Doing Business • economics24.com

February 5, 2009

Financing a Small Business – What Alternatives are There to Finance Your Business?

Filed under: Business — Tags: Angel Financing, Belief, Bests, Business Finance, Business Plan, Business Sector, Decisions, Department Of Labor, Doing Business, Existence, Finance Business, Financing A Small Business, Ins And Outs, Interest Rates, Loans, New Businesses, Three Quarters, Unemployment, United States Department, United States Department Of Labor — admin @ 11:29 pm

David S. Stratton asked:

A lot of reasons exist why you should not only get into business, but also endure in business. You may want to take any of these decisions because of the love of a particular business, because of a need to do so, because you are bound to continue from where someone stopped or because you simply have a feeling to do so. In almost every country of the world, people are looking at the business sector as one of the bests. There are always statistics of these found in all countries. For example, the United States Department of Labor produces statistics which indicate that for almost the first three quarters of last year, unemployment was very high and a lot of people resorted to doing business.

There is no need to trouble yourself on the way your business is going to look like. All that is necessary for you to do is to develop a plan and seek for any of the so many options of securing finance for the business. The following lines are meant to encourage those coming into business and even those already in business to seek for means of financing their businesses:

Loans

This type of finance for a business is common all over the world and it can easily be gotten. In some cases, there is often a belief the loans can easily be gotten by everyone who applies for it. This may be true or false. It all depends on your business plan, the lending policy of the bank and the type and value of security you have. What makes this source of finance much considered is that interest rates on the loans are also reasonable. It should be warned that you should not get into taken of loans without seeking for proper recommendations from experts. Remember that it is always good to know the ins and outs of every type of loan ahead of getting into it.

Angel Financing

This is also another common source of finance that is common among new businesses and even those that are already in existence. What obtains here is that there are so many people who have the willingness and ability to pump finance into any business which have potentials to grow. Angel financing can be a family type. This will involve members of the same family pulling their resources together and investing it to develop a business plan. This is good but not preferable because of the close ties that the members may attach to each other, which may not be best for the health of a business. Angel financing can also be an affiliation angel. This will involve an association of friends willing to see a business plan from conception to completion. Another strand of angel financing is idea angel. These are financiers who are involved at the conception and actual progress of the business. Whatever the form of angel financing that you may opt for, you must get into the set of connections that these angels operate before you can benefit from financing.

Equity Financing

This involves raising money for the business by using what the business owns and can give out to the public. There are individuals willing to pay for equity in the business and even take part in the running of the business. Although this type of financing is common, it may not be available to every type of business. This is the more reason why every business owner must always carry out enough research in order to get the appropriate financing for his or her business.

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January 15, 2009

Financing a Small Business – What Alternatives are There to Finance Your Business?

Loans

Angel Financing

Equity Financing

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August 19, 2008

How To Choose The Right Bank

Filed under: Advice — Tags: Adults, Amount Of Money, Atm Machine, Bank Location, Banks, Checking Accounts, Debit Cards, Doing Business, Easy Access, Easy Money, Extra Fees, Financial Institutions, Free Checking Account, Local Bank, Local Institution, Local Office, Lookout, National Bank, Options, Paychecks — admin @ 3:09 am

Joseph Kenny asked:

Financial institutions are located all around the world. If you are looking to open a bank account, whether that bank account is a checking account or a savings account, you have a number of banking options. In fact, you have so many options that choosing the right bank may seem like an overwhelming process. To make that process easier, you will need to know what to look for in a bank.

Location is the key to many. If you are interested in having easy access to a bank, you may want to consider doing business with a local bank or a national bank that has a local office in your area. These banks are ideal for those with checking accounts or debit cards. You may find that using an ATM machine, other than the one provided at your bank, results in extra fees. This is one of the many reasons why banking with a local institution is popular, because you will have easy access to your money.

When finding the perfect bank for you to do business with, it is also important to determine what you want and need from a bank. Whether you are interested in opening a savings account or a checking account, it is important to examine the fees that each bank will charge. If you are interested in opening a savings account for someone under the age of eighteen, you may find that you are able to receive a free account. Adults, on the other hand, are often required to pay a monthly fee or maintain a certain balance in their account.

If you are interested in opening a checking account, there are also a number of fees that you should be on the lookout for. It is possible to obtain a free checking account, but many of these accounts come with specific requirements. You are likely to come across a number of financial institutions that require you to have a set amount of money in your account at all times. It is also possible to find banks that grant you free checking as long as you have your paychecks directly deposited into your account.

There are a large number of banks that will allow you to carry a debit card. These debit cards can often be linked directly to a savings account or a checking account. It is important to determine if you will be charged for obtaining a debit card. Many banks charge an upfront fee, typically less than five dollars, for requesting a debit card. A number of banks also change monthly fees for using a debit card. The same can be said for checks. In addition to paying for new checks, there are many financial institutions that charge their clients a set amount of money each time they want to write a check.

