2020 new year small business plan

A Small Business New Year Checklist to Help You Ring in the 2020s

/in , , /by

After crunching for year-end deadlines, the arrival of a new year–and decade–gives you a chance to take a breath, reevaluate your business and get back on track. Depending on the seasonality of your products, January may be a good time to make changes and begin long-term projects to help your company run better. Here’s a list of items to consider adding to your Small Business New Year Checklist for 2020 and beyond.

Formal Goal Setting

This may be the year to start setting clear business goals if you haven’t done so in the past. What do you want to get out of your company? What are some areas of potential improvement? Are you happy with the amount of business you bring in, or would you like to try new strategies to increase growth? Setting formal goals with a supporting action plan can help you propel your business forward.

Implementing Process Changes

If something is simply not working and causing you unnecessary stress, the start of the new year is a good time to revamp a broken process. Does your equipment need to be upgraded? Have you outgrown your manual record-keeping system? Would you benefit from technology that streamlines financial recordkeeping?

Develop a Budget

Goal setting and strategizing are big picture tasks. Experienced owners also recognize the importance of setting a detailed budget to keep spending in check. At the very least, start tracking your business spending. Open a separate bank account or credit card to help determine where the company’s money goes. Look for opportunities to improve profitability by lowering expenses.

Review Insurance Coverage

Has your business changed significantly in the last year? You should review insurance policies annually and add new items to coverages to reduce loss risk.

Tax Preparation

The beginning of the year is also tax prep season. Resolve to start the process early and know when your deadlines are. You may also want to research small business tax credits that you may qualify for.

Tax Planning

As you prepare tax forms for last year, keep an eye out for opportunities to save in the future. If tax laws change, research the ways they may affect your company. Consult with a tax expert, if warranted.

Facilitate Growth

You may need to invest in your business and prepare to handle more customers and higher sales volumes to increase growth. A new truck, expanding to another storefront, or hiring more employees will increase your expenses in the short-term, but also help to facilitate expansion. To help manage cash flow during growth periods, look into business financing options.

Start the new decade off right by using this small business new year checklist: set clear goals supported by tangible actions steps. Develop a budget and keep an eye on cash flow to determine how you’ll manage your company through the coming weeks and months. The new year is a chance to start over and improve your business aspirations. It is the perfect time to make improvements and upgrades to your company.

[skyword_tracking /]

small business trends 2020 to look out for

7 Small Business Trends 2020 May Bring

/in /by

A New Year can bring new opportunities as well as new trends. As a small business owner, making the most of the small business trends in 2020 can help you to avoid potential pitfalls. From technology to customer demands, the marketplace is changing and it’s important to change with it.

Here are seven 2020 small business trends to prepare for to have your best year yet.

1. Increased Personalization

We all want to feel valued. And for your customers, that means personalized service. In fact, 80 percent of consumers are more likely to make a purchase when personalization is part of a service.

Technology can help you personalize customer experience on your website. More e-commerce sites tailor web-page displays to match a customer’s browsing or purchasing history. For example, when you visit Amazon you’ll find the home page populated with products similar to those you’ve purchased or viewed. Businesses that personalize messaging to customers can see a 16 percent increase in outcomes.

In addition to using personalizing tools for your web presence, you can personalize your customers’ experiences by implementing loyalty programs that reward them for their purchases. Make sure to train your employees to use the information they collect to enhance interactions. You can also personalize your email campaigns by using the subscriber’s name to send special gifts or discounts on their birthday or anniversary.

2. Customer Reviews

Social media allows customers to voice their opinion. As a result, customer reviews are becoming more important to other shoppers. In addition to product features, consumers want to know about other shoppers’ experiences. Offering a way for customers to leave feedback is increasingly important. Ninety percent of consumers read reviews before visiting a business. And 92 percent of people may not complete their purchase if there aren’t any reviews available.

The great news is: Adding reviews to your website is often as easy as selecting the option with your website provider. You should also encourage reviews by creating Yelp and Google business accounts. Regularly ask customers to leave a review. And if you do get a negative or even neutral review, respond professionally and try to remedy the situation. A study by Harvard Business Review found that when small businesses respond to reviews–both good and bad–their ratings increased.

3. Voice Searches

Whether it’s through a smart phone or smart speaker, smart assistants like Alexa and Siri are becoming increasingly popular. They’re changing how consumers search for products. Gartner predicts that almost a third of web browsing will be voice activated by 2020.

