Getting your business financed isn’t easy by any means. There are several types of loans and several types of financial institutions you can look to for financing.
Here are some options:
SBA 7 (a) loans
As you know, the SBA 7(a) loan guarantee program provides long term financing for small businesses not normally available through conventional commercial lending channels. This program provides the nation’s small business community with manageable long term debt service. Loans can be guaranteed to a maximum amount of $750,000. The originating bank, Credit Company or credit union keeps the non guaranteed portion and services the loan. The guaranteed portion is frequently sold on the secondary market. This is true of the SBA 7A and each of the loan types
discussed below.
Nearly 3,000 lenders have made 7(a) loans last year which is up 21% from 2008. The 7(a) program is the SBA’s largest loan program. The SBA is involved in less than 10% of all small business loans, however, and some banks won’t participate because of red tape. Lenders must follow the SBA’s rules when making 7(a) loans, which can be used for working capital, fixed assets and other business expenses. The term of the loan can be as long as 25 years.
7(a) Loan Program
The 7(a) Loan Program includes financial help for businesses with special requirements. For example, funds are available for loans to businesses that handle exports to foreign countries, businesses that operate in rural areas, and for other very specific purposes.
•Special Purpose Loans Program
http://1.usa.gov/dXysSH
•Express & Pilot Programs
http://www.sba.gov/content/express-pilot-programs
•Export Loan Programs
http://www.sba.gov/content/export-loan-programs
•Rural Business Loans
http://www.sba.gov/content/rural-business-loans
Eligible Use of 7(a) Loan Proceeds Include (Non-Exclusive):
•The purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities
•The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
•Long-term working capital, including the payment of accounts payable and/or the purchase of inventory
•Short-term working capital needs, including seasonal financing, contract performance, construction financing and export production
•Financing against existing inventory and receivable under special conditions
•The refinancing of existing business indebtedness that is not already structured with reasonable terms and conditions
•To purchase an existing business
Don’t ever forget that getting a loan isn’t just about the money. When you choose to apply for a loan make sure you use a lender with whom you have been saving your money, making mortgage or credit card payments with, writing checks to, or you have a special relationship with. Granted, sometimes this will not be possible because your best bet to obtain financing will be from a specialty lender, but most of the time, it will. But what if you need the money now? This Community Bank can finance nationally. They offer both SBA-guaranteed and conventional financing. They will finance up to $300,000 for FF&E, and up to $10 million for restaurant acquisitions, new build and equipment purchases. For more information on Equity Bank, contact Brad Elliott,CEO/President at 316-858-3106 or by e-mail at belliott@equitybank.com.
Showing posts with label small business. Show all posts
Showing posts with label small business. Show all posts
Friday, May 13, 2011
Wednesday, April 13, 2011
Personal Gifts & Funding a Business
The Types 5 of Personal Gifts
• Cash (direct to you, paid on your behalf, etc.)
• Discounts (letting you piggyback on a deal…)
• Freebies (free use of something or someone)
• Sweetheart Deals (overpayment, 1st choice…)
• Loan Forgiveness (from debt to gift)
Making Personal Gifts Work
• Gifts always cost time, usually cost aggravation, and sometimes even money
• Gifts work best when leveraged
• Most start‐ups depend on gifts, but don’t notice them
• Restate them as “in‐kind payments” to realize their value
• Get it in writing, e.g. a promissory note, see: www.inc.com/guides/2010/10/how‐to‐write‐a promissorynote.html
A possible source of grants for small businesses is the White House Faith-Based and Community Initiative funding that comes from federal agencies like HUD down through to churches and non-profits, to which you apply for a grant for your business. Do not be misled by the name, the program is for any for-profit or non-profit business that qualifies. You can view the program at http://www.whitehouse.gov/government/fbci/
• Cash (direct to you, paid on your behalf, etc.)
• Discounts (letting you piggyback on a deal…)
• Freebies (free use of something or someone)
• Sweetheart Deals (overpayment, 1st choice…)
• Loan Forgiveness (from debt to gift)
Making Personal Gifts Work
• Gifts always cost time, usually cost aggravation, and sometimes even money
• Gifts work best when leveraged
• Most start‐ups depend on gifts, but don’t notice them
• Restate them as “in‐kind payments” to realize their value
• Get it in writing, e.g. a promissory note, see: www.inc.com/guides/2010/10/how‐to‐write‐a promissorynote.html
A possible source of grants for small businesses is the White House Faith-Based and Community Initiative funding that comes from federal agencies like HUD down through to churches and non-profits, to which you apply for a grant for your business. Do not be misled by the name, the program is for any for-profit or non-profit business that qualifies. You can view the program at http://www.whitehouse.gov/government/fbci/
Tuesday, February 22, 2011
PR Lead-Struggling Business?
