Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts

Monday, March 9, 2015

Standing Still Is Never A Good Option For Business

Most of the businesses out there actually fail because of the fact that they do not adapt and they do not grow. It is really important that you always think about options that are available for making everything more profitable. Small businesses have a 50% chance of failing before 2020 and this is mainly because of the fact that they do not adapt.

Business

It is really important that you understand what growth means. You have to be sure that you do all that you can in order to achieve business growth. Eventually, you will be able to work with professionals that can help you to grow further but that only happens in the event that you can show that the business has a good growth potential. You can click here for Todays Growth Consultant, an example of growth advisors that help businesses get to the next level. 

In order to help you properly understand what happens when you stand still, read the following facts.

Margins Are Eroded

Profit margins can be eroded by many things. In most situations inflation plays a huge role. Ever since 1949 we saw inflation growing, leading to various shifts in profit margins. Every single year we see prices for electricity, rent, insurance, water, gas and so on go up. Goods that you sell should also increase in prices in this case but that rarely ever happens.

Customers Keep Leaving

As a business manager, you need to always think about new ways to get new customers. That is so much more important than what you may believe at first glance. Customer loyalty is a huge problem since the modern customer is definitely not going to be impressed by what worked in the past. Make sure that you always think about this fact and do invest in customer service. When customer service is above average, the customers will feel appreciated and you can end up faced with constant increases in profits.

Improper Marketing

Marketing is a field of activity that constantly evolves and changes. Unfortunately, most business managers out there do not take this into account and still use the techniques that were effective in the past. If the strategies that you currently use are outdated, you can be sure that problems will appear and your profits will go down. It is normal to use around 5 marketing channels. Adapt and when you see that one does not work well anymore, look for something else.

Competition Is Higher

This can drastically ruin your chances of success. When you first started your company, there is a huge possibility that part of the profits appeared because of the fact that there was not much competition. This surely changed and now you have to work harder in order to get the same profit since a part of your customers will use the services of a competitor. Remember that and do compare the quality that you offer with the quality that is offered by the competition, together with prices and everything else that you can manage to analyze so that you do not lag behind.

Monday, December 1, 2014

Numerous Ways Your Small Business Can Benefit from Payroll Solutions

If you are a small player still trying to find your way around, you need to keep in mind that payroll is one aspect of the business you need to be on top of. Luckily, payroll management solutions are now available to help you do more at half the time manual payroll computations require. 


Apart from accurate paychecks and systematic tax contributions, below are some of the advantages payroll solutions provide that you can’t miss out on.

1. Practical

As you become more and more familiar with the software, you will also discover tips and tricks to make it work to your full advantage. While you need to invest a significant amount of time (and patience) getting to know the system, you will eventually reap the fruit of your efforts in the form of efficient and accurate transactions and huge savings to boot.

2. Updates

Invest in trusted and efficient payroll software and you won’t need to worry about missing out on the latest tax updates. Once you have this important aspect covered, you can easily shift your attention to other areas of your business that need immediate and thorough attention.

3. Reminders

A software’s reminder feature will not only help you keep up with key tasks, it will also help guarantee you are able to do it on the targeted time frame. With that in mind, you can say goodbye to late tax, pay slips and payroll report submissions.

4. Support

In most cases, dependable payroll software comes with extensive support service. This is done to guarantee help is readily available whenever users struggle with issues and concerns they cannot fix on their own.

5. Accuracy

Manual payroll computation is not only exhausting and time-consuming; it is also prone to calculation blunders. Equipped with comprehensive validation procedures, established payroll management solutions can dramatically reduce, if not totally eradicate common payroll errors / mistakes.

6. Calendar

An employee calendar can do more than just allow you to view and monitor employee sick leaves, absences and overtimes. In addition, it also gives you access to employee attendance, alongside the type of leaves each is entitled to. This will enable you to easily resolve pay disputes and disagreements related to attendance.

7. Security

Unlike before, companies nowadays already have the option not to give out confidential and valuable employee information like salaries and compensations to third parties. In other words, with a reliable payroll software, you can rest assured no information as classified is shared.

8. Ease

Understandably, payroll demands for small businesses are relatively modest, but still, most payroll solutions have been designed with user convenience and ease in mind. With simple interfaces, unnecessary headaches and inconvenience are easily avoided. 

If you are still a small player in the competitive realm of the business world, you need all the help you can get. Fortunately, a lot of innovations, payroll solutions included are now available to help you effortlessly steer your small venture in the right direction.

