Small businesses often struggle to survive. In fact, 50% of American small businesses close up shop within their first year.
So what are the secrets to staying in business and locking down success? This infographic from Intuit takes a look at small businesses — what industries they’re in, what cities they thrive in, and what they’re doing to stay in business.
When it comes to longevity, small business is often the tortoise in the race. And we all know how that particular story turned out. (more…)
What do established companies looking to expand and start-ups in the earliest planning stages have in common? They want access to money and credit without having to provide a personal guarantee. This sentiment is consistently and strongly expressed by entrepreneurs I work with. It’s no secret that building and expanding a business credit profile has become a greater challenge over the last few years. Many established small companies’ cash flow sheets were hit hard during the recession and as a result, many lenders and suppliers have either added a personal guarantee policy or modified their current policy.
Most business owners know Experian, Equifax and TransUnion as the three major credit bureaus that provide information about their personal credit; however, they also may provide a credit profile about your company’s creditworthiness. Dun & Bradstreet (D&B) is the most well-known provider of business credit profiles among business owners because their business model serves them, whereas Experian, Equifax and TransUnion primarily exist for the benefit of creditors. (more…)
Many new companies face a similar marketing problem. They have difficulty disseminating their message to their target market without spending a lot of money on advertising. One way to solve this problem is to partner with a company that serves a like-minded audience.
Identify the right partners
Small businesses need to pursue partnerships with companies that not only serve a similar audience, but also share the same goals. For instance, be sure to ask yourself how working together could be mutually beneficial to both companies. Furthermore, both companies should allocate a similar amount of resources.
Don’t overlook smaller companies
Many entrepreneurs salivate over the idea of being able to partner with a large company. While it can certainly help with building credibility as well as access to a significant distribution channel, there are drawbacks. Many large companies have specific guidelines to follow when evaluating a potential partnership. (more…)
Many banks do not lend today without collateral, and entrepreneurs look for additional funding options to help launch their business.
In a survey on alternative investment strategies, “Retirement Fund Programs in Franchising,” FRANdata, shows a growing number of businesses using rollover funding to start or recapitalize a business. For almost 40% of respondents, the total required investment needed to fund the start-up of their business came from the use of such rollover retirement funds.
Additionally, they are able to finance their investment by using only a portion of their retirement assets, investing a weighted average of 52% of total Retirement assets. Which still allows them to keep their safety net of retirement funds. The best part is, when rolling over retirement funds to start a business, you do not incur penalties or tax and can start your business debt free. (more…)