Name: Jonathan Tanzman (Bravo)
Category: Business and Finance
Email: query-zig@helpareporter.com
Media Outlet: Bravo
Deadline: 07:00 PM EST - 24 February
Query:
Casting Struggling Businesses for a Major Cable Network Show!
We’re on the hunt for businesses that are in the red, and need
to turn around their fortunes lest they close their doors
forever. We want to help you regain the profits and stature your
business once enjoyed. Businesses of most types and sizes will
be considered, from mom and pop independents to businesses with a
larger reach and employee base. We’ll take a look at you all:
Tattoo Parlors, bakery/pastry shops, gyms, bars, bed and
breakfasts, music stores, book stores, local insurance companies,
real estate companies, etc. On the show, you will be assisted
by a very well known business consultant who will aid you in your
businesses’ recovery. The consultant will identify and tackle
all of your businesses’ problems, whether that be lack of sales,
marketing issues, unruly staff, or miscommunication issues. If
you’d like to know more about the project, or you’re interested
in having your business appear on the show and bouncing back from
the brink, please contact us and we’ll take it from there. This
is a new and unique take on a project, and we appreciate your
consideration.
Category: Business and Finance
Email: query-zig@helpareporter.com
Media Outlet: Bravo
Deadline: 07:00 PM EST - 24 February
Query:
Casting Struggling Businesses for a Major Cable Network Show!
We’re on the hunt for businesses that are in the red, and need
to turn around their fortunes lest they close their doors
forever. We want to help you regain the profits and stature your
business once enjoyed. Businesses of most types and sizes will
be considered, from mom and pop independents to businesses with a
larger reach and employee base. We’ll take a look at you all:
Tattoo Parlors, bakery/pastry shops, gyms, bars, bed and
breakfasts, music stores, book stores, local insurance companies,
real estate companies, etc. On the show, you will be assisted
by a very well known business consultant who will aid you in your
businesses’ recovery. The consultant will identify and tackle
all of your businesses’ problems, whether that be lack of sales,
marketing issues, unruly staff, or miscommunication issues. If
you’d like to know more about the project, or you’re interested
in having your business appear on the show and bouncing back from
the brink, please contact us and we’ll take it from there. This
is a new and unique take on a project, and we appreciate your
consideration.
Sunday, October 3, 2010
Exporting?
Going global is a big step for many companies who are only familiar with their domestic market. It is important for the health of your business to really know why you want to export. On average, it takes about a three-year commitment to establish a presence in a foreign market. This will require the resources of people and finances during this developmental period. Checking the feasibility of the venture is an obvious exercise before you go global.
You may want to examine whether your interest in exporting is market driven, or
product/service driven. Here’s the difference...a market driven entry would look at what the foreign market wants, and how you will fulfill that need. A product/service driven entry would be, here’s what my company offers, now let’s find sales in a foreign country. The common link is that both require feasibility and a lot of resource planning.
Preparing an export plan is a fundamental first step in any export strategy and will help structure your decision-making throughout the entire export process. Developing a simple, practical and flexible plan will help you focus your activities to ensure you achieve defined outcomes.
The purpose of developing an export plan is to assemble facts, constraints, and goals into a comprehensive action statement. A good plan will lay out what needs to be done, a timeframe for completing it, and allow for marking each milestone in order to measure success.
http://www.unzco.com/basicguide/table2.html
A sample outline of an export plan.
http://www.wiuec.org/workshops/IntTrade/indexImport.html
This website provides questions you may want to ask yourself as you develop a plan to expand into the global market.
http://www.freebizplan.org/export-plan.htm
A more instructive guide to developing an export plan. Includes templates for outlining strengths, weaknesses, goals, etc.
http://www.smallbusinessnotes.com/
Information and resources for small business owners. Contains many useful resources when developing an international trade plan.
http://strategy.sauder.ubc.ca/antweiler/baim500/exportplan.html
The University of British Columbia provides a plan that you may find valuable as a beginning exporter.
http://www.buyusa.gov/northbay/
Getting started exporting
Remember that good market research allows an exporter to have confidence in the market they plan to enter. Targeting the correct consumer base and exporting the right product could make all the difference in your export experience.