Top 5 Reasons Why Enterprises Must Keep Abreast with Technology

Running a business is as exciting and fulfilling as it is stressful and challenging. It can be difficult for small and medium-sized enterprises to succeed amid stiff competition and a plethora of major obstacles just waiting around the corner. 


There are, of course, a few exceptions – businesses that take advantage of the latest technology to gain a competitive edge.

Technology broadly encompasses scientific breakthroughs that lead to better solutions.

Businesses that stay updated with the latest technological advancements not only have a lower cost structure than those that employ obsolete technology, but also benefit from an improved speed, fewer instances of human error and the ability to store and share information easily – just to name a few.
Below are just few of the reasons why keeping abreast with technology is highly recommended for businesses of all sizes.

Using the latest technology increases productivity

This is the most obvious advantage of using the latest technology.

It allows small businesses to automate major functions, thus leveling the playing field and allowing them to compete with larger companies.

Fortunately, nowadays, there is no shortage in software that can help streamline processes and keep businesses fast and efficient.

It improves communication

Communication is crucial to the success of businesses.

Small and medium-sized enterprises as well as established and thriving companies always need to stay in touch with clients, investors, partners and employees.

Technology allows them to do this and more by enabling them to connect through a wide range of mediums, which include email, mobile technology, video conferencing and so much more. They can send and receive all sorts of information without drastic geographical limitations.

With improved communication comes teamwork. Technology provides employees with an avenue for collaboration, empowering them with many ways to work together and ensure the success of their projects.

It creates a more engaging customer experience

There are plenty of equipment and applications that enable businesses to reach out to their target demographic. Loan businesses, for example, can use a loan servicing software not only to speed up administrative tasks, but to retrieve, analyze and report customer data as well. 

This type of program allows businesses to tailor their products and services to better suit the needs and preferences of their customers. The data they gather can also serve as a guide for their marketing strategies, customer service protocols and other areas that are essential to providing consumers with a positive experience. 

While it might seem costly and time-consuming to keep up with the latest technology, its initial drawbacks are certainly overshadowed by the benefits. With that in mind, it’s safe to say it is certainly worth the time, effort and investment.

Saturday, June 28, 2014

5 Reasons Why the Owner of a Property should Consider Taking Sale-Leaseback for their Business!

While banks are becoming more and more aggressive in providing new landing opportunities, bank credit is now relatively expensive. On the other hand a company’s investment in real estate is often overlooked. Many times, a corporate real estate is underutilized and is financed with a simple mortgage. And an effective alternative to mortgage financing is the sales leaseback that better utilizes a company’s real estate. Let us first understand what sales leaseback before moving on to its benefits for owners. 

What is a Sales Leaseback?

Many companies do not own real estate but want the utility of land to produce their services and products. A sales leaseback simply enables a company to reduce the investment and liberate the cash in exchange for paying rent or executing a lease. A real estate sales leaseback is a transaction in which the owner of the property sells his land to special purpose investor and on the same time he leases the property back from the investor on terms agreed. In simpler words, a sales leaseback agreement lets the owner sell his land and then lease it from buyer. The actual owner becomes the renter and the third party gets the final ownership of the property.

Here are 5 Reasons why an Owner should Take Sales-Leaseback!

  • Set your Own Lease Terms – The owner has significant bargaining power in deciding the property lease. Since he is also a lessee, he has the opportunity to negotiate with the investor who is acquiring the land. Typical leases are of 10-15 years. The seller who is also a tenant now can further adjust extension options after the lease expiration and also includes term for early lease termination as well. It all depends on the lessee needs.
  • Retain Control of Real Estate – The one who is taking up the property for a certain period of time will be now responsible for insurance, taxes, and other expenditures like maintenance costs because most leases are structured as triple-net leases. A long term lease gives tenant a similar control over the property. The tenant can also work with the investor and include options for future expansions.
  • Tax Savings – Generally, lessees are able to write off the total lease payment as an expense for tax purposes. For the property owner, depreciation and the interest expense are only tax deduction possible. In this way, a sales-leaseback ensures better tax savings.
  • Greater Value to Real Estate – Unlike a mortgage, sale-leaseback is mostly structured to be financed up to 100% of the appraised value of the building and company land. In this way, the sales-leaseback utilizes the company’s investment more efficiently as a financial tool. Also, since the leaseback is technically not a financial instrument, it does not have covenants on the company.
  • More Attractive Sales Offering – If you are planning to sell your property in the near future, it would attract the buyer more if there is a guaranteed major tenant than it would if the property is empty. On an average, prices are higher for sales leasebacks than traditional vacant sales.

