Archive for

Business Loan Fundamentals: What Small Business Owners Need to Know

Accessing capital for your business can be a daunting task. If you are a start-up business owner, this is even more so. Small business owners who are considering accessing capital are sometimes not sure what to do or where to go. This is understandable.

The news media showcases small businesses’ inability in securing the financing they need to grow their business or just to survive. In some instances, entrepreneurs are getting funded but not at the level or the amount they really wanted. These business owners have to make adjustments to their plans in order to fit what they can qualify for.

One thing to note is being prepared prior to seeking outside capital, otherwise called OPM (Other People’s Money). This is even more important now than ever before. Knowing what the lender’s requirements are is very important. Banking institutions must follow strict Federal guidelines. Private investors or alternative financing sources have their own guidelines and requirements. Being aware of these requirements is important to the smooth processing of your loan or financing request.

When applying for any type of financing, you must present the applicable documents the lender requires. If you are buying a house or car, you would have to submit all applicable documents the lender required. This is the same process when accessing capital for your business. Without the lender’s required list of documents being received and reviewed, you will not be able to successfully access the loan or financing option you so badly need.

If you do not have a specific document or documents, you need to submit a written explanation with a legitimate reason for not having the necessary paperwork. There are some documents you must have, no matter what the circumstances. Without the mandatory required documentation, the lender is at risk of losing their money if they were to take a chance on you. If the lender is a lending institute governed by the Federal Deposit Insurance Corporation (FDIC), they will not be able to work around any mandatory documents not being submitted.

When all is said and done, it’s not about how great you think your idea or business is. It is about the lender and their risk tolerance. What it boils down to is the business being viable for the lender to make the decision to lend you their money. They must feel you have the capabilities to repay the loan.

So, if you want their money, it is simple, provide the required information and documents to expedite your financing request. Show them that you are responsible and that you take them seriously. And most of all, do not waste their time if you know you do not have the information they need.

Here is a checklist of items that might be applicable to your loan request:

  • Loan/Lender Application
  • Business License/Certifications
  • Business Overview
  • Business Plan
  • Resumes
  • Personal Financial Statement
  • Personal Credit Report
  • Personal Income Tax Returns
  • Business Credit Report
  • Business Income Tax Returns
  • Business Lease
  • Business Insurance
  • Financial Statements including Cash Flow Statement, Balance Sheet, Profit and Loss
  • Bank Statements
  • Merchant Statements
  • Current Accounts Receivable Aging Report
  • Current Accounts Payable Aging Report
  • Payroll Tax Form 941
  • Property Ownership Documentation
  • Partnership Agreements
  • Identification
  • Any loans such as commercial property mortgage documentation
  • All applicable authorizations including release of information, landlord, references

Remember, the above list of documents does not apply to all financing options, so be aware of what is specifically required by the lender you selected. The lender has the right to ask for any documents they believe will assist them in making a decision one way or other. Be sure you understand what the lender is looking for. If you do not know, have them explain exactly what it is they need. It makes for a smooth process. Let’s not waste your time or the lender’s time; be prepared.

5 Things Every Startup Business Owner Must Know

Listed below are 5 things start-up companies need to be aware of when seeking alternative financing:

1. Business Foundation

As a new business owner, did you make the decision to operate as a Sole Proprietor, or did you choose to incorporate your entity? If you did incorporate, great! More financial opportunities are available to you. As an incorporated entity, financial institutions and alternative funding sources are more apted to possibly providing financial assistance. As a LLC, INC, LP, CORP, and so on, you show the funder that you understand the full ramifications of being an incorporated entity as oppose to being a Sole Proprietorship. As a Sole Proprietor, you are a greater risk to an alternative funding source.

Depending on your business module, this will help to identify whether you are a fit or not for these funders. Presently, there are fewer alternative funders financing Sole Proprietors each day, due to the high risk factors of tax evasion, fraudulent transactions, and so on. Not to say that Sole Proprietors cannot get this type of financing, it just means that there is a limit to the number of funding sources available to assist you in your time of need.

2. Locating Alternative Financing

Start-up business owners most times know only their banks as their primary source to get a loan or line of credit. Their alternative source(s) most times tend to be family or friends. Who knows, this could be something that can make or break a family or friendship when hard times hit a start-up company. Who do you turn to when you have run out of options? Alternative funding sources are available throughout the United States, and all have their own specialized area of expertise. There are funding sources for almost all areas of business, and as alternative financial experts, they make the deals happen.

