SBA Has a New Initiative to Help Veterans Access Capital and Become Entrepreneurs or Expand Existing Businesses

Rhett_Jeppson — Tue, 21 May 2013 18:04:19 +0000

Are you a veteran transitioning from active service and want to become an entrepreneur? Or perhaps you’ve been out of the service for some time and want to start a new small business or expand an existing one?

If that’s you or someone you know, the U.S. Small Business Administration (SBA) has announced the SBA Veteran Pledge Initiative, a new commitment by its top national regional and community lenders to collectively increase their lending activity to veterans by five percent per year for the next five years. This initiative has the potential to boost the already $2.1 billion per year in lending support that various SBA programs provide to new and existing vet small business owners.

I’ve heard stories that many veteran entrepreneurs face challenges in raising capital or have trouble receiving a conventional loan. This is why getting out the word about this new initiative is so important. With the support of SBA’s top 20 national lending partners, and approximately 100 additional regional and community lending partners across the United States, SBA expects to assist an additional 2,000 veterans obtain loans to start or expand small businesses by increasing lending by $475 million over the next five years.

This initiative also complements SBA’s existing partnership with the National Association of Development Companies (NADCO's) VetLoan Advantage strategic initiative that offers small business financing discounts and training to veterans who own businesses or are interested in small business ownership.

The combined goal by the top 20 national lending partners’ will provide nearly $249 million of lending, potentially impacting nearly 800 veteran entrepreneurs. The five percent increase in lending by approximately 10 lenders in each of the 10 Regions will account for the remaining $226 million in loans and more than 1,100 additional veteran entrepreneurs assisted.

I know that if we support our veteran entrepreneurs, and provide them with the tools they need, they will have a higher chance of success. Already, veterans make up a large number of successful small business owners. Nearly one in ten of small businesses are veteran-owned. These 2.45 million veteran-owned businesses employ more than 5 million individuals. In the private sector workforce, veterans are more likely than those with no active-duty military experience to be self-employed.

I just have to echo SBA Administrator Karen Mills, speaking recently at Ft. Bragg, North Carolina, who said “Our service men and women have made incalculable contributions and sacrifices for our country, and supporting them as they pursue their dreams to start or grow their own business is one of SBA’s highest priorities. Through this partnership with national lending partners and regional lenders across the U.S. we stand ready to serve veteran entrepreneurs with loan- guarantees, entrepreneurial training, and resources that are critical tools to help them start businesses, drive the local economy and create jobs for themselves and their communities.”

So for all of you aspiring and existing entrepreneurs, if you need capital for your small business, please call one of SBA's 68 local district offices, or one of its 15 Veterans Business Outreach Centers nationwide.

SBA’s resources for veterans, and its partnership with 1,000 Small Business Development Centers and some 12,000 SCORE-Counselors to America's Small Businesses volunteers, help more than 200,000 veterans, service-disabled veterans and reservists each year.

To learn more about additional opportunities for potential and existing veteran small businesses, visit the website at www.sba.gov/veterans.

Starting a High-Tech Business? You May be Eligible for Government Funding

Caron_Beesley — Mon, 20 May 2013 12:40:39 +0000

Looking to start or grow your high-tech entrepreneurial venture? Need financing to help fund research and development (R&D) efforts and realize your business potential? The U.S. federal government can help!

In fact, in 2012, nearly 5,000 small businesses received over $1.8 billion in federal government grants and contracts to help them carry out the R&D necessary to develop and bring high-tech products to market.

So how can your small business get in on the act? Here’s what you need to know:

What Can the Government Do for the High-Tech Small Business Sector?

If you are starting or already operate a high-tech startup, high-growth or high-impact firm, you may be eligible for grants and contracts that help fund R&D and product commercialization under the federal government’s Small Business Innovation Research Program (SBIR).

The risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. But, by reserving a percentage of federal R&D funds for small business, SBIR helps small businesses to compete on the same level as larger businesses. In turn, SBIR helps the federal government meet its own R&D needs in areas such as defense, healthcare, environmental protection and more. Eleven federal agencies set aside a portion of their budget each year to fund the SBIR program, with the SBA acting as the coordinating agency of the program.

Companies such as Symantec, Qualcomm and ViaSat all got a kick start from SBIR funds in their early years.

How does the SBIR Program Work?

The federal government has specific scientific and technological R&D goals and priorities, all of which are reflected in these solicitations from participating agencies and federal grants (listed at Grants.gov or on individual agency sites). You can search and explore these solicitations and grant opportunities to see where your R&D efforts may align with the government’s needs. Then follow the application process described below (see “How Do I Get Started?”). Each agency reviews proposals based on technical merit, qualifications and potential benefits to industry and society. Once agencies grant awards to small business, they embark on the R&D process.

The Awards Process

SBIR awards are structure in three phases to reflect the R&D development cycle:

Phase I: These awards are usually below $150,000 and cover a timeframe of less than 6 months. During this initial stage, the small business and sponsoring agency explore the feasibility of the project in order to get a better sense of its commercial potential and technical requirements.
Phase II: These awards are only available to small businesses that already received Phase I awards. Phase II enables a longer-term commitment. Awards can be made for up to $1 million for two years. During this period, R&D is expanded and commercial viability can be assessed.
Phase III: During this stage, innovations transition from the lab to the market, and small businesses begin the search for private sector investment. Keep in mind that the SBIR program does not fund Phase III; funding comes from private sources or other government grants.

Who is Eligible for SBIR?

The eligibility requirements for SBIR are straightforward – your business must be for-profit, have less than 500 employees, be independently owned and operated and located principally in the U.S. It must also be majority-owned (51 percent) by U.S. citizens or permanent resident aliens and the principle researcher must be an employee of the company.

As you can imagine, SBIR is a highly competitive program. Check out this interactive directory of SBIR awards for a review of past awards, proposal abstracts and more.

How Do I Get Started?

SBIR.gov includes information for applicants, but, as mentioned above, the application process starts with research:

Check the list of open solicitations at SBIR.gov. Each solicitation explains the areas of R&D that agencies are interested in.
If you have questions, contact the individual agency. Refer to this contact list.
Register your business with SBA’s Company Registry prior to submitting an application.
Get tips and training on applying to the SBIR program.
Search for grant opportunities on Grants.gov.
Submit a proposal. Typically, an SBIR Phase I proposal submission package has the following components: a business plan, executive summary, cost and technical proposal.

Tip: Grants.gov is a good place to start looking for SBIR/STTR program opportunities. Just type "SBIR" in the basic search, and off you go!

Additional Resources

Need Help Exporting? Join SBA’s Google+ Hangout for Tips to Get You Started

Stephen Morris — Tue, 14 May 2013 22:25:43 +0000

Thinking about exporting, but don’t know where to start? As part of World Trade Month, SBA will host a Google+ Hangout on May 22. The hangout will highlight ways that business can use federal government resources to increase exports.

When:

Wednesday, May 22 at 3pm ET

Who:

Dario Gomez, U.S. Small Business Administration, Associate Administrator for International Trade
Antwaun Griffin, U.S. Department of Commerce- International Trade Administration, Deputy Assistant Secretary for Domestic Operations
Dontai Smalls, UPS, Vice President for Public Affairs
Al Youngworth, CEO of Rekluse and SBA’s Exporter of the Year
Brian Kim, BBCN Bank Los Angeles and SBA’s Export Lender of the Year

Watch:

Watch the Hangout live at SBA's Google+ page or SBA's YouTube Channel

Join the Conversation:

Submit your questions via Twitter using the hashtag #TradeChat

How to Restore Your Credit After Hard Times

BusinessCredit — Tue, 07 May 2013 13:44:17 +0000

Getting your financial life and credit back on track after going through tough economic times is not an impossible task by any means, but it does require an effective and proven plan.

Whether you had to file for bankruptcy; went through a foreclosure; dealt with excessive late payments, collections, judgments; a repossession; or the dreaded tax lien, the good news is there is hope in recovering and re-establishing a good credit rating.

First of all, don’t believe for a second that there’s nothing that can be done about past negative credit history — because there is. You can always work on repairing your credit reports; the Fair Credit Reporting Act protects your right to do so.

The first step to credit recovery is to establish new credit. The obvious step is to open up a secured credit card, right?

Well, not exactly.

The key is to establish at least three positive trades actively reporting on each of your reports with Equifax, Transunion and Experian. Actively reporting means you’re making regular payments; a loan that’s paid off does not count.

For example, if you’re currently making timely payments on a car note but have no other positive credit that’s active, then you should obtain two secured credit cards and use them regularly.

Keep your debt-to-credit-limit ratios on those cards at no more than 30%, and whenever possible increase your limits. The higher the limit, the better it is for you in the future when a creditor extends an unsecured credit line to you.

But before you go and open up two or three secured credit cards, you must select the right lenders, too! Did you know some of the high risk lenders offering secured cards can actually end up hurting you rather than helping you?

Think about this for a second: if you obtain a secured card from a high-risk lender, what does this tell other lenders about you?

It shows you are a high risk.

The key is to open a secured card from a mainstream lender — not a high-risk lender. Now keep in mind that opening up a few secured credit cards, making purchases and paying bills on time is a step in the right direction, but it does not address the current problem: your credit reports.

Did you know that by law you are entitled to receive one free credit report from each of the major consumer credit agencies every 12 months? You can obtain your free reports at annualcreditreport.com.

Review your reports and start repairing your reports by either working on them yourself or hiring a reputable credit restoration company.

Remember, it does not have to take a long time to put your credit problems behind you. Once you begin establishing new positive payment history, maintain at least three actively reporting trades and begin repairing your credit reports, you can restore your good credit ratings and scores.

Let Us Know About Innovators and Leaders in Small Business Financing

ngoriel — Fri, 03 May 2013 21:10:11 +0000

This blog is by Don Graves, Deputy Assistant Secretary for Small Business, Housing, and Community Development Policy at the U.S. Department of Treasury and has served as Executive Director of the President's Council on Jobs and Competitiveness. This blog first appeared at Treasury.Gov.

