Business Lines of Credit vs Credit Cards
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Business lines of credit and credit cards have traditionally and effectively been used to finance small business operations. The similarities between these two types of financing are as follows:
Both, business lines of credit and credit cards are revolving
Both charge interest only on outstanding balances
Both have pre-determined borrowing limits
The primary difference between the two, however is that, credit lines tend to be more cost effective than credit cards by virtue of having lower interest rates and higher available limits. However, both methods of financing have their benefits and disadvantages and are not mutually exclusive. Along with a business line of credit you could also have one or more business credit cards especially for business expenses.
Benefits of a credit card as a financial instrument in small businesses:
Credit cards are very convenient as you can use it to charge all expenses instantly, unlike a credit line where you have to ask your bank to transfer funds to your checking account every time you need to make a purchase.
Record keeping is very easy as the bank will send you a statement regularly every month. It allows for you to check and track your expenses for tax purposes as well.
Moreover, with the increasing competition in the plastic industry, credit cards also come with perks like air miles, travel insurance, warranty extensions, and discounts on rental cars, hotels and gas. These benefits come in handy for a small business and help you to save costs.
Credit cards offer grace periods on purchases, which typically extend up to 25 days. Thus, if you are regular and pay your balances in full each month, you could avoid all unnecessary interest charges.
Benefits of a business line of credit:
A business credit line offers a maximum credit limit and flexible repayment schedule. Monies can be withdrawn by the customer up to the maximum limit, and the business credit line is replenished with regular, minimum payments.
With a business credit line, no new documents are required each time a credit advance is made.
In a business credit line you write yourself an advance, in effect, by using the home equity checks supplied by the lender or the bank.
Why Are Business Continuity Plans So Important in Today’s Business Environment?
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When disaster strikes is your small business ready? Unfortunately the answer is that disaster can strike at any time and it is often an unplanned event. All businesses need a business continuity strategy, unfortunately most businesses do not even know what a business continuity plan is.
I was talking to a small business owner last week and asked her if she had a business continuity plan. Her answer was, “no, I don’t need one – I’m not planning on retiring for another 10 years”.
What I meant by business continuity plan wasn’t a succession plan or an exit strategy plan but rather a plan for your business to continue operations in the face of disaster striking.
Why does your business need a business continuity strategy? Because typically disasters don’t announce that they are coming and that means that your business would likely not be ready for disaster.
What type of disasters can affect businesses: fire, flood, earthquake, hurricane, tornado, tsunami, terrorism, and more. Unfortunately the list is long.
Note: if you are a one-person business you will need a condensed version of the outline below. Have a shorter to-do and to-keep list. Keep a copy of your business continuity plan in a safety deposit box (across town if possible), or with someone you trust who is reachable in case of emergency but not your next door neighbor (since the disaster may strike both of you at the same time).
If you run a small business with more than 15 employees you may wish to have a plan for each department (e.g. administration/finance; sales/marketing; operations/human resources, etc.); and have each department head responsible for their department’s plan. However the plan needs to be integrated into a master document that you, as the small business owner, need to manage and control.
Your plan must consider how you will manage the impact of a disaster on your business. Will your employees be able to get to your place of business? Will your business be operational? How will you contact your customers and suppliers; or how will they contact you? Do you have your business records on a management information system that is backed up daily and stored offsite (way offsite – some business owners store this data in cities across the country: downloaded backups are transferred by script to professional backup services).
What your business continuity plan needs to include:
A Communication Plan: How will you communicate and who will you communicate to? Your contact lists need to include all key stakeholders: employees, customers, suppliers, your insurance agent, your lawyer, your accountant, your software provider, your banker, your property manager or landlord if the building is not owned, shareholders, and others important to your business.
Consider using your website to get messages out to stakeholders. When you start phoning staff, suppliers, customers, tell them that you will be posting updated information on the company website (if you don’t have one, set up at least a one-page site as a place holder). Ensure that you have a website host who can do the updates to your site for you – you will be busy elsewhere. This will save you and your people time in getting the message out.