They have the knowledge and the money to help take your business to the next level. How do you find them, you might ask? Ask questions within your business community, banking sector, and so on. You can also seek out financial consultants but better yet, the kind of cash flow consultant who have direct access to these types of funding sources who can put you with the right source from the get go. Understanding how your business operates, where you are presently, who your clients are, what your plans are, and so on, makes it easier to determine how a cash flow consultant will be able to assist you.

3. Understanding how Alternative Financing can help your business

Yes! It is great to know where to find the money to help your business but do you really understand how it can help you? Did you know that if you opted for an alternative financing option, it could possibly have saved your start-up entity from being a part of that 80% who go out of business within the first (1st) year? Did you know that understanding alternative financing could mean the difference between being able to bid on a contract and possibly winning it? Did you know that understanding these options could mean the difference between keeping and losing your employees (a business most-valuable asset)? Did you know that utilizing these options could help to make you a more bankable entity in the eyes of the banks within a short period of time?

Understanding what this can do for your business is a must. Develop a plan of action as to what type of financial services you might need, when you might need it and learn all you can about those solutions. If you are in the real estate, construction, medical, transportation, security and so on, learn what the funding sources are looking for in a company like yours, in order for them to be able to better help you.

4. Risk Assessment from a Funder’s Perspective

Assessing risk from a funder’s perspective is simple. If the funder lends you money (say Hard Money), advance you funds in the form of Factoring, Purchase Order financing and others, who stands to loose the most? The funders, of course, but remember they know how to analyze their risk level, and so they will not go into a zone that is 100% risk to them. Someone has to be responsibly for the payment of that debt, however it is structured.

Since more cases of fraud are occurring daily, funding sources are also getting more sophisticated in being able to determine if a prospect is legit or not. Going back to (1) Business Structure, funders will look at your structure and the type of business you are involved in to determine if you are at a higher risk level than others. On the other hand, if you are seeking 100% financing in the commercial arena, you are barking up the wrong tree. Most commercial funders will not do 100% financing. It is just not happening especially now, whether on a small or large scale. Depending on the funder, and how your business/project is laid out, you might just get what you are asking for, if you know what you are doing!

5. Decision Making

This is the single most important element to actually obtaining financing. After learning all you can about a particular alternative financial product, you have to weigh the pros and cons of how it will affect your business.

Questions to ask yourself: what will this do for my business in the next few months, years? How will this help? What other alternatives do I have? What are the requirements? Will they be as stringent as the banks? What do I have to do to get started? How will I be treated and what does the process entails? How long will it take to get the funding? What will it cost? Do I get to talk with the funding source directly? And so on….

After figuring out what your business actually needs, you then need to make a decision. This decision will help shape your business one way or the other. Take a sheet of paper, divide it into two columns. On one side, list five (5) positive things that come to mind in seeking funding, then do the same on the other side, but this time list the five (5) negative things instead. Then measure for yourself what both columns bring to the table. Does column one (1) outweigh column two (2) or not? This will help you figure out what you need to do. A word of caution though, business owners who procrastinate in making a decision about the usage of alternative financing, result in unfavorable situations for themselves, and sometimes are not able to obtain funding due to mitigating factors beyond a funders’ capabilities.

It is my hope that as a new business owner, you will make informed decisions to enhance the building and sustainability of your business.

How to Generate Leads For Your Ximo Health Business – It’s Not Cold Calling or Running After Geckos

Create More Leads For Your Ximo Health Product

I will explain to you a how you can create more leads to your product, compensation plan and Ximos healthy beverages with just toss of a stone. However, I must tell you, that I am not a Ximo health distributor and this review is only being shared with you because of my persistent marketing research that I did, while interacting with many distributors in the network marketing industry.

Ximo Health

As you know Ximo is a network marketing company that sells healthy beverages and are based out of south Salt Lake City Utah; This Company markets a sugar free healthy beverage called Ximo. The company reports Ximo health drink as energetic, helps with mental focus, weight loss, and blood pressure and contains antioxidants.

