Positioning in Small Business Marketing

Alternative Venture Finance: Federal Grants and Loans

by: Dave Lavinsky

While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs).

An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates.

In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse.

Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund.

Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs.

In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need.

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

Five Tips to Obtain Credit for Small Businesses

by: Monique Hawkins

As many small business owners know, financing is crucial to the financial health of their enterprise. While some small business owners have the resources to launch their business, most look to the credit market for financial help. Indeed, the banking industry is an important source to gain necessary capital. However, many entrepreneurs may not realize that that applying for commercial credit requires a great deal of preparation. Here are five tips to assist entrepreneurs in improving their chances of getting credit approval.

Tip #1: Decide on the type of commercial loan that is needed. Loan options include short-term loans, intermediate loans, long-term loans, and lines of credit.

Short-term loans are usually for less than a year. They typically provide interim working capital for a business temporarily in need of cash.

Intermediate loans are often used for business set-up, the purchase of new equipment, expansion, or an increase in working capital. This loan can be anywhere from 1-3 years.

Long-term loans are for major capital improvements, acquiring fixed assists, and business start-ups. The loan term is usually from 3-5 years and repayment installments are on a monthly or quarterly basis.

A line of credit gives a small business the ability to borrow money repeatedly, up to the credit limit. The lender will usually perform a review once a year, at which time the borrower is asked to update financial statements.

Tip #2: Make sure all paper work is in order. Applying for commercial loans can be very tedious and requires much more documentation than applying for consumer credit. So, the key is to be prepared. In addition, entrepreneurs who have carefully put together the needed paperwork to include the loan purpose, the amount of money needed and for how long, and a repayment schedule proposal will be viewed more favorably by many lenders.

Tip #3: Develop a well thought out proposal. The proposal should include the loan purpose, the amount of money needed and for how long, and a repayment schedule proposal. Points to include are the business description that tells the nature of the business, product and service, a personal profile, and a business plan that outlines the corporate strategy for the next three to five years. Additional points to add are supporting documentation that supports the information outlined in the proposal, and collateral that will be used to secure the loan. Financial statements, both personal and for the business, are important as well.

Tip #4: Seek advice! It is important for entrepreneurs to talk with someone who has gone through the process of obtaining commercial credit before a lender is approached. This is especially important for the first time buyer. Entrepreneurs can approach mentors, qualified business counselors, business support groups, and the U.S. Small Business Administration. This step will increase the chances of getting a favorable credit decision.

Tip #5: Be prepared to pursue various options. Sometimes, financial institutions will say no. Once again, obtaining credit can be difficult, especially for entrepreneurs who are first-time borrowers. However, since financial institutions have different standards, an inability to meet the standard of one lender does not mean one fails the standards of all. It is highly possible that credit approvals can be gained with another lender. So, it is important to keep seeking until a lender is found.

Obtaining credit is necessary for many small businesses. Knowing what steps to take in this process can greatly increase an approval from a financial institution. Now, put these five tips into practice and be on your way to getting the credit you need for your business venture.

About the author:
Monique Hawkins is the owner of the online music box store; “Monique’s Music Box” located at http://www.my-music-box.com. She enjoys sharing information with business owners that will help them attain success. For additional assistance from one of the most respected markets around today, Jay Abraham, visit: http://www.abrahampublishing.net/app/?af=274476

Dialing for search engine bucks

In addition to the interesting patterns of search words and phrases used to trigger search engine referrals, I’m starting to see phone numbers used as lookups, too.

Lately, I’ve noticed a growing pattern in my keyword tracking logs of phone numbers used to trigger website visitors from top search engines.

Come with me as I reveal how to dial for online profits at…

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5 Bingo Domain Names For Sale

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Freud and the Small Business Owner Posted By : Lonnie Pacelli

Are you an ID, EGO, or SUPER-EGO Entrepreneur? This Small Business Made Simple Short introduces the Small Business Made Simple series and focuses on four crucial aspects of small business management: starting a small business, growing a small business, handling small business challenges, and exiting a small business. Each Small Business Made Simple series Short is written by authors who know what they’re talking about because they’ve lived the success and pain of running a small business.

