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Working Out Your New Business on a Shoestring Budget

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StrategyDriven Managing Your Finances Article |Starting a New Business| Working Out Your New Business on a Shoestring BudgetThe internet has streamlined everything in our life—this is a clichéd statement that gets repeated in what we read, hear and see. We often quote this statement ourselves. However, is it absolutely true? For instance, many people believe that starting out a new business is as difficult as it was, say, 20 years ago. They maintain that working out on a shoestring budget is still a tricky rope to tread no matter if you are online or offline.

We can’t deny that steering through the formative phase of a business with limited monetary resources is no mean feat irrespective of the day and age. However, it is also true that the internet helps in any such endeavor. Even if doesn’t ease it out completely, it surely reduces the difficulty level of starting out a business from scratch and on a shoestring budget.

In this article, we are going to discuss how one can work out their business dream with limited resources and how the internet can come in handy in this regard.

Making and Pitching Business Plan Online

If you are on to capital collection for your startup, then you definitely need to create a business plan to reach out to investors. Taking a conventional route with the creation and pitching a business plan is itself a costly affair. You might have to hire a specialist to make you a business plan. After that, you have to bring that plan to the tables of people that matter. It’s obvious that this approach needs both your time and money.

You can do both planning and pitching online without spending a buck. And if you don’t sure about the free business templates, you can get fully professional business plan services at a minimal cost. Similarly, you can pitch your idea through the internet. The business plans you will find on the internet are so self-explanatory that the investors will know if they need to call you to have a one-on-one meeting.

In short, you can save a considerable amount of resources on making and proposing your business plan if you are using the internet rightly.

Start out as an LLC

There are different business categories in the legal framework that are assigned to every new business. We would recommend you to choose the LLC (Limited Liability Company) categorization for your business. To begin with, being LLC is the most advantageous option for any new and small business from many legal and operational aspects.

Moreover, you don’t need to allocate a big chunk of money to complete the registration of your business as an LLC. You can do it yourself online without spending more than $100 dollars for registering anywhere in the US. Lastly, you don’t need any legal aid while filing the online LLC forms, which means you are saving yet another cost.

Even if you have the dream to make your business a C-corporation, we would suggest you start out as LLC. You can shift to your preferred classification anytime you want. Forming LLC will not just save you cost, but it also involves fewer risks.

Secure Intellectual Property

Today, when startups are mushrooming at a very quick rate, it has become really important for any new entrepreneur to secure its intellectual property at the earliest. Amidst all the informational proliferation all the time, you can’t keep your business plan and trademark under the cover for long. It’s also possible that someone else will come up with the same plan as you and have it formally patented while you are still mulling over it.

In short, the better business sense suggests that one should register their intellectual property at the onset. If you don’t have enough money at the start to hire costly experts to do this on your behalf, don’t just sleep on it for any other time. The US Patent and Trademark Office now offers its services online. From trademarks to patents and copyrights, you can register every piece of intellectual property online for a few hundred bucks.

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Arrangement of Office Space

No matter how virtualized our lifestyle gets, we still need to operate through physical spaces. Even if you are planning on to start out an online business, you will need to have some physical space to operate from. Getting a full-fledged office in commercial zones seems like an insurmountable task when you don’t have enough money to work with.

One way to steer out of this tricky spot is to go for virtual office space services where you and your team can remotely work without needing any physical space or desk. However, this idea can’t work for all business plans, particularly not for the ones where you have to meet clients in person and call meetings. In such cases, the need for physical office spaces becomes inevitable. The internet can also come in handy to find physical office spaces.

There are entrepreneur outreach programs and incubators that offer physical office spaces, conference rooms and other business amenities at the fraction of the price of the main real estate market. You can start your journey to find office space from here.

Make the Most of Cloud Computing and Pay-as-you-go Software Subscriptions

This is where the internet helps budding businesses like a guardian. With Google providing so much free online storage and Amazon providing web services at exceedingly marked down prices, you don’t need to invest heavily on you digital and software infrastructure initially.

Make the Most of Social Media

This is another domain where the internet provides some unmatched benefits. For instance, you can save the entire cost of your marketing if you are using social media the way it should be. With search engine optimized curation of content for platforms like Facebook, Instagram, and Twitter, you can reach out to your target market without spending a single cent.
Obviously, not every business plan can execute in the same manner. It has its own peculiarities. Nevertheless, the points that we have discussed here will surely help in working on any business idea with strained budgets.

