as a leader for their organization’s most critical undertakings. Perhaps best of all is the universal applicability of the knowledge and skills that Kaplan University can provide with this program – which can be put to use for the rest of your working life, regardless of the direction your career may take.
If you hold at least an associate’s degree, and have an interest or background in such fields as business, human resources, accounting or finance, Kaplan University’s Certificate in Risk Management can help you earn from $66,000 to $110,000 annually. Risk control, loss prevention, and adhering to today’s stricter compliancy laws have made risk management an essential aspect of doing business in today’s corporate world. A Certificate in Risk Management from Kaplan University will give employers the confidence that you know your stuff inside and out.
Risk managers recognize and review an organization’s loss exposures including property, liability, personnel, and net income in order to promote growth through profit, continuous operation, and stable earnings. Kaplan University will teach you all this, plus other critical skills such as enterprise risk management (ERM) and creating risk management programs. You can then apply your knowledge and skills toward pursuing a top position with a number of companies, or entering the field as an independent consultant. Like Kaplan University’s other certificates, this program can be completed in as little as 12 months, learning at your own convenience.
Executive coaching is now a major growth industry. More and more businesses are employing executive coaches to instill leadership development among managers and executives to bolster an environment of ongoing organizational change. Executive coaches thoughtfully listen -- and ask the right questions -- to assess an individual’s attributes, needs, and coachability. Kaplan University’s Executive Coaching Certificate offers the necessary skills for observing, recognizing, and intervening for full business effectiveness. It can teach you to teach leaders to better comprehend organizational dynamics and to climb up the corporate ladder.
In a recent summary poll of executive coaches, 65 percent of respondents reported yearly compensation of $85,000 or more. Opportunities exist in a number of business environments, including corporations, non-profits, government offices, and independent consulting.
Whether you study financial planning, project management, risk management, or executive coaching, you’ll have the chance to expand your employment and career opportunities. Through developing your professional acumen and abilities you will be able to explore new job prospects with virtually any professional industry where business skills are valued. Should you choose to go into the market on your own, you’ll hold the certification and skills needed to win over prospective clients.
Perhaps best of all, Kaplan University online programs allow you the flexibility and convenience to quickly improve your skills and resume without compromising your current daily life. For the working professional striving to reach their career goals, this might be an ideal option.
For more information about Kaplan University, visit http://kaplan.searchforclasses.com or http://www.searchforclasses.com/ To read more of his articles and to learn more about online education visit http://www.searchforclasses.com/newsletter/ or http://searchforclasses.blogspot.com/
Written by: Matt McAllister
Saturday, March 7, 2009
Alternative Venture Finanace:Federal Grants and Loans
While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).
An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.
In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.
Interestingly, U.S. taxpayers benefit from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.
About the Author
As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
Written by: Dave Lavinsky
An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.
In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.
Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.
Interestingly, U.S. taxpayers benefit from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.
In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.
About the Author
As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
Written by: Dave Lavinsky
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