President Obama and Secretary Lew are committed to creating an environment where America’s small businesses can grow and prosper. An essential aspect of making sure these engines of job creation succeed is ensuring that entrepreneurs and small business owners have access to the capital and credit needed to turn their ideas into successful enterprises. The Department of the Treasury, the Small Business Administration (SBA), and agencies across the Administration have taken many steps over the last four years to support small business growth and enable innovation and expansion of small business financing.

But there is more work to do. On June 10, 2013, Treasury and SBA will host a Capital Access Innovation Summit. The day-long event will convene innovators in the field of small business financing with the goal of sharing innovative practices in the private sector and learning how the Administration can enable or encourage increased access to capital for small businesses. Building on the success of two previous capital access conferences, we will focus primarily on three areas: (1) Public and Private Capital Markets Access for Small Businesses - including innovative solutions to address any remaining gaps, (2) Small Business Financing: Data and Innovation - how the delivery of small business capital could be enhanced through emerging technology-enabled platforms and other innovations, and (3) Engaging Large Companies to Promote Small Business Growth.

To inform this conversation about small business growth, and help set the agenda for this year’s Capital Access Innovation Summit, we want to hear from you. Do you know leaders and innovators in small business financing? At Treasury.Gov, tell us about (a) leading innovators using technology and data to expand capital access; (b) effective partnerships between large and small businesses, and (c) thought leaders who have identified gaps in small business financing and effective solutions to fill these gaps.

Join the US Government for #TradeChat and Get Your Exporting Questions Answered

Stephen Morris — Mon, 29 Apr 2013 18:15:44 +0000

Export, trade and finance related agencies across the federal government are teaming up during World Trade Month - May 2013 - to host a series of Twitter Q&A’s for U.S. companies. Businesses can participate by tweeting their questions using the hashtag #TradeChat during the scheduled times.

This Twitter chat series will provide U.S. companies with exporting solutions, including information on the resources available to begin or expand exporting goods and services to overseas markets. The Twitter chats will also provide an opportunity for firms to ask questions and connect directly with the U.S. government agencies that support President Obama’s National Export Initiative (NEI) and BusinessUSA.gov – a new one-stop resource for small businesses and exporters.

Schedule and topics:

Thursday, May 9^th at 2:00pm EDT: Export Opportunities

Information about export assistance, international business partnership programs, match-making, and market research will be shared. U.S. companies will also learn about the new BusinessUSA.gov website and how this one-stop resource can help businesses begin exporting or increase their exports.

Thursday, May 16^th at 2:00pm EDT: Financing

Export financing is often a key factor in a successful sale. U.S. companies should be aware of the many financing options available from U.S. government agencies to assist them with the export and trade process. This Twitter chat will provide firms with more information about the available financing options, including buyer financing, insuring foreign receivables, and working capital loans and guarantees.

Thursday, May 23^rd at 2:00pm EDT: Training and Travel Opportunities

U.S. government agencies often host training, webinars, workshops, seminars, trade missions and trade fairs for U.S. companies interested in doing business overseas. This Twitter chat will provide firms with the knowledge they need to utilize these resources and events and connect directly with foreign buyers.

Joining the discussion

To participate, at the starting time, sign into your Twitter account and submit a question on the topic using hashtag #TradeChat. Agencies will respond to as many Tweets and questions on the topic as possible. Questions can also be submitted in advance using the online form on http://www.ustda.gov/TradeChat.

For information the Twitter chat series, visit http://www.ustda.gov/TradeChat . A live feed of the chats will be broadcasted and archived on USTDA’s website for individuals who are not connected to Twitter.

Highlights from the Twitter chat series will also be available on Storify at

http://storify.com/USTDA/2013-world-trade-month-twitter-chat-series

Participating Agencies and Organizations

The U.S. Trade and Development Agency
International Trade Administration
Small Business Administration
BusinessUSA
Overseas Private Investment Corporation
Export-Import Bank of the United States
The Office of the U.S. Trade Representative
D epartment of State

Getting Stiffed: What Can You Do?

BarbaraWeltman — Thu, 25 Apr 2013 12:57:45 +0000

In business, it’s inevitable that sooner or later you won’t get paid for the goods you shipped or services you performed. Or you may have lent money to an employee or your business, but won’t be repaid. Being passive about the whole thing doesn’t help. Learn what you can do to get your money!

Collections
If a customer or someone else owes you money, it’s up to you to diligently try to collect. Invoices aren’t like fine wine -- they don’t get better with age. The longer you wait to collect, the less likely it becomes that you will collect all or even some of what you’re owed.

Collection efforts include:

In-house efforts. You or someone in your firm should contact the non-payer. Maybe the invoice was misplaced. Maybe the person just needs more time to settle up. Maybe you can work out terms to help the person pay what’s owed.
Sue in small claims court. If the amount outstanding is below the small claims limit in your area, you can quickly and easily proceed against the non-payer. Usually, you don’t need an attorney and the small claims court process is relatively inexpensive. For example, say you are a photographer who took pictures at a wedding but have not been paid because the couple didn’t like them. As long as you fulfilled your contract to take a certain number of pictures and they aren’t blurry or otherwise “bad,” you’ll likely win your claim when you present your case to the judge.
Attorneys. When your efforts fail to produce results, you can have an attorney help you. The attorney can send a letter to the non-payer, asking for prompt payment and stating that nonpayment can lead to your pursuing the claim to the fullest extent of the law.
Collection agencies. Instead of using an attorney, you might turn to a collection agency. Doing this means you won’t ever see the full amount you’re owed (the agency typically takes a percentage of between 25% and 40% of what it collects). For instance, say you’re owed $1,000 and agree to pay the agency 25% of anything it collects. After some time, it collects $600. You’ll only receive $450 ($600 - 25% fee). But something is better than nothing and leaving collection to professionals frees your time for other business matters. Check with your *Better Business Bureau when engaging a collection agency to see that they are reputable.

Tax write-offs
If you can’t collect what you’re owed, you may be able to at least take a tax deduction for your loss. Business bad debts are deducted on your business return as an ordinary write-off. For example, say you weren’t paid for a shipment of goods. After all collection activities have been used and you know that the funds are uncollectible (e.g., you shipped them to a company that has since gone out of business), you can deduct your loss.

When you lend money and are not repaid, determine whether it’s a business bad debt or a non-business bad debt. Clearly, if your company lends money to an employee who cannot repay the loan (e.g., he’s gone bankrupt), it’s a business bad debt. It gets tricky when you lend money to your corporation that doesn’t repay:

If you lent the money to protect your job, it’s a business bad debt and you can deduct whatever is not repaid as an ordinary business loss.
If you lent the money to protect your investment, it’s a nonbusiness bad debt. This is deductible only if the debt is wholly worthless. It is treated as a short-term capital loss (regardless of how long the debt was outstanding).

Caution: If you are on the cash method of accounting and are not paid for your services, too bad. Unfortunately, you can’t take a tax deduction for your lost time and effect.

Tax rules on deducting bad debts are in IRS Publication 535.

Lessons for the future
If collecting from tardy or delinquent customers has been a painful experience, don’t let it happen again. Change your payment arrangements so you are no longer in the position of having to collect after you’ve completed your job (e.g., shipped the goods; fulfilled the contract for services).

Get paid up front. This can be done by offering customers a wide range of payment options, such as cash, check, credit/debit card, or electronic payment (e.g., PayPal; AmazonPayments). Accept electronic payments on the spot using attachments from Square, Intuit, and others that turn your mobile devices into processors.

If you absolutely, positively must invoice, then adopt smart invoicing policies. Send them electronically and follow up if payment isn’t received promptly.

*denotes a non-government website

8 Things you Can Do to Be Taken Seriously as a Young Entrepreneur

Caron_Beesley — Thu, 25 Apr 2013 11:11:03 +0000

Are you a teenager or in your early 20s? Do you have a great business idea? Perhaps you’re already making headway towards starting your own business.

But how do you get others to believe in you and your business idea?

Here are eight surefire ways that you can be taken seriously as a young entrepreneur:

1. Have a Plan

Having a plan means knowing where you want to be and what steps you are going to take to get there. If you can’t communicate this to investors, vendors, distributors, employees, and so on, you will never be taken seriously.

Case in point – SBA Young Entrepreneur of the Year in 2011 – Mollie Breault-Binaghi. Now in her mid-20s, Mollie owns two successful graphic design and printing businesses in Vermont. With input from her boyfriend and her family, she spent considerable time working out the details of a business plan. “When you’re going to be investing not only money but your time, you need to invest an equal amount of energy laying it out on paper before you jump in,” Mollie said. (Read more about Mollie’s story here).

Not sure where to start with your business plan? Check out SBA’s online Build your Business Plan tool—a step-by-step guide to help you get started. Save your plan as a PDF file and update it at any time.

2. Be Serious About Your Passion

While Mollie’s advice for other young entrepreneurs is simple: “Plan!” she also added: “And you have to be passionate about it. Otherwise it’s not worth doing. Owning your own business is not easy and it’s not going to make you rich quick. You’re going to be in it for the long haul, so it’s got to be something you love.”

It’s inevitable that you are going to come across people who are going to try and talk you out of your idea—put your ear muffs on and stand your ground. Be proud of your idea, innovation, or business and be ready to showcase what you’ve done to get this far and what your plans are for the next step.

A few sure fire ways to demonstrate your commitment include:

Work at it – Be prepared to put the hours and weekends into your business.
Educate yourself and take educated risks! – Take advantage of free or low-cost business start-up workshops from your local business incubator, Small Business Development Center, Women’s Business Centers and more. Check out free online courses such as those offered by SBA in the Learning Center on this site. Learn about your industry but also what it takes to be a successful business leader/marketer/planner, and so on.
Stick at it through adversity – Nothing says commitment better than sticking with something even when you feel like throwing in the towel.
Identify what went wrong and learn from it.

3. Find a Mentor

Many young entrepreneurs struggle to succeed because they don’t have a mentor. Whether it’s a former boss, someone in your business network, or family friend, find a mentor who has experience in your field and has walked in your shoes before. Not only can a mentor provide valuable advice, they can also give you access to contacts, resources, and events that you might not otherwise have access to. If you can’t pinpoint a mentor, check out SCORE – a network of over 13,000 volunteer business mentors who have helped over 10,000 Americans start and grow their businesses.