How Start-Ups Stay Up – How I Run My Small Business

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StrategyDriven Managing Your Business Article |Start-Ups |How Start-Ups Stay Up - How I Run My Small BusinessI am a bankruptcy attorney in Philadelphia. I started my law firm over 20 years ago and have helped thousands of clients get a fresh financial start over the years. I have four tips for small business owners both new and experienced. I credit these basic principles with the success of my firm.

Create Your Niche

You might be the greatest widget-maker on the planet, but if the market for widgets is saturated that will not matter – it will be a struggle, up-hill, to get noticed by potential customers. Make sure that when you start your business you have identified a service or product that is fresh to the market, whether that market is local (like a bankruptcy law firm, or a house painter) or global (products that can be exported or services that can be done remotely).

Advertise Your High-Quality Service or Product Online.

The days when a website is just an online business card are long over. An effective website will clearly show what you do or are offering and be findable by people who need you. The structure and content of the site itself should attract the viewer to stay on the site, and eventually start on their Buyer’s Journey to purchasing your service or product.

Any commercial website these days absolutely must be optimized for mobile devices. Potential customers most frequently use their smartphones or their tablets to google solutions to their problems, and they will click away from an unwieldy site that is difficult to read or navigate.

The content of your site should establish your expertise and/or relevance to the viewer’s search, and a clear and easy way to contact you or to purchase your service or product.

Maintaining a blog is a great way to inform current clients and future clients of the latest developments in your field, of new products or services you are offering, and to establish your expertise or your product’s high quality.

Convert Satisfied Clients and Customers into New Clients.

The first order of business is to make sure you are providing current customers and clients with a high-quality product or service. What you offer should do what you promise it to do and if a problem arises, a customer must be able to contact you for a remedy. Good customer service is the primary driver of repeat and referred business. So many clients are referred to me by their friends or family who used my services. That is gratifying.

But how to harness the power of satisfied clients’ goodwill? Provide them with the opportunity to leave you a positive review. I’m not suggesting you email each client or customer yourself, but rather, that you purchase one of the many available systems that automate this process for you. It’s a nominal expense for what you get in return.

Once you have clients’ email addresses, you can create a mailing list to inform list subscribers of sales or specials or a change in operating hours, etc. Make sure to ask clients first before you add them to your mailing list, and in each email sent, offer a simple way to unsubscribe. There are many good list managing companies online who will organize this for you.

Create a Network of Professionals and Peers

Word-of-mouth is valuable not just among former clients and future clients, but between professionals and your peers as well. Here are some ideas about how you can start and grow your network:

  • Join your national professional associations and attend conferences
  • Join your state or local professional associations and attend meetings
  • Join your local rotary club or other organization to network with local businesses unrelated to your business
  • Once established in your field, offer to give talks at meetings and conferences, to establish your expertise
  • Invite members of your network to subscribe to your blog or email list, for the latest news, and join theirs
  • Be active in your community. Volunteer your time or funds to support any quality-of-life events in your city or town, like a July 4th Town Picnic, or a Thanksgiving 5K. You can’t put a price on the goodwill that will generate for you and your business.

About the Author

StrategyDriven Expert Contributor | David M. Offen, Esq.Mr. David M. Offen, Esq. is a bankruptcy and foreclosure attorney in Philadelphia who attended Temple University College and Law School. Mr. Offen is licensed to practice in the States of Pennsylvania and New Jersey. He is a member of the Eastern District of Pennsylvania Bankruptcy Conference and the National Association of Consumer Bankruptcy Attorneys and maintains an active blog on all aspects of bankruptcy filing and current events.

9 of the Best Online Small Business Loans

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StrategyDriven Managing Your Finances Article |Online Small Business Loans|9 of the Best Online Small Business LoansOnly 80% of all small businesses survive the first year after inception. Often, finances are at the center of the untimely collapse of the other 20%. But even when 80 % of the small ventures survive the first year, they still struggle with financing during incubation.

Lack of capital and operational financing is the primary business killer if not well-addressed. However, many online small business loans have emerged to bridge this gap.

There are many suitable online small business loans you should consider getting. Check out our list of the best ones by clicking here.

