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Start Your Business Articles
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Franchising Strategy - Click To Read Article Finding financing to start and expand a company is an age-old problem, and most entrepreneurs find it to be one of the greatest struggles they face. Business Structures - Click To Read Article It is important to find out how the company is structured legally. The type of business structure used will affect your purchasing strategy as well as the eventual price. Federal Grant Resources - Click To Read Article Please Note that the U.S. Small Business Administration does not offer grants to start or expand small businesses, though it does offer a wide variety of loan programs. While the SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments. (See Federal and State Technology Partnership Program) Zoning Overview - Click To Read Article Zoning ordinances and regulations are laws that define and restrict how you can use your property. Cities, counties, townships, and other local governments adopt zoning plans in order to set development standards to assure that land is used for the common good. Commercial Leasing - Click To Read Article Leasing a commercial space instead of committing yourself to owning commercial real estate can be an excellent move, but there are fewer tenant-friendly laws and no standard lease agreements. You'll need a lawyer’s help to negotiate the best deal on a commercial lease. Environmental Protection Agency FAQs - Click To Read Article Do I need an Environmental Permit for my business? Finance Start-Up - Click To Read Article In order to determine how much seed money you will need, you must estimate the costs of your business for at least the first several months. Every business is different, and has its own specific cash needs at different stages of development, so there is no universal method for estimating your startup costs. Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment. It is vitally important to know that you will have enough money to launch your business venture. SBA Loans FAQs - Click To Read Article How do I know if I qualify as a small business so that I can receive SBA assistance? Applying For A Loan - Click To Read Article When applying for a loan, you must prepare a written loan proposal. Make your best presentation in the initial loan proposal and application; you may not get a second opportunity. Prequalification Programs - Click To Read Article The Prequalification Loan program uses intermediary organizations to assist prospective borrowers in developing viable loan application packages and securing loans. This program targets low income borrowers, disabled business owners, new and emerging businesses, veterans, exporters, rural and specialized industries. SBA's Role - Click To Read Article The U.S. Small Business Administration (SBA) is an independent Agency of the Executive Branch of the Federal Government. It is charged with the responsibility of providing four primary areas of assistance to American Small Business. These are: Advocacy, Management, Procurement, and Financial Assistance. Financial Assistance is delivered primarily through SBA’s Investment programs, Business Loan Programs, Disaster Loan Programs, and Bonding for Contractors. Selecting a Franchise - Click To Read Article Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons who are interested in selling a franchise that you are not interested in. Protecting Your Ideas - Click To Read Article It's not easy to think about ideas as property, but for some businesses it's vital. Most of us have had an idea for a new product or service only to dismiss, postpone, or neglect it. Sometimes we later find that others had the same idea, but took it to market before we did. By that time, it is too late for us to take advantage of the idea. Preferred Lender Programs - Click To Read Article The Preferred Lenders Program (PLP) is another step in SBA's process of "streamlining" the procedures necessary to provide financial assistance to the small business community. Under PLP, SBA delegates loan approval, closing, and most servicing and liquidation authority and responsibility to these carefully selected lenders. . (Lenders new to SBA should first read about becoming an SBA Lender) SBA will continue to check loan eligibility criteria under this program. Basic Requirements - Click To Read Article Even though the SBA-qualifying standards are more flexible than other types of loans, lenders will generally ask for certain information before deciding to use an SBA loan program. Generally, a business will need the following documentation to evaluate your loan request: Product Basics - Click To Read Article Products may be described in terms of their features and benefits. Features are product characteristics; benefits are customer needs served by those features. Some examples of features are size, color, horsepower, functionality, design, hours of business, and fabric content. Benefits are less tangible but always answer the customer’s question: What’s in it for me? Zoning Problems - Click To Read Article You may be unpleasantly surprised to find you can’t use your property as intended without violating zoning ordinances. There are many ways a lawyer can help you to get around the technical requirements of the regulations. Borrowing Money - Click To Read Article Borrowing money is one of the most common sources of funding for a small business, but obtaining a loan isn't always easy. Before you approach your banker for a loan, it is a good idea to understand as much as you can about the factors the bank will evaluate when they consider making you a loan. This discussion outlines some of the key factors a bank uses to analyze a potential borrower. Also included is a self-assessment checklist at the end of this section for you to complete. Understanding Equity Capital - Click To Read Article Equity capital or financing is money raised by a business in exchange for a share of ownership in the company. Ownership is represented by owning shares of stock outright or having the right to convert other financial instruments into stock of that private company. Two key sources of equity capital for new and emerging businesses are angel investors and venture capital