4. Surround Yourself With the Right People

Just as it’s important to have a mentor, it’s also important to work on being around the right people – as much as you can. Surround yourself with the kind of people who are living the life you want to live or exemplify – they will challenge you and probably tell you things you don’t want to hear, but they’ll also tell you the things you have to hear. Look to entrepreneurial groups, experts in your industry, college professors – those who are respected in your industry or community.

5. Put Yourself in Environments That Will Allow You to Grow

Just as surrounding yourself with the right people will challenge your way of thinking, push yourself to seek out new possibilities beyond your comfort zone. As a series of young entrepreneurs explain this “Advice for Young Entrepreneurs” video from PHP Associates: “Putting yourself in an environment that causes you to be against the wall and maybe is a little uncomfortable, but being around it enough times you start to own it and you start to get a little bit more belief, in increments, in yourself and all that adds up to where you’re comfortable in your own shoes…”

6. Don’t Be Flash with Cash!

One of the surest ways to show you are serious about your business idea is to demonstrate that you can manage your cash and keep it flowing. Look for ways to keep costs low. Consider working part-time when you launch your company; this will help you build your business with less risk and provide you with a steady cash flow from another source. Once you’ve established a base, then transition to full-time business ownership.

You should also utilize technology and the resources around you to keep costs low – think of using garage space to store inventory instead of paying for a warehouse, or use social media to make the most of low-cost marketing.

7. Need Financing? – Do Your Homework

Securing financing as a young entrepreneur can be particularly challenging. Without a credit history or career history, finding someone who will entrust their money to you isn’t going to be easy. But with a solid business plan and commitment to success, investors are out there ready to take you seriously. Here are just some of the options that young entrepreneurs can explore:

Also read What Lenders Look For and Tips for Winning them Over.

8. Look Like a Pro

It goes without saying, or does it? Try to look like you are serious about what you are doing. Whether you are meeting customers, potential partners, mentors or investors – clean up your act. No, you don’t need to wear a suit all the time, but dress appropriately. “Remember, you might need to overcome some preconceived ideas about what teenagers are like, so be sure your looks and your language reflect the fact that you're serious about your business,” advises Young Enterpreneur’s, Adam Toren. “When communicating through email, use spell check and keep slang and abbreviations to minimum. If you're polite, professional and knowledgeable, your potential customers are sure to take you seriously.”

More Information

Young entrepreneurs can get more tips and practical guidance about starting a business in SBA’s online course: Young Entrepreneurs - An Essential guide to Starting Your Own Business. Also check out SBA’s Young Entrepreneurs guide for resources and programs to get you started.

Greening Your Small Business – Which Steps and Investments Should Your Business Make?

Caron_Beesley — Mon, 22 Apr 2013 11:46:07 +0000

Interested in greening your business? Today is Earth Day 2013, so what better time to consider ways in which your business can play its part in saving the planet and reaping the cost benefits of operating more sustainably.

But where do you start and what sustainability measures are right for your company? With more and more consumers choosing to “buy green” and many of them willing to pay higher prices for it, environmentally friendly business practices are here to stay. For the savvy business owner, the trick is knowing which green initiatives will pay off for your business and which may not be worth the time or expense.

For answers, I turned to Michelle Goodman’s excellent article in Entrepreneur magazine from the fall of 2012, How to Determine which Eco-Friendly Changes your Business Should Make, and to tried and tested tips and information from the Environmental Protection Agency and Department of Energy’s joint venture – Energy Star.

Here’s what they suggest:

Start with the Obvious – Use Less of Everything and Track Savings

Using less of everything – water, electricity, fuel, paper, printer ink – makes common sense. Similarly, ask yourself some basic questions: Can I recycle? What about introducing a lights out policy in meeting rooms that aren’t in use and in the building at night? Does it make sense to let my employees telecommute?

As you look for areas where you can make savings and be greener, try it out for a month and compare your business expenses to previous months. If you can demonstrate clear dollar savings, then getting the entire company behind you is going to be a lot easier. You can also use the savings you’ve made to fund bigger sustainability improvements.

If you run a service business such as a hotel, implement a towel re-use policy or a key-card activated energy-saving system that powers down the room when a guest exits. These can reap huge savings.

Look for areas that make sense to your business. For example, can you dispose of less by buying re-usable versions of the same product? Goodman cites a California hair salon that switched from using disposable latex gloves worn by stylists to color hair – which set them back nearly $3,000 a year – to investing in heavy-duty reusable gloves at a cost of a couple of hundred dollars.

Check out these “Sure Energy Savers” tips from Energy Star for ways to realize quick savings now.

Invest Now to Save in the Long Term

If you lease a facility, then it may not make sense to spend money greening your building’s infrastructure, aside from easy-to-implement fixes like using energy efficient light bulbs or equipment. However, if you intend to be in the space for several years, then it’s worth crunching the numbers to see if It’s worth making longer-term green fixes such as upgrading your AC system. If you are going to be in a facility for five years and it will take two years to pay back, why not do it?

Even modest changes can make a big difference and be paid off quickly. Fixes such as improving insulation and capitalizing on natural light by using frosted windows instead of blinds has the potential to reduce your electric bill by up to 80 percent – a massive saving for small businesses.

Of course this all depends on your location and other variables, but quick fixes such as these do have the potential to generate 15-20 percent in savings, green marketing consultant Shel Horowitz tells Entrepreneur magazine.

Get Help Ascertaining the Savings of Pricier Sustainability Upgrades

You don’t have to go it alone; there are many organizations that can help you determine which sustainability measure will help you reap the best return on your investment.

The Energy Star for Small Business website offers free information and technical support for small businesses, including a How To Guide for Analyzing and Upgrading your Facility, tips on preparing an energy strategy and more.
Call your utility provider. They can provide free surveys and help you determine what you can do differently.
Find out if financial incentives are available from your local or state government for installing energy efficient HVA systems, windows, appliances and lighting. Check out Energy.gov for links to tax credits, rebates and savings available by state.
Third party green certification organizations, like The Green Business Bureau and the Green Business Network, provide onsite and online assistance, marketing support tools, and certification confirming the credibility and authenticity of your green initiatives.

The Bottom Line

While green measures and investments can have both short- and long-term financial payoffs, the benefits aren’t just in dollars saved. If your company places a high value on green practices, the feeling that “we are all doing good” can really set you apart both to your employees, your customers and community as a whole.

Related Resources

SBA Green Business Guide – Includes essential information for greening and marketing your “green” business, including considerations such as green certification and eco-labeling, environmental grants and loans, and more.

Related Blogs

Managing Small Business Cash Flow – Answers to 10 Commonly Asked Questions

Caron_Beesley — Mon, 15 Apr 2013 11:38:01 +0000

Cash flow is the lifeblood of a business and critical in its growth. Small businesses are hugely dependent on their cash flow, and must either cut costs or scramble to find alternative funding when they are not being paid on time. With money tight and bank loans hard to get, a cash-strapped company can easily be pushed to the brink.

But what are the basics of good cash flow management? Are there any cash flow templates you can leverage? Where does your breakeven analysis fit in? And, what strategies can you use to ensure cash is flowing, whether you are in the startup stage or looking to grow an established business?

To find answers to these questions, I checked out an archived SBA Web Chat on – Cash Flow Management – hosted by Julie Brander a business consultant and mentor with SCORE.

Here are Julie’s answers to a series of cash flow questions posed by individual small business owners (but which are universal to us all):

Q: Would you recommend that a start-up venture in the early stages do a cash flow chart and why?

A: A cash flow is the single most important aspect of your business because it focuses on the actual cash that goes in and out of your company. Make a list of all the startup costs or one-time expenses, your monthly fixed and variable expenses, and project your sales to see if this business is feasible. Without knowing your costs and expenses, you will not be able to project your income needed to make a profit in your business.

Q: I struggle just coming up with a template to use to project out my cash flows. I use Excel, but don't use it well. I can look at last months and know where cash went, but I want to look out to the future...one week, one month, one year. Do any tools or templates work better than others?

A: Take a look at this Cash Flow Template from SCORE for a 12-month cash flow. There are other resources online; some are free and some are not. Look into accounting software for this feature as well.

(For more specifics on what to include and why, read: Projecting your Business Cash Flow, Made Simple)

Q: If you are unable to secure credit and credit has been cut or credit lines have been closed, how do you keep the doors open to your business?

A: You will need to sell the inventory that you have and pay cash for all inventory and services that you need until you can build up your credit again. Managing your money with your cash flow chart will help so that you are aware of all expenses. Cutting expenses and increasing sales is always the goal.

Q: How important is it for start-ups to calculate their break-even point and what is the easiest way for a non-financial person to do it?

A: Create a simple spreadsheet that lists all the income from sales each day, week, month and year and all the expenses that the company has to pay out. (SBA.gov has more information on this topic here: Breakeven Analysis.) There are templates online that you can use; for example, SCORE offers a free Breakeven Chart that you can use.

Q: I have a hard time getting clients to pay on time. If they don’t pay on time, I have a hard time meeting our expenses. Any suggestions on how to get paid quicker?

A: You can offer a discount for COD (cash on delivery) or net 10 days; it could be 2% off for paying more quickly. Otherwise, the only way to get paid quicker is to call weekly and remind your customer that money is due and offer to take a charge card over the phone. (For more tips, check out these blogs: Tips for Collecting from Non-Paying Clients and How to Get Paid Faster With a Better Invoicing Process.

Q: I am in the process of opening a coffee shop. How much inventory should I purchase for startup so that I do not overbuy?

A: With your financial projections, you can guess about how much you will be selling. Buy as little as possible to start—but make sure that you can get a quick delivery, as you never ever want to run out of anything. This is something that you will learn as you are in business.

Q: Is there a set percentage to mark up the prices for merchandise? Also, if I can get a discount from a vendor for purchasing a higher volume, do I sell it at a discount or should I sell it at the price I had before the discount?

A: A mark-up can vary depending on your overhead costs. Higher overhead would require a higher mark-up. Always sell your merchandise for as much as the market will bear. If there is a higher perceived value, people will pay more. The discount from the vendor means more profit in your pocket.

Q: What options do micro businesses (mom & pop) size have in obtaining periodic help needed with small loans to help with cash flow?