Adequate Insurance Coverage: Ensure that you have business income interruption policy coverage: you want to be covered in both upstream or downstream loss scenarios. Upstream could be the interruption you would incur if one or a number of your suppliers was affected by the disaster and could not deliver necessary supplies. Downstream could be the loss you incur when a key customer is affected by the disaster and stops ordering your product or service. Ensure that you have appropriate insurance to cover other related issues: for example, on-site injuries to employees or visitors or for loss of your customers’ goods or materials.
Inventory List: Ensure that your business continuity plan includes an itemized inventory of equipment and the supplies you regularly use.
Business Recovery: Build a business recovery plan. What will you do first, second, third? How will you get started? Consider contacting your competitors for help (yes, that hurts but in the end if you support your customers through this they will remember). If you run a manufacturing plant, consider the equipment you would need and how quickly you could replace the most important pieces (e.g. consider asking your equipment supplier if they have any demonstration units they could lend you until your new equipment is shipped). If you’re in the inventory business, make sure you keep inventory-turn lists and supplier information in your plan documents.
If you own the building you might want to keep a list of pre-approved professional engineers (these will be in demand if the disaster has hit a large area) and consider an out-of-town engineer. If the building is still standing after the disaster you still may need or want a structural review before restarting operations.
Depending on the extent of the damage and the disaster, you may not want to rebuild your business. Do not make that decision too quickly. There will always be a strong emotional response to disaster. Your emotions may cloud your ability to make a good business decision. When you write your business continuity plan now – also include why you run your business and why you got into the business. After a disaster strikes, carefully review the reasons for rebuilding or not rebuilding your business. If you have a strong business continuity strategy built into your plan, it will make the decision to go forward much easier.
Home Base Business – Is It For You?
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Home base business is the most legitimate and reputable small business opportunity available today. One of the mistakes that many entrepreneurs make when looking for the top home base business is limiting themselves to what’s popular or in the news.
Owning home base business is rewarding as it is a ways for you to be your own boss and realize triple time profits. This is easier to say finding the right home base business is demanding and time consuming. The great thing about starting a top home base business is that you should have no problem getting your name in front of potential customers. After all, you are an internet marketing specialist therefore internet home base business can be your BEST bet towards financial security.
Business
As a result, millions of Americans are turning to home-based businesses to achieve their dreams and goals. With your own home-based business, you can become the CEO of your career and your life. Even better, many network marketing business offers an incredible way for you to earn from the efforts of others, too.
Opportunity
Starting a home business opportunities is not for everyone, but if you love to stay home and make money, this opportunity may be for you. This is why you should research very well before starting a home based business. Try to look for a home business opportunity that has been around at least two years, preferably longer. A good opportunity will still be a good opportunity after the “ground floor” stage if all the right elements are in place.
Conclusion
The Success University network marketing business opportunity is one of the most dynamic and potential-laden opportunities in which new home base business people should know today. A positive aspect of a network marketing business opportunity is that it is a long term endeavor and many ordinary people can financial freedom by putting in sincere and hard work. Then, the network marketing business opportunity is your vehicle to your happiness afterward.
Table Manners – Business Etiquette Tips
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In this day and age, business is being conducted outside the four walls of your company office. Business deals and transactions are occurring at golf courses, entertainment events, social venues and restaurants. There are many dynamics to building business relations, partnerships and associations. In order to maneuver through situations with grace and diplomacy, we suggest learning the right etiquette for successful and pleasant business meetings.
Listed below are five helpful tips for business dinning etiquette:
Clock Works
If you are scheduled to have a business breakfast, lunch or dinner it is important to arrive early to the location. Arriving early is a subtle form of etiquette and courtesy. You are basically respecting everyone’s time by not arriving late. By arriving early, you have the opportunity to use the restroom, check your messages, turn off your electronics and reduce any distractions during the business meal.
Deja-Vu
If the date, location and time for your business event have already been determined, we suggest you visit the restaurant website to view the menu and get directions. Previewing the menu early, gives you adequate time to select what you would like to eat. You can even select one or two dishes in case they are out of a particular order. This is very helpful for the day of the business event, because you are able to make a quicker decision on your meal without wasting time or prolonging the order status for the entire table.
