By Sharita Humphrey –
Every year, thousands of people start up their own businesses. Although they venture into different industries, they have one thing in common. They need money and capital to fund their business. A business simply can’t survive without finances. Even if you have the best idea, service, or product, it is not enough to sustain a company.
Securing funding for your business is not the key to its success. However, financing plays a huge role in your entrepreneurial journey, especially at the beginning.
Let’s dive into eight truths about securing financing for your business:
1. Small business owners should focus on cash flow over profit
A major mistake that many small business owners make is focusing too much on profit. What you should be doing is focusing on your monthly cash flow. Cash flow measures the ability of your company to pay its expenses on an ongoing basis. (more…)
By Ken Boyd –
Tracking business expenses can be a lengthy process — and it can get out of hand quickly. It’s easy to lose track of your expenses or forget to record a transaction here and there. But inconsistent or incorrect expense tracking leads to inaccurate data that can result in stressful financial audits.
Here’s the good news: Expense tracking doesn’t have to be a thorn in your side. It’s possible to create an expense tracking system that doesn’t eat up your time or cause financial stress. The first step towards building this system is understanding how the accounting process works.
Understanding the accounting cycle
In a nutshell, the accounting cycle begins when you make a financial transaction. Record the transaction using a journal entry and post it to the general ledger. Once all transactions are posted, generate a trial balance. You can then use the trial balance to produce financial statements, including a balance sheet, income statement, and cash flow statement. These statements help you determine the financial status of your business.
Let’s take a closer look at each step of the accounting cycle. (more…)
All the way back in early April — nearly a lifetime ago — the first coronavirus infections were followed by a wave of ads created in response to the crisis. Those early ads showed us what to do and what not to do, and as a result, you’ve got plenty of material to guide you in marketing your business during the pandemic.
Here are several ways to stay in the conversation — and stay compassionate and mindful while doing so.
Be Helpful, Not Promotive
Some early surveys revealed how consumers felt about ads during the pandemic. A Kantar survey found that 75% of customers didn’t want the crisis exploited, while 8% wanted companies to stop ads altogether. If you tell your audience how your company is adapting to support the community, you’ll be far better off than a company that relies on logos and empty slogans. (more…)
By FranNet –
The recently signed second stimulus package includes several provisions that should make it easier than ever for qualified buyers to access capital through the Small Business Administration (SBA) for starting a new business. We spoke with our friends at Benetrends Financial regarding the details of the new package and the impact it will have on entrepreneurs considering owning a business.
Eric Schechterman, Chief Development Officer at Benetrends Financial, said, “While the lending environment continues to rebound and lenders continue to adapt what they are looking for from borrowers these provisions should have a huge impact in 2021.” (more…)
Serving more than half a million small businesses and aspiring entrepreneurs in Fiscal Year 2020, America’s Small Business Development Centers (SBDCs) rose to the occasion during a time of unprecedented challenges.
From the beginning of the coronavirus pandemic, America’s SBDCs were on the job. Providing free, one-to-one business consulting and free or at-cost business training, SBDC consultants, trainers and staff helped America’s small businesses — and the communities they serve — adapt and survive.
As one SBDC client described it, “I was trying to keep it together but panicking! Then a friend recommended I talk with the Alabama SBDC. I talked to my advisor an hour and a half the first time I called her. She was also a small business owner and knew what a state of mind I was in. She has ended up advising me on every step and has even kept me ahead of the game, giving me information as she learns it.” — small business owner and chef Yanni Tempelis, who worked with her local SBDC to secure PPP funds and help save her business. From helping small businesses address the Covid-19 crisis to serving America’s veterans, women-owned businesses, underserved communities and young entrepreneurs, to promoting technology development, exports and rural development, America’s SBDCs show why they are America’s largest and most trusted network of small business assistance providers. (more…)