A: A line of credit is the easiest way to have money available as needed. You would have a limit and use it as needed and pay only for what you use. If you are not able to get a line of credit, you need to make sure that your sales increase to create cash flow. Give your customers incentives to buy more or offer discounts.

Q: At what point should you consider using a collection agency to help you collect on past due receivables?

A: Collection agencies take 30%, so try to collect on your own by calling and offering credit terms or returns or credit card payment. If the company does not have the money, you will not be getting paid so your only hope is to take back the merchandise if you can.

Q: What is the formula to determine how much cash reserves a business should hold?

A: Always have enough cash reserves to cover your slow months in business. You should be safe if you can have 3-6 months or more to cover all unknown or variable expenses that may come up. Always consider increasing your sales and moving your inventory as quickly as you can.

More Information and Learning Opportunities

For a full transcript of the web chat and answers to other questions about cash flow management, check out the complete chat session on SBA’s Learning Center.

Follow SBA on Twitter, Facebook and sign-up for weekly email updates to learn more about upcoming web chats and other learning opportunities.

Not All Suppliers Report A Company’s Positive Payment History

BusinessCredit — Fri, 12 Apr 2013 14:45:48 +0000

Getting approved for a line of credit with a supplier is simply an opportunity for you to start building your company’s creditworthiness. The key to establishing positive credit is to make regular purchases using your vendor credit lines, and then paying invoices on or ahead of the due date.

If you do not make regular purchases, then there is no way for you to establish any kind of payment history. So it is vitally important that you carefully select the suppliers with whom you apply for credit. Make sure that your business can use the products and services it offers to develop and grow your company.

This will allow your company to purchase the supplies it needs to operate without having to pay any money up front, enabling you to conserve cash while deferring payments for 30 or 60 days depending on terms.

It’s important to note that a supplier will only report an account once it begins issuing invoices to a company. Your account will show up on your company credit file based on several factors including invoice due date, reporting cycle and day of the month.

There are two key factors to remember:

Not all suppliers report to a business credit reporting agency.
Not every supplier reports on the same day, week, or month for that matter.

Now the good news is you have the ability to add positive trade references to one business credit agency, Dun and Bradstreet—but it does come at a cost. However, the first step is to apply for a DUNS number.

For the suppliers that do report, it’s important to note that each supplier has its own specific day to batch and submit payment data to a business credit reporting agency.

In addition, once payment data is submitted to a credit agency, then there is a short delay before it actually populates on a company’s credit report. So don’t expect to see a first payment showing up on a business credit report one or two days after paying an invoice.

For example, let’s say a company has a $5k line of vendor credit with a supplier that sells electronics with net 30 day terms. The company decides to purchase $1,500 in computer equipment using a credit line on January 11.

The company receives an invoice for $1,500 with a due date of February 10 (net 30 days). The company submits its payment to the supplier and it processes the payment on February 9. The supplier records the transaction, but its reporting date is on the 1st of every month. Since the invoice was paid after the 1^st of February, the payment transaction will not be sent to the credit agency until March 1^st, which is the next reporting date for that supplier.

So don’t get discouraged if you do not see a positive payment showing up on your company credit report right away. You can always inquire with the supplier, but it is always best to give it some time.

Another thing to remember is to which business credit agency the supplier subscribes. Not all suppliers report to all three agencies. Some suppliers report solely to Dun and Bradstreet, while others may report to Corporate Experian and Small Business Equifax.

Need Financing to Buy or Grow a Franchise? New Franchise Industry Programs Can Help

Caron_Beesley — Mon, 18 Mar 2013 11:33:42 +0000

The franchise industry, like all businesses, was not immune to the economic crisis of 2008 and the ensuing credit crunch. But the vital signs of a recovery are there. According to the International Franchise Association (IFA), many of the country’s business sectors currently starting to show growth mirror those sectors expected to be the leading drivers of employment in franchising this year. These include food service, health care, hospitality and construction—all sectors with a high concentration of franchise businesses.

“For those Americans dealing with long-term unemployment or a lack of growth opportunities in their current jobs, franchise ownership offers a viable way to be in business for yourself, but not by yourself,” said IFA President & CEO Steve Caldeira.

The Franchise Industry Tackles the Credit Crunch Head-on

Despite these indicators, financing remains a problem for potential franchise owners. According to Entrepreneur magazine (January 2013), there’s still an 18 percent lending shortfall in the franchising industry. In a bid to boost franchise ownership, many franchisors are taking matters into their own hands and offering financing programs of their own. Meineke, The UPS Store, Gold’s Gym, Masasge Envy and Instant Imprints are just a few examples of franchisors now offering financing to qualifying first-time and multi-store franchise owners.

Want to know more? IFA President and CEO, Steve Caldeira offers the following tips (courtesy of Entrepreneur magazine) to would-be or existing franchise owners looking for an alternative to traditional financing options.

Which Franchisors Are Offering Financing Programs?

Approximately 75 to 100 franchisors are offering or working on offering creative financing programs for start-up franchise owners or those looking to expand. Programs range from zero-percent financing for a limited-term, lower license fees, reduced royalties and minority stake ownership by franchisors in multi-unit outlets. Each brand has its own offering, so down payments and collateral requirements will vary.

In addition, the franchise industry is also experiencing a growth in companies dedicated to helping franchise owners secure financing. Two such firms are BoeFly (which matches borrowers to lenders online) and Franchise America Finance (who provides custom lending solutions for franchisees and works with franchisors such as The UPS Store, Popeyes, and Jersey Mike’s).

Always Do Your Franchise and Financing Due Diligence

If you are new to franchise ownership, be sure to do your research and due diligence about the franchise system you’re interested in (get tips on that process here). Study the Franchise Disclosure Document (required by law) and speak to other franchisees about the brand and the financing program on offer. Next, try to understand what your financial responsibilities as a franchise owner will be. This blog offers some pointers on this: Buying a Franchise – How to Determine What it’s Going to Cost You.

Other Franchise Financing Options

Many banks and credit unions offer financing for franchise purchases, so be sure to compare any franchisor lending rates and terms with these. When you approach a bank, be prepared to disclose all your financial information. While your credit rating is important, you’ll also need to provide a personal financial statement, copies of tax returns and information about the source of your down payment funds.

You should also be aware that your choice of franchise will influence a bank’s decision to fund you. Franchises with strong brand names, a track record of consistent profits and cash flow—plus an ability to perform well across a variety of diverse locations—are going to stand you in good stead when you meet with your bank manager.

If your bank is hesitant about a particular franchise system’s performance, or your finances aren’t as strong as they could be, you might want to consider an SBA loan. SBA doesn’t lend to business owners directly; it provides a repayment guarantee to banks and lenders for money they lend to small businesses, making it less risky for the banks. Use this search tool to find the right SBA loan for you.

What is the Best Small Business Credit Card for Establishing Creditworthiness?

BusinessCredit — Thu, 14 Mar 2013 15:58:29 +0000

With fast access to cash, convenience and all the perks that come along with it, a business credit card is a standard tool used by business owners.

But did you know that less than 50% of the credit cards obtained by business owners nationwide are actually in the company’s name?

It’s a shocking reality, to say the least, but the good news is there are plenty of business credit cards that cater to savvy business owners like you who understand the importance of establishing business credit.

The majority of cards one can obtain for a business also have a great deal of benefits such as cash back rewards, rewards points, travel rewards and detailed reports.

Those aiming to strengthen the credit of a business must understand that it’s vital to obtain cards that report payment activity to a business credit agency.

When applying for credit, one of the ways to identify a non-reporting issuer is by what’s required on the application. If all that is required is to supply personal information, a social security number and business name, then this card issuer in most cases will solely report to a consumer credit agency.

Take it a step further and simply read the disclosure section on the application. It will read something like, ‘I Authorize the receipt and exchange of credit information on the business signer, including the exchange of information between XYZ credit card issuer and its affiliates.’

Nowhere here does it disclose that the ‘Business’ will be included in the receipt and exchange of credit information it just states the business signer. (That’s you!)

If this is the case, then be aware that you will be personally liable for all debt your company incurs on this card and all payments and any revolving debt will be reported to a consumer credit agency. This type of business credit card is nothing more than a glorified personal credit card with your company name on it.

Now don’t get discouraged, because there are cards that may require a personal credit check. But the good news is payment activity is reported to both consumer and business credit reporting agencies.

While credit cards that fall right into this category may not be my first recommendation, at least it helps establish company creditworthiness because it reports to several business credit agencies.

The downfall is that your company’s revolving credit card debt is still reporting on your consumer credit reports, resulting in a negative impact on your personal credit scores.

Ideally, the best small business credit card is one that reports only to business credit reports. Thankfully, there are issuers offering these types of cards despite the challenges in the economy.

But before you get too excited, know that most issuers will require a personal and business credit check. The most important thing to remember with these cards only your business credit reports will reflect your revolving debt, therefore protecting your personal credit scores.

Women Business Owners – How to Get the Start-Up Boost You Need with Accelerator and Mentoring Programs

Caron_Beesley — Thu, 07 Mar 2013 12:41:42 +0000

Start-up accelerator programs are popping up all over the country offering industry-focused programs and support for a variety of business owners. Although traditionally focused on high-tech businesses, accelerators now serve a variety of entrepreneurial needs, including those of women, through programs that facilitate mentoring and education, access to investors, and networking opportunities.

Take for example The Women’s Small Business Accelerator of Central Ohio, a nonprofit organization launched last year, with a mission to support women as they launch and grow small and micro businesses. The accelerator, located at 403-409 W. Main Street in Westerville, is just over 6,000 square feet of co-working space divided into four suites, two conference rooms, two kitchens, a creative space, and a training space that accelerator participants can lease at a reduced rate. The accelerator offers approximately 35 office spaces, including private offices and cubicles, available to women-business owners at or below competitive market rates (as low as $225 per month).

To further assist women small business owners, the accelerator offers peer-to-peer support, mentoring, and education (on topics such as writing a business plan with the final goal to secure funding).

The Attraction of Business Accelerators to Start-Ups

A growing segment of the entrepreneurial community, business accelerators clearly offer start-ups many benefits. Yes, the potential access to investors and financing is a huge draw, but for many business owners the attraction comes in the access to mentoring and guidance from a group of experts that incubators or accelerators can provide.

