Successful Blog

Will Securing Funding for Your Business Venture Be Difficult?

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Among the most frequently asked questions for those interested in starting a business is, “Is it hard to secure funding?”

The answer will depend on a number of factors.

Credit ratings will effect people trying to get a loan. If bad credit is a factor, securing funds will be harder than for someone with a good credit history.

It is harder now than it was before 2008 to secure a loan. Lenders are more stringent with loans and securing credit is harder for those with less than stellar credit ratings.

Family Loans

Loans from family members have started many a successful business.

These loans can often be paid back at a slower rate than with non-family. Relatives aren’t always interested in charging late fees or interest to loans.

This isn’t true for every situation, but for the most part, family loans are the easiest to repay if a business is successful. Most loans of this nature are small, though there have been large loans from wealthy family members. The larger the loan, the more likely the relative is to treat it as a ‘real’ loan.

Full Time Jobs

Quite often the best way to secure funding for a new venture is to make the money yourself.

When you are working and saving money toward your own business you have no loan to repay. This route will typically take much longer than taking out a loan, but the reward is knowing you have no creditors.

Some people that take this route become consultants and work on their product on the side. They develop the product for the people they are offering consulting services and then change their business model at a later date to sell the product they’ve created.

Angel Investors

Angel investors are individuals that offer funding to start ups.

These people are wealthy and invest in new businesses in order to help them grow. While this sounds appealing, most angel investors will expect a return on their investment. This means you must create a product or service that sells well or a company that is good enough to merit another larger company buying it.

Not every new business owner will want to sell what they think of as their ‘baby’, so keep in mind that angel investors look for start ups that will turn a profit through sale of it or many sales of service/product.

Funding Companies

There are companies that work in essence like angel investors.

These companies are seed funders and also venture capitalists. The former offers small amounts to new companies, literally seeding it with capital. Seed companies offer advice to brand new businesses which is a boon to new owners.

Venture capitalists offer large amounts, hundreds of thousands, sometimes millions to new business, but these are better reserved for someone that has started a company in the past with good results.

There are many ways to fund a new business.

With careful consideration choosing the one that is right for your new business will become clear. Consider the stage of planning or start up you are in, how much funding you need, and how far you plan to go.

Photo credit: capitalcabin.com

About the Author: Tina Samuels writes on ways to accept credit cards online, social media, healthcare options, home improvements, and small business solutions.

Do You Benefit From Offering Your Employees More Education?

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How would you like a more dynamic, skilled workforce without the hassle of taking on new staff?

If your company could benefit from more knowledgeable employees with skills relevant to your niche, it might be time to consider offering your employees tuition assistance.

Many large companies – Apple, McAfee and Starbucks for instance – offer tuition assistance to their employees. You might have some understandable fears about doing so – more on those in a moment – but in fact offering your employees educational opportunities can reap many rewards.

Read on to find out what offering educational assistance can do for you, and how to allay some of your fears.

Who Has Succeeded With Tuition Assistance?

United Technologies Corp (UTC) decided that the best way to attract the employees they needed was to shape their existing workforce through their tuition assistance program.

Employees can gain an Associate, Bachelor’s or Master’s, with UTC meeting the costs of tuition, fees and books. In turn, UTC has been rewarded with a more skilled and loyal workforce. Employees who have taken up their tuition assistance program are less likely to leave, and more likely to be promoted.

The Atlanta Police Foundation decided that tuition assistance was the way to go when it saw a need to better equip its staff and officers to cope with a very demanding job.

The Foundation wasn’t happy with the rate of officers leaving the force, and wanted to better retain its staff. By investing in tuition assistance to help officers earn their Bachelor’s or Master’s degrees, the Foundation was able to lower the number of officers leaving by 3%, and was rewarded with a more confident and capable workforce.

What if an Employee Gains More Skills And Leaves?

It’s an understandable fear. What if you invest in your employees education, only to find they take the qualifications you’ve paid for, and go off to greener pastures?

Yet as UTC and the Atlanta Police Foundation show, offering tuition assistance can actually help you retain employees.  It’s a hopeful thought, but of course as a business owner you want to ensure the investment you make in education benefits your company.

