9 Things You Must do to Maximize Your Chances of Obtaining a Small Business Loan

by: Neil Best

To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.

To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.


6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. – Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they’ll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!

About the author:
Neil Best is an accountant with over 15 years experience in business finance. This article and other useful business finance information such as making effective business plans and sourcing and applying for business grants can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html

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5 Home Biz Mistakes Every Entrepreneur Should Make!

by: bb lee

by BB Lee (C)2005
mailto:editor@smallbizbitsnews.com

In a previous article appropriate steps to start a home based business were discussed.

This important article will review the 5 top mistakes many home based business owners make that might evolve into a great success story.

Warning! This approach is not for everyone. One theory is readers will learn a new way of thinking and perhaps propel their business ideas into motion.

Let’s get started with the list!

1. Business Plans. Many article’s online vow by the business plan. Every new business owner must draft a business plan if they want to succeed.

One successful business owner online never thought of drafting a business plan. He learned the hard way. He made many errors but claimed the learning experience
was a powerful teacher.

He further stated the lessons he learned were better than any course in business school or college. He soon learned how to deal with the many ups and downs in the
business world. Dealing with frustration. All things you learn from the school of hard knocks.

2. Education. Once again many experts think several degree’s are the key to immediate success in any chosen field. Many successful entrepreneurs never went to college. And quite a few barely finished high school. Success is not always in the books you read but in how you deal with your business in the real world.

3. Rushing. Experts believe you should take your time and wait to select the proper business for you and your background or education. Taking time to study the various ideas is key to success. Others see an opportunity and immediately grab it.4. Over confidence. Believing you will be successful and ignoring negative opinions from friends and family. Family might have good intentions, wanting to save you from making an error in judgement, but they might throw a wrench in your business idea. Halting the business venture altogether.

5. Unrealistic view. Always seeing the good side. Thinking positive. That yes you can succeed in this business. Positive thinking is an asset every self employed business owner should own. Many business owners with a positive outlook continue striding forward where others simply give up.

That’s the list. It bares repeating that going against expert advice is not for every new entrepreneur. But many new home biz owners found great success in following their own path.

————————————————————
BB Lee is Editor And Publisher of SmallBizBits News! If you like this article subscribe to SmallBizBits Now! For new articles, advice, tips, unique start-up ideas, ebooks, reports.
Visit: http://www.smallbizbitsnews.com mailto:editor@smallbizbitsnews.com
————————————————————

About the author:
Visit: http://www.smallbizbitsnews.com
mailto:editor@smallbizbitsnews.com

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3 Essential Tools for Starting and Maintaining a Small Business

by: Ryan HoughWe believe that there are 3 factors that drive the success of small businesses.

1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses

The following resources will help your small business achieve these success factors.

Acquiring Start-Up Capital

An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money.

There are two ways to obtain a business plan.

1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.

Obviously obtain 1) will be a great deal cheaper.

Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world.

Finding Customers

Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards.

Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150.

Gnomes' three phase business plan

Accounting For, Budgeting and Controlling Revenue and Expenses

Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.

Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 – US $300.

Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website.

About the author:
http://www.best-quality-small-business-resources.com/

Ryan Hough is the webmaster of best quality small business resources.com, who’s aim is to help you save time and money by finding reviews and case studies that will enable you to choose the best resources at the right price.

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7 Steps to Successful Publishing

by: Ink Tree Ltd.

The decision to publish a book is very exciting! It causes the creative juices to flow and the eyes to light up. But wait – before you begin the publishing process, know about the seven most important steps you need to know before publishing your book. Make sure that you take every step into careful consideration so that your road to success is an easy one:

1. Know why you are writing a book. Are you writing your memoirs for the family, are you writing a community cookbook, are you writing a book of regional interest or are you writing a national bestseller? All of these goals are valid, but each goal has different implications for your business plan. Know why you are writing and know that you can create that bestseller if that is your goal.

2. Treat publishing as a business. You are passing beyond the realm of author into the exciting world of publishing. You are not just a writer, you are about to become a publisher who wants to produce a profitable book, and you want to keep the profits for yourself.

3. Write a business plan. Being aware of the business aspect of publishing is not an end in itself – you need to formally write your plan. It does not need to be a fifty page document with every accounting possibility recorded, but it should outline all of the costs that you will encounter from obtaining the necessary funds to knowing the price of mailing a book. The business plan needs to account for future expenses as well as pre-publication expenses.

