Archive for the ‘Financial Intelligence’ Category

« Older Entries

Trigger Quick Business Growth- 4 Smart Reasons to Apply for a Business Loan!

Monday, September 24th, 2018

If you are a business owner, simply taking a loan does not mean you are willing to increase debts. There are smart reasons for you to apply for a business loan and promote the consistent growth and development of your business. You need to have a concrete business plan in place to help you utilize the business loan to its maximum potential so that you can drive rapid business growth with success.

4 top reasons for a business loan to drive business growth

Industry experts say the following are some of the smart reasons why you should apply for a business loan-

  1. Get a new physical location for your office staff- Is your office too cramped for your staff to work in? You might not have realized this, but a space crunch can be a prime deterrent to your business growth. Yes, your staff need more cubicles and air to breathe. You may be the owner of a restaurant or even a retail store. If space in your business area is getting smaller day by day, this means your business is expanding. Good news. It is time for you to apply for a business loan and switch to a bigger and better physical location. However, before you apply for the loan, examine and analyze the revenue you will earn in the process. Will changing office space cover the loan? Forecast and if you see a positive outcome, go ahead. The staff will be happy and with a bigger space their morale will increase. They will become more productive and will see the chances of long-term growth when you decide to use the funds obtained from your business loan for a better and better office space! 
  2. Funds to invest in new equipment for your existing business- Business loans can be used for the purchase of new and modern equipment. This will largely help you to eliminate time-consuming and redundant machinery in the workplace. Moreover, equipment financing is often considered to be collateral for the business loan you take. The process is more or less like a loan you take for a car. You should examine your business and check the necessary equipment you need to accelerate production and improve revenue. You must ensure your employees are trained when it comes to new machinery. The last thing you want is employees getting new equipment and they are not aware of how to use them. Business loans should only be taken and applied for when you check the above. Check what the optimal investments for your business are. Just because your employees have demanded vending machines does not mean you get them. Analyze and check whether the machines will give you desired revenue and business growth before you take the loan.
  3. Inventory purchase- Most banks and financial institutions will provide you with business loans if you need funds for purchasing new inventory. You should always stock your inventory with high-quality options. Experts in the field of money lending says if you are in a business that is seasonal by nature, there are some months where you need to buy more inventory over others. These are the months where you need business funds for the purchase. They advise you when you have a seasonal business where funds are needed to buy inventory, always apply for the business loan in the off-season. This will give you sufficient time in hand to buy inventory for your needs. This means you can earn better profits as you have the inventory ready when you need it the most for your business. Now, experts again say that when you plan to apply for a business loan for inventory purchase, consider whether it is a prudent move. Calculate the sales projection for the task. Remember, the sales numbers vary from season to season so make sure that you keep risks and other factors in mind.
  4. Business opportunities that eliminate potential debts– Now, if you have already in the market performing well, you may come across a unique business opportunity that will give you the chance to pay off a potential debt. For instance, you may receive a huge commercial contract for a large corporation however you do not have sufficient equipment to fulfill the order on time. This is where you should apply for a business loan and buy the equipment you need. With the business loan, you effectively are able to buy the equipment you need for finishing the order. Here, you need to do some calculations as you have to estimate the costs of the order and make sure that it will cover the business loan expenses you take. Keep the risk factors in mind and always weigh the pros and cons of the project before you come forward with a concrete decision. You need to make a forecast for revenue as well. The major decision for the above must be made on solid predictions and calculations over just a gut feeling. Determine the revenues on investment and make sure the opportunity you seek gives business growth as well.

Therefore, if you wish to trigger business growth and consistent revenue, you should consider the above four smart reasons to take business loans. These loans will mainly help you to trigger better returns on investment and revenue as well. Talk to your financial advisor or an expert in the field of money lending so that you effectively are able to get the best returns when it comes to taking a business loan. The above reasons are ideal for both new and old businesses that wish to see a transformation in their business revenue and growth. Apply for small amounts of business loans in the beginning if you do not wish to take risks. Remember to have a decent credit history, and in case you have a poor credit score make sincere attempts to fix it first before applying for a business loan- your chances for its approval will be higher!

Summary

There are smart reasons for business owners to apply for a business loan and promote the consistent growth and development of your business. They need to have a concrete business plan in place to help you utilize the business loan to its maximum potential so that you can drive rapid business growth with success.