To show up in searches, small business owners must reconsider the phrases and product descriptions they use on websites. Instead of focusing on keyword optimization, you’ll now have to consider voice optimization. This is because your customers won’t search in keywords, they’ll use complete sentences.

When creating product descriptions and tags, imagine the questions a customer would ask to find you. Unlike text searches that are often short and sweet, voice queries are longer and action oriented. For example, a customer may enter keywords into a computer such as “Tailor in New York.” But, they may ask a voice assistant, “Where can I get pants hemmed in New York?” Make sure to optimize your keywords to reflect how people talk.

4. Social Media Stories

Stories—short temporary video content—were first introduced by Snapchat. However, now you can find them on Facebook and Instagram, too. It’s a new way for businesses to connect with customers in a casual–but authentic–way. If you haven’t gotten on this trend now, make plans to try it in 2020. Social media stories are growing 15 times faster than the news feed.

Live streaming is another way to connect with customers in real time. The key is to get creative and get the attention of the social media users, especially as more businesses start using them. Because they’re nimble, small businesses have an advantage.

5. Demand for Sustainability

More people are concerned with reducing their ecological footprint. They’re demanding that the companies they patronize help them in their efforts. More companies are looking for ways to reduce waste, choose sustainable materials and limit energy consumption.

Going green must be done with authenticity. A recent study found that consumers are paying attention to how companies position themselves. They’re looking for transparency. If a customer feels their values align with your brand’s, they’re more apt to engage with the company. But if the values don’t align, 42 percent will walk away. 21 percent won’t give the company a second chance.

If sustainability is one of your underlying missions, share it with customers. Also, educate your staff so they can answer questions about your standards in their communication with customers.

6. Flexible Work Arrangements

In addition to customer experience small business trends in 2020, employees are asking for flexible work arrangements. More than half of employees want more control over their personal and professional lives. If you and your business can afford to have your team work remotely, consider offering more opportunities. Technology helps employees check in via project management and instant messaging platforms–video conferencing, too.

Gig work is also growing, with 36 percent of workers in the United States going freelance, according to Gallup. It offers workers ultimate flexibility. Also, it gives small businesses a way to reduce their talent budget. Consider using gig workers for your small business with seasonal opportunities or occasional jobs.

7. Focus on Purpose

Finally, while a paycheck is important, employees also want to find meaning. This comes from understanding how their job makes a difference in the lives of customers as well as the world. Employees can also find meaning when they are able to volunteer on company time as part of a team.

By creating an engaging, educational and exciting company culture, you’ll positively impact the success of your small business. Employees who find meaning at work express higher levels of job satisfaction. This is linked to greater productivity and higher retention rates.

Looking Ahead to Small Business Trends in 2020

The marketplace is always changing. The New Year is the perfect time for small businesses to pause and take steps to take to improve their companies. By understanding potential and current trends, you can make the best decisions moving ahead. If you can make the most of upcoming opportunities, you can set yourself up for success in the coming years.

[skyword_tracking /]

December best books for small businesses

Best Books for Small Business Owners – Multipliers

/in , /by

While it’s essential to business and careers success, continuous learning is easier said than done, especially for small business owners who wear many hats. That’s why we’ve created the Monthly Must-Reads series with our selection of best books for small business owners. We not only share the best books for small business owners, but also aim to save you time by helping you quickly determine whether each business book is worth your valuable time.

Keep up with current innovation, management and workforce trends by reading the right business books for your situation. With each featured book, we share the main focus, key take-aways, and even reader reviews. For December’s best books for small business owners, we’re sharing Multipliers by Liz Wiseman. For a list of past Monthly Must-Reads, like October’s Influence: The Psychology of Persuasion, check out the bottom of this article.

Business Book:

Multipliers, by Liz Wiseman

Focus:

It helps you understand how to bring out the best possible performance in your employees.

Main Idea:

There are two types of leaders: Diminishers and Multipliers. Multipliers inspire their employees to willingly reach for and achieve outcomes that they may never have thought possible.

Great for Small Business Owners Who:

Want to get exciting results from lean teams with few resources.

Synopsis:

Wiseman presents real-life anecdotes that illustrate two distinct leadership styles by analyzing data from more than 150 leaders: Diminishers and Multipliers. She then identifies each one’s habits of thought. She explains that Multipliers enjoy a higher rate of success and more impressive results by making everyone around them more productive, engaged and creative.