Many of the programs offered are structured and offer a clear path in support of strategic business success. Programs such as The Women’s Small Business Accelerator of Central Ohio typically include educational sessions and interactive monthly roundtables facilitated by small business experts where business owners get to brainstorm real-business challenges and scenarios.

Choosing the Right Accelerators for Your Business

It’s important to screen any potential accelerator. Even though the application process can be quite rigorous, do your due diligence first. Who sponsors the group? Can they really bring experts and investors to the table? Research online and talk to previous participants. Have any of them received the funding they needed? Is the accelerator in the right vertical or industry that matters to your business?

Other Sources of Mentoring and Local Assistance for Women Business Owners

There are several alternatives to business incubator or accelerator programs that women business owners can tap. Women’s Business Centers (WBCs) are one option. Located nationwide, WBCs provide women entrepreneurs with in-person assistance and business counseling programs that can help them start and grow successful businesses. WBCs offer guidance and training on a variety of topics, including business planning and management, marketing, and loan advice.

If you think you need the services of a hands-on expert, take a look at the mentoring and counseling services offered by SCORE. With a network of over 13,000 volunteers (all of whom have business management and ownership experience), SCORE provides free and confidential counseling, mentoring and advice to startups and small business owners nationwide. SCORE mentors can help with specific functional advice such as marketing, accounting, and business planning or overall business guidance.

Additional Resources

For more resources, guides and tools to help women-owned small businesses to start up, operate and grow, check out SBA’s Women-Owned Business Guide.

Related Articles

Buying a Small Business Overseas – 5 Tips for a Smooth Transaction

Caron_Beesley — Mon, 04 Mar 2013 12:42:51 +0000

Interested in buying a business overseas? Whether you’re looking to expand into new markets or are just planning on funding your retirement plans outside the U.S., there are a number of steps you should take to ensure your new venture goes smoothly. Everything from business practices; legal and regulatory requirements; navigating an international sale deal; and language and cultural differences will come into play.

Here are some considerations and issues to bear in mind as you go about buying a business in a foreign country.

Language

If English isn’t the first language in the country where you intend to buy a business, then learning the local language should be your first priority. If you can’t do this, then you will need to think long and hard about your motivation and determination for going the distance in this new territory.

Measure the Risks to Your Capital Investment

No matter how much capital you have, to lessen the risk, be sure to factor in the many variables that come from buying and running a business. Factor in cost overruns, delays getting started and unforeseen expenses. For example, don’t always assume that cheap labor is always going to be quality labor—you get what you pay for. You’ll also incur many of the employment expenses you incur in the U.S. such as benefits, taxes, sick leave, and social security.

Work with an Expert

As with any overseas venture, one of the most important things you can do when buying a business abroad is to consult an expert. Accountants, lawyers, tax attorneys, and real estate brokers, can all help you succeed with your cross-border purchase. To ensure the best representation, work with experts who have experience in the location and industry in which you are buying a business. But you’ll also need to find in-country experts who are familiar with business and regulatory matters in the country you intend to buy a business.

Do Your Research About Cross-Border Deals

It goes without saying that any business venture requires research, so here are some issues you should bear in mind:

Laws and Regulations – Legal and tax regulations overseas can be even more complicated than in the U.S. for business owners. Licenses and permits, for example, can take several months if not years to be granted. You’ll also need to understand how the country handles expatriation of taxes on profits on foreign business owners. Much of this information can be found online, but for more information, reach out to local in-country small business organizations, business leaders and chambers of commerce.
Understand the Buying Process – As you seek advice, be sure to ask about the negotiation and valuation process involved in buying a business. What’s included in the sale? You don’t want to be left with a hollow shell of a business when you thought you were getting furniture and fixtures too.
Pay Heed to the Competition – As an outsider, it can take a tough skin to make a success of a small business in a foreign location. Be ready for that—look for ways to test the waters of the community before you take the plunge. Also look to the competition to understand your market potential—is there a gap or untapped need that you think your business can serve?
Determine How You Intend to Manage Your Business – Will you re-locate yourself (that brings with it a raft of immigration factors), or will you manage it from the U.S. with on-site staff? Could you keep the current owner and hire him or her as an employee? Know your options before you hit the negotiation stage, and weigh the benefits of each.

Be Prepared to Connect and be Agile

Last but not least, buying and running a business—let alone an overseas business—requires tenacity, agility, and deep personal connections. So do your research, weigh the pros and cons, have a plan and heed laws and regulations. But above all, be true to your ambition and drive. Some of the best small business owners succeed not because they stick to the rulebook, but because they look for ways to take the initiative and forge a path for themselves.

4 Factors to Consider When Deciding About Financing

bridgetwpollack — Thu, 21 Feb 2013 16:39:22 +0000

If you are looking to make any major improvements in your business, whether it is a second location, new equipment, or an additional product line, you most likely need business financing. But getting financing for your business can be intimidating. Despite this economic downturn, banks are still lending. However, the way banks are lending to small businesses has changed pretty significantly and they are more cautious about where the money is going, especially when considering a loan to new businesses with no track record. As a result, you may need to consider a number of options to get the money you need, whether you are looking to launch a business or need additional financing for an existing enterprise. However, before you look into alternative financing, talk to a SCORE mentor about the various factors that influence which financing option will suit your needs:

Business Impact

According to the U.S. Small Business Administration, factors financing institutions take into consideration include determining the specific uses for which you need the money, whether your business is seasonal or cyclical, and whether you plan to expand. Work with your SCORE mentor to create a written business plan that will help you clarify your financing needs.

Types of Financing

Common types of financing include bank loans, SBA loans, crowdfunding, receiving funds from a venture capitalist (in which you take on investors in exchange for providing them with an ownership stake), or borrowing from friends and family members. If your small business is engaged in scientific research and development (R&D), you may qualify for federal grants under the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs. You may need to solicit funds from all of these sources to obtain the amount of money you need. You could also tap into personal savings or even take out a second mortgage on your home.

Pros and Cons

Each type of financing offers certain benefits and pitfalls. For example, grant money, venture capital funds and your own money do not have to be repaid, so you won't incur additional debt. If you borrow from family and friends, you may receive a low interest rate as well as flexibility in payment terms. If you borrow from a bank, you may have more stability, avoid using your own money, as well as avoiding the potential tough situation of approaching people you know to ask for money.

If you borrow from friends and family, you need to consider what would happen to your relationship if your business fails and you cannot repay them. If you default on a bank loan, you could lose your business and need to file bankruptcy. If you work with venture capitalists, you may need to relinquish some control of your operation.

Potential

Whatever method of financing you decide to pursue, your ability to sell your business concept for starting or growing successfully will increase the potential of obtaining financing when asking for money. Factors that will help you sell your idea include a solid business plan, the ability to demonstrate the need for your business in the marketplace, and any successful business experience you had in the past. Talk to your SCORE mentor today to get started with your financing planning needs.

5 Tips for Successfully Navigating the SBA Loan Application Process

Caron_Beesley — Tue, 19 Feb 2013 12:26:20 +0000

In the market for a business loan? Heard about SBA loans but not really sure how they work or how to go about applying for one?

The following are common questions that small business owners have about SBA loan programs and the loan application process.

1. How do SBA loans work?

While the SBA does offer numerous loan programs to help small business owners finance their businesses, it doesn’t actually lend businesses the money. Instead, a bank makes the loan, which is backed by the SBA. This allows the bank to take a little more risk than they otherwise might.

So this means that if you are seeking a business loan and don’t qualify for a traditional bank loan, perhaps because you don’t have the collateral or years in business to justify the loan, the government can help – although you still need to work primarily with a bank.

2. Who makes the decision that an SBA loan is right for my business?

If you’ve been turned down for a traditional bank loan, or are curious about SBA loan programs, where should you start? Should you go to the bank and ask for an SBA loan, or would they instinctively guide you towards one?

While your local SBA district office can help explain the available loan programs and determine your eligibility for them, you’ll need to find a local SBA lender to kick-start the application process. These banks and financial institutions can help you determine which loan program might be right for you, whether it’s a traditional bank loan or an SBA-backed loan. They are also your point of contact for processing your loan application.

3. How do I determine which SBA loan is right for me?

The SBA offers numerous loan programs depending on your business profile, financing needs, growth plans and so on. There are a number of ways to identify the right loan program for your business.

If you are in the early stages of exploring your financing options, check out the SBA’s Online Loans and Grants Search Tool. Answer a few quick questions about your business and the tool will suggest government financing programs for which you might qualify.

Once you’ve done your research, consult your local SBA District Office and ask them to steer you towards a few SBA lenders in your area so that you can be sure you’re getting the right loan program for your business – and the right bank!

4. How should I prepare for my meeting with the bank?

Preparation is key and it’s important to understand some of the criteria that might influence your eligibility for an SBA loan. These include credit factors – such as making timely debt payments (payment on existing credit relationships, both business and personal, is considered an indicator of your ability to repay a loan), cash flow projections and your debt-to-worth ratio. Collateral and working capital are other factors that may impact eligibility.

SBA offers guidance on all the factors that lenders look at here.

You’ll also need to ensure you are in good standing with your state treasury and the IRS (i.e., you’ve paid all taxes owed).

And don’t forget the most important document – your business plan with at least three years of financial projections; a view of what you’ll do with the proceeds of the loan; and solid proof that you know your industry and target market. This is particularly important for start-ups that don’t have a financial history. The bank will base its decision on your industry experience and future plans.

If you don’t have a business plan, check out SBA’s Build your Business Plan Tool – a step-by-step guide to help you get started. You can save the plan as you go and download it when you’re done.

5. What do I need to complete my SBA loan application?

An incomplete loan application won’t do you any favors with the bank and could slow down the entire loan process. Familiarize yourself in advance with the key components of the loan application – from the right forms, to the necessary background information. Refer to this SBA Loan Application Checklist to ensure you have all your i’s dotted and t’s crossed. SBA also offers a free online training course: How to Prepare a Loan Package.

Additional Resources

How a Virtual Office Creates a Professional Corporate Image

BusinessCredit — Thu, 14 Feb 2013 20:25:25 +0000

During the initial stages of the business credit building process, I’m sure you have heard about the importance of setting up a commercial office location. A physical location that is zoned for business speaks volumes for your company and its operation.