firms. Buying a Business - Click To Read Article Many find the idea of running a small business appealing, but lose their motivation after dealing with business plans, investors, and legal issues associated with new startups. For those disheartened by such risky undertakings, buying an existing business is often a simpler and safer alternative. Intellectual Property FAQs - Click To Read Article What is a patent and how do I know if my invention is eligible for a patent? What's a Surety Bond? - Click To Read Article A surety bond is a three-party instrument between a surety, the contractor and the project owner. The agreement binds the contractor to comply with the terms and conditions of a contract. If the contractor is unable to successfully perform the contract, the surety assumes the contractor's responsibilities and ensures that the project is completed. Below are the four types of contract bonds that may be covered by an SBA guarantee: Pollution Control Loans - Click To Read Article Pollution Control Loans are 7(a) loans with a special purpose of pollution control. The program is designed to provide financing to eligible small businesses for the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling. Certified Development Company (504) Loan Program - Click To Read Article The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. CDCs work with the SBA and private-sector lenders to provide financing to small businesses. International Trade Loans - Click To Read Article If your business is preparing to engage in or is already engaged in international trade, or is adversely affected by competition from imports, the International Trade Loan Program is designed for you. State Requirements - Click To Read Article While business licensing requirements vary from state to state, some of the more common types are listed below. Finding Capital - Click To Read Article Raising capital is the most basic of all business activities, but it may not be easy; in fact, it is often a complex and frustrating process. However, if you have studied and planned effectively, raising money for your business will go as smoothly as possible. StartUp Costs - Click To Read Article Every business is different and has its own specific cash needs at different stages of development; therefore there is no generic method for estimating your startup costs. Some businesses can be started on a shoestring budget, while others may require considerable investment in inventory or equipment. It is vital to know whether you will have enough money to launch your business venture. Breakeven Analysis - Click To Read Article Breakeven analysis is a tool used to determine when a business will be able to cover all its expenses and begin to make a profit. For the startup business, it is extremely important to know your startup costs, which provide you with the information you need to generate enough sales revenue to pay the ongoing expenses related to running your business. Secondary Market Programs - Click To Read Article There is an active secondary market in the loans guaranteed by the Small Business Administration. This market was created to increase the attractiveness of small business lending to the lending community. Through the market, lenders are able to sell the guaranteed portion of SBA guaranteed loans to investors and thereby improve their liquidity and increase their yield on the un-guaranteed portion of SBA loans. Shopping at a Franchise Exposition - Click To Read Article Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons who are interested in selling a franchise that you are not interested in. Loan Proposals - Click To Read Article Once you have a written business plan, you are now ready to approach the money markets to try to finance your business. Eligibility Size Standards - Click To Read Article SBA defines a small business as one that is independently owned and operated and not dominant in its field. A small business must also meet the employment or sales standards developed by the SmallBusiness Administration and based on the North American Industry Classification System (NAICS). In general, the following criteria are used by SBA to determine if a concern qualifies as a small business and is eligible for SBA loan assistance: Determining Value - Click To Read Article A realistic business valuation requires more then merely looking at last year's financial statement; it requires a thorough analysis of several years of the business operation and an opinion about the future outlook of the industry, the economy, and how the subject company will compete. Never Take No for an Answer - Click To Read Article Does this sound familiar? You applied for a loan and the bank officer responded with the dreaded words, "I'm sorry, but..." and turned it down. Admittedly an unhappy scenario, it is not a unique one and happens to many businesses at some point. Due Diligence - Click To Read Article Most businesses need licenses and permits to operate. The type of license or permit you need depends on your industry and the state in which you are located. License and permit requirements also affect where you locate your business, how much you'll have to spend for remodeling, and whether or not you'll have to provide off-street parking. Choose a Structure - Click To Read Article Many factors must be considered when choosing the best form of business ownership or structure. The choice you make can have an impact on multiple aspects of your business, including taxes, liability, ownership succession, and others. The Benefits of Making Your Banker Your Friend - Click To Read Article While every business has a bank, few have a banker. That's because bankers are too often seen as obstacles standing between an entrepreneur and the bank's vault. Export Working Capital - Click To Read Article The Export Working Capital Program (EWCP) was designed to provide short-term working capital to exporters. Defence Loan and Technical Assistance (DELTA) Program - Click To Read Article SBA's Defense Economic Transition Assistance program is designed to help eligible small business contractors to transition from defense to civilian markets. The Benefits and Responsibilities of Franchise Ownership - Click To Read Article Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons who are