Friday, March 14, 2014

How to Make Sure Corporate Secretarial Services Can Help your Business

Over the years Singapore has grown to become a major business hub. Most of the businesses that have been springing up, are small start-up companies. Due to the cost that comes with setting up a new business, most of these companies do not have any sort of secretarial services. However, many people are now realizing the importance of having a secretary on staff. That is why there are growing number of corporate secretarial services who focus on providing secretarial services at prices that even small businesses can afford. 

Corporate Secretarial Service

There are many benefits of hiring Singapore company secretarial services. These companies can be able to deliver fast and efficient incorporation services, especially to new companies.

Look at what they can offer your business

The corporate secretarial service company you hire should be able to help your business with its administrative functions. If yours is a start-up company, then you can leave your company registration duties in the hands of a secretarial service company. These companies are usually more knowledgeable of the right and best channels to take so as to help a new or young business with its registration and business renewal tasks. 

If you are considering expansion into a different country or state and don't know how to go through the cumbersome activity, the secretaries can assist with the assembly and lodging of all relevant documents with the respective offices.

Focus on projecting a professional appearance

When clients walk into a company where there is a secretary, they instantly get a feeling of professionalism. A secretary shows that the company is organized and that they can delegate tasks with efficiency. A secretary can help make your business look more credible and hence increase your authority in the industry. 

Appearances are important to a business, when a client walks in to an office and is greeted by a well-dressed and courteous secretary, this improves the credibility of the business. Clients are skeptical about offices that have no one to direct them when they call or visit.

Focus on Efficiency

For your business to succeed you must have sufficient time to focus on the core aspects of your business. Singapore company secretarial services should be able to ensure your business runs efficiently. A professional corporate secretary will be able to coordinate different aspects of your business. For instance, you may not have time to prepare and distribute materials for a meeting or lead and take the minutes in a meeting, a secretary will be able to do it. 

The secretary maintains a relationship with the different aspects that affect your business. They work closely with various corporate board members so as to ensure different department run smoothly.

Look into trustworthiness

Secretaries during their daily activities come into contact with a lot of confidential information. Most of the financial prospects and confidential business plan of a company pass through a secretary’s hands. This is one of the reasons why not just anyone can fill in this position. It is therefore wise to choose a professional and ethical secretary so as to ensure your business’s success. 

Some of the sensitive tasks include handling taxation and accounting issues among others. These secretarial companies can help your business with tasks such as filling of taxation documents and file number registration.

Author Bio: Chris Kam is the Director at Budget Accounts Pte. Ltd., Singapore. He provides expert advice in areas of corporate accounting, tax planning and cost savings. With his extensive experience in this field, he is successfully guiding clients in Corporate Secretarial Services in Singapore and helping investors to achieve their financial goals.

Monday, February 24, 2014

5 Signs You Might Need Insolvency Help

Whether you’re operating a business as a limited company or partnership, a sole trader or a private individual, it’s vital to seek professional advice as soon as your business starts getting into serious financial difficulties. There are always warning signs before a business becomes insolvent, and hiring an insolvency expert to help you recognize those signs and change course before it’s too late could make the difference between your business sinking or staying afloat. Here are some tell-tale signs you probably need outside help to restructure your business and improve its fortunes.

business Insolvency Help

  • Poor Management

Without effective management control, it’s hard to spot the other signs that your business is heading south. Poor management can include the failure to report regularly on how the business is performing or the lack of an adequate system for forecasting cashflow and correcting imbalances. Receiving lots of penalties for late payment may be the result of having a poorly managed system for prioritizing payments, or perhaps there is just no proper procedure for their authorisation. Either way, you probably need professional assistance to resolve these issues.

  • Long-term Losses

If you’re not regularly reviewing your business’ financial accounts, you may not be aware of structural problems that are causing ongoing losses. While most businesses expect their margins to ebb and flow somewhat, several months of consecutive losses should be enough of a warning that your business needs to effect action to stem the tide and avoid insolvency.

  • Late Payments

If you’re always receiving “final demands” from your suppliers, or incurring fines for going beyond the agreed terms, this is another sign that your business may be in trouble. As well as suppliers, are you always late in paying your taxes, VAT and employer contributions? While it doesn’t always make sense to pay bills early unless there’s an incentive to do so, being constantly overdue with your payments will strain your business relationships and usually indicates a more fundamental problem with the accounts.