If you decide to use your home address for your company’s business address, keep in mind that some lenders may not extend credit to a “home-based” business. However, you still have many credit opportunities with a home-based business; so don’t let that stop you.

If you do decide to use your home address, make sure you designate a specific area in your home where you can run your business in order to allow for the proper home office tax deductions.

But, if you’re adamant about having a commercial address but renting office space is out of the question, then you may want to consider a virtual office address.

Some companies offer a turnkey corporate image with all the tools you need to not only run a business, but to meet the business credit building requirements.

For a flat monthly fee, you get a business phone number, a live receptionist answering phone calls, a corporate business address for all your mailing and packages, personalized voice mail box that converts to email, and even a fax number that will convert to email.

It is an excellent solution for start-ups and small businesses looking to keep costs low while gaining all the resources of a professional corporate image.

If you are searching for a virtual office, consider one that includes the following:

Dedicated business phone number
Professional live receptionist answering calls in your business name
Corporate mailing address
Business fax number
Fax forwarding to email
Voice mail forwarding to email
Corporate voice mail boxes
Call forwarding to multiple phone numbers

While there are many companies offering virtual office services that can accommodate your business, it’s important to utilize the most cost effective solution as a startup company. There are companies that offer this type of service at an affordable price so you can establish a corporate image with all the resources already in place.

Keep in mind if you decide to set up a virtual office, make sure that all of the information you supply is identical to the information you have on your corporate documents. This includes things like the spelling of your company name to the description of your business operation.

Remember, there should be no differences in your company information across all business documents, registrations and listings.

Give your business the professional image you require to get ahead of the competition while you meet the compliance demands from creditors, suppliers and lenders.

The Bigger Financial Picture – Is it Time to Hire a CFO and Where Should You Look?

Caron_Beesley — Mon, 11 Feb 2013 12:34:55 +0000

So, your business is growing. While you may or may not have an accountant on hand, what about your bigger financial picture? Is it time to hire a Chief Financial Officer?

More than just a bookkeeper, payroll administrator or keeper of P&L and cash flow statements, a Chief Financial Officer (CFO) can help you plan, model, forecast and make better business decisions. A CFO looks at your business holistically–this includes people, processes and systems–and ensures that together you have accurate financial information to plan for the future.

A CFO will also work with you or your accountant to understand the drivers for business performance. They’ll pick up on signals that might indicate a problem (such as a potential cash flow issue down the line), and help you make informed decisions about reaching your business goals.

Are You Ready for a CFO?

We all have sleepless nights worrying about the direction of our business; when cash flow will take a turn for the better; or where our next higher margin client is coming from. And being a small business owner, wearing all those hats, it isn’t easy to step away from the day-to-day details and look at your business as a whole.

A CFO can help with these worries–and needn’t break the bank in the process.

How to Cost-Effectively Hire a CFO

If your business is growing fast, then you could consider hiring a CFO on a part-time or as-needed basis and start delegating some of that financial angst. Management consulting firms often offer this type of service. If budget really is an issue, consider the volunteer services of SCORE.

SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. SCORE mentors deliver free, confidential, valuable advice for your business needs across diverse industries and business functions including finance, marketing, operations, technology and more. Connect with a mentor here.

Not Quite There Yet? Consider an Accountant

If you are still in start-up or growth mode—or feel you’d benefit with the help of someone to take care of your daily financial obligations such as account payables and receivables, payroll, taxes, and make sound judgments to benefit your personal and business finances—then you should really consider hiring an accountant. If you already have one, consider leaning on their services a little more.

An accountant can save you time and clear up much of the confusion that you experience when it comes to managing your finances. This blog offers tips on finding and interviewing potential accountants: How to Find an Accountant Who Can Help Your Small Business over the Long Haul.

Much Higher Surety Bond Guarantee Ceilings Enable Small Businesses to Bid on Larger Contracts and Grow

byrned — Wed, 06 Feb 2013 16:36:26 +0000

A major revision in the U.S. Small Business Administration’s Surety Bond Guarantee (SBG) Program more than triples the eligible contract amount, from $2 million to $6.5 million, the Agency will guarantee on surety bonds for both public and private contracts.

What does this mean for small businesses trying to grow?

A Los Angeles subcontractor for example, was looking to take on bigger jobs and grow its business, but needed a much larger bond to bid on and get a contract that was larger than past work it had performed.

As a direct result of higher SBA guaranteed bond limits, companies like that California contractor can now experience continued growth in bonding capacity, employ more employees and improve revenue streams. And with that kind of growth and resulting experience on bigger jobs, such companies can bid on more federal construction contracts, build an even stronger management team, and set strategic plans for bigger contracts and expansion into larger markets.

Contractors purchase surety bonds to guarantee that they will complete contracts. If the contractor fails to complete the contracted work, the surety bond is used to pay for completion. The SBA offers a guarantee of up to 90% on three types of surety bonds: bid bonds, which ensure that if a bidder wins a procurement competition the bidder will sign the contract; performance bonds, which ensure the contractor will complete the work as contracted; and payment bonds, which ensure that the contractor will pay its supplier and subcontractors.

These increases in bond capacity result from provisions in the Fiscal Year 2013 National Defense Authorization Act and are expected to bolster participation by surety bond agents and brokers and their surety companies in SBA’s SBG Program.

The changes also allow SBA to guarantee bonds for government contracts valued at up to $10 million if a contracting officer of a federal agency certifies that the guarantee is necessary for the small business to obtain bonding, and it is in the best interests of the government.

SBA partners with the surety industry to help small businesses that would otherwise be unable to obtain bonding in the traditional commercial marketplace; and now, with the increased capacity, that public/private cooperation helps these small businesses grow as well.

If your small business needs SBA assistance in locating a participating surety company or agent, and completing application forms, simply go online to http://www.sba.gov/osg/, or call 1-800-U-ASK-SBA.

How to Take on Venture Capital Without Losing Control of Your Start-Up

Caron_Beesley — Mon, 28 Jan 2013 12:42:44 +0000

Considering options for funding your start-up? Wondering if now is the right time to seek venture capital, but worried about losing control of your business?

Here are some tips for weighing your funding options, finding the right venture capital firm for your needs, and working with them once you’ve received your first injection of seed money.

Is Venture Capital Right for Your Small Business?

If you are looking for funding under $200,000, smaller angel investors (this could include borrowing from family and friends) or peer-to-peer lending or crowdfunding might be better options than a larger VC firm. Other alternatives include SBA loans. SBA doesn’t provide the loan; instead, they provide a repayment guarantee to banks, removing much of the risk of lending to small businesses. If your business is engaged in a high-tech industry or R&D, another option is a Small Business Innovation Research Grant. These federal funds support the critical start-up and development stages of small businesses.

Finding the Right VC Firm

If you have a proof of concept and are ready for a significant investment to fund your next stage of growth, then venture capital (VC) might be for you. But how do you find the right VC firm with which to align your business?

Given that a VC firm is going to be involved in your business’ funding and management, choosing one that provides a good match for your business is critical. Look for companies that have experience with businesses and industries like yours. Since a VC is going to be actively involved in your business, other factors such as its personality and core values are also important. A VC that is located close by might also be important.

So where can you find potential VC investors? If you have a good network then there’s a strong likelihood you can pinpoint potential investors via this route. Start locally and extend your search from there. Here are some tips and resources that can help:

Start in your Community – If you are involved in a local Chamber of Commerce or other small business group, start your search here. Talk to experts and business peers alike. Small Business Development Centers (SBDCs) and Women’s Business Centers may also be able to help introduce you to local investors. Find a center here.
Talk to Your State Economic Development Agency – At the state level, State and Local Economic Development Agencies may be able to help refer you to investors in your region.
Consider Trade Associations – Most industries are represented by a trade association, this is another great place to expand your search and meet potential investors. You can also look into national and local investing and venture capital groups like the National Venture Capital Association and the Angel Capital Association.

Your next step is to present any potential investor with a business plan. SBA’s online Build a Business Plan tool can help you create one.

How to Maintain Leadership Control of Your Company

Many small business owners are reticent to invite VC funding because they’re concerned about losing control of their business. While it’s true that a VC firm will insist on controlling more than 50 percent of an early-stage entrepreneurial enterprise—does this mean you actually relinquish control of your business? Not necessarily. VC deals are structured around mutual incentives and milestones that are beneficial for all, and are rarely about one-sided control. VCs want business founders to aspire to grow and succeed, and they structure the financing deals to ensure this. For example, the terms of typical VC financing dictate that the investors don’t realize a profit until management does (assuming that they’ve already seen a return in capital invested) and vice versa.

Another emerging trend, as reported by the New York Times, is that VCs are increasingly putting a premium on young, visionary entrepreneurs who grew up with the Internet, social media and mobile technologies. With this clout behind them, these young founders are becoming more assertive in funding rounds, securing better terms and even cashing out their investors before an initial public offering.

That’s not to say your VC can’t move to replace you if your business isn’t performing or hitting key milestones. Some other things you can do to ensure you retain some level of control include the following:

Insist on an Employment Contract – This can minimize the risk of founders getting fired by their board of directors. Negotiate this before any seed money has exchanged hands.
Hire Stellar Employees – Poor staff will compromise the success of your business and jeopardize your position on the management team. By hiring right, you’ll ensure key milestones are understood and met, and profits are realized.
Collaborate with your Investors – In addition to funding, investors bring a wealth of experience. Capitalize on this and treat your VC as a partner—not as a threat.

For other tips, read Surprising Ways to Maintain Control of Your Business with Investor Approval from Yahoo Small Business Advisor.

Has your business sought VC financing? What best practices can you share for working with VCs? Leave a comment below.

Business Loans – What Lenders Look for and Tips for Winning Them Over

Caron_Beesley — Tue, 22 Jan 2013 12:31:20 +0000

Securing small business financing can be challenging. Whether you are just starting out or looking to grow, banks and lending institutions can be rigorous in their lending review practices.

For example, businesses with few assets to their name may find it hard to secure a traditional loan. Other business owners may not be able to provide the reassurance that lenders seek to alleviate their concerns that your business may fail and the loan won’t get repaid. So when you approach a lender, it’s just as important to understand the basis on which loans are made as it is to stack up your financials and business plan.

