Archive for

Small Business Loans – Get Initial Funds For Your Business

Being a small business owner, you need to pay extra attention to management of financial resources. Since growth of your business somehow depends on its financial position, you should always be cautious about cash flaw within or outside your business. It is quite true that lack of finance can become a big problem in the way of the success of your small business. Since a sapling business face different kind of financial problems, any ordinary loan cannot meet these requirements.

For that reason, the borrower needs to find out such a solution that may help small business owners in meeting different requirements of their small businesses. Small business loans are one of those business loans that are specially tailored to meet requirements of a sapling business organization. These loans can meet each and every financial requirement of a going business and can help that business in growing with a faster pace. Since the market is crowded with various business loan schemes, every small business owner can manage to get the desired amount without any problem. Therefore if you own a new and small business organization and financial shortfall is bothering you, then these loans can prove to be the best help for you.

These loans are simple to get but for getting these loans, should have an approved business plan. This business plan must be working and should be approved from the national corporate body. For getting these loans, the borrower also need to estimate how much finance he or she will require for running his or her business smoothly. Application for small business loans include purpose, amount and type of loan therefore, if you are looking for any such business loan, then evaluate these terms to get a suitable loan.

Usually, small business loans are pledged against any high valued collateral but if in any case you are able to keep any asset as collateral against the loan amount, going for unsecured loans are the best option. However, a business loan requires good credit score for getting approval but if you are a bad credit borrower, then also you can arrange the desired cash with bad credit loans for small business. Usually, a traditional business loan demands a loan proposal and some of the details of the borrower. Since processing of these details take a lot of time, online loans are the best solution.

In fact, online loans helps the business owner in saving their precious time and allow them to focus on their core business activities. With small business loans, the borrower needs to follow a particle repayment process but this schedule can be settled as per the monthly profit of the concerned business. These loans help the owner of a small business in achieving the desired profit level. Therefore, if your small business is suffering because of unavailability of funds, then these loans can help you in growing your small business with a faster pace.

How Will Divorce Affect Your Business?

Starting a business and successfully managing it requires a great deal of time, effort, financial risk and perseverance. Many married couples decide to run a business together, each performing those tasks that are most closely aligned with his or her individual skill set. In other marriages, only one partner runs a company while the other continues to work for an outside employer or stays home to care for the house and children. Whatever division of labor you use, the odds are good that the business has an overarching impact on family life and finances. This is normal and expected. However, problems can arise in the event of divorce.

Prevailing British law dictates that family assets be divided according to the respective contributions of each person. However, the courts value the contributions of a homemaker equally to those of a breadwinner. In practice, this means that assets are almost always split 50-50, regardless of the exact division of labor that a family utilizes. Occasional exceptions are made when one spouse can prove that he or she was far more responsible for a family’s accumulation of assets than was the other partner. Even in these rare cases, however, it is extremely unlikely that you will receive even two thirds of the assets. The business is considered an asset, as are any funds that it generates. Therefore, the financial ramifications of the divorce must be carefully considered.

Keep in mind that your priority should be to keep the business running and financially solvent while you are negotiating an agreement, particularly if the business is a primary source of the family’s income. During a divorce situation, emotions run high and the divorcing partners may be angry or bitter. It is important to keep your emotions in check and avoid making decisions that are not backed up by logical facts. Even if it is difficult for you, both partners should continue to make their usual contributions to the business during the process of settlement.

The simplest solution to the problem of handling a business during a divorce is for one partner to buy out the other’s interest. This can be negotiated between the husband and wife and their respective solicitors. In order to achieve a fair buyout, it is necessary to achieve a fair valuation of the company. Beginning this process early and settling as soon as possible is in the best interest of both parties if this solution is chosen. Dragging out the process will only lead to escalating tensions and rising costs, as well as potentially affecting the business operations.

A financial buyout is not always feasible, however. It may be impossible for you and your spouse to agree on a price. The party that wishes to continue operating the company may not have the available funding to complete the buyout. Or each party may play a unique role in the company’s management that the other cannot easily fill. If it is not feasible for an immediate buyout to occur, then you must reach an alternative agreement.

If one party is capable of managing the business alone and the two of you decide not to perform a buyout, it is possible to reach an agreement in which both partners will receive an equitable portion of the income stream generated by the business. This agreement must be carefully negotiated to account for fluctuations in the business income as well as the honesty or dishonesty of the managing partner. Transparency and access to business records are crucial in order for this solution to work. It may be best to agree on a payment of a percentage of profits rather than a set sum each month. However, you should specify in writing exactly what constitutes “profits,” as an embittered spouse may choose to invest in costly and unnecessary upgrades to the business in order to minimize the amount that must be paid to the ex-spouse.

If both partners are essential to the running of the company, or if neither of you is willing to forgo your claim, it may be possible for you to continue the business relationship despite the breakdown of the personal relationship. This can work in the case of an amicable divorce in which the spouses remain friends, but should be approached with caution. The business could suffer irreparable damage if either of you use it as a battleground. If you decide to try this solution, spell out in writing each partner’s individual job description, including those areas for which each partner has final decision making authority. Separate your jobs as much as possible.