1. BlueVine

If you have a small business and are looking for quick short-term funding for the venture, then you should consider BlueVine. Most of the traditional loan application methods had an apparent limitation in that they required more than a few working days to complete a loan request. But with BlueVine, your online loan application is easy due to the same day funding assurance.

BlueVine offers small business loans of up to $ 250, 000 repayable in 12 months. With such an amount, a small business can easily thrive and overcome the financing concern that affects most startups. Considering that you have a starting rate of 4.8% spread across 12 months, you can easily thrive past the five years of incubation.

However, for you to qualify for BlueVine small business loans, you must have a minimum credit score of 600. Your business must have also been in operation for more than six months before the application. As a matter of due diligence, your business must also have a minimum annual revenue of $100, 000.

2. SBA 7A Loans Are Also Useful Online Small Business Loans

No one wants to see you lose a startup you have struggled so much to build. This is the primary reason why SBA 7a loans exist. This option offers excellent loan terms for small businesses, which makes the financier the best SBA lender.

The expected turnaround time of SBA 7a loans is 5-10 days, but you could also access these loans in 36 hours, depending on the prevailing circumstances. A critical advantage with these loans is that you can access as much as $5 million with a maximum of 75-85% SBA guarantee.

Most of the time, the interests are within the ranges of 2.25% – 4.75%. With minimal fears about the risk of balloon payments, your business should be on its path to success soon.

A unique yet vital factor associated with these loans relates to the ability to negotiate your preferred terms of engagement. This makes SBA the best place to get a loan.

3. OnDeck

OnDeck provides term loans and lines of credit for your small business. OnDeck lends you up to $500,000 for business, with the option of both short-term and long-term loan application.

Your small business may thrive with this loan option because of the flexibility of repayment it offers. With OnDeck, you can repay your loan in up to 3 years, depending on the size and the monthly payments. This online small business loan option also offers small business substantial loan sizes depending on factors such as business size.

OnDeck offers you the flexibility of easy application and fast funding for up to $100,000. But you must have a credit score of 600, and your business must have been in operation for at least 12 months before the loan application.

4. Kabbage

This loan option is your go-to whenever you need access to quick loans. Kabbage gives you loans of up to $250, 000 within a few hours of a loan application. Kabbage loans fall within the lines of the credit category, with a minimum loan amount of $10, 000.

Kabbage loan has no origination fee. Your small business will also enjoy an interest rate drop, which occurs once in the course of the loan term. Your small business must, however, have been in operation for the past 12 months with an annual revenue requirement of $50,000.

5. LoanBuilder

LoanBuilder is among the most accessible loans that you can customize to fit your needs. If you are looking for the best places to get credits, then this option may work for you. You can access up to $500,000 with interest rates that range between 2.9% and 18.72% depending on the loan size.

The starting interest rates range from 2.9% with an expected APR of up to 136%. Your repayment terms for this loan option is 13 to 52 weeks with a required personal guarantee. You will enjoy the flexibility of a turnaround time of just 24 hours after application.

6. Fundation

One of the common concerns when taking a loan online may be the risk of accumulated penalties due to prepayment related concerns. But with fundation loans, these fears rarely emerge. You’ll have the option of taking up to $500, 000 for term loans.

The loan term goes up to four years, but you may also have the option of accessing lines of credit for up to $150 000. Fundation approves your loan request within one business day. With an APR from about 8.99% to 29.99%, fundation stands out as among the best options.

7. National Funding

National funding is the other suitable small business lending option that would be applicable for your venture. The loans are appropriate for both small business operations and equipment financing.

You can access $5000 to $500,000 on small business financing for your business at an interest rate of 8%. The estimated APR goes up to 136%, with a 2% original fee. Your repayment period ranges between three months to one year, with a loan processing turnaround time of three days on the maximum.

8. LendingClub

If your business is looking for peer-to-peer lenders who can guarantee funding for such ventures, then the LendingClub would be the best place to get a small loan for your undertaking. Your business only needs $50,000 in annual sales to qualify for loans that are up to $300,000.

The option charges fixed rates of 5.99% to 29.99%. But you must have a credit score of 640 or better. Further, your business must have been in operation for more than one year before the application.

9. Funding Circle

If you’re looking for the best place to get a small loan, then you may consider the funding circle. This peer-to-peer lending entity offers businesses up to $500,000 with a maximum APR range of 22.9%. With a notably fast online application process, this option allows you quick access to funding when you need it the most.