So what are lenders looking for in a potential loan applicant? Here’s what you need to know.

Loan Applicants Need to Check off Several Boxes

What are loan officers looking for when approached about a loan? Here are some basic “must-haves” that the ideal candidate might be expected to evidence:

That you have sufficient assets, financial reserves and personal collateral to endure business fluctuations (and still pay off your loan)
As an existing business owner, you’ll need to show that you have solid cash flow, sufficient to repay the loan
New businesses need to evidence that they have a track record of profitability and success in a similar business endeavor

Let’s face it, that’s a tricky list for any prospective or existing small business! So what are your options? Proving your creditworthiness is still possible, with some planning and preparation.

How to Prove Your Creditworthiness

Bankers need to make money, and while they may have an ideal candidate in mind, even they have to compromise—this is where your opportunity lies. The trick is to demonstrate, using other means, that you are a creditworthy business owner. For example, if you are new to this business, can you show success in managing a similar business another field (even if you weren’t the owner)? Perhaps you’ve owned or managed a profitable business in a different industry? Lending officers might be more agreeable to your application if you can show that you supplement your own experience with that of someone who also has success in the field.

Putting yourself in the lender’s shoes is a good starting point. It’s much like a job interview, where you form an understanding of the type of candidate the employer is looking for and prepare your application and anticipate questions accordingly. Ask yourself: “Why should this lender think my business can succeed where others have failed?” and have a thorough answer prepared, plus a detailed explanation of how the money will be used and your plan for paying it off.

Step Back and Prepare

Key to this preparation is a solid business plan, good personal and business credit, and some expert help. The following SBA resources and tools can help guide you down this preparation path:

Build a Business Plan Online Tool – Putting pen to paper to write a business plan isn’t the easiest of tasks. Check out this new tool from SBA that guides small business owners through the process of creating a basic, downloadable business plan—and offers pointers on essential elements like cash flow and financial projections. The great thing about this tool is you can build a plan in smaller bites, save your progress and return at your leisure.

Clean Up Your Credit – Business credit is an asset and considered an economic resource that makes up the financial foundation of a company. Lenders look for assets. SBA guest blogger Marco Carbajo blogs regularly about how to build your business and personal credit to help secure financing. Check out his article, How To Build Business Credit For Your Start Up, and view more of Marco’s articles here (you’ll need to log into the SBA Community to follow this link).

Consult an Expert – Whether you need help finding the right loan for your business or a guiding hand that can help you through the application process, don’t feel that you have to go it alone. Local Small Business Development Centers, Women’s Business Centers, and SCORE (a mentoring organization for small businesses) can help you through the process. Find one of these groups in your community.

Can’t Get a Business Loan? Consider Alternative Financing from SBA Loan Programs

If you or your lender decides that you aren’t the right candidate for a traditional business loan, you still have options. Consider an SBA Loan Program. The SBA doesn’t lend businesses money; instead, these programs take the risk away from the banks and encourage them to make loans to small business owners by guaranteeing part of the loan.

Check out these additional online learning resources that can help you navigate the SBA loan process:

How to Prepare a Loan Package
Video interviews with successful entrepreneurs who share the lessons they've learned about owning a small business and securing an SBA loan

Why Your Business Needs to Get a DUNs Number

BusinessCredit — Thu, 10 Jan 2013 16:55:44 +0000

Did you know that a DUNS number is the most widely used number for identifying companies in the United States?

Did you also know that suppliers and creditors alike pull a Dun and Bradstreet (D&B) credit check on your business when you apply for credit?

Part of establishing a creditworthy company includes establishing positive credit ratings with major business credit reporting agencies such as D&B. If you are serious about establishing credit for your business, then the first thing to do is get listed in D&B’s database and set up your company’s credit file.

When you apply for a DUNs Number with D&B, the Data Universal Numbering System issues a nine-digit number that is unique to your company. This DUNs number is used to create your business credit file, similar to how your social security number is used to identify your personal credit reports.

To obtain your DUNs number, first enter your legal business name, city, and state in the search box on the D&B website and click on the search tab. This will verify if your company is already listed with D&B and has been issued a DUNS number.

You’ll see a list of possible matches, but click on the tab only if you believe there is a match to your company name. Doing so requires that you verify specific information about your business.

Once you gain authorization, D&B provides you access to your files via iUpdate, where you can review, update, correct and add company information. If your company does not show up in the search results, then most likely you do not have a DUNs Number.

The next step is to apply for one.

It is important to note that once you apply for a DUNS Number at no charge, your file will be created. But it will be considered an incomplete file (marketing file) if you have no trade references reporting. If this is the case, you can either add trade references to your file by enrolling in a monitoring program or you can apply for credit and wait for a supplier to report your company’s payment activity.

Remember, once you obtain your DUNS Number, the next step is to start establishing business credit by adding positive trade references to your file. This only happens when you start making purchases with creditors that report payment activity.

With more than 500,000 suppliers in the U.S. and less than 6,000 that actually report to the business, credit agencies don’t get caught up in the mistake of applying for credit with non-reporting creditors when your chief aim is to build your company’s credit file.

Ultimately, a creditworthy profile will help creditors, lenders and suppliers assess the creditworthiness of your company when you apply for credit.

Cutting the Red Tape For Small Business

Karen Mills — Wed, 19 Dec 2012 22:04:54 +0000

President Obama has made creating a more efficient government a top priority. As part of this effort, he has called on Federal agencies to streamline their rules and requirements through reducing paperwork burdens.

At the Small Business Administration, we’ve eliminated more than a hundred of pages of paperwork from our loan applications and simplified our programs, increasing access and opportunity for America’s small businesses and entrepreneurs and saving them time.

For example, we created a simpler application process for our Small Loan Advantage program for loans under $350,000, called SLA 2.0. And as a result, we’ve seen a threefold increase in participating lenders and a more than 280 percent increase in the number of loans provided since its launch.

We’ve also reengineered our CAPLines Program, a product designed to help small businesses meet their short-term and cyclical working-capital needs. As a result, we streamlined the paperwork, allowed banks to use more of their own processes, and we are now seeing volumes up roughly 300 percent in dollars and 400 percent in loans.

And we’ve transformed our Office of Disaster Assistance and made it easier for those affected by a disaster to apply for a loan. The application for home loans is four pages and three pages for business loans. During Hurricane Katrina it took almost 77 days to get a disaster loan turned around. Today, in the aftermath of Hurricane Sandy, more than 60 percent of the Sandy applications are coming in on-line and being turned around in just 14 to 18 days.

For high growth businesses and the funds who invest in them, we’ve reduced the processing times to license new Small Business Investment Company funds to just 5.4 months from about 15 months in 2009. This streamlining helped fuel our third consecutive record-breaking year in FY 2012. Investment funds licensed as SBICs provided more than $3 billion in growth capital to over 1,000 small businesses, a 17 percent increase from FY11 and an 83 percent increase from FY10—all at no cost to the taxpayer.

And we just released a new consolidated online learning platform, which includes a streamlined searchable catalog of courses to help meet more business owners where they are, whether it’s a classroom, online, or at the office.

As we look to build on this progress in the coming months with ambitious new efforts to further streamline and simplify programs across the Agency, our goal will always remain to ensure small businesses have seamless interaction with the SBA and services across the Federal Government.

President Obama has said that when small businesses succeed, America succeeds. At the SBA, we’re focused on doing all we can to help America’s entrepreneurs get the access and opportunity they need to what they do best: grow their businesses and create good jobs.

Building a Business Plan – New SBA Online Tool Can Help You Get Started

Caron_Beesley — Thu, 13 Dec 2012 11:50:50 +0000

Having a business plan is a must for small business owners, but finding the time to put pen to paper often means putting them on hold until the very last minute, such as right before that big meeting with a loan officer or bank manager.

But business planning does not have to be that way.

Every smart entrepreneur and business owner should already have a firm grasp of key information about their business and on what will influence the path they take and decisions they make over the course of 1-3 years.

Putting this information together into a concrete plan is essential if you want to secure a business loan or outside financing, of course. But the planning and mental exercise of writing it down is just as important to the success of your business. Writing a plan will not only help you succeed, but it will open your eyes to what it’s going to take to get there.

One of the big challenges for smaller businesses is actually building a business plan. What format should it take? What numbers should you pull together to demonstrate that you have a rock solid financial foundation?

SBA has just launched a new online tool that can help.

“Build a Business Plan” Online Tool

To simplify the process, SBA has just launched a new “Build a Business Plan” online tool that guides small business owners through the process of creating a basic, downloadable business plan. The great thing about this tool is you can build a plan in smaller bites, save your progress and return at your leisure.

To use the tool, you’ll need to be a member of the SBA Community (register here) and then log in. The tool offers a tab-based step-by-step guide that lets you enter information into a template for each section of the business plan, including market analysis, company description and financial projections. The tool is secure and confidential and will keep your plan on record for up to six months. You can also save, download or email the plan at any time.

Discuss Your Plan with a Small Business Advisor

Don’t forget: you can also use your completed business plan to discuss your next steps with a mentor or counselor from an SBA resource partner such as SCORE, a Small Business Development Center or a Women's Business Center.

Then be sure to keep your plan fresh, revisit it, and measure progress against it. As your business grows, your plan – and your benchmarks for success – will grow with it.

Related Articles

How to Determine the Fundability of Your Business

BusinessCredit — Thu, 13 Dec 2012 01:07:30 +0000

The definition of fundable is the capability of being funded or being bankable. A company’s fundability is crucial to obtaining the necessary funds needed to operate, develop and grow a business.

Unfortunately, the most common mistake business owners make is applying for financing before their company is even ready.

Why not know in advance if you qualify for funding before actually applying?

Instead of relying on personal credit, why not establish a fundable company that can get the financing it needs based on its own creditworthiness.

There are several different areas that contribute to how fundable a business will be for short-term or long-term financing. The three main areas that impact a company’s fundability include:

1. Compliance – Lenders have specific guidelines that credit applicants must adhere to as part of the underwriting process. Meeting these standards is mandatory if you expect to qualify for credit. This includes, but is not limited to: corporate structure, business listing, commercial address, state filings, licenses, etc.

