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Three Tips for 2013 Bookkeeping

December 14, 2012
By BizFilings Business Owner’s Toolkit

Marketing plans and strategies, sales tactics, office policies—now is the time of year to revise nearly everything for the New Year. Except for bookkeeping, the oft-neglected business necessity that so many other functions ultimately depend upon.

The fact is relatively few small business owners have such sound bookkeeping systems that they shouldn’t revisit them. Improving bookkeeping methods is important not just for tax implications, but as a way to better record finances that, in turn, can be used for better reports.

Making your 2013 bookkeeping a planning priority won’t take too much time or effort. While these tips only scratch the surface—and assume, for the most part, that your bookkeeping is in relatively good order—they can help your business remain compliant and have more insight into your financial health. (more…)

Financing Strategies for Multi-Unit Operators

December 5, 2012

How to maximize your funding strategy in multi-unit development 

More and more entrepreneurs are looking to develop a funding strategy that will allow them to develop multiple units. The most common scenario is the desire for a “three-pack” over a two to three year window. Funding multi-unit development may have been difficult in the past, but since the credit crisis in 2008, financing a multi-unit strategy is even more challenging than ever.

While every entrepreneur’s needs and situation are different, one thing is universal; how an entrepreneur funds the first unit affects his ability to fund the future units. In other words, if arranging financing for the first unit without considering how it is going to affect his ability to get additional financing, he may find himself without any options to fund the second and third units. With that in mind, let’s look at a few different scenarios and some possible strategies to successfully obtain the funding needed to become a multi-unit franchisee. (more…)

Is Revenue-Based Financing Right For Your Business?

November 26, 2012

The lending environment continues to be tight with banks holding potential borrowers to strict standard. As a result, businesses have begun to explore new ways of obtaining financing. One such method is called revenue-based financing (RBF). Is this type of financing right for your business?

How does it work?

The lender issues a loan and the interest payment is based on the company’s revenue over a specified length of time. For instance, the small business would pay the lender 2-5% of revenues each month. If revenues drop from $30,000 to $20,000, the borrower owes $400 as opposed to $600 in the prior month, which is based on a 2% interest rate. Therefore, it is conceivable for the company to pay no interest at all if the revenues went to zero for one month. (more…)

Hedging Against Business Debt

October 23, 2012

There is one problem that threatens all businesses: debt. In 2010, businesses nationwide placed $150 billion worth of debt with collection agencies. To keep financially fit and withstand economic storms, a proactive approach to business debt management can hedge against accumulation of high debt that can often hamper growth and potentially lead to bankruptcy.

Knowledge Is Power

Knowing your company’s commercial credit score is an easy way to keep your business financially healthy. Get your credit score at least twice a year to stay on top of credit reporting and spending habits. Among small businesses, credit cards are the second most commonly used financial product, only second to checking accounts, according to a “Report to the Congress on the Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses in May 2010.” With businesses today so reliant on credit cards, maintaining a high credit score can help your business better qualify for new credit. (more…)

The Business Buying Process in 6 Steps

October 22, 2012

According to a recent buyer survey, 60% of online business buyers reported that they “Understood the buying process”, but many of our conversations with SBDC counselors paint a different picture. Our workshop at the ASBDC conference aimed to address the complexities of the buying process and shed insight into buyer expectations to better prepare SBDC centers as they intake aspiring entrepreneurs.

Read our 6 steps to buying a small business that were presented at the conference, and click here , or any of the following links to download our Buyer Tools referenced below.

1. Determine Readiness to Purchase

Are your clients prepared to take on the task of running a business? Consider your client’s income, lifestyle, investment, and risk profile to see if they’re suited for the task. (more…)