Cash for Impact

Freezing

I appreciate the guest post, Lindsay Valdez

The life of a nurse and a police officer is nothing short of adventurous. We had a sweet little bundle of nurse-cop joy last month and we’ve been non-stop ever since. We’ve lived in our house in upstate New York for three years now and love it. But, every fall, the cold sneaks up on us. Everything in our house is electric, except the heat. So, we use a use a six-month contract, and then it turns off after winter so we don’t waste money. The thing is, we have to re-instate the service every fall to have heat. These past few weeks have been in the 80’s during the day, but down in the 50’s at night. Since our schedules are so crazy, we’re rarely home at the same time to discuss the fact that it’s f-f-f-freezing in the house. I’m sure our sweet baby would tell us if she could speak! We’re terrible parents. So, not only have we put a rush on getting on www.newyorkenergyrates.com to find the best price this year, we’ve paid an extra $75 to get them to come out TODAY to turn on service, just to check the weather and see that there’s a warm front coming in. I think we need a vacation.

Here’s an article from another guest poster that I thought very useful. Enjoy! – TCW

Five Small Business Finance Tips

By Lily Faden

Get funding for your small business via a small business loan.

Owning a small business involves much more than coming up with and implementing a business idea. Small business owners quickly learn that a huge part of their role as the owner of a business means learning how to take care of the financials. Here are several tips for small business owners who want to learn the best practices for managing their business’ finances:

1) Bookkeeping

To the dismay of many business owners, the ancient art of bookkeeping isn’t going anywhere. Fortunately, bookkeeping has become much easier. Bookkeeping programs can make the process much easier, but there are still certain fundamental rules that business owners must take into account. Firstly, business owners must always keep a record of all of the invoices processed by their business as well as the expenses they have incurred, such as raw materials, salaries, and operating expenses. While there is no solid rule for how to keep track of earnings and expenses, what matters most is that you keep track of your finances in a consistent fashion and that everything is written down. This is arguably the most important part of owning a small business.

2) Don’t Over-Exaggerate Your Earnings

When working with investors, banks, or other financial lenders, one of the biggest mistakes you can make is to exaggerate your business’ earnings. These lenders need to know how likely you are to repay the money they have lent you when making their decision about whether or not to lend it in the first place. Lying or exaggerating about your earnings will only harm you and the lender in the long run.

3) Make Sure All Of Your Funding is Backed by a Legal Contract

Regardless of where you are going to receive funding, you need to ensure that the terms of your financial agreements are written down on a contract. Unfortunately, things can become troublesome during the repayment process and it is therefore urgent that you and your lender lay out terms in the beginning that you must adhere to later on. This keeps both sides accountable and also ensures that both sides know exactly what they are getting into before the money starts circulating.

4) Cash Flow

A successful small business always maintains a sufficient amount of cash on hand to take care of daily operations and unexpected expenses. However, many businesses that have been successful in receiving funding find that the money they are lent covers already-existing expenses but doesn’t quite leave enough cash left over to keep on hand. This is why small business owners are familiar with the feeling of being stuck somewhere between outstanding invoices and bills that are past-due. One option for small business owners is to use a merchant cash advance. These types of business cash advances can provide small businesses with additional cash flow to meet these expenses or to grow their business, and they are repaid through future credit card receivables. This is an important option to consider for many small business owners who have been denied other forms of funding.

5) When to Process Credit Cards

The short answer: Now! Being cash-only is extremely inconvenient for most customers. While setting up a credit card processing system can be costly, your customers may find it more convenient to go to your competitor’s business once they learn that your business doesn’t process credit cards. Furthermore, using credit cards at your business functions as an instant line of credit and means less hassle and paperwork for your business. This can cut down on lengthy credit approval processes. Also, there are additional types of funding available for businesses who process credit card transactions as opposed to those who don’t.

Get small business funding in 4-6 business days with Entrust Cash Advance.

Article Source: http://EzineArticles.com/?expert=Lily_Faden
http://EzineArticles.com/?Five-Small-Business-Finance-Tips&id=6353938

Technorati Tags: small business, small business finances, small business financing, small business funding

Tips To Managing Cash In Bootstrap Mode

by Jason Hoerr, guest blogger

If you are an entrepreneur in the midst of the ramp-up phase, or if you are just beginning to hash out your new business idea and develop a plan, chances are high that cash is not growing on the money tree in the backyard!  The hard truth is that many new business fail due to a lack of capital.  It is common sense if you think about it—run out of cash and your business cannot operate.  If your business cannot operate, then you have to shut it down.  If this is true (lack of capital kills a business), then one of the greatest steps you can take as an entrepreneur is to protect yourself by managing your cash flow in such a way that you prevent this leading cause of business failure.

