4 types of viable small business financing

Many small businesses face the prospect of going under if they are not able to secure good financing. The need for quick cash injections to keep a small business running can continue even after the first few loans are acquired. However, with each loan taken it becomes increasingly difficult to get a new loan approved. Also, the number of banks and financial intuitions who are willing to lend money to small businesses are rapidly shrinking.

A regular small business loan from the bank

Before you go anywhere else the first place you should go to is your bank. Banks offer some of the best small business loans which can be used as startup capital or to further expand your business. However, your proposal needs to appeal to the bank in a way that helps them feel that giving you a loan is a worthwhile investment. If you’re just starting out your business plan should go into detail about your business and your experience. This will help the bank understand your industry and how effective you can be. Banks will also require the following details from you:

• Cash flow projections which tells them how they will get paid back and when. These should be honest figures.
• Make sure to add personal financial statements.
• If possible add past business tax returns. This will show how exactly your business has been doing.
• You need to have good credit rating to be trusted. Even though this is a small business loan but you are getting the money. Make sure to add your credit report to the file you send as part of your loan request.

Try finding micro-loans

If you are not able to acquire a regular small business loan you may try to get a micro-loan. Micro-loans allow you to borrow up to $35,000 and they are easier to get. Micro-loans work great as small term capital and for equipment purchases. Because micro-loans may require collateral the best use for it is equipment purchases since then the equipment can be put up as collateral.

Short term supplier credit

This type of loan clearly does not work for every business. So, if you’re not a retailer or a manufacturer then you’ll have little use for it. You’ll usually need to pay back this type of loan within 30 to 60 days. However, you should be aware of the fact that the interest rate on short term supplier credit is very high.

Instant small business loans

Also known as quick cash loans and quick cash advance loans these work great for businesses that are not able to find a loan anywhere else. It is also great for businesses that do not have the required assurances to secure a regular small business loan. These types of lenders will usually process your request within a few days and deposit the amount into your account. In most cases you can apply for the loan directly from the lender’s website. However, because the lender is taking a higher risk of lending you money without due diligence the interest rate is slightly higher than what banks offer.

Selecting the Right Home Based Business:It’s hard to ignore the spam messages that promise interested entrepreneurs the opportunity make tens of thousands of dollars per month with a home based business. You must be discerning when deciding on a business opportunity because there are many scams out there. In reality, working from home opportunity can be a wonderful source of additional or full-time income. The amount of success achieved at owning and operating a home-based business depends on the type of business, as well as your dedication to it.1. There are countless established businesses that offer affiliate and partnership opportunities to entrepreneurs. Companies such as Mary Kay and Avon have provided home-based businesses opportunities for years. These business opportunities are attractive to those who are attracted to residual income with unlimited commissions. Under a residual income with unlimited commissions structure, new owners often have no chance of “catching” up with those who joined the business before them. This sometimes creates a treadmill effect where new owners, no matter how successful, with never really achieve the level of success as seasoned and established owners. Business structures that are designed to offer residual income with capped commissions give newbies a chance to achieve success commensurate with their achievements.2. The payment structure is crucial when selecting a home based opportunity but before even receiving the first commission payment, those interested in starting a home business must be careful to choose a company they believe in. Succeeding in business can be challenging, so it will be crucial to have a passion and interest in the service or product in order to maintain a level of dedication through the difficult development stage.3. It is important to be sure the compensation plan is tangible. In many business opportunity orientations, you may hear testimonials of the awesome pay and unbelievable success that have been achieved through the business. These testimonials are often the exception and not the rule. You need to be able to separate the sensationalism of the testimony from the real income opportunity. Will it really be possible for you to make enough money for the effort to be worth your time? If the money you can realistically make will be just a few dollars here and there, you may get discouraged and quit. Often times, there is an initial investment and this could be lost if you quit.4. These are challenging economic times and even well established, thriving businesses are experiencing a decline in sales. It is essential to select a company that provides support for new owners. It will be comforting to know that you are working for yourself and not by yourself. A mentor can help provide guidance and offer suggestions that can help with the profitability of your business. In a residual income with unlimited commissions business structure, your leader may seek to personally benefit from your success, but if your business falls in the capped category, your success and profits are your own. Once you have selected a business you believe in and can live with the compensation structure, roll up your sleeves and be prepared to work hard. Most entrepreneurs do not work a traditional eight-hour days. The amount of success you achieve will be based on the work and dedication you put into your business.5. Lastly, be sure your business can be promoted online. In order to thrive in these times, you must have an online presence. Creating and maintaining a website can be accomplished by even the most inexperienced computer user and there are many sites that offer tech support for users. The benefits of owning a business are unlimited. The freedom one feels from being in the driver’s seat of their success is exciting. There are countless home-based businesses to choose from and it is important to find a reputable company that offers the structure and support you need to succeed.