So what can you do to keep your newly honed talent in your fold?

* Make it relevant – If you fund educational programs that are relevant to your niche, you are empowering your employees to feel more confident within your field, and your company;

* Set some ground rules – Many employers include clauses such as only offering assistance to those who have been with the company for a certain amount of time, or asking employees to sign a contract saying they will stay for a set amount of  time after graduation;

*Offer opportunities for growth – you wouldn’t give someone the keys to a sports car, but no sports car. Offer your newly qualified employees the chance to grow and be promoted within your company.

How Will Offering Tuition Assistance Benefit the Company?

Tuition assistance offers many benefits for your company. How about:

* More skilled workforce;

* An incentive to stay with your company;

* The chance to find the qualified employees you need from within your own ranks;

* Better soft skills such as time management, teamwork and public speaking;

* Some educational benefits can be deducted for tax purposes;

* Better profile as a company who cares and invests in its employees.

Tuition assistance is a solid investment in your company’s future.

You’ll be equipping your employees with the skills they need to excel in your company, and offering them an incentive to stay and use those skills for your company’s benefit.

As a business owner, what if any educational opportunities do you offer your employees?

Photo credit: nydailynews.com

About the Author: Tristan Anwyn is an author who writes on subjects as diverse as health, marketing, bachelor degree jobs, and SEO.

How Much Do I Pay This Employee?

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When you are a small business owner, it seems as soon as you’ve made one decision, the next one surfaces, and you are back trying to figure out the best thing to do.

One decision business owners are often faced with, and it can be a tough one, is how much to pay employees.

You don’t want to over pay as you’re probably on a budget (and you do need to make money), but you want to pay them what they are worth to keep them with you and happy.

Here are some tips on cracking the code on this … .

Create a range

First off, before any hiring is even done, really before the interviews begin – set a salary range.

Decide on the least you would pay and the most you can pay, and you’ll have some flexibility when it comes to choosing the best candidate and for negotiation purposes.

Look at qualifications

Someone with more relevant degrees, qualifications and experience is usually expecting (and deserving) a higher salary than someone with less.

If you are looking for that highly qualified, experience laden employee, expect to pay for it. If you want someone with a little less experience and education, you can probably get away with lower pay.

Do some comparisons

You can’t really just come up with numbers off the top of your head.

You need to look at some salary comparisons. BUT, you need to look at them as apples to apples. Don’t compare a salary in Chicago to one in Batesville, Arkansas.

Also, don’t just look at job titles, look at job descriptions.

Titles can cover a pretty broad range, but descriptions cover the nitty-gritty, and you can compare just what people are doing to what they are getting paid.

Think about business size.

Sometimes bigger corporations can pay more, but you have things to offer as well, that may not fall under salary. Your company can be more personalized and flexible, offer better benefits or stock options – sometimes that can be worth a lot!

Look around your area and see what other companies your size and in your field are paying employees. You want to stay competitive so qualified people will want to work for you.

When to offer increases

So you have a current employee wanting more money…

• Be careful – offering one raise out of the normal standard you have set can set a precedent you can’t afford to follow.

• Is your employee telling you he or she has an offer for more money? If so, it’s risky all around. If it’s true, it means they’re looking and thinking about it. You may need to keep your eye out. If they are worth it, and budget allows, you may need to offer more to have him or her stay, but know it’s risky – they still could leave.

• If their job descriptions and duties increase, it may be time for more money.

• The best thing to do is have clear policies with documentation of when raises are awarded. You can go by this and keep it cut and dry.

• Bonuses and commission are a way around a salary raise. You pay these once and are not committed to them in the future.

No one said running a business is easy. You’ve got employees to keep happy and budgets to adhere to, plus you need to make money.

However, you need to pay your employees fairly or they will go elsewhere.

Photo credit: nbcchicago.com

About the Author: Heather Legg writes on a variety of topics, many related to social media, small business and Bobby Kotick.

5 Tips for Trimming the Office Budget

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Running a small business is expensive – very expensive.