Business Planning with Plan-Too
Business Planning with Plan-Too (Photo credit: plantoo47)

4. Plan for publicity and marketing. You must plan for the publicity and marketing of your book. You can have the best book in the world, but if no one knows about it, no one will buy it. You don’t want to print books that sit in your garage. You want to print books that will sell, sell, sell!

5. Write about a subject that you know well. Don’t write about something that you can’t talk about without effort. Write about a subject with which you are very familiar and that excites you. Writing the book will establish you as an expert in your field, so choose the topic that causes everyone you know to come to you for advice. The publicity will then be so easy that you will love being the “star”.

6. Know who will buy your book. So many authors think that “everyone” needs and should buy their books. Not so. Perhaps “everyone” needs their books, but not “everyone” will want to buy. Research and know WHO will actually WANT your book and market, market to them. They will buy!

7. Look for non-bookstore markets and do not be afraid of the large discounts. Bookstores are a hugely important market for most authors, but they are far from being the only place to sell books. There are many non-traditional markets that buy books in large quantities with no returns. This is a great market – sales made are guaranteed sales not consignment sales. Do not be afraid of the larger discounts when you make those large volume sales. The books you sell are actually SOLD.

Think how much more pleasant a journey is if you know which fork in the road will lead you to smooth driving and which fork in the road will lead you through potholes. Knowing the most effective publishing steps before you print will make your publishing career fun and profitable.

Copyright © 2003 Ink Tree Ltd.

Ink Tree Ltd. Helping writers publish, market and sell books! If there is a book inside you – profit from it. Learn everything you need to guide you from Idea to Book… to Success – the fast, easy, simple way. Publish your own book with one-on-one expert help from publishing professionals who have created numerous bestsellers and sold hundreds of thousands of books.

Phone: 1-866-500-8733 or 403-295-3898 Email: info@inktreemarketing.com

Web: www.moneyinpublishing.com or www.inktreemarketing.com

Ink Tree Ltd. is a book marketing firm that helps writers publish, market and sell books. Learn everything you need to guide you from Idea to Book… to Success – the fast, easy, simple way.

www.moneyinpublishing.com  or www.inktreemarketing.com

info@inktreemarketing.com

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Realism vs. Optimism in the Business Plan

by: Dave Lavinsky

The most important function of a business plan is to create interest among investors so that they write a check. In achieving this goal, business plan writers are often challenged by determining the proper level of optimism in their plan. That is, they must create a compelling story to investors while maintaining credibility.

Optimism shows investors that a company is confident about the market opportunity, its ability to execute on the opportunity, etc. Over-optimism, however, leads investors to believe that the management team does not fully understand the opportunity or the tough road ahead. As such, business plans must be sure to limit over-optimism and show investors they are realistic and credible.

Realism, the opposite of over-optimism, should be used in business plans to portray sobriety and credibility to investors. Realism should manifest itself in management team bios that tell the actual accomplishments of managers, rather than fluff. It should manifest itself in credible market forecasts and sober assumptions of the company’s growth.

While business plans must excite investors so they take action, if they are too optimistic, investors will discount their merit. Conversely, if they are too sober, investors may not feel they will get an adequate return on their investment. As such, business plans should present a compelling, optimistic picture, but continuously refer to hard facts and realistic assumptions to build credibility and genuine excitement

About the author:
GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital

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3 Essential Tools for Starting and Maintaining a Small Business

by: Ryan Hough
We believe that there are 3 factors that drive the success of small businesses.

1) Acquiring start-up capital
2) Finding customers
3) Accounting for, budgeting and controlling sales and expenses

The following resources will help your small business achieve these success factors.

Acquiring Start-Up Capital

An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to   convincing your banker to lend you money.

There are two ways to obtain a business plan.

1) Do it yourself by amending a business plan template, or
2) Hire a professional to do it for you.

Obviously obtain 1) will be a great deal cheaper.

Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world.

Finding Customers

Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards.

Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150.

Accounting For, Budgeting and Controlling Revenue and Expenses

Accurate accounting is very important for small business  owners. It’s essential that you have timely access to information that could  make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till.

Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 – US $300.

Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website.

About the author:
http://www.best-quality-small-business-resources.com/

Ryan Hough is the webmaster of best quality small business resources.com, who’s aim is to help you save time and money by finding reviews and case studies that will enable you to choose the best resources at the right price.

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