Author Bio

Marina Thomas is a marketing and communication expert. She also serves as content developer with many years of experience. She helps clients in long term wealth plans. She has previously covered an extensive range of topics in her posts, including business debt consolidation and start-ups.

Posted in Financial Intelligence, Guest Post, Investing, small business | 1 Comment »

8 Rules That Will Help You Create a Successful Business

Sunday, August 16th, 2015

More and more college graduates are opting to cope with the uncertainty of the job market by launching directly into business after graduation. Most people in employment are also opting for a side business to provide extra security should they lose their job or should they have to contend with a salary cut.

The threat of losing one’s job, or even becoming indigent, was bona fide by the 2008/09 financial crisis, as many people lost their homes and other property following the collapse of banks and companies from different industries.

Emerging world trends are also beginning to render most job posts irrelevant. For instance, most companies are fast becoming reliant on the internet for selling and marketing. This threatens the position of employees in sales and marketing positions. The same thing applies to software design jobs, where most companies are beginning to crowd source their ideas, thereby needing their software designers less and less.

With such trends, even those who still hold jobs find themselves in underpaid positions or find that their wages have stagnated. What’s more, the cost of living is not adjusting downwards to cater for these changes in the work environment, hence people have to work more to get more money to feed their families and maintain the standard of lives that they are used to.

Whatever your age, motivations for going into business, or the line of business you want to go into, your rate of success will be shaped by the same factors. Whether you are opening a physical store or an online business, there are some rules that apply in all lines of business and these rules create success.

Business Success

  1. Define what motivates you

Most people find motivation when they are at the lowest point in their lives. In every economic recession, there are those around you who usually seem to emerge unscathed. Most of these individuals tend to be very successful entrepreneurs, who have experienced firsthand what it feels like to be on their last dollar and have vowed to themselves never to go through the same experience again.

You too could find motivation from similar situations. If you have a family, the thought of what could happen if you are laid off could spur you into action. If you don’t have an additional source of income, it could mean that you might have to lose your home and have your family live on the street or in the basement of your parents’ house.

To prevent such a scenario, investing your time and money in creating additional income sources should become a priority for you.

  1. Go into a line you are interested in

Starting a business in a line of work that you understand is one way to guarantee success. This is simply because you understand the inner workings of your industry and are less likely to make mistakes.

Starting a business in another industry could mean having to upgrade your credentials by getting some form of education. This will cost you money and time. Not to mention, your full time job is already time consuming and draining, therefore having to switch your mind to a different line of work will require a lot of mental effort.

  1. Live within your means

If you like spending, you will have a hard time building a successful business. You will find that the less you spend, the more money you will have to inject back into your business to make it grow.

Avoid getting loans to buy things which will not make you money. Also, if you can, get rid of credit cards.  Once you succeed, you will afford any car you want and you can get credit cards.

  1. Surround yourself with the right people

You can learn a lot from the people you surround yourself with. Social media platforms serve as a meeting place for people, where plans are made and ideas are shared. If you have the right people in your network, you will find solutions to most of your problems from them.

Technology designers or application developers, for instance, help each other to develop useful applications without stealing each other’s ideas or competing with each other. Participants in such projects see this as an opportunity to learn new things.

  1. Learn to promote your brand

The only way others will know what you are up to is if you aggressively promote your brand. You have to develop a maximum of three key selling points for your products or services, then market them based on those selling points. Your marketing efforts have to be convincing enough to make people want to buy.

  1. Learn to manage your time

If you are poor at managing time, you will find it extremely challenging to juggle your full time job and a side business.

You can find a few hours a day to build your business by waking up early in the morning. If this is not possible, you can dedicate your weekends towards your business.

  1. Learn to take setbacks in stride

Any business will have set backs. You might find that your sales are not coming in as you expected or that customers are giving negative reviews to your product.

Instead of giving up, such challenges should motivate you to find solutions.

  1. It shouldn’t be all about the money

Money is good because in an economy that is driven by money, it gives you the ability to afford things. However, don’t go into business just to make money.

A sense of accomplishment and satisfaction are equally, if not more, important as money. Knowing that you created a product or are providing a service that people would pay money to use is indeed a big achievement and should not be ignored.