  • Cashflow Concerns

If you can’t meet your payments when they’re due, it’s likely down to poor cashflow. Even businesses that are profitable on paper and have a high turnover can find themselves in trouble if they don’t have enough cash on hand to pay suppliers or salaries. This is often less about the viability of the business itself and more about the inability to control credit. For example, if you fail to keep well-organized records of what is owed to your business, and by whom, or you regularly allow unpaid invoices to get written off as bad debt, this is a sure sign that your credit control needs reforming.

  • Writing Post-dated or Bad Cheques

If your cheques are bouncing and you can’t honour the payments, this is a clear warning sign that the business is in serious financial difficulty. If you’re at this stage, you should organize a directors’ meeting as soon as possible and arrange for an insolvency practitioner to oversee the accounts. If your business is already insolvent at this stage and you continue to trade despite being unable to honour your payments, you could risk severe financial penalties or even prison time if you are judged guilty of financial misconduct.

Many business owners think that employing an insolvency practitioner is something only done when company liquidation or bankruptcy is inevitable, but that’s not the case. The sooner you get expert help, the more options you’ll have available to you and the more likely you’ll be to avoid having to wind up your company. Click here for more information on things that might help if you have a struggling business.

Sunday, February 2, 2014

7 Essential Starter Tips for Small Businesses

Planning to build your own startup? To increase your chances of success, you need to look at the long term and know the exact direction your business is headed, as early as the beginning stages. This way, you will be better able to determine concrete steps of action to realise your vision.

Small Business

Here are seven essential tips to help you get started on your small business:

  • Create a Business Plan

Planning is crucial for any startup business. You need to create a business plan, which would serve as a blueprint. Make the business plan as detailed as possible: include your objectives and planned courses of action. When pitching to investors, your business plan can be a powerful tool. It is also possible that your plan may require some changes as your business develops.

A large part of your plan would be based on projections and assumptions. Here’s a basic outline of a complete business plan:
  • Primary product(s) or service(s) you will provide
  • Pricing (not covering hard costs) or how much you plan to charge for your products(s) or services(s)
  • Delivery cost for product or service
  • Quantity you will sell or the number of clients you must secure to create the revenue you’re targeting
  • The target market for your product(s) or service, including demographics and psychographics
  • Benefits of your product(s) or service(s)
  • Marketing plan
  • Available resources such as office, staff, equipment, or low-cost solutions
  • Obstacles, hindrances, or the reasons you may not be successful with the business
  • Benchmarks for success

  • What Type of Business?

Every business starts with an idea. It could be an idea for an innovative product or a solution to an existing problem. Develop that idea and determine the potential for growth. Is your business idea scalable? How tough is competition? How would you set yourself apart from other businesses that offer the same product or service, but have been around far longer than you?

Start with assumptions and validate those assumptions by doing a study. It is entirely possible that your assumptions are wrong. A little market research could go a long way. Find out more about your target consumers and what they want. Determine a gap in the existing market and fill that gap. Factual data can help you build a strong foundation for your business.

  • Pick a Name

The name of your business should of course be indicated on your business splan. Picking a name also needs careful consideration. The name you choose for your company must embody key elements of your business. You can be creative but try not to be confusing.

Experts even suggest doing a test—all for a business name. It takes more than just picking a random, hip-sounding term, after all. Think of naming your business as part of your branding. Check out this article from Entrepreneur.com offering tips on how to come up with a name for your company.

  • Finance Your Business

You need capital investment before you can start getting profit—this is how business works. Owners and founders can resort to various options to finance a business. The most obvious one is tapping into your own savings. However, money from your own pocket is often not enough to pay for initial expenditures including taxes, supplies, rent, and other overhead costs. You might need to explore other options such as crowd funding, loans, credit cards, and investments.

  • Hire People

Although you’re the founder, there are some business aspects that other people can do a lot better than you. You might need to hire the services of an accountant, a legal consultant or attorney, a sales manager, a product manager, and other professionals who can ensure that your business runs smoothly. And besides, you as the owner need to focus on the management side of business.

  • Launch Your Business

Plan and prepare for a launch date to let the world know that you are open for business! If you can’t afford to rent space just yet, it is easy to launch your business online. You can offer discounts or freebies to the first few customers or those who recommend you to their friends.

If you have a physical store, make sure that everything is ready for you launch, including contracts and business permits.

