Depending on their capital, finding the necessary funds to operate their business is one of the most difficult tasks that a small business owner must face. At one point, expansion becomes necessary for growth and before this happens, the small business owner must be prepared. Before expansion and a small business loan to fund it become necessary, the small business owner should take the necessary steps to help him minimize the difficulty involved. It pays to know what you need to help you increase your chances of getting approved for a small business loan.Risk is your enemy when applying for a small business loan because it’s the only reason that lenders such as banks will turn down your loan request for your business. With the right preparations, you help yourself seem less risky in the perception of lenders so that you can get approved for your loan.Government and community grants are now a thing of the past and if you think you can start with that, think again. This is one common error that entrepreneurs make. You’re more likely to be able to get funding from family, your own savings, friends, or from conventional lenders.Here are some of the things that lenders look into in their applicants for small business loans:Credit score and history
Business plan and its feasibility
Business history and performance
Education
Business cash flowThese are just some of the many things that you should prioritize in taking care of when applying for a small business loan.You need to ask yourself several questions first, before applying for a small business loan. These questions are most likely questions that lenders will ask you too when you apply for the loan. Prepare your business plan and know that this is very important. The business plan needs to be able to show the lender that your business is feasible and can gain profit which in turn gives them gain in their investment. This means that the lower risk they see in lending you money, the better chances you have on getting approved.How much money do you need for your business expansion? This is the first thing you should ask yourself first because this determines the direction of the loan application. Be sure that you request only for the amount of money that you need, nothing more and nothing less.Where will the money go? Lenders also want to know how you will invest their money so they’ll know the kind of risk involved. Provide detailed information where every dollar will be invested in such as operations and acquisition of new equipment and/or facilities.When will you pay off the loan? Be sure that you also give the lender an idea when they will be able to get back their investment. Convince them that you’ll be able to pay in the expected time you give them.Lastly, many people think this is unnecessary but it’s a plus on the part of lenders. Tell lenders what you’ll do if you won’t get approved for the small business loan. This tells lenders that you have persistence and will not get discouraged if they turn down your application. This portrays a confident and determined personality – someone they can trust.Sometimes all you need is a little more cash. If you have bad credit you should consider a bad credit loan from a company like BHM Financial. Bad credit loans can give you the cash you need to achieve your goals.
Increase Your Chances of Getting Approved for a Small Business Loan
Best Home Based Business – Home Party Industry Vs Online Business – Which One is Right For You?
Could you use an extra stream of income? A home based business is a viable option but how do you know which one is right for you? A few areas to consider when trying to decide on the best home based business is your personality, time available and profit potential.-Personality: When considering the best home based business, your personality can steer you in a general direction. Many direct sales companies recommend having home parties or one-on-one meetings as their main focus for selling products. This requires contacting friends and family to host a party. If you have trouble talking to people face-to-face or in groups or don’t want to impose on those people closest to you, the home party industry may not be for you. However, it’s not to say you can not overcome your obstacles and have a successful career in the home party industry.On the other hand, a strong and outgoing personality easily fits the criteria for that industry but does not limit oneself to just the home party type of company. All personalities lend itself well to online businesses for two main reasons. First, no matter if you are shy and quiet or friendly and outgoing, many online companies have extensive training to guide you every step of the way taking fear out of starting a business. And second, if you fear talking to people about an opportunity, many companies are automated in which your only job would be driving people to your website. Some online companies even offer online assistants who will close sales and help lead you toward success.-Time: Another factor in choosing the best home based business is time. The home party industry typically promotes having parties during the day, evening or weekends. This could be difficult to schedule around your family’s needs. The online industry is more flexible. If you choose, you can work in the middle of the night and not disturb anyone. Can you imagine asking your home party host if you could start the party at 10pm after the children are in bed? The host would think you are crazy!-Profit Potential: If you are going to spend your time and energy building a business, choose the best home based business that fits your expectations for profit potential as well. Home Party businesses generally offer 30% to 50% in profits. The online industry is usually 50% but the sales are in larger quantities and in some cases provide residual income where you can continue to get paid an override on a sale you made in the past. Online businesses open a huge market far beyond the number of friends you have or the size of your family. All you need to do is learn how to capture online sales and plug into an organized system that guides you to the path of success while working from home.I would recommend exploring your options based on your personality, time available and profit potential when deciding which is the best home based business is for you. Whatever direction you choose to go, keep in mind that the most important ingredients to being a success are consistency and persistancy…take action every day!
Beware of Home Based Business Ventures Requiring a Large Investment Up Front
Because there are so many home based business ventures out there choosing the right one can be difficult to say the least. Most genuine opportunities will require a small investment up front but beware of those that ask for large amounts of money.People sometimes make the mistake of thinking that businesses that require a large investment to join and set up must be very profitable and successful and are going to guarantee them success.This may well be the case if you are already a millionaire and planning on purchasing a McDonalds franchise but for the average man in the street this is certainly not going to be the case. Probably exactly the opposite in fact!Here are a few things to keep in mind that will help you make the decision that is right for you.1. Find a home based business that is centered around a product you already have belief in because you or someone else you know has used that product and had a positive experience with it.Promoting a product you genuinely believe and can give a positive endorsement of will help very much when it comes to making sales and money. You will also avoid the possibility of losing money when you later discover that the product is not up to the standard you were expecting.2. An easy way to highlight any positives and negatives of a potential home based business that will also help you work out how you truly feel about it is to do this simple test.Take a piece of paper and divide it into two halves. On the left hand side list all of the positive things about the business you are looking at and on the right hand side list all of the negative things about the same business.After doing this sit back and analyse what you have written down. What are the pros and cons? How do you feel about the business now that you have studied the results?3. There are many home based business ventures that you can start very cheaply, often for under $100. Some of them are even free!There are many companies and opportunities out there who will supply you with all the tools required to make a success of your home business for under $100 including your own website and email autoresponder to help you market your products and make sales.There is very often no cost at all associated with getting started as an affiliate marketer and many very cost effective and often free ways to promote your products. For example, article marketing and blogging are a couple of very effective ways to generate affiliate sales.4. Today many people build successful businesses by doing things for other Internet marketers. There is a lot of money to be made with graphic design, blog set up, article marketing, virtual assistant, blog writing etc.There are many things that need to be done constantly in order to build and maintain a successful online business. These tasks can become very time consuming when trying to do them all at once and a lot of business owners are more that wiling to pay other people to do some of the work for them.Outsourcing is big business these days because many business owners find that there workload is just too much and prevents them from actually running their businesses effectively.This is also a very cost effective way of starting up a home business. Depending on your skill level you may have to educate yourself about online business and this may involve purchasing some training materials. This should be viewed as a worthwhile investment in your future that will help you build a better business and make more money.These are a few things to keep in mind when considering potential home based business ventures. Never jump into an opportunity. Always take the time to consider and research the company, product and opportunity. This is very important because the very people who are usually looking for a way to earn money from home are the very people who can also not afford to lose money by making a mistake and a bad investment.