If you decide to try either of the above solutions, it is important to take your staff into account. They will be impacted by your divorce on both a business and personal level. Be sure that your staff is kept informed of any changes in business structure. If the two of you will continue to work together on the business, it may be necessary to reshuffle staff as part of the new division of labor. It is not necessary to tell your employees the details, but it is important to let them know what is happening and why. Also remember that it is both unethical and counterproductive to the success of the business to try to force employees to take sides. Leave your personal relationship at home and focus on the business while at work.

Another option is to sell the business to a third party and divide the proceeds. This may be heartbreaking if your identity is heavily invested in the company, but may be the only logical way to proceed if you and your partner reach an impasse. This will ensure a clean break and avoid many of the pitfalls associated with continuing a family business after the breakup of the family. Proceed with caution, ensuring that emotions do not prevent you from receiving a fair price. It is best if you work together to sell the business, to ensure that both spouses are comfortable with the transaction. If this is not practical, then it is wise for the selling partner to receive written agreement to the terms of the contract from his or her spouse prior to finalizing a sale.

If you are not yet married, you might want to take steps to protect your current business interests prior to marrying. Prenuptial agreements are hardly romantic, but provide the best available protection of the personal assets that you bring into a marriage. Negotiating a fair and reasonable prenuptial agreement can give both partners peace of mind in the event that the marriage should fail. A prenuptial agreement is not protected by law, but courts are generally willing to honor it provided that it was fairly negotiated with full disclosure. Have your agreement drawn up by a solicitor to ensure that it is legal and proper.

A divorce is generally complicated and marked by financial battles. When a family business is involved, it is common for the company to become the focus of both spouses’ anger and resentment. However, if you can both keep your emotions in check, it is possible to negotiate an agreement that is fair and equitable for both parties. Keep your goal in mind and work to achieve it. Of course, legal representation should be a part of your negotiations as well.

5 Reasons Why Writing a Strategic Business Plan Dramatically Improves Your Business

Writing a strategic business plan is a critical business management skill that unfortunately in small business is often neglected or ignored. Various studies show that only one in ten businesses have an up to date written business plan. Many businesses do a plan at some stage but 90% do not have an up to date consistent and competent planning process.

As a business coach, I create 90 day action plans every 90 days for all of my clients and the direct result is motivation, direction, focus and better results.

So what are the benefits of writing a strategic business plan? Well here are 5 main reasons why writing a strategic business plan equals maximum business success.

1.Better Management Results

Business planning has long been recognized as one of the first and critical functions of superior management. When planning is not done it is so much harder to lead effectively, to organize key staff, to know which marketing strategy to implement and to know how to grow your enterprise effectively.

2.Keeps your business on track and in better control

There is a proven link between effective leadership control and planning. Why? A business moving towards a set of pre-determined goals and targets, with specific strategies, has against this, a set of measurements and tracking to control if it is effective or not. With this crucial information, a business can therefore make better decisions enabling a better chance of success.

3.Integrate personal and business goals effectively

By focusing on a mix of personal and business goals creates a more realistic feeling going forward. After all, business and personal are always entwined. We all want to achieve more in our work or career so that our personal live is more effective.

A great idea is to put into every plan your three top five year goals for your company. Then your top three personal goals (only if you are the leader or owner).

Then deviate to the short term. Write down your three top one year business goals and personal goals. Have the courage to do this and put it in writing. Review it weekly and look at the possibility of changing your plan every 90 days. Follow this formula for the best chance of long term success.

4.Focus on goals and directions

Goal orientated companies generally out perform those without goals. A big statement but a truism as far as I am concerned. Are your business goals written down and clear?

If not, consider a 5 year view, a 1 year view and a 90 day view of your business and personal goals that are written down and smart tested. Smart tested stands for Specific Measurable Achievable Realistic and have a Time-frame.

5.Improve the efficiency of your systems and overall business performance

Policies and procedures are a vital part of your business improvement so writing a strategic business plan must outline what procedures you intend to improve over the next ninety days and beyond. A practical step depending on the size of your organization is to take one system or procedure every one to two weeks and write it down, look at it’s process and involve your team (if applicable) in improving it and document it further.

Imagine the difference in your business if twenty six policies and procedures were focused on and ultimately improved each year. Now that is continuous improvement at its greatest. Writing a strategic business plan with the planned procedures is an important bridge between thinking and implementation.

Writing a strategic business plan need not be a complicated, drawn out process. It can be motivating, enlightening, empowering and reflect the true feelings of leaders and others to achieve outstanding success. If you are serious about getting business success you must have a strategic business plan. Otherwise where you want your business to go and where you want it to be might not be where it finishes. Business failure and the lack of planning go hand in hand. The statistics tell us this. You need a plan to give yourself the best possible chance of outstanding success.

If you would like to learn how to write a strategic business plan with some of the world’s best planning resources, then you must check this program out. Best Business Planning Resources It’s guaranteed and thousands have got the results to prove it! Write a Strategic Business Plan