If you tried to think of people involved in product creation, who would come to mind? You may think of Edison, Franklin, or maybe Henry Ford. Would you ever think of yourself as someone who can create a quality product? Product creation is actually relatively easy and product launching is not that tough either! If you follow a few easy to understand steps, you could be starting the product creation and product launching process sooner than you think.

The first step in creating your information product is to know and understand your market. This can be very time-consuming, especially if you are unsure of what to do or where to look to know your market. Studying your niche market and understanding the buzz words and buying patterns can ease the process dramatically. Personally, I would recommend networking with someone who has had success in the niche market you are considering and learn from their results. If they are into product creation and not very business savvy expect some hesitation. If they only sell products and have nothing to do with product launching or product creation you may your first affiliate (sales person)! Something else you can use to find hot trends is with the Google Trends tool.

The second step is the product creation process. Take your niche market and brainstorm ideas and topics relating to it. There are a lot of product launching contests going on recently relating to a newly created internet marketing tool. There are so many aspects to the mentioned niche that literally, and unfortunately, anything can be considered an Internet Marketing tool. The reason that anyone can basically create an Internet Marketing tool is because of something called Private Label Rights products.

What I use private label rights products for, and highly recommend them in this specific manner, is to cure writer’s block especially when it is lingering. Many people base their entire product creation and product launching on a private label rights product. This is where you can start to shine and build a strong brand for yourself. If you set goals for yourself, short-term goals to be exact, you can see your product creation come into being much faster and there is a good chance with less revision needed. If you keep hitting time restraint road blocks; however there is nothing wrong with a slow and steady approach, you can consider outsourcing portions of your project. Outsourcing can be an extremely huge benefit or just as great of a disaster.

You can find someone to outsource work to at a freelance site such as Guru.com or eLance.com. When reviewing proposals it is almost mandatory you perform a background check on them as you are in essence hiring them. Doing a background check on freelancers is as easy as asking for samples of their work and reviewing feedback on the freelance site from previous customers. Depending on the size and requirements of your project this can add up to a decent sized investment, so caution is very important. One tip I always recommend to people looking to hire an individual is to ask them what they can provide you that no one else can. This simple question gives them a chance to “toot their own horn” and acknowledge where they feel most competent as far as their skill set.

The final portion of the product creation and product launching formula is the launch. This can literally make or break the effort, time, and maybe (if you invested) money you put in to your project. There are numerous aspects to product launching and although their relevance is debated in terms to their effect, experts agree all must be followed. The person in your field who you asked for product advice from can help you substantially if you have kept in touch. If not, the first thing you need to do is to create a visually appealing website with flawless design work.

I also mentioned outsourcing before, this is one aspect of product launching I have little strength in and I always outsource this portion. The website does not have to be large however the content (ad copy in Internet Marketing) must be stellar and as perfect as possible. This is where advertising knowledge or experience is beneficial. When the site is set up you now put a lead capture form on your website.

I put two lead capture pages on all products I create on the internet and is one of the best methods of getting a solid start when you are in the product launching stage. When you gain information from a prospect or someone looking to get paid for referring sales you are able to provide them updates or specials. Many people abuse their prospect or affiliate lists by in turn emailing them with a new product daily and I find the recommendations to be totally unrelated to their original need, problem, or interest.

Another stage in the product launching stage is creating a free report or demo version of your product to entice the product to sign up to your email list. Using proper follow up with this can help generate numerous sales for you. One thing you need to ensure is that your free product completely relates to your main product that you are looking to sell.

You are now ready to advertise your product launching to customers as well as the opportunity to sell for affiliates. This is the single aspect that many product creations and launches fail on. It is actually not entirely difficult. One thing you can do is write articles (and a good amount of them) on topics relating to your product. I am a huge advocate of giving a solution in forums. When you join a forum you are normally offered the opportunity to create a signature. In your signature, you should enter the link to your opt-in or lead capture page. When you respond to posts, you are advertising your opportunity.

It is not impossible to create a product and it does not have to take a long time. You need to setup a plan and stick to it. If you get stuck, look at similar and successful products to your own and try and see how they did it. When you sit down and brainstorm you will be surprised with what you can imagine.