2. Business Credit Reports – Getting listed with the major business credit agencies such as Dun and Bradstreet, Experian and Small Business Equifax allows lenders to review your company’s credit profiles. Creditors rely on these particular agencies to assess the credit worthiness of a company. If you apply for credit with a lender or supplier and your company is not listed, then you may get denied credit or be required to allow a personal credit check and/or personal guarantee.

3. Business Bank Account – Another factor is a company’s bank account history. Bank credit consists of three main components a business owner should familiarize him or herself with prior to applying for funding. This includes, but is not limited to: account age, account history, balance rating, etc. In some instances, a lender may contact a business owner for bank references, so maintaining a positive banking relationship is vital to a company’s fundability.

4. Company Assets – Turning paper into cash is not a new strategy, but it is definitely an option worth considering if you have access to the types of paper that can be converted. This includes, but is not limited to: letters of credit, financial contracts, accounts receivable, inventory, real estate, promissory notes, etc.

All of these factors play an integral part in determining how fundable a business is. Lenders also take into consideration the age of a business and the type of industry involved.

These are just a few of the items that are regularly used by lenders, credit providers and even insurers to approve or decline an application. Now is the time to find out where your business stands.

The Small Business Investment Company Program Annual Report Shows Record Capital for Small Businesses

Sean Greene — Fri, 07 Dec 2012 21:00:48 +0000

As head of The Investment Division of the U.S. Small Business Administration, I am proud to present the results of the Small Business Investment Company Program for Fiscal Year 2012 in our Annual Report . We have achieved record success for a third year in a row, providing the capital small businesses need to fuel their growth and create jobs. This Annual Report reflects our commitment to the continued growth of the SBIC Program.

With the economy still in recovery, SBA’s mission of supporting small businesses and the Americans they employ has never been more critical. Small businesses are responsible for creating over 60% of the country’s net new private sector jobs each year. Yet despite their importance to the health of the overall economy, many small businesses struggle to access the capital they need to expand operations, build new facilities and hire new staff.

In FY 2012, the SBIC Program channeled more than $3 billion to over 1,000 small businesses. And we estimate these financings created or sustained over 65,000 jobs. We achieved these results at zero cost to the taxpayers, thanks to the public-private partnership at the program’s core. Even in an era of tightening budgets, SBA is able to efficiently harness the talent of professional investment managers to expand the pool of capital available at the smaller-end of the market.

Critical to the success of the program is attracting private capital to the funds. The Annual Report analyzes in detail the financial returns to private investors participating in the program and found that these returns compare very favorably to the private equity industry as a whole, and demonstrate that private investors can significantly improve their return by accessing SBA leverage.

As we look to the future, we are investing heavily in improved data management systems, both to enhance our own underwriting processes, but also to provide current and future program participants additional data for more informed investment decisions.

In line with the SBA’s agency-wide commitment to transparency in government, the report was prepared with U.S. taxpayers in mind. We hope all of our stakeholders find this SBIC Program Annual Report useful in evaluating the program’s past, but also in helping to shape its future.

How a Good Fico Score Impacts Business Fundability

BusinessCredit — Fri, 16 Nov 2012 03:27:56 +0000

One of the benefits to building a creditworthy company is that lenders, creditors and suppliers will determine the level of credit risk based on the company’s creditworthiness rather than that of the owners.

However, there are instances where a lender will require a personal credit check as part of the overall risk assessment. In these cases, it is in the best interest of you, the business owner, to have a positive credit rating with the consumer credit agencies.

If credit scores currently fall below 680, then focus on taking positive steps to improving those numbers.

With good fico scores, you have a much greater selection of funding options to choose from. Even if a lender is allowed to check a credit rating, once approved, the creditor may only report the debt and payment history to the company’s credit files – not the files of the owners.

If you decide to apply for business credit with a lender who requires a personal credit check, you should know what the scores are beforehand.

FICO is the most widely used credit scoring system in the world. The majority of lenders will use this system to obtain scores to determine the credit risk of an individual. Each score is based on the information that each consumer credit agency keeps on record.

First, you should visit the MyFico website and determine his Transunion and Equifax credit scores. They will provide a detailed explanation on the positive and negative factors affecting the scores.

Secondly, order the credit score from Experian at the main website. Currently, Experian offers a credit report and credit score that includes a breakdown of factors that raise and lower scores.

Once you receive your scores and reports, you should look for any errors, inaccuracies or outdated information. If any questionable items are uncovered with any of the reports, then initiate a dispute n immediately with the agency containing the errors.

For Equifax – Go to Equifax.com and click on the “Dispute Errors on My Report” text link. You can initiate a dispute online, but you will need to supply a confirmation number that can be found on your Equifax credit report.
For Transunion - Go to Transunion.com and click on the “Credit Disputes, Alerts & Freezes” tab. You will need to create an account first, but once you log in you will be able to initiate a dispute, check your dispute status and trigger a credit freeze if needed.
For Experian – Go to Experian.com and click on the “Disputes” text link located at the bottom of the page. You will need a report number that can be found on your Experian credit report. On this site, you can start a new dispute, check the status of an existing dispute and view results of a completed dispute.

It is vital to monitor personal credit and ensure all information being reported is accurate and up to date. Just one mistake can impact credit scores and cost hundreds, if not thousands, of dollars in additional payments and interest that a business owner should not be paying.

Celebrating Veterans and America's 2.4 Million Veteran-Owned Small Businesses

Rhett_Jeppson — Fri, 09 Nov 2012 18:21:28 +0000

Each Veterans Day we honor veterans: those serving to protect us at home and abroad, and those who previously served. America’s service members put themselves in harm’s way to protect our freedoms and safety here in the U.S.

As a fellow veteran, I, too, understand the many sacrifices our men and women serving in the military and in the National Guard make daily, whether it’s serving overseas, or serving in a location here in the U.S. For more than 20 years I had the privilege of serving with many of these fine men and women in peacetime and in wartime. I have a deep gratitude for those who have gone before us, paying the ultimate sacrifice, and the many who still pay the price every day from injuries received while in service to our nation.

We, as a country, have such a strong and proud military heritage, as remembered this year with commemoration events to mark the 200th anniversary of the War of 1812 and the 50th anniversary of the Vietnam War. But it’s not just historical events that remind us of the selfless contributions made by services members; we are thankful every day to welcome veterans home from today’s conflicts across the globe.

Our men and women in uniform are everyday heroes, whose strength, duty, devotion, and resolve to protect and defend that which has kept our country safe for over 200 years. In times of peace and conflict, there is no doubt that their accomplishments have been extraordinary. The best way to honor veterans and their sacrifice is to provide them with the best possible service and opportunities here at home.

Part of the mission of the U.S. Small Business Administration (SBA) is to provide assistance to veterans and service-disabled veterans who return home to start, resume, or further grow their businesses. In fact, SBA supports Veteran business owners through entrepreneurial training and mentoring, access to capital, and business development opportunities through government contracts. To see all of the opportunities SBA has for veterans, please visit www.sba.gov/veterans.

Many of the transitioning service members apply the skills and experience they develop on the battlefield to a life of service here at home. They take on roles in their communities as doctors and police officers, engineers and entrepreneurs, and mothers and fathers. Did you know that nearly one in 10 small businesses nationwide is veteran-owned? And collectively, these 2.4 million small businesses employ nearly six million Americans and generate more than $1 trillion in receipts. In the private sector workforce, veterans are 45 percent more likely than those with no active-duty military experience to be self-employed.

For veterans who choose self-employment after military service, SBA is focused on outreach efforts for programs such as Boots to Business, an entrepreneurial training program; to Veteran Resource Centers for business counseling; and supporting access to capital for veterans through our Patriot Express Loans.

If you are a veteran or know one, please check out www.sba.gov/veterans and www.sba.gov/reservists to learn more about how we can help.

With the highest gratitude and respect, thank you, veterans, for your service. Your commitment to our nation, your communities and your families are the foundation on what makes this country great.

Set Goals Before You Start Your Franchise Business Search

FranchiseKing — Tue, 06 Nov 2012 14:00:06 +0000

If you’re searching for the right franchise to buy, it’s important to set some goals. One reason that you’re going to want to have some specific goals set up is this: There are over 3,000 franchise opportunities to choose from! With that many choices, it’s way too easy to get lost and flounder around aimlessly, trying to find that perfect opportunity.

My aim is to make the franchise discovery process as seamless as possible. (Actually, it’s my goal.)

Goal #1- Budget

You need to decide how much you’re willing to write a check for. In other words, how much of your own money (before any business loans) are you willing to risk? For example, if you’re looking at a franchise that has a total cost of $200,000, how much of that $200,000 is going to come from the money you have on hand?

If you need help figuring out your finances, the SBA has 10 questions just for you. The goal here is to come up with a budget that you can live with.

Goal #2 - Time

Choosing, researching and buying a franchise can take a while. You need to come up with a time frame; otherwise your search for an opportunity to become your own boss may be never-ending. And before you say “Hold on, Joel; I’ll spend as much time as I need to find a franchise to buy. This is a major decision, and I want to be choosy,” hear me out.

I understand that you want to be careful. That’s what most of the articles I write here are designed to help you do. But if you go into your franchise search with no goals, in this case, no time-frame goal, you may end up in a never-ending circle of “looking.” And, looking…

In other words, having no time frame could mean making no decision. Six months from now, do you still want to be “looking?” Or, do you want to be “doing?”

Goal #3 - Use professionals

Make it your goal to use business professionals before you start searching for a franchise business opportunity. And yes, you’re going to have to invest some of your money to do this. Notice that I used the word “invest” instead of “spend.” That’s because using competent professionals is an investment in your future.

For example, most franchise agreements (contracts) are 10 years in length. That means that if you buy a franchise, you’re going to own it for 10 years. That’s a long time. And unless you’re an attorney, you’re going to discover that the legal documents that franchisors are required to send you (that you’ll be required to sign) are pretty complex.

There’s no reason to try to figure out the intricacies of these documents all by yourself. Hire a franchise attorney. They’re used to reading, and even writing, franchise documents. An accountant that’s familiar with small business-and small business taxation-should also be on your list of professionals to contact and hire.

Finally, there are several small business resources that are available at no-cost to you. Check out The Small Business Administration’s local resource page.

If your goal is to someday become the owner of a franchise, have some goals set up before you start your search.