Market research should always begin by researching previous studies of markets as well as other information available on the internet or in libraries. It is far less resource-intensive than primary research and can be conducted in a more timely manner. Secondary research will most likely have been collected for a reason other than your own, so it is benefi¬cial to gather from a variety of sources.
http://www.sba.gov/idc/groups/public/documents/sba_program_o_ce/oit_bitg3rd_wb.pdf
An international marketing plan workbook that asks important questions and covers many important topics such as setting goals and de¬ning your strategy.
http://fita.org/
Federation of International Trade Association’s website an excellent source for international trade leads and events. It also links to thousands of international trade related websites.
http://www.census.gov
Government website covers research on regional business profiles and statistics,
demographics and geography.
http://www.census.gov/foreign-trade/www/press.html
Reports about exporting from the United States as well as useful statistics.
http://www.uschamber.com/default.htm
The U.S. Chamber of Commerce provides a start for secondary research.
http://www.buyusainfo.net/adsearch.cfm?search_type=int&loadnav=no
The Market Research Library; select your industry and this tool will pull articles and research that may be of use.
http://www.americaneconomicalert.org/news_home.asp
The American Economic Alert provides recent news from around the world that could affect your export business.
http://www.citd.org/Booklets/index.cfm
Center for International Trade Development’s resource guide to finding the best market for your product.
Perhaps the most common method of payment, a Letter of Credit (L/C) is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
Understanding a Letter of Credit
http://www.crfonline.org/orc/cro/cro-9-1.html
You may want to examine whether your interest in exporting is market driven, or
product/service driven. Here’s the difference...a market driven entry would look at what the foreign market wants, and how you will fulfill that need. A product/service driven entry would be, here’s what my company offers, now let’s find sales in a foreign country. The common link is that both require feasibility and a lot of resource planning.
Preparing an export plan is a fundamental first step in any export strategy and will help structure your decision-making throughout the entire export process. Developing a simple, practical and flexible plan will help you focus your activities to ensure you achieve defined outcomes.
The purpose of developing an export plan is to assemble facts, constraints, and goals into a comprehensive action statement. A good plan will lay out what needs to be done, a timeframe for completing it, and allow for marking each milestone in order to measure success.
http://www.unzco.com/basicguide/table2.html
A sample outline of an export plan.
http://www.wiuec.org/workshops/IntTrade/indexImport.html
This website provides questions you may want to ask yourself as you develop a plan to expand into the global market.
http://www.freebizplan.org/export-plan.htm
A more instructive guide to developing an export plan. Includes templates for outlining strengths, weaknesses, goals, etc.
http://www.smallbusinessnotes.com/
Information and resources for small business owners. Contains many useful resources when developing an international trade plan.
http://strategy.sauder.ubc.ca/antweiler/baim500/exportplan.html
The University of British Columbia provides a plan that you may find valuable as a beginning exporter.
http://www.buyusa.gov/northbay/
Getting started exporting
Remember that good market research allows an exporter to have confidence in the market they plan to enter. Targeting the correct consumer base and exporting the right product could make all the difference in your export experience.
Market research should always begin by researching previous studies of markets as well as other information available on the internet or in libraries. It is far less resource-intensive than primary research and can be conducted in a more timely manner. Secondary research will most likely have been collected for a reason other than your own, so it is benefi¬cial to gather from a variety of sources.
http://www.sba.gov/idc/groups/public/documents/sba_program_o_ce/oit_bitg3rd_wb.pdf
An international marketing plan workbook that asks important questions and covers many important topics such as setting goals and de¬ning your strategy.
http://fita.org/
Federation of International Trade Association’s website an excellent source for international trade leads and events. It also links to thousands of international trade related websites.
http://www.census.gov
Government website covers research on regional business profiles and statistics,
demographics and geography.
http://www.census.gov/foreign-trade/www/press.html
Reports about exporting from the United States as well as useful statistics.
http://www.uschamber.com/default.htm
The U.S. Chamber of Commerce provides a start for secondary research.
http://www.buyusainfo.net/adsearch.cfm?search_type=int&loadnav=no
The Market Research Library; select your industry and this tool will pull articles and research that may be of use.
http://www.americaneconomicalert.org/news_home.asp
The American Economic Alert provides recent news from around the world that could affect your export business.
http://www.citd.org/Booklets/index.cfm
Center for International Trade Development’s resource guide to finding the best market for your product.