interested in selling a franchise that you are not interested in. Name Your Business - Click To Read Article There is more to naming your business than just coming up with something that sounds good and you happen to like. Thought must be given to state and local requirements and making sure you don’t infringe upon the rights of someone else’s business name. Investigating Franchise Offerings - Click To Read Article Before investing in any franchise system, be sure to get a copy of the franchiser's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchiser. You should read the entire disclosure document; make sure you understand all of the provisions. The following outline will help you to understand key provisions of typical disclosure document as well as ask questions about the disclosures. Get a clarification or answer to your concerns before you invest. U.S. Community Adjustment And Investment Program (CAIP) - Click To Read Article CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by NAFTA. Funds administered by Treasury (see below) allow for the payment of fees on eligible loans. These fees include the 7(a) program guarantee fee (and subsidy) and the 504 program guarantee, CDC and lender fees. Depending on the loan size, the fees can be sizeable. Federal Requirements - Click To Read Article With the exception of sole proprietors, most business types must apply for an EIN regardless of whether they have employees. Visit the IRS site to find out if you need an EIN, and if so, whether you are eligible to apply through the IRS' online application. Exporting FAQs - Click To Read Article What products require an export license? Franchising FAQs - Click To Read Article How can I go about investigating a particular franchise that I am interested in? Copyrights, Patents, and Trademarks FAQs - Click To Read Article The owner of a registered copyright enjoys the ability of blocking the unauthorized copying or public performance of a work protected by copyright. Depending on how old a work is, whether or not copyright was renewed, when the work was published (if at all), and whether or not it is a work for hire, the U.S. copyright term for a work may be 28 years, 56 years, the life of the author plus 50 years, 75 years from the publication date, or 100 years from the date of creation. The reader will appreciate that these terms are much longer than the 17-year or 20-year term of a U.S. utility patent. Patents and Trade Office FAQs - Click To Read Article A trademark includes any word, name, symbol, or device or any combination used or intended to be used in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others and to indicate the source of the goods. In short, a trademark is a brand name. Choosing a Business - Click To Read Article Finding profitable businesses for sale at reasonable prices can be difficult, as business owners often have an inflated idea of the market value of their business. There are, however, many resources for finding profitable businesses for sale. Sales Agreement - Click To Read Article The sales agreement is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. It would be a good idea to have an attorney review this document. It is in this agreement that you should define everything that you intent to purchase of the business, assets, customer lists, intellectual property, and goodwill. Franchising Overview - Click To Read Article An important step in the small business startup process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision; because of the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch. Home-Based Business FAQ - Click To Read Article Can I operate a business from home? Lease Equipment - Click To Read Article Sometimes leasing equipment, instead of buying it, can be the best option for your business. However, there are many variables that should be considered, including costs, use restrictions, legal parameters, and others. Financing Basics - Click To Read Article While poor management is cited most frequently as the reason businesses fail, inadequate or ill-timed financing is a close second. Whether you're starting a business or expanding one, sufficient ready capital is essential. But it is not enough to simply have sufficient financing; knowledge and planning are required to manage it well. These qualities ensure that entrepreneurs avoid common mistakes like securing the wrong type of financing, miscalculating the amount required, or underestimating the cost of borrowing money. Genral Information - Click To Read Article The U.S. Small Business Administration (SBA) can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract. Handling Finances - Click To Read Article Thanks to the enormous growth in personal wealth over the past two decades, there are now more funding opportunities than ever for entrepreneurs. The rapid growth of the Internet has made finding investors and lenders easy, but the legal issues involved in business financing are complex and should always be reviewed by a qualified attorney. Fair Credit Reporting - Click To Read Article If you've ever applied for a charge account, a personal loan, insurance, or a job, there's a file about you. This file contains information on where you work and live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy. SBA's 7(a) Loan Program - Click To Read Article 7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. Loan Package Checklist - Click To Read Article Whether you are applying for a microloan, SBA guaranteed loan or a traditional bank loan, similar information is required to complete a loan package. The following list provides a checklist of most requirements for a loan package. SBA Loan Programs - Click To Read Article The SBA offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses. Within SBA Loan Topics we’ll review: Export Express - Click To Read Article SBA Export Express combines the SBA’s small business lending assistance with its technical assistance programs to help small businesses that have traditionally had difficulty in obtaining adequate export financing. The pilot program is available throughout the country and is expected to run through September 30, 2005. CAPLines Loans - Click To Read Article CAPLines is the umbrella program under which the SBA helps small businesses meet their short-term and