Wiseman empowers her readers to learn how to lead like Multipliers by contrasting Multipliers and Diminishers in the following ways:

  • Talent Magnets vs. Empire Builders
  • Liberators vs. Tyrants
  • Challengers vs. Know-It-Alls
  • Debate Makers vs. Decision Makers
  • Investors vs. Micromanagers

After digesting this guidance toward becoming a Multiplier, readers are invited to take a self-assessment via Wiseman’s website to identify where they lie on the scale from Diminisher to Multiplier.

Key Take-Aways:

  • Multipliers create more intelligence around them while diminishers’ leadership habits often stifle their team’s creativity and problem-solving skills.
  • Multipliers:
    • Attract talented people because they become known for empowering team members and using them at their highest potential
    • Foster safe places for people to share, collaborate and unlock their best ideas
    • Outline challenging opportunities that inspire their people to stretch themselves
    • After you hear all points of view, make decisions based on stimulating, healthy debates.
    • Invest in their people, empowering them to take ownership of their roles and outcomes

Reviewers Say:

“Seeing as I’ve read [Multipliers] three times, I can’t believe I haven’t written a review yet. No exaggeration, this book can be a life-changer both at work and in your personal life. I admit that the first time I read it I thought, ‘Ok, this is so clear as to be obvious; I’ve seen these types of people for years at work.’ But, so what? I never thought it through, and Liz [Wiseman] has done the research, so my anecdotal evidence is supplanted by the real thing. Chapter by chapter, the concepts were illuminated with great examples and stories. This is no flavor of the month. These are concepts that can be used easily at work. And if applied, they work. I can attest to that.”

“We’ve all heard—and said—that less is more. Sometimes it’s true. But in most cases it’s still the reality that more is more, and is usually the preferred ROI of resources, whether those resources are of time, money, manpower, brain-trust, whatever. Best of all is getting more from less, and that is what Liz Wiseman’s fine book teaches us to do. Using a wide-range of varying case studies and examples from the world over, Wiseman itemizes the symptoms of a variety of leadership illnesses that sicken a corporate culture and disable its employees. You may well find yourself hiding in these pages somewhere; I know I did. Fortunately, after helping us see where we are minimizing rather than maximizing the human resources at our disposal, Wiseman clearly articulates the prescription(s) to fix the problem(s). It has the added advantage of being an engaging, thoughtful and well-written treatment.”

Monthly Must-Read Business Books:

August – Blitzscaling

September – The E-Myth Revisited

October – Influence: This Psychology of Persuasion

November – Built to Last

[skyword_tracking /]

New Year Business Plan 2020

2020 Economy: Make Sure Your Business is Ready

/in /by

Thinking about creating a new year business plan for 2020? If so, consider spending a little extra time to make three instead. That way, you can operate your business with the ability to accelerate and slow down to reach your destination as soon as possible, while avoiding an accident. That’s why three plans are better than one.

No need to worry, though. It won’t take three times as long as writing a single new year business plan. The second and third plans are simple modifications of your basic “medium speed” plan. The foundational plan is based on your best guess of what you can expect business conditions to be in the coming year. You can downshift or upshift to the other two plans a few months into 2020 if things are turning out not as well as you had expected, or, ideally, even better.

What Are Your Sales Drivers?

If you usually create a business plan by extrapolating current year revenue and expense trends and put them into the next year’s budget, it’s time to sharpen your pencil. What are the main drivers of your sales?

First, you’ll need to think about how your business is affected by various factors. Identify the most important ones. Then, try to estimate the impact each has on your business performance.

Depending upon the kind of business you’re in, you’re likely to find that some of the following “macro” factors impact your annual revenue results:

  • The overall strength of the local and / or national economy
  • The population growth rate in your community, particularly any influx of the kind of new residents who are your best sales prospects
  • Consumer and commercial interest rates
  • Labor market conditions impacting your ability to find and keep good employees on board affordably

Add to that set of revenue forecast variables any factors unique to your business, including:

  • The planned introduction of new products and services, or discontinuation of any current ones
  • The anticipated impact of any new sales and marketing strategy, including planned opening of new business locations
  • Projected efficiency gains, whether through new technology, processes or staff training, enabling an increase in your output of products or services at competitive prices

Setting An Expense Budget

The other side of the budgeting part of creating a new year business plan is expenses. Those are usually easier to predict than revenue. Most expense categories correlate to your current fixed expenses, such as rent and equipment lease payments, or are variable expenses (e.g. raw materials) driven by your revenue projections.