It is important to keep all of the above mentioned points in mind when searching for a bank. In addition to determining the cost of banking with a specific institution, you are also encouraged to examine the level of service that you will receive. You will want to do business with a bank that has a friendly and knowledgeable staff. By visiting the bank or calling to speak with an employee, you can easily determine the level of service that you should expect to receive.

Choosing a bank is not a decision that should be made on a whim. A bank is supposed to save you money, but without the proper amount of research it is possible to end up with one that costs you money.

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August 18, 2008

Why Are Business Franchise Models So Effective?

Naz Daud asked:

Business franchise models are amongst one of the most successful business structures in use today, spanning the entire globe and a range of industries. From large multinational franchising outfits through to the smallest franchisor, business franchise opportunities are a great way of generating profits from running a business without taking the same risks usually associated with new business startup. Benefiting from a tried and tested business model, franchising agreements are usually better regarded by banks and lending institutions and present less of a risk to the entrepreneur looking to start-up in business. But why exactly are franchises such a popular way of doing business?

Business franchising agreements are so effective because they generate value for both parties. The business owner can benefit from his franchising operation expanding nationwide and even globally, while the franchisee will benefit from the previous good reputation of the franchise and its previously established outlets. The business franchising agreement also allows the franchisor to earn a recurring income from each of his franchisees, while the franchisee will be able to benefit from a degree of freedom in the way they run their franchising business. It is this two-way street that makes business franchising such a popular arrangement and business form around the world.

For the franchisee, a business franchising agreement can be worth its weight in gold. Business franchising provides an excellent way to get started in business without incorporating the same risks as are usually inherent in business start-up. The previous marketing and word of mouth business of the franchise will immediately be passed over to you, providing value that you couldn’t otherwise buy for your business. While you don’t get to engage in the branding process and advertising will largely (but not always) be centralized, you do get to reap the real rewards of running a successful business, in the form of recurring annual profits.

For the franchisor, business franchising allows almost instant expansion over a given geographical area, and is a great way of delivering additional income to the business, through royalties and up from business franchising payments. For the small business owner keen to expand, the franchising arrangement may be a particularly profitable and successful way forward, providing instant growth and increasing monthly revenues. If you don’t have the capital to expand yourself, franchising may be a good route towards achieving your growth objectives.

Business franchising clearly poses benefits and drawbacks over starting up a business on your own accord, and those that choose business franchising will usually be well aware of the arguments on either side. Furthermore, with the support of the banks and the expert training and experience passed down from other franchisees and the franchisor, the business franchising model is a popular one across a number of different industries – from the services sector to the retail sector. But one thing more than any other makes business franchising agreements so popular and effective – their ability to generate strong profits and build into substantial businesses off the back of previous goodwill and a strong surrounding infrastructure.

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How to Start an MLM Business

Filed under: Home Business — Tags: Brief Description, Business Associates, Business Opportunity, Business System, Business Systems, Detail Explanation, Doing Business, Downline, Kiyosaki, Leverage, Mlm Business, Mlm Opportunity, Mlm Training, Network Marketing Company, Refrigerator, Starting Your Own Business, System 3, Time And Money, Triangle, Upline — admin @ 12:16 am

Crystian Coldeira asked:

So you are interested in starting your own business? Here is a quick mlm training course on starting your business.

Firstly to start an mlm business you must register with a network marketing company. This is done by purchasing a license from one of their mlm consultants.

This person becomes your upline and you their downline. In other words you and your upline become business associates.

Additionally, the license gives you the right to sell the companies goods and also their business opportunity. For this, you are paid a commission.

So, now you have a fair idea of what network marketing is about. Great. Here are some free hints on being successful at mlm.

Firstly, be careful of who you choose to listen to. Ensure that the person who you purchase your network marketing license has goals that are similar to yours.

When I started, I made this mistake. I purchased my license from an MLMer who was doing business because he just wanted food in his refrigerator.

His goals were too small therefore his thinking was also too small. So he was not looking for ways to improve his business.

Also the tips he gave me in selling products and the mlm opportunity were totally unprofessional. As a result I learnt very little from him.

So, evaluate your goals and try to match yourself with someone who is professional plus on the same page.

Here is another hint. This tip is crucial to the success of your mlm business.

All successful organizations install day to day business systems to help leverage. What are business systems?

Have a look at the book called The BI Triangle by Kiyosaki. It gives a detail explanation of business systems. But in the meantime, I’ll give a brief description. Business systems are:

1. Tools for leveraging. Leverage is the ability to do more work with less effort, time and money.

2. Simple and easy to duplicate. This means that anyone can use the system.

3. Able to work 24/7. A business system that runs 24/7 means that you can make money everyday all the time. HINT: The internet never sleeps, use it.