99 Bottles of Beer
You should determine before the business meal if you will be ordering alcohol. You can ask the host of the event, fellow colleagues or your boss, if it is ok to order wine, a cocktail, beer or other alcoholic beverages. Also, keep the client or nature of the business meal in mind if you decide to order alcohol. If this is the first meeting, we strongly suggest that you refrain from consuming alcohol. If you are comfortable with your business counterparts and have good business relations, then ordering alcohol might not be a bad decision. Make sure that you are familiar with your tolerance level and drink responsibly.
Talk the Talk
Before the business event, take some time to think about topics to discuss during the meal. This would be a great time to brush up on current events, sports, business trends, entertainment, travel, technology etc. You can also visit the company sites of your business counterparts to learn about their business culture, objectives, missions or current projects that may be national or international. Try to refrain from controversial topics that may not be appropriate during the business meeting.
Green Backs
Make sure to bring extra cash with you whenever you attend business events such as these. Although you may not be paying for the meal, you may have to pay cash for transportation, parking, valet or any other activities after the business event. ATM machines may be difficult or inconvenient to find, depending on the location of the business event. And not all restaurants/venue expect every credit card or personal/business checks.
Small Business Tradeshow Marketing – Expo Producers As Business Partners?
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I’ll bet that it hasn’t occurred to too many exhibitors that expo producers are marketing partners in their business. No matter what the business is.
Now that’s got you thinking, doesn’t it? You might be thinking that you’re in the construction business and some of these expo producers don’t look like they know how to find the business end of a hammer! If you asked them to get you a 2 x 4 they would go one better and hand you the keys to their old Jeep 4 x 4! Definitely not in the same business. But they’re still your “marketing” partners.
The expo producers’ primary responsibility to the exhibitor is to promote the event via multiple methods. They might do this via a combination of print, internet, radio and TV ads. The successful producer knows that the number of attendees can make or break an event. The higher the number of attendees, the happier the exhibitor will be and happy exhibitors will return for the next expo.
Okay, so marketing and promotion is their business but not necessarily the favorite part of your business. You can contribute to your part of the partnership by letting people know what expos you can be found at. It would be easy. Include a line about the upcoming expos or other events in your customer communications like newsletters, invoices, and even direct mail pieces. Add a list of your upcoming expos to your website. Promote your expo participation through churches and other community bulletin boards. Put a flyer up at the local coffee shop. These methods are great ways to keep your business name out in front of people all at the same time as promoting the expo.
People will do business with others they like and trust. Letting them know what events you’ll be at gives them an opportunity to seek you out in a neutral environment. Now you’re on your way to turning prospects into customers! No other marketing method trumps the ability to smile and shake hands with someone as the first step to creating a mutually beneficial relationship.
Partnering with the producers on expo promotion results in a well-attended event. A win-win situation for everyone!
Save Your Business With Pre Pack Admin
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Pre pack administration (or Phoenixing) is becoming more and more popular as a way of rescuing a failing company. The process involves setting up a new limited company which then buys the assets of the old business.
The assets, employees and even company names are transferred to the new company which starts to trade as normal and the old business is normally then liquidated.
A pre pack administration has significant advantages over other company rescue solutions:
Historic debt is left with the old business in pre pack. The new pre pack business can start trading without having to pay back the historic debt of the old company. Unlike a company voluntary arrangement, the new business does not have the burden of this debt and can therefore start to trade profitably.
If the old business was struggling with lease property which was no longer required or unfavourable lease terms, the new company has the opportunity to find more suitable premises or renegotiate with the landlord.
The pre pack process also means that the company’s business assets and employees are keep together. If key assets or teams are broken up as is often the case in an administration process, a business is not able to continue successfully even if it no longer has to contend with its debt.
So what are the downsides to doing a Pre-Pack Administration?
A lump sum of money will be required with which to buy the assets of the old business. The amount will depend on the valuation of the assets including work in progress and goodwill. However as an absolutely minimum, the value will normally need to be GBP15,000.
In addition to the sum required to buy the old business assets, when considering their budgets, the new business owners and directors will also have to factor in working capital for the new business.