Get Clients!

This is so important.  If you can get clients before you officially launch the company, your new business will be positioned extremely well.  The way that you do this can vary significantly based on your business model and the product or service you are launching.  If you are developing a professional business service (ie. accounting, consulting, law, etc), then begin networking immediately and develop as many hot lead relationships as possible.  If you are selling a product, take pre-orders.  Set up a website, buy Google Adword space and other forms of online advertising, and take pre-orders before the product is available.  Sure, you may lose a few dollars on the promotion you have to run for these early clients, but the enhanced confidence and early cash that you generate is literally priceless.

Control Expenses

Finance 101—revenue must be greater than expenses in order to operate in the black.  This is a very simple concept to understand, but many new businesses fail horribly here.  If you know that you have no revenue coming in, spend only that which is 100% mission critical to the launch of your company.  In other words, you do not need expensive designer furnishings in the office, and definitely do not spend significant money on a posh office space.  Think Microsoft and Apple—both were started in small garages!  Business loans unsecured are always an option if you need capital.

Control The Passion

Now, this is a tough one for many new entrepreneurs to hear.  First of all, it is essential that you have an unbridled passion for what you do.  That passion is what will carry you through the trying times and difficult challenges that are sure to arise during the early stages of business development.  However, unbridled entrepreneurial passion has cost thousands of entrepreneurs their business.  You have to learn how to balance that unbridled passion with reason.  It’s easy to see everything through rose-colored glasses, and this can lead to a false sense of security.  Therefore, always be calm, collected, and full of clear reasoning in all of your decision-making.  Never make decisions, especially financial borrowing decisions such as business loans unsecured, based on the idea that your company is going to become the next Google!

Follow these tips and you will building your company on a solid foundation.

Technorati Tags: bootstrapping, business loans unsecured, cash flow, financial borrowing

What follows is an interesting piece on small business loan financing. This article is targeted at smaller businesses and provides good insight on the small business loan process. VHEH6TKS78HK
Business Finance: How One Can Apply For A Small Business Loan

Business Finance: How One Can Apply For A Small Business Loan

By Angela Christi Dysuanco

Get funding for your small business via a small business loan.

Getting funds like a loan or investor funds to start up or operate your business is one of the most challenging tasks a small business owner will deal with.

Whenever establishing your own business you might be able to utilize your personal savings, or you may obtain some money from friends and family. Nonetheless, there’ll come a time that you might need to go out of your immediate circle and enter the business finance arena to get a small business loan.

In order to lessen the complexity in acquiring finances, you should take the important steps to prepare for a small business loan. It is crucial to learn other options and various other business finance products and alternatives and know how to seal the loan deal.

Considering the fact that banks look at small business loans risky, you must look into other business finance options and also be well prepared before you approach your loan officer.

Listed below are the 5 issues the bank will consider whenever you apply for a small business loan.

Your Personal Credit History

Being a small business owner you have to always remember that your personal credit history takes on a crucial role in your ability to attract financing for your business. Prior to banks as well as other financial institutions will provide you cash, they will look closely at your credit history and credit standing.

How Much Money Do You Really Need?

Next, you have to estimate how much money you will require to run your business. You need to estimate the amount you need for inventory, payroll, manufacturing expenses, supplies, real estate and miscellaneous assets. You need to be exact in your estimation to be able to obtain sufficient money to invest wisely.

Good Business Plan

Preparing a business plan is the most important task to get a small business loan. The business plan must inform the lending company what the business is, why it is feasible in your area, and must answer the questions a loan company would ask. To build a business plan you need to do some investigation or you may give some thought to using the services of a planner or an accountant to help you out.

The Profitability Of Your Business

You ought to be able to convince your loan officer that your business will be flourishing and that you’ll settle the small business loan timely. For this task you must use your forecasted financial statements.

What Will You Do If Perhaps Your Loan Isn’t Approved?

This is one of the last questions that the loan officer will likely ask you. Always be well prepared to have an excellent answer for this question. Let lenders know that you’ll try other lenders and programs which will cater your needs and that being rejected will not prevent you from starting and improving your business.

Bear in mind that you may have to try a lot of loan creditors before you become successful in obtaining a small business loan. Be confident and optimistic; don’t get disheartened as you can for sure discover one that will grant the loan you need!