Perhaps the most common method of payment, a Letter of Credit (L/C) is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
Understanding a Letter of Credit
http://www.crfonline.org/orc/cro/cro-9-1.html
Sunday, February 28, 2010
Don't Write the Words, You'll Kill Yourself.
Remember that commercial, "Don't take the car, you'll kill yourself" That is true of writing your own press releases. Last night I had another conversation with a business owner asking about press releases. I will shed some light, as many have before me, to the question that plaques small business owners everywhere. How do I do it? If you have a story to tell, or want to make people aware of your event or fundraising activities, know about your addition to urban sprawl, launching a new product or want to talk about an existing product line or just want the press you deserve; you should let your local media know by sending them a press release. There are other ways to get found in your hometown online. Check this out:
http://tinyurl.com/yb9wgl4
Sending the local media your press release still holds true but we have more items to consider. When a term is entered into the search engines, the results often seem arbitrary, random, or just don't match what you are looking for. SEO Press Releases are the way to get your website into that top ranking, and listed on the first page of the search engines. Search engine optimization, (SEO) and Search Engine Marketing (SEM) is growing at an alarming rate, predicted to be a $13 billion dollar industry in 2010. Combine this with the introduction of new SEO technologies including social media, blogs, and user generated distribution it is critical that your business looks at the resources a PR Specialist can bring.
Many businesses want to write the release themselves. Big mistake! Someone with professional level writing skills and ample public relations experience will probably be your best bet for writing a press release that meets industry standards. Although small business owners often write and distribute their own press releases, it goes without saying that they may know their business but not the PR business. You should strongly consider hiring a professional. PR Specialists are usually proficient writers, will be privy to current best practices and updated journalist formatting preferences. Although it may seem cliché to say, press release writing truly is an art, and journalists are beyond savvy when it comes to deciphering a newsworthy piece of information from a fluffy, sorry excuse for a press release. Not only is it insulting to them when you waste their precious time by tooting your own horn about nothing special, but what's worse...it makes you look bad. In addition, they know where to distribute it utilizing the catch phrases of today such as SEO and social media marketing. For us PR is easy, for you the small business it may not be. Why not ensure success and hire the professional? But maybe you are saying I can’t afford it.
If that is the case, the following may help. If you really want to understand what goes in to writing a great press release, and to find out if the information you are sending is up to par, ask yourself these 5 simple questions:
Is your press release:
1. Attention Getting
The first question you should ask yourself before you even dive into writing a press release. Is it newsworthy? Don’t know what is newsworthy? There are no pat answers. But some general guidelines exist. Below are several characteristics that can make information newsworthy. The more of these characteristics a piece of information has, the more newsworthy the information is.
• information has impact if it affects a lot of people
• information has timeliness if it happened recently
• information has prominence if it involves a well-known person or organization
• information has proximity if it involves something happened somewhere nearby
• information has conflict if it involves some kind of disagreement between two or more people.
• information has weirdness if it involves something unusual or strange
• information has currency if it is related to some general topic a lot of people are already talking about
2. Do your homework! We all have homework. Remember writing a paper when you were in school? How you didn't cite any of your sources? Needless to say, journalists are much like teachers: they want to see that you've done your homework and that you have a thorough understanding of the topic on which you are writing. No, you don't need actual citations in your press release, but you should definitely be prepared to answer in depth questions if the situation presents itself.
3. A timely press release is the first cousin of a researched press release. That is to say, a press release that is relevant to current events or cutting edge technology is more likely to get noticed. Remember, it is important to be aware of trends in your particular industry so that you can seize opportunities to create the news!
4. The golden rule still applies: Tell the Truth
Ask yourself: is the press release written in simple, concise, factual language void of industry jargon and buzz terms? Can I get my point across in an understandable manner in less than 400 words?
5. Media Ready
A reporter or editor should be able to take the information from your press release and plop it into any medium without having to correct bad grammar, or call to get specifics on what the heck you are trying to say. The key is to make the journalist's job as simple as possible. If you master this, then your chances of getting press placement will increase exponentially.
You can either adapt to an industry press release template like this:
FOR IMMEDIATE RELEASE:
Contact:
Contact Person
Company Name
Telephone Number
Email Address
Web site address
Headline
City, State, Date — Opening Paragraph (should contain: who, what, when, where, why):
Remainder of body text – Should include any relevant information to your products or services. Include benefits, why your product or service is unique. Also include quotes from staff members, industry experts or satisfied customers.
If there is more than 1 page use:
-more-
(The top of the next page):
Abbreviated headline (page 2)
Remainder of text.