  • Market Your Business

There are different strategies and techniques on how to efficiently market your business. Together with your team members, formulate an effective sales and marketing strategy to reach your targeted customer base. Invest in providing good customer service because they are essential for your business’ growth. 

Venturing in the world of entrepreneurship is both challenging and exciting. Plan accordingly and be prepared for anything. Take inspiration from many of today’s successful entrepreneurs who started with nothing but their computer, ideas, and persuasion skills. Even big companies started small, but with perseverance, determination, and vision, you too can be a successful business owner.

Author Bio: Article Written by Cristina Beltran – a blogger & writer at comparehero.my, Malaysia’s leading comparison website. This portal helps individuals in making the best decision by comparing rates from different finance and insurance providers.

Friday, December 6, 2013

Three of The Biggest Obstacles to your Company's Growth

You can easily start a business, but can you manage and sustain it to be a profitable venture? Most entrepreneurs can't get past the first year of operations because of the challenges that come with starting a new business.

Business Growth

Cash flow has always been the biggest problem for most new businesses. Cash is like the oxygen that sustains your business, once it runs out, you either get the support to keep you alive as long as possible or your business fails. Some businesses have the money but they still fail, shut down or give up after a few months of being in business.
These are three other reasons why most business are not growing and ultimately shut down.

Poor Customer Service

Customers are the business, without them you have no business. Treat them right and you will have repeat businesses, treat them wrong and they will run to your competitor who offers better customer service.

Don't just be good at serving your customers, be insanely great at what you do and they will do business with you again and again. If you can't handle customer support as a business, you should consider outsourcing it to call center services that can competently handle all your customer complains whilst you focus on delivering your product or service to your clients.

Hiring The Wrong People

Your employees are your biggest asset as a business. If your team are not performing as they should, you are most likely to run into problems in the future. Right from CEOs to the most recent hire, everyone on board should maintain the maximum focus to achieve your company's goals.
Every member of your team should know where the business is headed and what they need to do to get there. New hires should be given the right training to be able to adapt and integrate into the company culture as quickly and seamlessly as possible.

You should not only consider qualifications and experience when bringing a new person to join your team but find out how passionate they are about their work. Try to find out how they work and look into their past employment to know if they take initiative or think outside the box to solve problems.
If your employees do not believe in your vision as the company's founder, it is likely to affect how they work. Provide all the necessary resources to keep your employees happy at work to deliver as required.

Losing Focus

What was the single most important thing to you as business when you first launched your product? What is the single most important thing to you right now? If your answers to these two questions are very different, there is a problem. Most businesses start of on the right foot but can lose focus as they grow their customer base and turn larger profits.

There some things you can't control like where the market is headed and government policies that could determine how businesses operate in the future. These circumstances might change the way you perceive your business's mission or place in the market, but you should not lose sight of the reasons you started the company in the first place.

Focus on what you can control. For example, consider how you treat your customers and employees, or how you manage your cash to stay in business. Set goals and targets and stick to them, ask how to reach the single most important goal you have set for yourself. The future of your business depends on you and your employees. Give it all you can and you will be on the right path.

Finally, remember to make the most of new technologies that can transform the way you work for good.

Sunday, December 1, 2013

Investing In Real Estate Can Be A Great Idea

If you want to invest in an asset from where you can get good returns in the future, real estate is the ideal option for you. It is considered to be the best option because it is here where you can get the returns of your paper asset along with the security of owning the land. The land is a fixed asset, and in this market of inflation the price of the land will definitely rise. There are many different ways through which you can invest in real estate. In fact, it is not always necessary to own a land in order to make the investment. You can carry out the investment only through papers. 

Real Estate

Increasing Popularity Of This Form :

Investment in real estate has become an increasingly common and popular option in the recent years. There are plenty of opportunities in this market for making big gains, but buying and selling properties involve lots of complications. Therefore, if you want to avoid the complications and hassles associated with property investment, you can go for other kinds of investments in the real estate market. Make sure that you are well aware of all the existing options before finalizing your decision.

Investing In A Group :

If you want to own a rental property without the hassle of being a landlord, you can invest in a real estate group. In this case, a company will buy a set of properties, and then allow the investors to buy them. It is the company that will manage all the aspects of the property. You will have to buy the property with the help of the company. This can definitely be less hassle for you, and you will enjoy the benefits of being a part of the real estate market. Make sure that you select a reliable and reputed investing group.