Some believe that pre pack can be used to reorganise staff getting rid of any not required. However this is absolutely not the case. European law (TUPE) requires all employees to be transferred to the new company when another company buys it, and under the same terms and conditions. If some employees are not required then the new company will have to make them redundant taking into account all of their employment rights or face claims for unfair dismissal.
In many instances, pre-pack administration is a very good way of saving a business as historic debt is written off and unfavourable lease agreements can be re-negotiated. However, to work successfully, a pre pack will normally require significant upfront investment and will need to take account of employment law. As such, expert advice must be sought before deciding to proceed with a pre pack solution.
Starting Your Own Business in College
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Today more than ever college students are entrepreneurial. They are worried about their futures and concerned about getting a job upon graduation. So, instead of focusing their efforts on getting top grades and being the best in their class they are using their education and motivation to start their own businesses. This is actually very smart because kids can get their business started and through the growing stages while they are still in school. Then, upon graduation, they will be making enough money to support themselves and their growing business. Of course, college grads can qualify for student credit cards as well as business credit cards. Either one of these will help students get their business off the ground and this is very important. Without funding it is very hard to do anything and student credit cards are a way for students to pay for what they need up front and then have money to pay the bale off.
How to Apply
Applying for a student credit card is really easy. All you need to do is review different offers on the Internet and then decide on the best one for you. There are many to choose from so look for one that offers cash back or rewards. This is especially true for those looking for office supplies, computers, gas, and the like. Simply fill out the online form with name, address, social security number, and school name. Then, apply! You will have a response in a few seconds and know your credit limit.
Use Credit Wisely
Once you have the credit you need to buy supplies, software, or things of that nature, then you are ready to start your business. Remember, though, to manage your credit wisely. This means always making the minimum payment on time every month. Doing this will keep your credit rating good and allow you to apply and receive more credit in the future. As long as you maintain your credit then you will have it to help you with your business expenses forever.
Business Ideas
Great business ideas are anything to do with the Internet. If you can work online then that will make you more marketable and you can fit it in around your class schedule. This means you could design websites, write web content, blog, create graphics, and much more. These are some great business ideas and you can certainly come up with many more!
Go ahead and start your business and work on it on the side. Build it slowly but surely and it will become successful in time. Starting a business while in college is an excellent idea because it will allow you to go through the growing stages while you are still in school.
How Bad Business Attitude Can Kill Your Business
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Of course, no business owner in this world can afford to lose their business. Many policies and strategies are performed to protect (and grow) their businesses. Some will enjoy a big growth, some will stay as it is, and some will suffer from bad strategies. I will only talk to one specific point that can kill your business if you do not apply it very well: business attitude.
This is a clear example of how a bad business attitude can put a successful business in danger…
During my 15 years career in industrial sales and service business, I happened to know one trading company selling machines and parts to many industries. For years they enjoy fruitful relations with their loyal customers, as well as successfully build new cooperation with many other industries. All are built on the base of terrific service value, or in trading business we called it: after sales service.
After sales service is what makes a business owner can continuously run his business, and even bring it to a higher level. Because once we made a sales to a customer, we don’t just deliver the goods, collect the payment, and credit it in our journal, then finished. No! We want the customer to enjoy the goods and in the future do another transaction with us again. Or, if they are satisfied, they can refer our product to their friends, which means more customers for us. But how? By providing after sales service!
There are people who think that after sales service is another profit center besides the product. So, every service that they provide related to the product will be charged. That is normal, as business goal is gaining profit. However, if we charge for our after sales service, then what will be the added value we will provide for customer in order to keep them buying from us ?
So that trading company has a good after sales service tradition for years, and enjoy a fast growing by keeping the old and loyal customers. The customers are guaranteed with free machine service guarantee for life, machine back up when their machine got problem, and friendly and flexible approach to solve every problem.
Unfortunately, one day the boss decided to take control of the after sales service division. He changed all the previous policies, no more free services, no more free back up machines (they do provide back up machine but in terms of ‘rental’), no more friendly approaches. Everything is counted only on money basis. Customer gets something from them, customer must pay for it. Period.
