Archive for the ‘Small Business’ Category
What are small businesses?
Small businesses are businesses with less staff. The staff limit is different for different areas. These businesses are generally owned by individuals or are started in partnerships. Other criterions to decide small businesses are the turnover and profit. The less is the turnover or the profit, the smaller is the business. The smallest businesses are called as ‘micro businesses’ and those managed by families are called as ‘mom’s and pop’s business’. These smaller businesses generally have employees in number from 0 to 10. Many a times, the owners are the workers in these businesses.
Advantages in small business:
The basic advantage of starting a small business is that you need less capital and money to start the business. Also, one can start a small business on part time basis. The basics of a successful business are the regular modifications that one does to it. In small businesses these modifications can be easily done as one does not need to follow any trend or face any compulsions in small business unlike in big businesses. Also, a small business can give much more to its customers than a big one as they have the power to provide each and every customer the required personal attention and take into account all the suggestions and even implement some of them. Small businesses provide daily bread to many a people and thus are very important.
Marketing small businesses:
The most common methods of marketing small businesses are customer referrals, mouth publicity, radios, newspapers, internet, directories, boards, etc. Television ads can be a bit expensive for advertising small businesses. Internet marketing is considered the most cost effective and result oriented method of marketing small businesses. The ads can be placed on websites or even search engine web pages. The costs are decided on the size of the ad and thus can be easily moderated.
Small business ideas:
- Franchisee business: this is one of the extremely profitable ideas of a small business. The only things that you need to start this business are a place and some capital. The best part of this business is that the things that you sell are already quite famous in the market and thus you need to do very little expenses on the marketing.
- Event planner: if you know the knack of organizing things perfectly, then you can become an event planner. You need to plan out meetings, parties, weddings and other such get-together for your customers in the given budget. The best part of this job is that it is extremely interesting and your work does the marketing for you.
- Computer repair: if you have done any hardware or software course or have learned any computer language then you can start the work of computer repairing. You just need to sort out simple problems in computers. The best part of this job is that you get to learn a lot more than you have about computers. But, you should do only the work that you can manage and avoid doing any guess work.
Every street corner you turn shows the marks of many small business developments. I believe if we don’t support these businesses, then America’s streets will be like ghost town, and this can economically scarry to people that depend on them. This is why we need small businesses to exist. Did you know in 2005 about 587,592 jobs were outsourced to foeirgn countries? These jobs were outsourced by big companies not small companies. small companies are loya to Americans employees. I think companies that keep shipping jobs over seas, and causing too many jobs should not get tax break from the government. I know some people will say but it’s too expensive and there too many overheads for these companies in the U.S. but they forget to know that it cost lot to reestablish to in a foreign country as well. These companies must also understand that the consumers buying power in these countries is not as strong as the American consumers.
Countries like India and China are reaoing the rewards of outsourcing why this country is falling apart economically. 50% of workers are hored by small businesses. This is very important for the government to understand now, and no more waiting. The government should provide, not just loans but grants to people small businesses that need them the mosti f banks don’t. Big are being bailout, it’s for small businesses get a bail as well. By the way you must understand that most of big companies today started as small businesses. You never know what small businesses can do in the future. It’s time that taxpayers dollars work for small businesses as well.
Outsourcing kills Americans jobs. Many lose their jobs. we can’t keep encouraging people to get degree, and can’t find a job after that. This make no sense at all. I believe outsourcing is one of the reasons why we’re in this mess today. We keep bailingout big companies and they keep failing. It’s time some real leadership. People that manage small businesses have better management skills because they keep thriving, why the big keep failing. we have to work with one voice and and support small businesses before it’s too late. we have to jeep fighting for what we want. Never give in to the recession pressure. For those seeking opportunities and financial freedom visit my resource box at www.mlmeducationblog.com email: prince@unlimited-wealth-online.com phone: 612-306-4920
Since June 15, 2009, the United States Small Business Administration has been processing deferred payment small business loans of as much as $35,000 to be given out to 10,000 small businesses. This is covered by the SBA’s America’s Recovery Capital (ARC) Loan Program.
To qualify, companies should be private enterprises that are for-profit. They should have up to five hundred employees only and should be at least two years old. Furthermore, they should be able to prove financial need with a twenty percent decrease in sales, revenue or working capital. On the other hand, they should be able to prove that one of their two years in business has been profitable, and that with the infusion of cash they will be able to meet their existing and future debt obligations. This means positive cash flow projections. The ARC small business loans are intended to be used to pay outstanding debt such as payables to vendors.
For this batch of small business loans, there are no fees or costs involved, except if the borrower defaults on the loan later. In that case the SBA-approved lender can charge costs for securing and liquidating collateral.
The ARC small business loans also do not charge interest. Actually, the SBA pays the interest for the borrowers. Disbursement of the loan can take as much as six months but payment of the principal is also deferred for the next 12 months. After that, the borrower has five years to repay the loan principal.
Each small business can only avail of one ARC loan. SBA-approved lenders will offer the loans until September 30, 2010 or until available funds run out, whichever comes first.
There are, however, an estimated 30 million small businesses in the United States and only 10,000 of them can avail of the government’s small business loans. What if you do not happen to be among the 10,000 lucky recipients? How will your small business survive?
There are even doubts being raised on whether as much as 10,000 businesses can indeed avail of the ARC loans. There are fears that there may not be enough lenders willing or able to participate in the program. Lenders will have to advance the full amount of the loan, will not receive payment on principal for a full year, and will not be able to charge any fees, thereby absorbing all administrative costs. This may be too steep for many lenders. They may not be able to afford to participate at all.
This is where you as a small business owner can and should maximize your credit card services. We are not talking about your personal credit card services here. Instead, we are referring to the merchant services that enable your small business to receive credit card and debit card payments. Surely, any business these days avails of these types of credit card services. After all, more people pay by credit card or debit card rather than cash.
Most credit card services offer small business cash advances that can be as substantial as small business loans. These small business loans do not require any collateral because they are secured by your company’s future credit card receivables. This is even more convenient for your business because repayment is also built into those receivables. Credit card services automatically deduct a percentage from your income to go toward loan repayment. For as long as you have incoming sales, you can support your loan. Interest rates are often quite affordable considering how the loan can help your business.
Small businesses should therefore look into maximizing these credit card services for small business loans. The survival of your business could hinge on this.