Trading In Properties :

There is another important way through which you can invest in real estate. You can simply trade with the properties by buying them for a short time and selling them under favorable circumstances. You can earn a profit by selling them. However, in order to carry out such forms of trading, you need to have a very good knowledge on the current market conditions. At the same time, you need to emphasize on properties that are undervalued or are very hot in the market. 

The most important thing that you should always keep in mind is that investing in real estate is not easy. You will have to understand the market very well. Moreover, before investing you should research well. Once you have developed a deep understanding, it will not be difficult for you to make significant gains and returns on your investment. Since the gains are huge, larger numbers of people are currently investing in the real estate market. Thus, it is rightly up to you to decide whether you want to invest in the same. Take all the necessary measures required to invest in the right property at the right time you can click here

Wednesday, November 27, 2013

Things to Keep in Mind before Choosing Company Registration Services

Singapore is currently being ranked as #1 worldwide in numerous lists regarding business practices. It is strong in the trade and investment endeavors and also has more than 50 comprehensive Double Taxation Avoidance Agreements. Singapore also has strong intellectual property laws and these are strongly enforced. So it is normal for a new entrepreneur or a foreign company that want to register a company in Singapore.

Company Registration Services

Using Singapore’s Business Consultant Companies or Dealing with ACRA Directly

Company registration services are widely available in the country, with some offering great services. There are also international consulting companies, which work in Singapore and offer comprehensive advices to have in mind when registering a company.

There is also choice not to deal with consulting companies and paying for their registration services. An entrepreneur can deal with the Accounting and Corporate Regulatory Authority (ACRA) directly but has to have an amount of information beforehand that usually can be bothersome to obtain and keep in mind during all the process.

By hiring a consulting company, the entrepreneur doesn’t have to deal with intricacies of registering the company and only need to take care of more immediate details like name of the company, business structure or any other type of documents that are requested. As such, it is greatly advised to hire a company with registration services to register the business in a confident way.

Getting the Best Registration Services

A search in the Internet will get results from numerous amounts of Incorporation firms, but not all of them are completely professional and reliable. By checking each website, reading feedback given by other previous users, and consulting with other people by requesting their opinion on the appearance of the website and company overall, can help greatly to understand if that company in particular is reliable. One must not forget that a website is portal to one’s business so it usually shows one’s professionalism and reliability.

Inexperienced consultant companies should be frowned upon since it can hinder all the registration process and even start improperly the business which would be a major setback. It is also important to check the fees that the registration company requests, and see if they are merely introductory fees, which could hide other expenses, like administrative fees or shipping charges, in other steps of the registration, or if they are complete fees for all of the registration process.

Registering a company with ACRA usually takes 14 days or more, so the entrepreneur should check the time that the consulting firm takes to do the process herself. Finally, a good customer service is required since it is very important for the entrepreneur to have a readily available representative to answer all the questions regarding the process.

Best Choice for the Entrepreneur

Deciding whether to deal with all intricacies of registering a company or hiring a business consultant company to do the job might come down to decide to have or not a confident starting step in the Singapore business world. It is greatly advised to hire a company and the most important thing anyone should have in mind is to check if the company is reliable or not.

Author Bio: Chris Kam is the Director at Budget Accounts Pte. Ltd., Singapore. He provides expert advice in areas of corporate accounting, tax planning and cost savings. With his extensive experience in this field, he is successfully guiding clients in Company Secretarial Services and helping investors to achieve their financial goals.

Sunday, November 3, 2013

How Difficult is it To Get Business Finance?

If you’ve tried to get a loan from the bank for your business lately, you know it’s no slam-dunk. All the advertising where banks claim to be SME friendly sound great, but when you get nose-to-nose with a banker it’s another story. Some of the reasons that make it seem so difficult are that many credit managers feel that they’re lending you their money instead of the banks. They take almost personal responsibility for maximizing repayment.


Another is that they are particularly suspect of new ventures. Since 4 out of 5 or 80% fail within the first three years, many lenders require a three-year history of doing business. Lastly, with the impact of the credit crunch and tighter lending criteria since the implementation of the National Credit Act, getting business finance is getting more difficult

Here are some tips to make lending you more attractive to the bank. First, start with a two-part presentation. Initially submit a brief overview of your loan request. In this overview include:
  • Excerpts from your business plan about your business concept, management team, and financial projections.
  • Credit history overviews of the principals of your business.
  • Brief answers to key lender questions of how much you’ll need; how you’ll use it, and how will you pay it back?
This should be a two to three page document and can be considered a mutual qualifier. It determines if the bank has any interest in lending you funds before you spin your wheels for hours in front of the credit manager. You may want to end the document with your phone number so that the banker can call you back for an appointment or discussion.

