Financing Your Business In 2010 – 3 rules that have changed
2009 was wrought with disaster for Main Street businesses; from the financial crisis making access to capital nearly non-existence to the recession that significantly curbed consumer spending " both of which detrimentally hurt the cash flow of nearly every business (small and large) on this planet.
But, as we look back on a very unfavorable year for business financing, there are some lessons that can be learned as we move forward.
Number 1 - Gone are the days of cheap and fast credit. No more no doc or stated income loans. No longer will lenders look the other way for borrowers with bad credit. Gone are bank financing options for all but the strongest of businesses.
Choosing a Niche Market for Expertise-Based Entrepreneurs - Part II
The unfortunate thing about finding a niche is that many small business owners are not trained in marketing or how to market their products or services. They just arent educated enough to know how or where to look for their niche. But when they are shown how, they finally discover it - everything falls into right places.
The biggest thing when doing marketing is you have to learn. Perhaps taking a course on marketing could help. Or talk to those who are experienced at it for help. If you, as a small business owner, work with other entrepreneurs, and you know how to market, you can teach them how to market their business. Once they know how they will find their business will take off.
Financing your start-up - tranche your funding requests!
I recently read a forum post where two young entrepreneurs (still in college) were seeking over $1 million for their new start-up, small business. While their business may be a great idea with huge potential " they essentially priced themselves out of the market with their $1 million funding request.
While this business may actually need the $1 million to get to profitability " I can almost guarantee that it does not need all of those funds right now " at startup. So, why seek them?
I know that it is easier on the business owners to go out and get one, all inclusive loan or investment " but from the other side (the lenders or investors side) " it is just too much risk and will never get funded.
Business Growth in Relation to Management of Human Resource
Running a business is no easy task especially during its initial years, and any business owner can attest to this fact. Research has shown that most businesses crumble during their first five years of operation. The problems faced by business owners vary, from lack of capital to inadequate cash flow among other factors. It therefore becomes imperative for someone thinking of going into business to strategically plan before plunging into business.
The one major factor that has truly frustrated the growth of many businesses is the management of human resource. It can be quiet tricky to entrust the running of your business to another person especially when they are not in line with your desires. Therefore, it is important that your workers understand the vision of your business from the word go.
Are You Justifying Yourself? Value vs. Price
Rapid business growth will come when you stop justifying and start building value.
Do you sell your company's value to your clients or are you trying to justify your price?
To justify is to defend or uphold as warranted or well-grounded. This puts you in a very defensive and perhaps adversarial relationship with your clients or potential clients.
Many clients I coach have been justifying their prices when working with their clients. They state a price and then try to back it up with as many reasons as they can think of.
The definition of value is to consider with respect to worth, excellence, usefulness, or importance. Building value for your clients or prospects puts you in a win-win situation that helps you build a better relationship with your clients or prospects.
Own Your Own Business? A Business Credit Cards May Be More Helpful Than You Think
In the present day society, business cards are past the level of useful and are now a growing necessity for corporations and businesses all over the world. Businesses of all complexity now enjoy the advantages offered by business credit cards. Some will argue that in spite of the popular beliefs, small businesses will profit more from these means of payment.
Business credit cards are very efficient when it comes to conducting the business transactions easily and increasing the credit standing for a company. The ordinary daily operations will take less of your time and spare you of some of the trouble.
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