There’s more to a business plan than a budget, of course. But, you can’t have one without the other. It helps to start thinking of ways to grow or strengthen your business. After, give those ideas a reality check through the budgeting process.

There’s another audience to keep in mind: potential lenders and investors. Finding a supportive lender might be essential to fulfilling your base level plan.

While lenders rely heavily on your financial track record, balance sheet and possible business collateral or personal asset pledges when evaluating a loan proposal, they also want to know how you intend to use the loan proceeds. In general, the more effort you have put into the plan, the better your chances of getting the loan approved. Or the lower the interest rate you would otherwise be charged.

Creating a business roadmap for the coming year that’s compatible with the three-plan strategy involves giving careful thought to the timing-specific planned expenditures. You need to think carefully about the relationship between the revenue and related expense categories on a timeline basis.

This is where the three-speed triple business planning strategy comes into the picture. Think of it as advance planning for alternative business scenarios, relying on revenue benchmarks along the way.

[skyword_tracking /]

understanding the sba microloan

Understanding the SBA Microloan

/in /by

The SBA Microloan program can provide small business owners with small-scale, low-interest loans with very good repayment terms to either launch or expand a business. Here is what prospective borrowers need to know.

What Is a Microloan?

The SBA Microloan program offers loans up to $50,000. They help women, low income, veteran and minority entrepreneurs, certain not-for-profit childcare centers and other small businesses startup and expand. The average microloan is approximately $13,000, according to the U.S. Small Business Administration (SBA).

Microloan lending is different from other SBA loan products from traditional financial channels. The SBA microloan program provides funds through nonprofit community-based organizations. These nonprofit organizations act as intermediaries and have knowledge in lending, management and technical assistance. They are also responsible for administering the microloan program for eligible borrowers.

Uses for Microloans

Microloans are applicable for working capital purposes or for purchasing supplies, inventory, furniture, fixtures, machinery and equipment. Ineligible uses include real estate, leasehold improvements and anything not listed as eligible by the SBA.

Microloans are a great option for businesses with smaller capital requirements. If you need additional financial assistance with purchasing real estate or help with refinancing debt, other SBA Loan Programs are available, such as the 7(a) loan or 504 loan.

Microloan Stipulations

According to SBA, microloans have certain stipulations. For instance, any borrower receiving more than $20,000 must pass a credit elsewhere test. The analysis from the credit elsewhere test determines whether the borrower is able to obtain some or all of the requested loan funds from alternative sources without causing undue hardship. No business or single borrower may owe more than $50,000 at any one time. Furthermore, proceeds cannot contribute to real estate purchases or pay for existing debts.

Microloan Qualification Requirements

Each microloan intermediary has their own credit and lending requirements. In general, intermediaries require some type of collateral in addition to the personal guarantee of the business owner.

Eligible microloan businesses must certify before closing their loan from the intermediary that their business is a legal, for-profit business. Not-for-profit child care centers are the exception and are eligible to receive SBA microloans. Qualified businesses are in the intermediary’s set area of operations and meet SBA small business size standards. Another requirement is that neither the business nor the owner are prohibited from receiving funds from any Federal department or agency. Furthermore, no owner of more than 50 percent of the business is more than 60 days delinquent in child support payments, according to SBA.

Prospective microborrowers must also complete SBA Form 1624.

Microloan Repayment Terms, Interest Rates and Fees

Microloan loan repayment terms, interest rates and fees will vary depending on your loan amount, planned use of funds, the intermediary lender’s requirements and your needs.

The maximum repayment term allowed for an SBA microloan is six years or 72 months. Loans are fixed-term, fixed-rate with scheduled payments. Interest rates will depend on the intermediary lender and costs to the intermediary from the U.S. Treasury. The maximum interest rates permitted are based on the intermediary’s cost of funds. Normally, these rates will be between 8 and 13 percent.

Microloans aren’t structured as a line of credit nor have a balloon payment. Microloans are malleable if the loan term does not exceed 72 months, but not exclusively for the purpose of delaying off a charge. They allow refinancing. However, any microloan that is more than 120 days delinquent, or in default, must be charged off, according to SBA.