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Fire Your Customers

by: Brian Grinonneau

It’s time to thin the ranks and fire some customers. That’s right, can ‘em, send them packing and tell them their business isn’t welcome here anymore. Sound crazy? It’s crazy if you don’t!

Why would anyone fire a customer? Simple. It’s costing you too much time and money to keep them around. This is obviously not an exercise where you send termination notices to valued clients. This is an exercise to get rid of the dead wood.

As you scan your list, there will be a certain type of customer that deserves the ax. Here is the profile: They always quibble over price and once they’ve stripped your profit margin, will pay slow, real slow. This customer is never happy with your service no matter what you do. They can’t be pleased. This soon-to-be-ex client never refers any new business to you and try as you might you cannot establish a working relationship. They have no loyalty to you and will jump as soon as they get a better deal from someone else. They call and complain often threatening to take their business elsewhere. Let them go.

In today’s marketplace where superior customer service sets apart the winners from the losers, discussion about shedding customers isn’t always popular. Running your business isn’t a popularity contest, it’s about doing what’s best for the future. Fire some of your customers. Your business will be better and so will you.

About the author:
Brian Grinonneau is the general manager of McMann and Tate Advertising in Perrysburg, Ohio, and agency that works exclusively with small business owners helping them stand out in a crowded marketplace.

Boost sales 25% with this upgrade

One of the fastest, easiest, and low-cost ways to sell more to customers is to offer add ons…

… Add-on expert Jim Domanski reveals 10 profitable upselling techniques to help you get the extra sales you’re missing every time you talk to your customers at…

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Looking for the best opinion relating to brokers.

by: Tom

When you are on the lookout for superior information relating to brokers, it will be tricky sorting out the best information from ill-equiped brokers submissions and help so it is important to know ways of moderating the information offered to you.

VR Business Brokers: Dallas Brokerage Dealer
Texas Business Brokerage, Mergers & Acquisitions, Business Valuation, and Consulting services for small businesses and mid-market companies.

Here’s several guidelines that we believe you should use when you’re searching for information regarding brokers. Hold in mind any recommendation we may offer is only pertinent to internet based information concerning brokers. We don’t really offer any direction or assistance for researching in ‘real world’ situations.

Daniels Trading: Brokerage Dealers
Select group of futures and options brokers provides multiple trade execution services, proprietary advice, client support, research, and education.

A good hint to track when you’re presented with information and suggestions on a brokers website would be to confirm the sites ownership. This could reveal the people behind the website brokers credibility The easiest way to work out who is at the back of the brokers site is to look for the ‘about’ page.

All highly regarded sites providing information about brokers, will almost certainly provide an ‘about’ webpage which will list the owner’s details. The details should let you know some indication concerning the owner’s requisite knowledge. You can then make a judgement about the vendor’s education and practical knowledge, to offer help regarding brokers.

About the author:
Tom Brown is the webmaster for http://www.hession-civic.info

Life Changing Opportunity - Want to Desgn Your Life Today? Posted By : Carol Carroll

Have you ever heard the saying, Dont blink or your life might just pass you by? While it is hopefully going to take a little bit longer than a blink of an eye for your life to pass you by, there is some truth to this statement, especially when it comes to new opportunities one of which might …

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Reading can be fun

Since business cards are not only about texts and words now, this technique can also be applied.A way of adding unique style to these small cards, by adding some graphics into them. Taking into account the texts which are important factors because that is what business cards are about.Adding graphics to business cards can be tricky too. It has to appear in the background, catching the attention of the holder but not really making them focus into it rather than the texts written.I wonder what would the style mentioned looked like when it is put into these small cards. Will it look as good as it appeared on the banners?One thing is for sure, though. If it will turn out like the one on the banner sample, then it would be a great help for card makers.The way I see it, even though there was a colorful image behind it, the text still stood out. The way the text is done makes the graphics disappear in the background. Still there too, just being attractive and adding some color.

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