A business finance broker can help both business and individual clients achieve their true potential. Getting a good business finance broker can help you save time and money plus get a financial deal that suits you best.

Article Source: http://EzineArticles.com/?expert=Angela_Christi_Dysuanco
http://EzineArticles.com/?Business-Finance:-How-One-Can-Apply-For-A-Small-Business-Loan&id=6067673

Technorati Tags: business loans, commercial mortgages, invoice factoring, invoice finance

5 Tips to Buying a Business With Your Self Directed IRA

By Ted E. Sanders

Using a self- directed IRA to buy unconventional assets is not new, however can you use your existing IRA to buy a new business? The answer is a resounding yes! However you do need to make sure that you are careful or you can end up with a load of problems with the IRS including but not limited to Unrelated Business Taxable Income (UBTI).

1. Assess the risk – IRA’s or 401 (k)’s are designed for retirement purposes. Buying a business has substantial risks, you should do everything you can to limit these risks and preserve your assets. Using a tax deferred retirement plan should be thoroughly examined before going this route.

2. You need to have a self-directed custodian – A self-directed custodian is a location where you put your IRA or roll-over from a tax deferred plan to a self-directed IRA. I strongly suggest that before rolling over you should speak specifically with a representative of the custodian. Tell them EXACTLY what you want to do and then ask them what they would allow.

3. Target the right type of business – S-Corps or general partnerships are not good structures or targets for these types of businesses. This is generally due to the tax breaks these entities already receive.

4. Prohibited Transactions -While friends, business associates and siblings may invest in your business via a self-directed IRA, your parents, children or a spouse may not.

5. You can’t have your cake and eat it too – You can’t own more than 50 percent of the business in which you invest, and you can’t have a controlling interest in the company. In short, someone else needs to have the ability to “hire or fire” you.

Do you want to learn more about how to buy a business? I have just completed a brand new guide in buying a business “The Corporate Raider’s Guide to Creatively Financing Your First Business.” Download it free here: http://www.corporateraidersguide.com

Article Source: http://EzineArticles.com/?expert=Ted_E._Sanders
http://EzineArticles.com/?5-Tips-to-Buying-a-Business-With-Your-Self-Directed-IRA&id=2821066

Technorati Tags: buying a business, self directed ira, unrelated business taxable

My former Junior Achievement (JA) Fellows group, ReZold, won is competing in the JA Fellows North American competition. I think they’re great and yes, of course, I am fully biased. But they would not have made it this far if others who are non-biased did not also believe this. You can view ReZold’s video on Facebook, http://www.facebook.com/video/video.php?v=2143084932317&oid=148917188468013&comments , and “like” them by clicking on the thumbs up icon at the very top of the comments immediately below the video.  To see the other JA Fellows contestants, go to the JA Company program page, http://www.facebook.com/pages/JA-Company-Program/148917188468013?sk=wall.

Junior Achievement logo

This past year I volunteered with the  group that came up with, ReZold until I resigned in late January due to a heavy travel schedule. I had been with the group since October and had many returnees from the previous year, for which I was also a volunteer. I didn’t think it was fair for people to count on me when I couldn’t say definitively whether I’d be there or not. C’est la vie. Anyway, my former group created ReZold after several weeks of trying to do another product. The initial product, which also used recycled and reclaimed materials, took more time and effort than initially anticipated and had way too many variables. I thought this was an excellent real-life learning situation for them. (i.e., You get a great idea for a product or service offering but when you go to implement it you continually encounter roadblocks. Finally you say there must be an easier way…and then you find a product or service that serves the same need but is infinitely easier for you to provide.)

More great news: My former group, ReZold, went on to win the “innovative” category in the city wide JA Fellows competition. And they were ranked among the top three companies for the Atlanta metro area so my former group. This is why ReZold is heading to Washington, DC for the North American competition. There’s a wonderful article about them in the Atlanta Journal Constitution, Young Entrepeneurs Tout Summer Vocation.

I’ve blogged before on how effective the Junior Achievement (JA) Fellows program is at introducing high school students to business ownership and management and fostering entrepreneurship from an early age. It really is a great hands-on entrepreneurship training program. I’ve even written how the JA Fellows program can also be advantageous for volunteers who are just starting out as entrepreneurs or who work for large companies and are considering entrepreneurship. The JA Fellows program walks you through the entire process from raising capital through selling stock to unwinding and liquidating the business. It’s a superb program and I’m happy to call myself a (former and returning) volunteer.

Technorati Tags: entrepreneurship training, JA Fellows, JA Fellows program, Junior Achievement, ReZold