There are certain microloan fees and charges. You might have to pay out-of-pocket for the direct cost for closing your loan. Examples of these costs include Uniform Commercial Code (UCC) filing fees and credit report costs. You may also have to pay an annual contribution of up to $100. This contribution isn’t a fee and can’t be part of the loan. Late fees on microloans are generally not more than 5 percent of the payment due.

How to Apply for a Microloan

To begin the application process, you will need to find an SBA approved intermediary in your area. Approved intermediaries make all credit decisions on SBA microloans. Prospective applicants can also use the SBA’s Lender Match referral tool to connect them with participating SBA-approved lenders. Document requirements and processing times will vary by lender.

You may need to participate in training or planning requirements before the SBA considers your loan. This business training helps individuals launch or expand their business.

For more information, you can contact your local SBA District Office or get in touch with a financing specialist at Kapitus.

[skyword_tracking /]

celebrating kwanzaa

Businesses Celebrating Kwanzaa: A unique way one builder celebrates

/in /by

Akumba Bynum-Roberson “was brought up on the seven principles of Kwanzaa. [His] parents taught all of them to [him] early and it’s been a part of [his] life,” Akumba shares. Because he integrated these principles into his life, of course his firm, AK Builders Group, LLC, is one of the businesses celebrating Kwanzaa. Kwanzaa is a week-long tribute to the African cultural heritage of African Americans that has a strong focus on community.

AK Builders Group began in 2015 and is a full service construction firm with a custom carpentry specialty, which Akumba co-owns with his wife. Akumba has been in the construction industry for 20 years, however. He previously owned a construction and landscaping services firm. When he left, he transferred his landscaping customers to a fellow Morehouse alumnus who operated a landscaping firm. Akumba says he developed a partnership with the alumnus and subsequently made the transfer “in the spirit of cooperative economics (Ujamaa)”, which encourages building and supporting businesses together.

Kujichagulia – Self-Determination

Bynum-Roberson’s parents stressed the importance of kujichagulia, a Kwanzaa principle. Specifically, they emphasized the need to “define ourselves, name ourselves and speak for ourselves instead of being defined, named and spoken for by others,” he recalls. This focus on determinism and empowerment almost certainly contributed to him becoming a small business owner.

Umoja – Unity: Kwanzaa Kick-off

To celebrate Kwanzaa with the community, last year Bynum-Roberson and his business partner held their inaugural Kwanzaa Kick-Off event on the first day of Kwanzaa, umoja. The event not only captured the umoja spirit, it also focused on health and wellness, something near and dear to Bynum-Roberson. As a vegetarian his entire life, he truly embraces the health benefits of a plant-based diet. It appears to be working. He’s married with two small children, a thriving construction company and a burgeoning event business. And still, he radiates energy.

Last year’s event was in a yoga studio in Atlanta’s historic district, West End. He says, “It was beautiful to be able to have it in that space” in such a meaningful area. What also made it memorable was that, as children, he, the studio’s manager and his business partner were all in the first children’s African drum and dance ensemble in Atlanta. The event included food, giveaways, vendors, a raffle and live music. It was a reunion of sorts that brought back wonderful memories.

2nd Annual Event

In addition to overall event success and product sales, Bynum-Roberson generated a number of construction service leads that later converted to revenue. This year’s event will build on that success. Since they turned people away last year, this year they will host the event at a larger venue. However, Bynum-Roberson is keeping it close. The event will be held on umoja–December 26. It will be at his business partner’s new restaurant, Life Bistro, in southwest Atlanta. It will feature the same festivities and healthy fare, but with more room.

Kuumba – Creativity

Bynum-Roberson constantly uses another Kwanzaa principle, kuumba (creativity). At the event, he sells his handcrafted birch, butcher block cutting boards and handcrafted step pyramid candle holder sets. He channels his creativity at his firm by crafting customized barn doors and butcher block countertops. Furthermore, he says he uses his creative “skills and abilities to… bring a better outcome.”

Event Expansion

Bynum-Roberson says that he and his event business partner started small with a Spelman-Morehouse homecoming event. It generated profits. From that, they worked out the kinks to create “a formula to put together an event, to bring the community together, and encourage local entrepreneurs.” They used that formula to create the Kwanzaa kick-off event. With that second success, they opted to expand. They now also host a summer event–a plant-based cookout–over the July 4th weekend.