If you’ve dazzled the credit manager sufficiently and have obtained an appointment to meet with him, then it’s time to prepare the “big guns”. The ammo you’ll come prepared with will be three years of personal tax returns for all the principals of your company and the existing business. Include credit reports on all principals, a complete and impressive business plan, and collateral and capitalization information.

This sounds like a lot of information and will require immense effort, but that’s why business ownership isn’t for everyone.

In addition to being prepared with all that paperwork be prepared for any off-the-wall questions the lender might throw at you. Take time to think about and originate a 30-second commercial about what you plan on doing and how it will benefit them and the business.

Be prepared to explain away any credit blemishes that show up on the credit reports before the banker has an opportunity to worry about them. Be sure you’re able to show “cash-flow” understanding and awareness, without which any business is doomed. Plot your most realistic estimated cash flow and bank account balance. Make sure the bank balance never goes negative, and for a good touch show the loan repayment as a separate line item. This shows the banker that you understand priorities.

Collateral may be needed to satisfy the lender’s angst about repayment of the loan, and unfortunately most small businesses have too few assets to satisfy this need. Many entrepreneurs are forced to provide personal surety to the bank jeopardizing their personal assets such as their home. This may seem scary, and it is, unless you’re really sure of your success.

It sounds like a daunting task, but with some preparation and determination it can be done. It’s not as easy as all the ads you’ve heard, After all, that are why you’re an entrepreneur instead of a corporate slave isn’t it?

Author Bio: LoanFinder SA provides a 3-in-1 service offering which includes our free loan-finding service which can find you a loan, a 24-month legal & ID assist plan, plus credit snapshot report which can provide you with your credit status and info to determine your creditworthiness.

Saturday, October 19, 2013

5 Profitable Reasons You Should Consider Hiring Online Bookkeeping Services

No matter what size your business is, online bookkeeping services can help you to stay compliant and look after your company’s financial health. It can also help to save time and money, both of which are areas that most businesses need more of, and better quality at that. By outsourcing your accounting needs to the professionals you can get on with what you do best: running your business. Here are five major benefits of hiring an online bookkeeper: 

Online Bookkeeping Services

1. You Get Access To Online Accounting Software

Sometimes you might be working out of the office, sometimes you might need to travel. By having access to online bookkeeping software you can access any important financial information, 24 hours a day, seven days a week.

2. Get Help With Your Bank Reconciliations

A professional bookkeeping service will help you to eliminate unnecessary calculation errors and promote better financial management skills. Fewer errors mean better cash flow and less time wastage on your part. Furthermore, by outsourcing the service, you do not have to worry about employees having access to confidential information in a small company.

3. Make Sure Your Income Statements Are Handled Correctly

Keep up with your revenue status, improve your cash flow forecasting and grow your business faster and more effectively. Your income statements reflect how much money your business has at any given time, and if you are ever in a position where you need to make a quick decision, you will rely heavily on your income statements to determine whether you can afford it or not.

4. Let Someone Else Handle The Salaries And Payroll

As a business owner your time is worth a lot and it is spent more productively when you are doing what you do best. Allow an accounting professional to take care of your business salaries, maintain confidential information and ensure everyone is paid on time regardless of the projects you may have going on at the end of the month.

5. Have Full Admin And Support Services At Your Fingertips

A lot of bookkeeping work involves administration, filing, scanning and documentation. And, with the host of other responsibilities you have as a business owner, this can add up to a tedious amount of time wasted. Have a support team to fall back on so that you can focus on your priorities and simply check up on the status of outstanding items online, with your accounting software program. For more information, visit http://businessbookkeeping.com/bookkeeping-services.php today.

Tuesday, September 24, 2013

What You Need to Know About Deducting Business Use of Your Car

While you may drive your car or truck year round without giving it much thought, when tax season rolls around, as it does each year, the vehicle you use for business can and should be a substantial tax deduction. Whether you use your car strictly for business or a combination of business and personal use, you need to know a few basic rules before you take your yearly deduction.

Small Business

The Small Business Owner

There are two different ways to calculate your automobile expense; the actual expense method the standard mileage rate. Before you select either method, first you need to take into consideration whether you use your vehicle only for business or a combination of personal and business use. While many larger companies have cars that are specifically used only for business, the small business owner typically uses their vehicle for both personal and business needs.