(Restate Contact information after your last paragraph):
For additional information or a sample copy, Contact: (all Contact information)
Summarize product or service specifications one last time
Company History (try to do this in one short paragraph)
# # #
(indicates Press Release is finished)
Or develop your own by following some tips:
http://tinyurl.com/6ltw4m
http://tinyurl.com/yb9wgl4
Sending the local media your press release still holds true but we have more items to consider. When a term is entered into the search engines, the results often seem arbitrary, random, or just don't match what you are looking for. SEO Press Releases are the way to get your website into that top ranking, and listed on the first page of the search engines. Search engine optimization, (SEO) and Search Engine Marketing (SEM) is growing at an alarming rate, predicted to be a $13 billion dollar industry in 2010. Combine this with the introduction of new SEO technologies including social media, blogs, and user generated distribution it is critical that your business looks at the resources a PR Specialist can bring.
Many businesses want to write the release themselves. Big mistake! Someone with professional level writing skills and ample public relations experience will probably be your best bet for writing a press release that meets industry standards. Although small business owners often write and distribute their own press releases, it goes without saying that they may know their business but not the PR business. You should strongly consider hiring a professional. PR Specialists are usually proficient writers, will be privy to current best practices and updated journalist formatting preferences. Although it may seem cliché to say, press release writing truly is an art, and journalists are beyond savvy when it comes to deciphering a newsworthy piece of information from a fluffy, sorry excuse for a press release. Not only is it insulting to them when you waste their precious time by tooting your own horn about nothing special, but what's worse...it makes you look bad. In addition, they know where to distribute it utilizing the catch phrases of today such as SEO and social media marketing. For us PR is easy, for you the small business it may not be. Why not ensure success and hire the professional? But maybe you are saying I can’t afford it.
If that is the case, the following may help. If you really want to understand what goes in to writing a great press release, and to find out if the information you are sending is up to par, ask yourself these 5 simple questions:
Is your press release:
1. Attention Getting
The first question you should ask yourself before you even dive into writing a press release. Is it newsworthy? Don’t know what is newsworthy? There are no pat answers. But some general guidelines exist. Below are several characteristics that can make information newsworthy. The more of these characteristics a piece of information has, the more newsworthy the information is.
• information has impact if it affects a lot of people
• information has timeliness if it happened recently
• information has prominence if it involves a well-known person or organization
• information has proximity if it involves something happened somewhere nearby
• information has conflict if it involves some kind of disagreement between two or more people.
• information has weirdness if it involves something unusual or strange
• information has currency if it is related to some general topic a lot of people are already talking about
2. Do your homework! We all have homework. Remember writing a paper when you were in school? How you didn't cite any of your sources? Needless to say, journalists are much like teachers: they want to see that you've done your homework and that you have a thorough understanding of the topic on which you are writing. No, you don't need actual citations in your press release, but you should definitely be prepared to answer in depth questions if the situation presents itself.
3. A timely press release is the first cousin of a researched press release. That is to say, a press release that is relevant to current events or cutting edge technology is more likely to get noticed. Remember, it is important to be aware of trends in your particular industry so that you can seize opportunities to create the news!
4. The golden rule still applies: Tell the Truth
Ask yourself: is the press release written in simple, concise, factual language void of industry jargon and buzz terms? Can I get my point across in an understandable manner in less than 400 words?
5. Media Ready
A reporter or editor should be able to take the information from your press release and plop it into any medium without having to correct bad grammar, or call to get specifics on what the heck you are trying to say. The key is to make the journalist's job as simple as possible. If you master this, then your chances of getting press placement will increase exponentially.
You can either adapt to an industry press release template like this:
FOR IMMEDIATE RELEASE:
Contact:
Contact Person
Company Name
Telephone Number
Email Address
Web site address
Headline
City, State, Date — Opening Paragraph (should contain: who, what, when, where, why):
Remainder of body text – Should include any relevant information to your products or services. Include benefits, why your product or service is unique. Also include quotes from staff members, industry experts or satisfied customers.
If there is more than 1 page use:
-more-
(The top of the next page):
Abbreviated headline (page 2)
Remainder of text.
(Restate Contact information after your last paragraph):
For additional information or a sample copy, Contact: (all Contact information)
Summarize product or service specifications one last time
Company History (try to do this in one short paragraph)
# # #
(indicates Press Release is finished)
Or develop your own by following some tips:
http://tinyurl.com/6ltw4m
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