Akumba Bynum-Roberson's firm, AK Builders Group

For Bynum-Roberson, it feels good to do good in the community and make money at the same time. As a small business owner, he supports and strengthens his community. One of Bynum-Roberson’s biggest inspirations is Marcus Garvey. Garvey was “a business owner, an organizer and a nation builder”, he says. With sincerity he states: “[I]f we can build ourselves in a fortified way, we can have strong families. If we can have strong families, we can have strong communities. If we can have strong communities, we can have a strong nation.”

Of the people and businesses celebrating Kwanzaa, Bynum-Roberson is one of the most passionate. For him, the principles of Kwanzaa have and will continue to serve him well.

[skyword_tracking /]

celebrating festivus

Festivus Brews: How the Beer Industry is Embracing this Non-Holiday

/in /by

The holiday season is diverse with traditions from many religions and cultures. One somewhat new tradition, Festivus, isn’t really a holiday, at all. It’s gaining steam in the beer community, though. From special recipes to all-out parties, the beer industry adapted Festivus into their marketing plans in unique ways.

What is Festivus?

December 23rd marks the annual secular celebration, Festivus. It was created as a way to push back against all of the commercialism that other holidays bring. While not widely known until a 1997 Seinfeld episode brought it into the popular mainstream, Festivus’ simplicity and theme attracts many fans. Must-have’s for the “non-holiday” include an undecorated metal pole instead of a lavish tree and the “airing of grievances.”

The beer industry responds

Part of Festivus’ allure is how it’s presented as a way for everyone to get together and reject commercialism, no matter your background or religion. Beer found its way into the celebration quite easily. Beer fits in at any event, even one marked by a jovial pushing back at the norm. Sitting around drinking the perfect pale ale with friends sounds like perfection. It’s even given many brewers ideas for concocting recipes for the occasion. Several small-batch breweries offer themed drinks in celebration of the holiday. The brewery, Northern Brewer, sells a DIY Festivus Miracle Holiday Ale Extract Beer Recipe Kit, complete with yeast, fizz drops and canned wort (which is optional).

Festivus beers and ales come in bottles, cans, and on-tap. One of the breweries seeing success with their Festivus brew is Market Garden Brewery in Cleveland, Ohio. Sam McNulty, one of the co-founders, reveals how they came up with the seasonal brew.

“When brewmaster Andy Tveekrem was perfecting the recipe, and we tried the beer for the first time, we knew at first sip that this was going to be a winning brew. But how to set it apart from all the other Christmas beers crowding the shelves and draft towers? My business partner, Mike Foran, is a massive Seinfeld fan and came up with the idea of naming it for the ‘rest of us.”

That’s how their Festivus Holiday Ale was born.

More than ale

This holiday can be more than creating the perfect brew. Market Garden Brewery takes the holiday further. They throw a big party on December 23rd, complete with the airing of grievances, feats of strengths, and a Festivus pole. This is an addition to their Festivus-themed beer recipe, which gained overwhelming popularity over the years.

“Each year, we’ve had to add brewing capacity just to keep up with holiday ale sales increases. Every year we brew more than we think we’ll sell, but every year we’ve run out of it too early,” says McNulty.

Tips for others considering a Festivus marketing plan

It’s tempting to latch onto the idea of Festivus as your next big holiday. But, it’s important that small businesses understand its true essence. It’s not really about purchasing anything at all. After Black Friday, Cyber Monday and the lead-up to Christmas sales, most consumers are tired from shopping.

However, Festivus offers a chance for consumers to get away from the noise, kick back, and celebrate all things simple. It’s a break in the chaos before Christmas and New Year’s. For many, it’s a little silly, too. Festivus is for Seinfeld fans, those who don’t celebrate any traditional holidays, or anyone who just needs to complain and enjoy a new kind of ale. It gives people the space to air their grievances and have fun while doing so. In a world where not everything is always merry and bright, Festivus brings that joy for us when we need it most.

[skyword_tracking /]

5 of the best movies about small business

5 Best Movies About Small Business Owners

/in /by

Becoming a small business owner is never easy. Many often look to external sources for inspiration and motivation to continue along their path. Movies about small business always engage, encourage and inspire viewers. Cinematography uniquely captures life and business lessons in an easy-to-digest format, making it a great source of inspiration. For some of the best movies about small business, explore these 5 titles that share important entrepreneurial lessons.