The Expense Method

Using the expense method, if your car is business only, you may deduct the entire cost of operating your vehicle for the year. These costs include: insurance, gas, oil, tires, repairs, registration fees, licenses, depreciation or lease payments. If you use the car for personal use as well, then all costs will need to be prorated by determining the percent of time the vehicle is used for business purposes. For example, if you use your truck 65% of the time for business and 35% of the time for personal use, take the total expense times 65% to determine your deduction for the year.

The Standard Mileage Rate

To use the standard mileage rate, you will need to either own or lease the vehicle. Also, it cannot be used to transport people such as you would with a taxi or transportation van. With this method, keeping records of the miles driven is of upmost importance. If you use the car for personal and business use, you will want to track, in a notebook or software program, beginning miles and ending miles for each business trip regardless of how long or short it is. At the end of the year, these miles will be totaled. It is also a good idea to keep a record of the starting odometer reading on January 1st and again on December 31st.
Since January 1, 2013 – the following rates apply for the standard mileage deduction.
  • 56.5 cents per mile for business miles driven.
  • 24 cents per mile driven for medical or moving purposes.
  • 14 cents per mile driven in service of charitable organizations.
Simply take your total business miles times the appropriate rate to determine your deduction.

Hybrid Vehicles

The IRS also allows deductions for hybrid vehicles that meet certain qualifications. The hybrid car must be powered by both a rechargeable battery and internal combustion engine. This deduction also only applies to the original owner of the vehicle, so if you have purchased a hybrid second-hand, you will not qualify.

Conclusion

The IRS provides a generous deduction for a business vehicle regardless of which method you select. Calculate your costs both ways to determine which method is best for you. Just don’t forget to take full advantage it.

About The Author: E.J. Dealy is CEO of The Company Corporation, which helps small business owners and entrepreneurs nationwide form business entities such as a Limited Liability Company (LLC), S-Corporation, or C-Corporation. The Company Corporation does not provide legal, financial, or tax advice.

Sunday, September 22, 2013

Tips on How to Have A Successful Business

Let’s say you woke up one day and decided to create your business called, let’s say 02 telephone’ probably providing phone systems to corporate firms; or maybe something simpler, selling your wares in a department store.

What exactly would it take to achieve success in said business? This should be the question on the lips of the several individuals choosing to strike out on their own each year; the fact is succeeding in business is more than sighing a few papers and acquiring a license.

Small Business

Success in business starts within oneself. Before you can grow your business you need to be a successful entrepreneur, an individual with the following qualities:
  • Attitude - Because attitude affects all aspects of our lives it is important that one maintain a positive attitude in accepting the responsibilities at hand.
  • Passion - Saying that you are going to be an entrepreneur isn’t enough; you need to know what your passions and interests are before hand and they should drive your steps forward.
  • Discipline - Considerable work and effort goes into succeeding in a business and it will require discipline to stay the course despite the challenges that will arise in due time.
  • Flexibility - Managing a business can prove to be complex especially in a changing society such as is prevailing at the present; it takes a flexible entrepreneur to adapt to changing circumstances, navigate hardships and collect the prize at the end.
There are several styles of management you could choose from to achieve success in your endeavors. Whichever course of action you choose though the following tips will prove useful in any case:
  • Planning - Think ahead; it is fairly common for business owners to get so overwhelmed with the day to day activities of the business that they will forget to look to the future and operate in accordance with what will come rather than what is prevailing. Simply put, have some long term goals
  • Action - It pays to take action. Procrastination is a dangerous tool that will poison any dreams you might have for the future if you allow it. If you wish to follow your dream, pursue your passion in business, then get up and do so, continuously assessing your own progress with the passing of time to ensure that you are meeting your set goals.
  • Use social media - It isn’t really about using social media but simply making an effort to socialize. There are few that can deny the benefits one will reap from crafting a powerful network from which they can draw resources, both physically and mentally in times of need. It is even harder to deny the ease with which one can achieve social networking through social media.
  • Divide your work- it can be easy for business owners to lose themselves to the business, working so hard that they quickly burn out; find help and delegate some of the work to other individuals, which will not only alleviate your stress but remove the bottleneck in your company.
Starting a business is no easy feat but with the right knowledge and tools anyone can successfully give it a go.

Author Bio: Laura Benson is a content writer. Her interests are mainly in Finance, Health, Education, and Business. As of now she is doing research on DWP.