Your business must have been operating for at least two years before the loan application. This repayment period is business-friendly, especially for ventures struggling to survive the incubation period. Your annual revenue must also be more than $150,000. The funding circle also requires a minimum credit score of 640 and above to qualify.

Do Not Let Your Business Collapse Due to Lack of Financing When Most of These Loans Are a Click Away
Gone are the days when investors waited with bated breath for banks to approve loans. Online small business loans now offer you quick and reliable financing options for all your business needs.

Using a credit card to finance your business

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StrategyDriven Managing Your Finances Article |Business Credit Card|Using a credit card to finance your businessEvery company is different, and so every business owner needs to decide which finance options they want to use for daily expenses and longer term investments. Here, we weigh up the pros and cons of using business credit cards.

Many small business owners decide to use credit cards to cover costs, buy stock and seize opportunities. It’s easy to see why – they’re relatively straightforward to apply for and offer a flexible way to access credit quickly. But that’s not to say they’re the best funding option in all scenarios. This article details the ins and outs of using business credit cards, so you can figure out whether they’re right for you.

Generally speaking, there are five reasons to use a business credit card. These include: ensuring your business operations are kept separate from your personal spending, building up a credit profile for your business, managing short-term expenses, keeping on top of cash flow and picking up any rewards offered by the card provider.

What is a business credit card anyway?

In basic terms, a business credit card is similar to a normal consumer credit card – just designed for business use, rather than personal. Once secured, business owners and specific employees are able to use the card, or cards, to pay for things on credit – everything from small one-off costs, to recurring subscriptions and larger invoices.
Any accrued credit will need to be paid back, usually scheduled on a monthly basis, along with any interest that’s built up. Each card is different but most offer a period of free credit – this is often around 56 days. As you can imagine, to get the best out of a business credit card, many business owners use them for short-term expenses that they know they’ll be able to repay in a few weeks.

Can I use a personal credit card to fund my business?

Credit profiles take time to build up, so many new business owners can find that their company has a ‘thin’ file. This means they might not have enough of a credit profile to get a business credit card. In this case, owners sometimes use personal credit cards to fund their businesses.

However, by doing this the owner makes themselves personally liable for the debt incurred. In short, using a personal credit card for business finance means taking on a certain amount of risk. It is possible to use a personal credit card to fund a business, but many choose to upgrade to a business credit card as soon as they can.
What kinds of business use credit cards?

The use of business credit cards is highly common. Companies across all industries and sizes use them for their flexibility, to benefit from rewards and – in some cases – collect air miles. Almost all business credit cards come with the business owner’s or an employee’s name printed on, however, it’s the responsibility of the business to pay monthly bills.

Should you use a business credit card to fund you business?

As we mentioned up top, every business decision-maker should assess their situation according to their unique position. It’s certainly possible to use a business credit card to cover general expenditure and costs. That said, they tend to have five main disadvantages.

One of the key drawbacks is that business credit card suppliers typically don’t offer the scale of finance available through other types of borrowing, such as a business loan. Simply put, loans can give business access to larger sums of finance.

Something else to watch out for is that a number of card providers charge you a fee to withdraw money from a cash machine. That might not be a problem for many, but it’s worth bearing in mind if spending cash is a key component of your operation. Similarly, you may find that the fees you’re charged for foreign transactions are larger than with other options, such as a prepaid debit card with an overseas-focus.

Many business credit cards also come with a recurring annual fee. These are fairly small, but certainly worth checking out before you apply. Finally, unlike personal credit cards, business cards are not protected by the Consumer Trade Act, so the card provider is not obligated by law to protect you in the event of faulty goods or erroneous transactions.

What are the alternatives to a business credit card?

If you’re thinking about applying for a business credit card, you could consider the other finance options available for your business. First off, you could explore charge cards, which work a bit like credit cards. The main difference is that you’ll need to pay off the full amount of money each month, as charge cards don’t extend credit. Credit cards allow you to pay what you owe over time, though will likely charge interest left unpaid.

Beyond that, it could be worth looking into business loans or credit facilities. These enable enterprises to access more substantial amounts of money. Credit cards with high limits are hard to come by, so when requiring significant funds many businesses turn to these types of borrowing.

In summary

As you can see, there’s plenty to consider when thinking about business credit cards or the alternatives. So think about you business situation and try to plan out what kinds of funding will suit your unique situation best. After all, you’re the boss.