cyclical working-capital needs. A CAPLines loan, Except the Small Asset-Based Line, can be for any dollar amount that does not exceed SBA's limit. (See the 7(a) Loan program for more information on SBA's Basic Requirements.) Asset Sales - Click To Read Article The SBA’s Asset Sales Program is an initiative to sell the agency’s owned portfolio of loans and other assets. These consist of Section 7(a) and 504 guaranteed loans purchased, Section 7(a) and disaster assistance direct loans, and other liquidation assets such as collateral acquired as a result of liquidation. Before Selecting a Franchise System - Click To Read Article Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision. Forms of Ownership - Click To Read Article One of the first decisions that you will have to make as a business owner is how the company should be structured. This decision will have long-term implications, so consult with an accountant and attorney to help you select the form of ownership that is right for you. In making a choice, you will want to take into account the following: Basic Structures - Click To Read Article The sole proprietorship is a simple, informal structure that is inexpensive to form; it is usually owned by a single person or a marital community. The owner operates the business, is personally liable for all business debts, can freely transfer all or part of the business, and can report profit or loss on personal income tax returns. Special Structures - Click To Read Article The following business structures are available in some states, but not all. Buying a Business FAQs - Click To Read Article What are the advantages and disadvantages of buying a business? Leasing Checklist - Click To Read Article In many states, commercial leases are not covered under consumer protection laws that normally safeguard tenant rights. It is assumed that commercial leases are contracts between knowledgeable business people, and therefore less government regulation is needed than in residential leases. Thus it is essential to scrutinize every aspect of the lease and renegotiate unfavorable terms before signing. Personal vs. Business Finances - Click To Read Article Starting up a business can be a tremendous strain on your personal finances. It can take six months or more before your new venture is profitable and can provide financial support for you and your family. Before going into business it is always wise to get your finances in order. Credit Scoring - Click To Read Article Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans. Here's how credit scoring works in helping decide who gets credit -- and why. Credit Factors - Click To Read Article To determine if you qualify for SBA's financial assistance, you should first understand some basic credit factors that apply to all loan requests. Every application needs positive credit merits to be approved. These are the same credit factors a lender will review and analyze before deciding whether to internally approve your loan application, seek a guaranty from SBA to support their loan to you, or decline your application all together. Microloans - Click To Read Article The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $13,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level. Employee Trusts - Click To Read Article The objective of this program is to provide financial assistance to Employee Stock Ownership Plans. The employee trust must be part of a plan sponsored by the employer company and qualified under regulations set by either the Internal Revenue Service Code (as an Employee Stock Ownership Plan or ESOP) or the Department of Labor (the Employee Retirement Income Security Act or ERISA). Applicants covered by the ERISA regulations must also secure an exemption from the Department of Labor regulations prohibiting certain loan transactions. Certified Lender Programs - Click To Read Article The Certified Lenders Program (CLP) is designed to provide expeditious service on loan applications received from lenders who have a successful SBA lending track record and a thorough understanding of SBA policies and procedures. CLP lenders are expected to perform a complete analysis of the application and, in return, SBA promises a fast loan decision. SBA reviews the lender's credit analysis rather than conducts a second analysis. SBA still makes the final credit and eligibility decision but, by completing a credit review instead of an independently conducting analysis, SBA strives for 3-day (working days) turn around in arriving at its decision. Closing Checklist - Click To Read Article It is important during the closing to make sure that you have legal counsel available to review all documentation necessary for the transfer of the business. Community Express - Click To Read Article CommunityExpress is a pilot SBA loan program that was developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its member organizations. Under the pilot, which is available to selected lenders, an SBAExpress like program will be offered to pre-designated geographic areas serving mostly Low and Moderate Income areas and New Markets small businesses. The program will also include technical and management assistance, which is designed to help increase the loan applicant's chances of success. Buying A Franchise FAQs - Click To Read Article A franchise may need to be looked at from a product or service comparison prospective. While one franchise’s product or service may be suitable in a geographic area, another may not be. When evaluating a franchise, close attention needs to be spent evaluating: the strength of the franchiser, the franchiser’s long-term goal, the uniqueness of its product or service, the type of consumer response the product or service is achieving, the amount of fees it charges, the type of support it provides: 1) startup 2) operations 3) marketing, and the length of the contract you will be signing. Purchase Research - Click To Read Article Once you've found a business that you would like to buy, it's important to conduct a hard, objective investigation. Look into every aspect of the business, verifying whether the owner's stated reasons for selling are legitimate; double check every detail for accuracy. Like this article? Share it with your friends
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