So the company has transformed from ‘always ready to give’ to ‘must receive for all that we give’. Receiving first, then giving. I found this quote that is well-written about business attitude “…if you’re selling, giving more use value than you receive in cash value….” It emphasizes that, if you want to grow a business, build a long term relationship, by giving more use value to everybody (customers, suppliers, brokers, business partners, and even your competitors). Of course, without scarifying the business itself. Be good to everyone, and you will receive it back to your business, because people likes to have business with good people, people that they can trust, people that keep their promises.
No need to describe it in detail, but that new policies definitely become a shock for the trading company’s customers! Honeymoon is over! Complaints will keep coming. And what is going to happen with the business? Nobody knows now, yet. But from the story, we can learn one important thing : not an overpricing products, or delayed delivery, or broken parts over delivery, that can kill a business (you can revise, redeem or replace all the failures). But bad business attitude can!
Building Business Credit
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Building business credit is an important element especially when you need to borrow money for starting new business or expanding your current one. Most businesses want to be able to borrow money when they need it, without the owners having to guarantee the loans personally so as to minimize their risk.
There are essentially some important steps to follow while establishing business credit:
Setting up a correct corporate structure and ensuring that your business appears stable and real to the credit bureaus. This means that you must get the proper occupational licenses and a listed phone number with directory assistance in the businesses’ name, among other things.
Borrowing or buying products and services from companies that will report your credit history to the major business credit reporting agencies such as Dunn & Bradstreet and Experian. Unlike personal credit ratings, best business credit scores are reserved for large stable businesses with several million dollars in sales a year and 25-50 or more employees. However, you can start small and gradually build your business credit rating to get the requisite borrowing power that your enterprise will eventually need.
It is essential to separate your personal credit from your business credit. Thus, even if your business fails to pick up, your personal credit will remain untouched. Similarly, if your personal credit takes a downward spiral, your business rating might also get affected even though it may be doing well and have nothing to do with your personal finances.
To ensure this separation and build business credit, you need to first form an LLC whereby your business becomes an entity unto itself. Next, you must have a Federal EIN and open a separate bank account under the exact legal name of the business and obtain all necessary business licenses, permits, etc.
It is imperative to open a business credit file with all of the three major business credit reporting agencies, obtain five vendors and/or suppliers that will extend a small amount of credit to your business and report your payment histories to these agencies.
Get three business credit cards, the transactions of which will be reported to the business credit agencies. Most importantly it is important that you pay all your bills on time.
เริ่ม ต้น Small Home Business วัน จ่าย เงิน สินเชื่อ เพื่อ ใช้ เป็น ทุน
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สินเชื่อ วัน ชำระ เงิน สามารถ รับ ได้ อย่าง ง่ายดาย โดย ไม่ ตรวจ สอบ เครดิต. เกือบ ทุก คน มี ราย ได้ มั่นคง และ บัญชี ตรวจ สอบ สามารถ สมัคร และ ได้ รับ อนุมัติ ถึง วัน จ่าย เงิน $ 1,500 เงินกู้. ดังนั้น ทำไม ไม่ ใช้ นี้ เป็น เริ่ม เป็น ทุน สำหรับ บ้าน เล็ก ๆ ของ คุณ ตาม ธุรกิจ?
เริ่ม ต้น ธุรกิจ บ้าน เป็น ที่ นิยม มาก ใน ปัจจุบัน และ ตราบ ใด ที่ คุณ มี การ กำหนด และ จินตนาการ ที่ คุณ สามารถ วาง ใน บ้าน ตาม ธุรกิจ. เงิน ยืม วัน ชำระ เงิน ดอลลาร์ 1.500 $ คุณ สามารถ ไป พร้อมทาง!
คุณ เตรียม?