Saving little bits of money here and there can make all the difference to your overall profit come year-end. There are hundreds of small ways to save money, but when it comes to saving big, there may be a few things you’re missing.

With that in mind, here are five ways to trim your office budget and start saving loads of money each year.

1. Save on utilities

Utilities are one of the largest expenses for an office. By turning up the AC just a few degrees, you can save hundreds per month. Always turn off computers and electronic equipment when not in use, switch to energy-efficient light bulbs, install light sensors in break rooms and restrooms, and consider switching to solar panels if you can afford it. Keep in mind, solar panels are very expensive upfront but will save you thousands over the years. They also can be used as a deduction on your taxes.

2. Save on marketing

Another large office expense is money spent on advertising and marketing. Keep track of where every dollar goes and take note of what methods are the most and least effective for you. For example, are you still sending customers fliers in the mail? If so, you may want to switch to sending e-fliers, instead. E-fliers are quick to make and even quicker to mail out, not to mention the amount you’ll save on paper and stamps. A great way to market your business is via social media. Build a Facebook page, Twitter account, company website and blog to attract and retain customers.

3. Save on office supplies

If you’re in need of new office supplies, which account for 20% of expenses on average, don’t just buy the first thing you see. Look for deals, ask for discounts or buy used. If you’re really looking to save money, consider leasing the larger equipment that you need. This saves you money upfront plus allows you to “test” the product before committing to it. Also, only buy equipment and supplies that you absolutely need. Too many businesses wind up wasting money on technology that never gets used.

4. Save on taxes

Small businesses can write off almost everything nowadays. When it comes time to do your taxes, be as thorough as possible to ensure you’re not missing any deductions. Some less common deductions include utilities in your home (if you have a home office), insurance premiums, retirement accounts, office equipment, bad debt (money people owe you), travel expenses and even clothing (if used for business purposes). Consider hiring an accountant if this isn’t something you wish to take on yourself.

5. Save on staffing

Each year, re-evaluate your staffing needs. Who are the top and bottom performers in your company? Are there any positions you could possibly combine into one role? Is each staff member doing their job efficiently and improving your company, or are they simply taking up space? By evaluating your staffing needs each year, and possibly firing or replacing a few employees, you’ll not only save your company tens of thousands of dollars but you’ll also have a company that’s better-run and managed.

Photo credit: scu.edu

About the Author: Sarah Brooks is a freelance writer living in Glendale, AZ. She covers topics on budget help, personal finance and small businesses.

5 Tips for Marketing My Small Business

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Running a small business can be quite the task for even the most accomplished entrepreneur.

Marketing a new business, or a business that is looking to grow, can be one of the most important factors in whether or not the business venture is successful.

So, how can you go about marketing your small business so that it is clicking in all cylinders? Among the items to focus in on include:

Utilize Testimonials

Testimonials are one of the most powerful marketing tools out there.

They show a potential customer that you have successfully met the needs of someone who was looking for the same type of service.

You can utilize these by posting them on your website, or including them in periodic information that you send out to new and returning customers. Testimonials allow potential customers to trust your company to deliver on the promises that you have made about the quality of your service.

The other benefit of testimonials comes through word of mouth marketing.

When people are excited about the service they have received from your company they will be eager to share their experience with others.

This is one of the most powerful forms of advertisement because there is often nothing in it for the person sharing the information. This allows a level of trust which is difficult for direct advertisements to rival and often converts new business into loyal customers.

Ask Customers for Recommendations

Even customers who are thoroughly pleased by the service that your business provided often won’t share their experience with others. This can be remedied by a simple call to action on the part of the business.

By simply asking return customers to submit a review on the internet, or tell their friends about the business, you can often find new customers who will become stable business.

By making the request you let your customers know that you would appreciate their support in a tangible way. This is often all they need to start spreading the word about the benefit you have provided to them through your business.

Stay in Contact

The best way to convert one time shoppers into returning customers is to reach out and invite them to return.

Often people simply forget about the service that was provided by your company because it didn’t take up a significant amount of their time. By reminding them of their pleasant experience with your company you can ensure that they will return if they ever need your service again.