If you take the above into consideration when building your own business, you will not only become financially secure, but you will also build a business that is relevant to people’s lives. More so, if you are persistent in your efforts, your business could succeed to become your full time job.

About the author

Noella Tesi started a successful business after getting out of debt. Her past experiences in debt give her motivation for succeeding financially. Read on for more.

Tags:, , , , , ,
Posted in Entrepreneur, Financial Intelligence, Guest Post, small business, Tips & Tricks | 9 Comments »

Lawsuit Funding Companies – Banking on the Small Entrepreneur

Saturday, July 18th, 2015

If you are a keen business executive, you must have observed the temerity with which small enterprises are fighting Fortune 500 in court. This is unusual considering these large conglomerates are flush with cash to crash plaintiffs.

Well, the secret lies in litigation financing, an aspect of financing that can help you safeguard your business even when the world around you seems to be crumbling.  Take for instance if an employee takes you to court over a case you have grounds to win.

Entrepreneur

Entrepreneur

Fighting Against All Odds

Fighting such a case can be devastating to your business if there is no other source of capital.  Luckily, litigation funding companies are bankrolling businesses in order to enable them fight any cases. Your enterprise might be facing one of the following situations:

  1. Intellectual property rights
  2. Disputes concerning assets
  3. Customer compensation suits
  4. Suits on unlawful termination or liability issues pertaining to your firm

Benefits of Lawsuit Funding

These are just a bit of legal issues your company can face at any time.  To survive then, you need to bank on a financial partner who trusts you will eventually win. Litigation funds help to pay attorney fees and clear other costs pertaining to your case. The advantage of these loans includes:

  1. Protection against bankruptcy due to a court case
  2. Spreading risks thus avoiding by avoiding litigation expenses
  3. Peace of mind in order to concentrate on your business as attorneys deal with your lawsuit
  4. Easy approval after assessment of the strength of your case
  5. No upfront fees and you only pay when you win. In essence, it is a no recovery no payback agreement which relieves you off any pressure.

The benefits go on and on but what you cannot deny is the fact that for once, the small business has a partner to lean on when the ground gets shaky.  You also feel more confident on your side as you will know these experts have already seen the strength in your suit.

Tips on Using Lawsuit Loans

Now that you appreciate the benefits of this kind of financing, it is time you started exploring the industry in order to identify the best firm to work with. Here are some tips on getting the best out of the deal:

  1. Weigh the options: While this might appear like a new industry, it has been in operation for a long time. This means there are many players out there therefore research and comparison is called for. You need to take time and examine as many companies as possible before picking the best.
  2. Understand every minor detail: It is critical to understand every aspect of the agreement to avoid disagreements in future. For an entrepreneur, more legal tussles can ruin operations and you must avoid them at all costs.
  3. Understand the application process: The agreement involves you, your attorney and the funding firm. A lot of research will be necessary but it is always crucial to follow the guidelines of your lawyer before applying.

There you have it; your business at last has a source of recourse in case you are slapped with weighty litigation.

BIO

Anita Burton is one of the most recognized legal writers for the last three decades.  Today, she focuses on aspects of the law that can help hapless citizens such as lawsuit funding companies.

Tags:, , , , , , ,
Posted in Entrepreneur, Financial Intelligence, Guest Post, small business | 1 Comment »

The Shark Tank Formula For Startup Success

Monday, November 24th, 2014

Have you ever wondered what it takes to launch a successful startup? ABC’s reality TV show, Shark Tank, demonstrates what it’s like for entrepreneurs to go through the process of pitching their business ideas to investors (otherwise known as sharks).

Over the course of five seasons, there have been 337 pitches and only 186 deals. Out of these deals, only one-third them actually closed! You’re probably wondering, why is this such a low rate?

The reality is, it’s tough to keep your startup afloat after launching. Since 2012, only one in 17 business ventures have actually experienced a profit. Unfortunately, not every entrepreneur has the opportunity to become the next Mark Zuckerberg.

Despite the challenges of launching a startup, there are a few things entrepreneurs can do to increase their chances of success. First, it’s absolutely necessary to know your product inside and out. Regardless of how cool you think your idea is, it won’t be valuable to investors unless it serves a real purpose for your target audience.

