Tag: entrepreneur

Applying For A Small Business Loan

On July 23, 2019

Achieving your vision for your small business requires substantial preparation and funds. Capital is highly needed in establishing the small business as well as financing its initial stages of operation before the business realizes financial stability. It is, therefore, highly recommendable to consider applying for a small business loan. The process of applying for the loan involves five simple steps, which, once correctly followed, will highly likely increase your chances of success.

Evaluating Your Needs

The first thing to do before applying for a small business loan is to assess your small business’ needs, mainly focusing on why you need to obtain the loan. Most small business loan requirements fall into four main categories. These include the need to finance the startup process of your business, catering for day-to-day expenses within the business, achieving and realizing business growth, and having a financial safety cushion for your business.

Determining The Right Type of Loan

The second step involves deciding the correct type of loan that your business needs. Depending on the need you want to fulfill in your business, there are different types of business loans and sources of capital for small businesses available in the market. Among those include, loans offered by the Small Business Administration, business line of credit, invoice financing, personal loans, merchant cash advance, and micro-loans.

Choosing The Right Small Business Lender

The third step in the process involves selecting a suitable small business lender. The market is awash with multiple small business lenders, including banks, micro-lending institutions, online lenders, and government institutions. When choosing the right small business lender, you should emphasize on determining the minimum requirements and the annual percentage rate of the loan offered.

Establish If You Are Qualified

After choosing the right lender for your small business, you should then move to determine whether you are eligible for a loan with the institution of your choice. Among the crucial factors that determine your eligibility for a small business loan include your credit score, your business’s financial profile or history, and the business’s internal asset-base.

Gathering The Documents And Applying

The last step involves obtaining the necessary documents that are required for your business to qualify for the loan. Among the critical documents that different lending institutions need include business and personal tax return certificates, bank statements, financial statements, and legal documents.

Why Small Businesses Have an Advantage with Customer Service

By Tom Leydiker

On April 4, 2019

In Blog, Entrepreneurship, Finance, personal

Small businesses are springing up all over the country. Small business owners often believe that they are at a disadvantage when compared to larger enterprises, however, small businesses tend to have an advantage as it pertains to customer service. The following factors contribute to small businesses providing great customer service.

More Efficient Point-of-sale Systems

Customers want their purchases to be quick and simple. Point-of-sale systems like Vend and Square allow for ease of use. In addition, restauranteurs that use TOS services such as TouchBistro are able to take orders and check customers out quickly and efficiently. This type of service allows customers to split checks and ensure accuracy when ordering. Customers truly enjoy these services and are more likely to return to an establishment when they have a positive first experience.

Personal Attention

Small business owners are more likely to have compassion for customers and handle their needs with care and concern. This is the opposite of larger businesses that tend to rely heavily on standard operating procedures that don’t take into consideration the unique circumstances of each customer. Small businesses are also more likely to understand the needs of their customers because they take the time to understand the products and services that are important to the customer. This more personal type of customer service is attractive and makes people more at ease when patronizing a small business.

Solutions that Can be provided by Phone

When dealing with large businesses, customers are often relegated to speaking with automated voice systems when seeking solutions for customer service issues. However, a small business usually has a person on the other end of the line who is able to provide real-time solutions to any problem a customer will encounter. Having the ability to discuss issues on the phone saves the customer time and reassures them that the business can be trusted.

Overall, the ability of a small business to provide excellent customer service will determine the success of that enterprise. People who own small businesses should take into consideration the aforementioned factors when designing a customer service strategy. Implementing a robust point-of-sale system and providing customers a personalized experience are key components of good customer service. Additionally, providing efficient phone service assist in easing customer worries. Each of these factors gives small businesses the edge over larger enterprises.

Franchising Your Business

By Tom Leydiker

On January 4, 2019

In Blog, Entrepreneurship, Finance

Once a business has a certain process that’s working and it is producing a consistent profit, an owner may want to think about replicating the process by franchising the business and opening it up to new owners. Here are five factors that a company will want to look at when deciding if they should create a franchise:

Is The Concept Viable?

A good franchise concept will have two qualities. It will offer something that is familiar, but it will come with a unique twist. An excellent example of this is a pizza company that only offers organic ingredients and delivers their product via hybrid-electric vehicles. The concept must appeal to prospective franchisees and consumers. Also, the business should be able to be replicated so that funding more of them would create an increase in profits and economies of scale.

Hire A Lawyer

When a business owner is going through the franchising process, it’s important to hire an attorney who can give expert advice on the transition. They’ll be able to help with the forms that need to be completed such as a Franchise Disclosure Document. An attorney will also be able to assist with pricing, intellectual property protection and the creation of a franchise agreement.

Will Cloning Work?

To really be sure that a business should be franchised, it’s usually best to create one or more clones and see if they are successful in other areas. If the cloned units are a success, it probably makes sense to move ahead with plans to franchise the business.

Be Selective

There are many individuals who may have the capital to pay the price that allows them to get involved with a franchise. However, it’s important for the owner of the franchise to be selective when choosing franchisees. This ensures that the right people are selected so that both the franchise owner and franchisees are successful. The owner of a franchise should always consider new franchisees as ambassadors of their brand. They must be a good fit. An interview process should be used to help determine the best candidates.

Location Location Location

One of the most important factors for the success of a franchise is where it is located. It’s best if the first couple of locations are kept close to the original business. However, they shouldn’t be so close that they’ll hurt the sales of the first location. By having the first franchise operations close, it will be easier to manage logistics.

Tips To Avoid Financial Woes

By Tom Leydiker

On March 20, 2018

In Blog, Debt, Entrepreneurship, Finance, personal

At some point in your life, you may fall under hard financial times. This happens to many people and does not mean the end of the world for your bank account or credit score. There are ways to come back from financial hardship and be prepared to avoid them in the future. This article will talk about some common financial woes and how to avoid them.

Create a Budget

Most people think they have a good understanding of where their money goes. Taking a closer look at your monthly spending may surprise you. Where your money is going may not match up to what you thought you were spending. A good way to avoid financial hardships and even dig yourself out of one is to set a budget for yourself. Take your monthly analysis of your spending and formulate a budget that will keep you in the green each month. Make sure your budget is tangible. Try not to guess at what you spend on certain items, be precise and you will be more likely to stick to your budget.

Impulse Buying

A common mistake among consumers is to purchase something on impulse. If you come across an item and immediately think “I need to have this!” Take a step back and evaluate the reasoning behind the purchase. Is this going to get me to my financial goals? Is this item necessary for me to buy? These questions will help control your impulses and ultimately keep you connected with your budget. If after a month you are still yearning for that item then save up enough money to get it for yourself.

Alternatives To Spending

Instead of going out to a fancy bar or restaurant, aim for a day packed with homemade sandwiches and a hike near your local trail. Any alternative you can find to spending money on miscellaneous things like a bar or restaurant should be pursued to help you save money and maybe even find your new favorite activity.

Medical Insurance

Nothing can help you dampen the blow of a medical emergency like medical insurance can. Without insurance, you are at risk of paying high fees for medical procedures that can plunge you into financial hardship for a long time. Medical emergencies are unpredictable, and it is better to be insured no matter your financial situation to avoid destroying your financial credibility for good.