You can achieve this through an e-mail list, or simply a follow-up phone call to see whether their visit was satisfactory. The more they think about your business, the more likely they will be to return.

Make Your Company Stand Out

A lot of companies are trying to market themselves as the best in their field. The only way to be successful in beating out the competition is to make sure that your marketing strategy stands out from the competition.

You can do this by creating attention catching flyers or e-mails, handing out free promotional items, or creating an inspiring video campaign centered around the service that your company provides. This can be one of the more crucial aspects for marketing your small business correctly.

Target Your Advertising

Your small business probably has an ideal consumer who has very specific attributes.

If you are a sports equipment company you are trying to sell to athletes. If you are a surgeon you are targeting people who need surgery. Understanding the demographics of your target audience is very important when it comes to attracting new customers.

Figure out who your ideal customer is and then decide which marketing medium will be the most likely to reach them. This can be the difference between a successful marketing campaign and an unsuccessful one.

By following these tips for marketing your small business correctly you will be a step ahead of your competitors. This will allow you to get your message to the right people in order to convert them into loyal, returning customers.

Marketing your small business correctly could be the best decision you make for your growing enterprise, so get started today.

As a small business owner, what are the most successful ways you market your company?

Photo credit: rhinomarketresearch.com

About the Author: Thomas Verdone is an author who covers a wide range of topics, including finance, fitness, personal development, and Bluegreen Resorts.

Doing Away With Tension in the Office

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When you put a number of professionals together, no matter who they are, at some point in time, tension will arise.

Maybe it’s over a business disagreement, maybe they have some differing visions for the future, or maybe they simply don’t get along.

But the bottom line is that people sometimes have to work together despite these things (or not and that means someone losing his or her job).

So how do you make, and keep, a happy, trusting work place where your employees can be productive and successful?

Think about it when hiring

When you are in the hiring process, think about how new employees will connect and interact with current employees.

If you see personalities that will certainly clash, you may want to rethink that hire even if everything else is top notch. If you get a vibe on different goals or perspectives that you’re not ready for, think twice.

It’s much easier on everyone if you just don’t get there in the first place than to have to deal with personality challenges, misconceptions and not seeing eye to eye in the future.

Notice what is going on

If you see employees struggling to get along or avoiding one another, try to figure out what is going on.

You could meet with each one separately or talk to an unbiased party and get to the bottom of it. It’s not a bad idea to mediate a meeting between those not getting along, and if you are one of them, you need to speak up and try to work out problems before they become unworkable.

If you can get to the bottom of things before they escalate, you could possibly save a lot of turmoil and tension.

Don’t put your head in the sand

If you’ve noticed something, or you personally are having trouble with someone, you need to address it.

Problems sometimes go away, but often they don’t. And if they don’t, you may have much bigger problems to attend to, like people quitting, having to fire someone, losing income due to time spent on this or unhappy customers. Remember, tension needs to be addressed.

Keep a positive atmosphere

Keeping a positive atmosphere in the workplace will help keep these problems to a minimum.

If you can provide a safe atmosphere where your employees feel trusted and have at least one person they can go to, it will help. If your employees feel valued and that even through professional disagreements, you still respect their work and opinions, tensions may be kept at bay.

You, as an employer, can set clear goals and recognize achievements. When you show value, even when tension exists, the positive may outweigh the negative feelings.

Remember there is life outside of work

Sometimes when there is extra tension or someone seems more stressed or difficult to get along with, remember there may be something outside of work going on.

Sure, work at work is priority, but sometimes it’s hard to focus on the positive when some other aspect of your world is falling apart, be it health, family or other external stress. Try to find out if something else is underlying before taking severe measures.

As a business owner, you have lots of roles to play.

Sometimes mediator or confidante is one. Sometimes you have to make decisions you don’t want to.

Keep a constant eye on things, and maybe you can prevent office tensions from escalating too far.

Photo credit: livinggreenmag.com

About the Author: Heather Legg is a writer who covers topics on small business, getting along with others and a company’s online reputation.