4. Capable of providing an exit strategy for the business owner. An exit strategy means that you do not always have to be present when your business is running. You can be on vacation and still make money.

Did you get it? Okay. Here is a real life example.

Ever thought about purchasing a Mc Donalds franchise or license. If you do you will be provided with the equipment and procedures to make an average Mc Donalds burger.

The equipment and procedures are the day to day business system. The employees you will hire do not require any special cooking skill. The system does all of that.

In fact, where I come from, there are persons who work in fast food restaurants and do not even know how to cook. Ironic huh?

The truth is this, the system is simple enough so any worker can duplicate it. Therefore, business is able to take care of itself.

A business system in your mlm is crucial for network marketing success. I came to know this after four months of doing business manually. So, I went shopping for a system.

So now, when I do sell the business opportunity to prospects, I also provide them with an entire automated system. Just like Mc Donalds.

So, here is my advice. Purchase your mlm opportunity from someone who will also provide you with a day to day business system. I wish someone had told me that before I started.

Here is another bit of advice. Business systems are only half the story of starting a successful mlm business. The other half is having a marketing budget and strategy.

Marketing is the tools used to attract persons to your business. These tools include: business location, advertisements, offers as well as communication.

Every successful business uses marketing. Whether it is a network marketing business or a traditional business.

I use the strategy of educational marketing. This simply means that I give away free information to attract interested persons.

This type of marketing is becoming more popular. It is one of the most effective ways to overcome the resistance people normally have towards a sales pitch.

You see everyone loves to buy stuff but no one loves to be sold too. But almost everyone loves to get something that interests them for free.

Here another example. Do you look at cable tv? I am sure you do.

Have you ever seen the ad with the guy who is giving away the free DVD about buying and selling on eBay? This is an example of educational marketing. Have another listen to his advertisement and try to see what he is really selling.

I think educational marketing is the future. The internet is becoming the number 1 location for both business owners and consumers. But surfers go onto the internet to get more information than products. So, as a future entrepreneur you should be thinking of supplying to your customers needs.

Use this type of marketing when you start an mlm business. I guarantee that you will see results.

These are some of the things I learnt. I am passing these hints on to you because that is what business is about.

I hope this information was of value to you. Plus, I wish you good luck in your mlm business.

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August 16, 2008

Upside Strategies in an Economic Downturn

Filed under: Strategic Planning — Tags: Business Owner, Doing Business, Economic Condition, Economic Downturn, Economic Environment, Economic Indicators, Economic News, Economic Storm, Exceptional Service, Giannetto, Inflationary Pressures, Malady, Market Share, Organizational Performance, Performance Power, Personal Concerns, Power Grid, Responsible Manner, Roadmap, Value Proposition — admin @ 3:32 am

Shane Turner asked:

It’s not hard to find bad economic news these days. Whether it is the flagging value of the dollar, higher unemployment, or inflationary pressures, there are plenty of sour economic indicators that can send even the most seasoned business owner into a panic.

In their book: The Performance Power Grid: The Proven Method to Create and Sustain Superior Organizational Performance, David F. Giannetto and Anthony Zecca provide a roadmap to help business owners weather an economic storm. While the information provided in the book can be useful during any economic condition, the tips provided are especially helpful during a downturn.

In business, only the strong survive.

Customers need a reason to spend their increasingly limited funds with your business rather than somewhere else. It is easy to forget that the competition is doing business in the same economic environment and suffering too. Take the opportunity to sharpen your business. Evaluate your value proposition. Ensure that you’re running your business in a financially responsible manner. Economic malady can also be a good focusing point to rally employees. The authors call it a “momentary unifying factor” where employees are able to set aside personal concerns and rally around a greater cause. By coaching employees to provide exceptional service, a business can keep valuable customers and ride out the downturn.

It may be time to grow

Because all companies are competing in the same environment, an economic downturn will mean that weaker companies will be cutting back, leaving opportunities in their wake. A savvy company will be watching for these opportunities to gain customers and market share. This often means expanding your marketing and advertising efforts so that customers who are left behind by other businesses know that your business is ready to meet their needs.

Remembering the difference between revenue and profit
In desperate times, it is easier to forget that all customers are not created equally. Business owners have a tendency to look at all customers as a source of revenue even though some are more profitable than others. Use the opportunity to evaluate your customers and the market segments that you target. Asking yourself what it costs to gain and keep different types of customers can be very telling when it comes to their impact on the bottom line. Focusing on catering to your most profitable customers and gaining more like them will help you correctly place emphasis on certain segments over other, less profitable ones and rebalance your customer portfolio.

By using the current climate to take stock, sharpen your business, and be poised to grow, you can not only ride out shaky economic times, but emerge a stronger, better company.

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