When preparing to launch, it’s also important to perfect your pitch. Entrepreneurs need to approach investors with a goal, a business plan, and also know their numbers very well. Investors only care about how profitable your business will be in the future. Make sure you understand your numbers and can identify the information about your business that will important to investors.

Finally, it’s important to build a strong network of investors. Remember, you want these people to take interest in your business and provide you with the funding you need. Spend time building relationships with investors and learn about what they’re looking for in potential startups.

These are just a few of the takeaways you should know from ABC’s Shark Tank. To learn more about launching a startup and what it takes to be a startup success, check out the infographic below:

Shark Tank Formula

Shark Tank Formula

Your feedback will be appreciated. Cheers.

Author Bio – Ivan Serrano is a business and social media journalist living in the Bay Area of California.

Tags:, , , , , , ,
Posted in Entrepreneur, Financial Intelligence, Guest Post, Investing, small business | 1 Comment »

Freelancing Your Way To A Real Business

Wednesday, April 16th, 2014

When it comes to risk versus reward, freelancing is one of those vocation choices that has the potential of offering plenty of returns without a lot of up-front resources or capital at stake. Given the right opportunities, knowing the right people, and having the right skills can turn a casual hobby into something you can actually get paid for doing.

Here’s how you can take that freelancing gig of yours and turn it into an actual, consistent business. Of course, this isn’t the last word on the subject. Aspiring self-employed types should get as much knowledge and information as possible; especially in topics like how to promote yourself, Financial Management for Freelancers, and how to file taxes as a self-employed entity (spoiler alert: it’s a bloody nightmare).

Freelancing Your Way To A Real BusinessYou can turn your hobby into a business if you have the time, talent, and opportunity

Be Prolific
The best way to get your name out there is to be productive. Whether you’re selling a product (like a craft-related item), or offering a service (such as a writer or website designer), people need to see that you can churn things out that customers want. For instance, if you’re a writer, make sure to get your name out there by writing for magazines, blogs, or anthologies. Start getting that reputation as someone who delivers results. You need to leave your footprints and handprints all over the Internet.

Be Patient
Although it’s exciting when you start getting multiple clients, you really have to pace yourself. Having six clients giving you work at the same time may look good in terms of income, but if you spread yourself too thin, you’ll deliver an inferior product, and make it likely that you won’t get repeat customers. Know your limitations, and build up your customer base slowly. Don’t try to tackle everything at once. Better to start off with three clients that get excellent work from you than ten clients who get barely passable work. This means learning to say “no”.

Be Prepared
One of the most hair-pulling and frustrating things about freelancing is the inconsistency. On any given month, a client may give you four projects or purchase a large amount of the goods you produce. The next, they may barely remember that you even exist. Be ready for the lean times by socking away some money for emergencies, to tide you over when you have a light month. Also, having that reserve will make sure you don’t get desperate, and end up taking a job far outside your area of expertise, something that could have serious repercussions on your overall reputation.

Be Organized
Many freelancers and one-person businesses end up working out of their home. While this is an awesome aspect of the job, make sure you have boundaries separating your personal and professional life. Set up times when you’re “at work”, and when you’re enjoying time off. That requires a level of planning and organization in order to adequately map out your responsibilities and how much time you devote to them. Also, make sure you have a work space that’s separate and dedicated to your job, if for no other reason than making it easier to claim it as a business expense of your income tax return.

Be Visible
Finally, make sure that people know you exist. Since you are self-employed, then shameless self-promotion is key. After all, working for yourself means that you are responsible for every stage of the job and yes, that includes marketing. Make sure you have business cards, a business page on various social media platforms, and an easy way for people to get a hold of you, whether by cell phone or email. If you have a blog, make sure to drop an occasional reference about your business (something which should already reside in the About section of your blogging site). Seriously, you need to let people know you exist and that you can write. Or draw. Or whatever it is you do.

It’s exciting and challenging when you take an avocation and turn it into a vocation. It becomes even more exciting when a part-time freelance gig turns into a full-time job. And there’s a lot of advice out there for budding entrepreneurs, so keep your eyes open.

Byline: John Terra has been a freelance writer since 1985. He’s done the full-time writing thing, but these days he supplements his freelancing with a “regular” job.

Photo Credit: justinmatthew21

Tags:, , , ,
Posted in Entrepreneur, Financial Intelligence, Investing, small business | 1 Comment »

« Older Entries