แต่ ก่อน ที่ จะ มุ่ง หน้า ออก ไป ยัง ผู้ ให้ เงินกู้ วัน ชำระ เงิน และ สมัคร สินเชื่อ วัน จ่าย เงิน สำหรับ บ้าน ของ คุณ ตาม ธุรกิจ ที่ คุณ ต้อง ถาม ตัว เอง ถ้า คุณ เตรียม จริงๆ – ไม่ เพียง เงิน แต่ ใน แง่ ของ ความ เหมาะสม ของ บ้าน ของ คุณ เป็น สถาน ที่ ดำเนิน ธุรกิจ ทักษะ การ จัดการ ของ ความ คิด สร้างสรรค์ ตลอด จน การ กำหนด เพื่อ ให้ กำไร ของ คุณ.
ตรวจ สอบ ความ สามารถ ของ คุณ อย่าง ใกล้ ชิด โดย รู้ ว่า สิ่ง ที่ คุณ ชอบ ทำ มาก ที่สุด เพื่อ ให้ คุณ สามารถ มี ความ คิด ของ หัวนม ธุรกิจ สิ่ง ที่ สำคัญ คือ คุณ เริ่ม ต้น ด้วย สิ่ง ที่ คุณ ได้ ทราบ เพื่อ ให้ คุณ สามารถ มุ่ง เน้น การ สร้าง ธุรกิจ ของ คุณ และ ไม่ เรียน รู้ สิ่ง ใหม่. ยัง เริ่ม ต้น บ้าน ธุรกิจ ตาม ยาว จะ หมาย ถึง เวลา ทำงาน – ดังนั้น ถ้า คุณ สนุก กับ สิ่ง ที่ คุณ ทำ คุณ จะ ไม่ ได้ รู้สึก ว่า ภาระ งาน.
ตลาด ของ คุณ
ขณะ ที่ คุณ อาจ คิด ว่า ยืม วัน ชำระ เงิน ง่าย และ ได้ รับ ดังนั้น คุณ จะ กระโดด ขวา หน้า และ เริ่ม ต้น ที่ บ้าน ของ คุณ ใช้ธุรกิจ> ทราบ ว่า เงินกู้ วัน เงินเดือน ออก เป็น เงินกู้ ที่ ต้อง ชำระ คืน. ดังนั้น ก่อน ที่ จะ ได้ รับ เงินกู้ วัน ชำระ เงิน เพื่อ ใช้ ใน บ้าน ธุรกิจ ตาม คุณ ควร ตรวจ สอบ ว่า บ้าน ของ ธุรกิจ ที่ ใช้ จะ ได้ รับ เร็ว ที่สุด. วิธี การ รู้ นี้ หรือ ไม่ กำหนด ประเภท ของ บริการ หรือ สินค้า ที่ ผู้ คน ใน ชุมชน ของ คุณ มี ความ ต้องการ และ กรอก ต้อง ที่. เช่น คุณ เห็น มาก เด็ก ต้อง tutors บ้าน จาก โรงเรียน. คุณ สามารถ มี บ้าน ตาม ธุรกิจ ของ tutoringและ เด็ก ทารก นั่ง หลัง โรงเรียน และ รวม เป็น วิธี ที่ ไม่ ซ้ำ กัน ของ พวก เขา tutoring.
ขาย บริการ ของ คุณ
o คุณ เห็น มาก ของ ยกเลิก การ เก็บ หลา ใน ละแวก ของ คุณ คุณ จะ เพลิดเพลิน กับ สวน? คุณ สามารถ ติด สวน ขาย พืช และ เสนอ งาน ภูมิ ทัศน์ และ บำรุง รักษา สวน ราย สัปดาห์.
o มี มาก หนังสือ ทุก เล่ม stashed อยู่ ใน ชั้น วาง หรือ ไม่ เปิด สโมสร หนังสือ ใน บ้าน ของ คุณ และ ตั้ง ค่า โต๊ะ กาแฟ น้อย ซึ่ง สมาชิก สามารถ อ่าน และ กาแฟ.
o คุณ ศิลปะ และ รัก การ สร้างสิ่ง? ขาย ตะกร้า ของขวัญ สำหรับ ทุก โอกาส ที่ เหมาะสม จาก บ้าน. คุณ สามารถ เริ่ม home-based ธุรกิจ ด้วย เงิน ทุน น้อย มาก. ทั้งหมด ก็ จะ มี มาก ของ จินตนาการ และ เงินกู้ วัน ชำระ เงิน!
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