What Women Want (2000)

In this heartfelt romantic comedy, Mel Gibson plays Nick Marshall, an arrogant advertising executive at a small marketing firm in Chicago. Although the plot is unrealistic–a hairdryer accident in a bathtub miraculously enables him to hear women’s inner thoughts–the movie provides an entertaining look at gender differences. It also displays some tangible lessons about the cut-throat marketing world and the importance of understanding your target audience.

Jerry Maguire (1996)

This is the story of sports agent, Jerry Maguire, who leaves a major talent agency after putting his morals before business. Armed only with his industry experience, his former secretary from the agency and a single capricious client, Maguire begins rebuilding his careers. He starts his own independent agency and learns about the hardships that many small business owners face. Overall, he encounters the challenges of running and managing a business while simultaneously fostering close personal relationships.

Joy (2015)

Based on the true story of Joy Mangano, this film depicts a headstrong inventor’s rise to fame at QVC. Joy, played by Jennifer Lawrence, comes from a disadvantaged background. Despite the odds, she pursues her ambitions. Joy faces challenges in financing, production, patent law and negotiations. Family jeopardizes what little success she has achieved to that point. She uses drive and determination to overcome those obstacles and goes on to become one of the biggest success stories in QVC history.

You’ve Got Mail (1998)

This charming story follows Kathleen Kelly (Meg Ryan). She’s the owner and operator of a family-run bookstore called “The Shop Around the Corner.” The store is threatened when retail giant Fox Books opens a superstore down the street. Kathleen ultimately decides to close the store, which her mother first opened. Despite the painful experience, closing a business is necessary to move on to better things.

Chef (2014)

This is a comedy-drama starring Jon Favreau  as chef Carl Casper. Carl is stuck under a controlling restaurant owner, Riva. Although he yearns for more creative dishes, Riva pressures Carl to cook without flavor and creativity. After a scathing review from a restaurant critic, Carl decides to branch out on his own. He starts making innovative dishes in a a traveling food truck. As the movie progresses, we see that freedom of expression and taking risks are essential for creating memorable, unique experiences.

[skyword_tracking /]

Financing for Business Expansion

Financing for Business Expansion

/in /by

How do you find financing for business expansion, when the time is right? No matter how successful a business might be, the decision to proceed with expansion inevitably comes with more spending, not less, and therefore a need to identify funding sources early in the process.

Often, the single best solution is to obtain a small business expansion loan. Traditional lenders (such as a bank) will naturally want to know what you plan to spend the money on, in order to finance your growth plans.

Reasons for financing growth

Typical areas where business leaders focus their expansion efforts include the following:

Opening a new location.

A retail business with a bricks-and-mortar presence may wish to expand to a second or third location. For this and other related goals, it’s important to gauge the anticipated costs.

As Inc. notes, “you’ll need to acquire estimates for leasing space, building out your location, hiring staff and procuring additional inventory.” To make sure the numbers work, conduct a “break-even analysis to determine how long you’ll need to support your new venture before it becomes profitable.”

Hire additional staff.

Your current workforce might not match the needs of expansion. You’ll have to find time, money and other resources to recruit new team members (to pay them, once they’re hired). This is an important area to focus on, so that you and your workforce aren’t stretched too thin by your company’s “growing pains.”

Purchase new equipment.

Technology or other business-related equipment represents another area impacted by expansion. Whether it’s needed to facilitate greater employee productivity, respond to increased fulfillment and delivery demands or other needs, funding for equipment might be a key part of your expansion plans.

Other expansion-related areas include large-scale product upgrades or a new product launch and/or breaking into a new market. All of these objectives require new sources of financing.

Options for financing for business expansion

If attempting to secure a traditional bank loan isn’t your ideal financing strategy, consider these alternative funding options:

Online loans.

These stand-alone cash flow loans are fairly easy to qualify for, because requirements are less strict than for a bank loan. Also, it’s not necessary to secure the loan with future business revenue or other collateral. But stable revenue and a solid business plan are essential factors for approval.

SBA loans.

The Small Business Administration doesn’t actually loan money, but they agree to back a certain percentage of the loan. They guarantee repayment to the lender, which in term facilitates loan approval. Many small businesses opt for this approach.

Purchase order financing.

These short-term loans cover up to 100% of supplier costs, as long as it’s determined a big order is just about to close. After the sale, the lender deducts their fees from the proceeds.

Invoice factoring.

