January 3, 2017
Entrepreneurship is one of the most challenging things people do in their entire life. From planning to validating the business, you have a lot to do as a new entrepreneur. In order to make all these things happen, you will need some cash. Gathering cash requires you to consider every option available. Here is a list of common ways to fund your business today.
Banks give loans to finance vehicles or any other important asset of the business. The repayment period usually takes between six months and seven years. You will be required to provide collateral to secure the loan. The collateral may be in the form of a blanket lien. A blanket lien gives the lender the rights to seize every asset and collateral you own in the event of nonpayment. The bank will require you to pay the processing fees and the interests for a given duration. Above all, you must have a good credit history to qualify for a business loan.
Credit Card or Line of Credit
You can use your business or personal credit card to pay for the startup costs. However, you need to be careful with credit cards. You don’t want to get yourself in financial trouble at a time when your business is still in its initial stages. Unless you have a credit card with a required limit and low interests, don’t use it as the primary source of funding for startup expenses. Another better option is to use a line of credit. It is an unsecured form of loan that allows you to access money whenever the need arises. Business lines of credit attract lower interests and are usually designed to be short-term loans.
Crowdfunding involves raising money from many people. It is estimated that over $34 billion of business capital come from crowdfunding. However, your business idea should stand out in order to benefit from crowdfunding. A good business idea must have a compelling story to catch people’s attention. You must share with the listeners what inspired you to create the concept. You must also show your passion to seeing the concept become a reality. There are several online sites that offer crowdfunding platforms to thousands of startups all over the world.
Business incubators provide financial support to startups in various stages of development. A business incubator will invite your startup to share its premises and resources. For example, an incubator can share its laboratory so that small businesses can test their products before they begin the production process. Incubators can also provide administrative and logistical assistance to small businesses. Once the product is ready for the market, the startup leaves the incubator to start production on its own. The incubation period usually last for two years.
Angels are rich individuals who like to invest in small companies owned by others. Most of them are retired executives who have a lot of experience and a network of contracts. Therefore, they not only bring financial reprieve to the business but they also provide technical assistance. Most angel investors prefer an initial investment that ranges between $25,000 and $100,000. In return, they have the rights to supervise the company’s management. This involves having a seat on the board of directors. Angel investors often prefer a low profile. However, there are some online platforms that provide a list of angels but at a small fee.
Venture capital allows you to bring someone else into the business as a partner. If you want to retain 100 percent control of your business, you should not consider this option. In most cases, you won’t get any share until all the partners have profited from the business. Venture capitalists take a strong position in the startup, especially for risky projects. This can involve giving some part of their ownership rights to a third party. If you are comfortable with this option, ensure you bring in people with experience and knowledge.
Small Business Administration (SBA)
Small Business Administration is a good alternative if you don’t qualify for a bank loan. SBAs are guaranteed by the government, and they are easy to get. Your business must be a sole proprietorship and profit-oriented. These loans allow you to make small payments for an extended period.
January 3, 2017
Whether you are a stay at home parent, starting a business in your garage, or work for a major corporation, time management is difficult when there is no plan. By spending a few minutes each morning, you can grab control of your day and allow for surprises.
Consider these few points to help in understanding why planning is crucial to the rest of your day.
Stress. Few humans work adequately under stressful conditions and need a means of simplifying their surroundings, even if it requires creating a work-space just for you.
Unexpected. Count on the unexpected. If you have pets, children, busy neighbors, or drop by unannounced relatives you already have enough distractions. Add to those phone calls, emergencies, and forgotten meetings, and your plans quickly become derailed.
Self-evaluation. Always give yourself a report card.
Helpful Tips to Get You Started
At the beginning of your day, sit down at your desk and address these areas of focus to help create the list of tasks you must accomplish. Then add them to your Smartphone calendar app to assure you remember them.
Define Your Goals. Perhaps the tricky part in deciding what needs doing first. Just create a random list to gain a start, and then rearrange it until the important goals are at the top.
Brainstorm. With your goals clearly set, brainstorm for unique ways to approach them so that others pay attention.
Clearly Defined Roles. In the corporate world, positions go with the defined job, but for the self-employed or local business person, these roles shift. Decide what your role is and then conduct yourself accordingly, so others automatically assume the position in which you need them. From this vantage point, you remain in control and complete jobs faster.
Scheduling. Working with the schedules of other people becomes problematic at times. However, it is your schedule to which you must adhere, and find a way to plan around those of others. Learn your clients and how they plan their schedules. This knowledge gives you the advantage.
Review Your Plan. Constantly review your plan and enter changes where needed. It is easier to refocus and try again than to face an insurmountable obstacle. Dig deep to find hidden conditions and modify your approach until it works for your business.
The top successful people in the world are those who have the best daily planning. They seem to go about their day without fret or worry. Use the time to set up a template of common daily tasks and then approach them in top-down order to complete a winning plan.
January 3, 2017
Whether you have a traditional, local brick and mortar store or an exclusively online business, you will need a set of online tools to make setting up your online presence both simple and efficient. There are many options to choose from, and here are our recommendations of the best way to get your new business started.
Every new business needs a quartet of business support services. The first is legal support, which can be found at Legal Zoom. If you are setting up a standard corporation, LLC, partnership, proprietorship, or even a not for profit, Legal Zoom not only has the necessary forms for your state, but also the available consultation where you can speak to an actual attorney and get many of your questions answered. They also can help you with patents and trademarks for your business, a necessity for the open frontier of the Internet.
A second essential support service is accounting/bookkeeping. Trying to keep the books yourself creates two problems: 1) it takes the owner away from their primary focus of the business and 2) it opens the door for the possibility of paying too much in taxes. Online accounting software has become increasingly popular in recent years because it allow a business owner to have an actual accountant periodically review their books while giving the owner control over the day-to-day accounting operations with little time investment. Freshbooks has the best combination of ease of use and powerful features, requiring little time to keep your data safely stored in the cloud and focus on your business.
Without billing, it is impossible to trace individual transactions and begin increasing your bottom line. Squareup is the place to go for new businesses who have a strong personal presence in their community and can make a sale fast. Squareup offers a free square that you connect to your smartphone for instant billing and sales, with no monthly or hidden fees. You will get access to your deposits within 1 to 2 business days, eliminating the need for waiting on payment from checks or money orders.
Finally, the fourth member of the support quartet is your new businesses’ main online presence – the web site. Squarespace is a popular platform that has award winning designs and templates that will get you up and running quickly. The templates can be easily customized, and you can use your own artwork to give your website a unique and personal branding.