Go The Extra Mile To Generate More Leads

Ximo seem to have a good product and a compensation plan that will sign up a lot of people into its business organization. However, while following Ximo’s business strategies you will still need to go the extra mile in marketing and bringing in new people into your organization, which leads to retention. Is maintaining your Ximo’s title as a distributor very important to you? Right?

Attracting More People into Your Organization

Well, here it is, the additional strategic way of attracting more people into your organization is to use the attraction marketing system. Now, I must make you aware that I am no guru or claim any kind of fame. I am just your average guy next door that was curious enough to ask a lot of questions and receive a lot of answers from people that have been there and done that.

Maintaining Your Residual Income

We all know that every business has a system in creating retention and generating more customers and distributors. It’s the key to succeeding in your business and maintaining you residual income. That’s the reason you went into business for yourself right?

What’s Affecting Your Business

While watching webinars, talking and listening to many distributors in the network marketing industry, their main obstacle affecting their business was lack of leads and customer retention. As we all know, the more leads we have, the more people we are able to retain, which are the key factor in maintaining any business, wouldn’t you agree?

It’s something that is taught in business classes, well, hmm; let’s see at least for most of them. They all teach marketing strategies, retention, conversion rate, analysis, assets, liabilities and so fort. Which is all needed while running your business on a daily basis?

Without The Juice There is No Action

However, we tend to forget one major thing, and that is, without leads and customers, there are no strategies, retention, conversion rate, analysis, assets, liabilities and so forth to work on, simply put, no action no reaction. So simply said, without leads and customers you have no business. Wouldn’t you agree? We tend to lose focus on what helps us grow a business, and that is peopling, my friend.

Attracting People Relation Ship

People are the ones that will help you grow your business, and if you focus more on establishing and maintaining relationships with people and giving them more value than they expect, they will become your life time customer friend and or business partner. The way to create massive customer base and distributor retention is to use a attraction marketing system. This is a concept used more now than ever within the network marketing business, networkers consider it, the foundation structure of a home business.

Focus Wit Persistence on People Needs Not Wants

I remember ten to 20 years ago, people would focus on people and because of people focusing on people, some network marketing businesses have managed to become, multi billion dollar companies. Entrepreneurs like me and others and maybe you, if you dare to go the extra mile of curiosity like I did when I first started my business. It’s the network marketers with the understanding of logic, persistence, and due diligence are the ones focusing more on customers needs rather than customers wants.

Simple Mathematics Equals Logical Answers

It doesn’t take a rocket scientist to figure out that it takes people to grow any business. It’s simple mathematics 1+1=2, or should I say simple economics? I say this because, we are all watching how today’s economy is going the opposite side of a one way street and we are all trying to conserve the most we can, in a striving economy. Its future path is showing us everyday, that people are focusing more on thoughts like do I need this extra item or do I want this extra item.

The Extra Mile Is What Makes A Different

Ximo Health has what it takes for you to be successful in your business, but as I mentioned earlier in this review the extra mile is what makes you different when it comes to retaining customers and distributors in your business. As we all know it takes courage and character and personality to become some ones servant, and being someone servant is where we exchange receiving ten times more in return than we actually gave out.

Show Some One How To Fish And Eat For a Life Time

Therefore, my suggestion to you my friend is, focus on what people need and not what they want. I will help you with the answer to this madness of people needing versus wanting. People need income and if you can show someone how to generate income to self sustain their cost when starting a network marketing business, you will reap massive results.

Every Business Person Thinks Of Funding Their Business Plan

Take for example, when you are starting a business the first thing you do is create a business plan, then the second thing you need is funding, also known as (mula),money or loot. Right? Correct me if I am wrong, because last time I checked, that was one of the priority thoughts that went through my mind, after a stimulant idea came across my brain.

Leadership And Teaching In Network Marketing Generates Leads

So when we talk needs, I mean catering a solution to your people’s organization or distributors needs, and their needs is to have some one that’s going to show them how to generate income in addition to showing and teaching leadership with Ximo Health. This in turn will keep them loyal to your network marketing business; we all know that teaching and leading is definitely needed in all types of business.

Attraction Marketing For Your Ximo Health Business

I have learned that the self branding system is always needed when people are interested in increasing their traffic for lead. Therefore, I recommend, the attraction marketing.This is a system that will help you self brand and also show you how to generate more leads for your Ximo product, compensation and business opportunity.