With this approach, you transfer over an unpaid invoice to a financing company (the “factor”), and receive an advance on payment. The factor takes over collecting payment from the clients. After deducting their fee (which can be as low as 1.5% of the invoice amount), you receive the rest of the invoice amount. Under this arrangement, you’re not obliged to wait 30-90 days for payment on your products or services.

Revenue based financing.

This type of loan involves a quick, simplified application process. Lenders approve financing after reviewing historic revenue and use this to forecast future cash flow. You receive a lump sum of cash. The lender collects a specified percentage of future sales, either on a daily or weekly basis.

Crowdfunding.

Financing business expansion through crowdfunding has become more popular in recent years. Online platforms like Kickstarter enable interested micro-investors to put up funding for your expansion plans, with numbers that can significantly boost your chances for successful growth.

Repayment, or debt crowdfunding, follows a similar approach to traditional small business loans. Here, the business owes money back to the individual lenders at a set (agreed-upon) interest rate for these deals.

Angel Investing.

It’s worth exploring ways to secure venture capital financing, or enlisting the services of an angel investor to help grow your business. Some investors seek to play an active role in a business’s next steps. A business owner must relinquish some equity in order to obtain investor funding.

Financing business expansion can be stressful, but knowing you have options can lessen the anxiety involved. Your expansion plans may or may not meet traditional lending requirements, but with the range of lending alternatives available these days, a growing business is likely to find the financing it needs elsewhere.

Copyright 2021 • Kapitus • All Rights Reserved
Signs that business expansion is on the horizon

Signs that Business Expansion is on the Horizon

/in /by

When it comes to business expansion, business owners face a daunting challenge. Is now the right time to expand your enterprise? If not now, when? What type of expansion makes the most sense–new customer acquisition, upgrading or launching a new product line or opening a second retail location? The choices may feel overwhelming at first. But it doesn’t have to be – if you watch for signs that expansion really is the wisest move in the months ahead.

As Forbes notes, while “no single factor can dictate success or failure in business expansion,” intuition plays a key role, “knowing precisely which signs to focus on and follow in planning your business’s growth.” Here are widely acknowledged key factors that indicate successful business expansion could be on the horizon.

High demand

An increased demand for your products or services indicates the need for a new growth strategy. (Of course, by “need,” we mean an ongoing demand from customers, not a one-time or seasonal spike in sales.) A new, more effective marketing strategy could generate such demand. As is often the case, an increased cadre of repeat customers know what you have and want more of it.

Favorable trends

It’s not enough to focus only on what’s happening within your own organization. Successful business owners closely monitor industry-related forecasts and trends in order to gauge potential challenges and opportunities that might lie ahead. In fact, the more often you engage in this market analysis, the more knowledgeable you become at detecting small or significant shifts within the industry that can favorably impact your business.

Keep an eye on the big picture. Watch for signs of slowdown in the national economy or, conversely, indicators that consumption might soon be on the rise. Armed with this information, you can embark on a growth plan based on a solid foundation.

Healthy cash flow

As every business owner knows, cash flow is the lifeblood of any enterprise. While entrepreneurs may struggle at first to master this key element, businesses that enjoy success in the marketplace often find themselves with sufficient funds to explore new avenues of growth.

So while “cash can be consumed by any number of incremental expenses,” notes Inc., when you’re “confident that you can cover additional outlays and can weather any number of storms … then your prospects for growth look awfully good.”

Strong workforce

Business owners continuously grapple with the challenge of recruiting and retaining quality talent. But if you’re fortunate enough to have a strong workforce in place, the moment could be right for expansion.

Take time to identify your current top performers. Look for ways to encourage their development. Maybe add training and development sessions. Through more access to technology and other resources, your employees will become more effective in their jobs.

Clearly communicate your company’s mission and objectives. This way, each of your skilled employees will understand where they fit in the bigger picture.

Hungry for a Challenge

When you first start out, every aspect of the business represents a challenge. The owner of a successful business might feel like they need a new challenge. What was once exciting has become a daily grind. If you “are actually bored, your business has probably reached a plateau and it is time for you to grow it,” says the UPS Store.

As noted, successful business expansion relies upon a number of factors. But if your business is presently doing well–and all indications show that consumer demand will remain consistently high–don’t put off making plans for growth. No business can afford to “run in place.” Opportunities for expansion don’t come along every day, so it’s critical to recognize positive signs and take action as soon as possible. A bright future lies ahead!

[skyword_tracking /]

About Us

Products

Contact Us