Small Business Blogs

Choosing a Checking and Savings Account for Your Business

A checking and savings account are necessities for all small business owners. Choosing accounts that are right for your business can take some time and careful consideration. Business accounts should provide flexibility and be free of unnecessary fees. It will be essential to shop around for the account that best fits your business requirements.

First, make a list of your business banking needs. Then ask around for referrals from other businesses in the area and determine some banks with good reputations to compare. In today’s age you can get details on the web in most instances, but it is not a bad idea to meet personally with bank personal to determine compatibility and customer service.

When shopping around for a checking account, price comparison will be key. Bank fees can add up and cut into your profits, so it is certainly a concern. Account fees are the first item to look for. Many banks charge start up and monthly account fees, while others will waive them. It is ideal to find a bank that does not charge account fees or charges very low ones.

Transaction fees are the next item to look at. Many banks charge a fee per each transaction on your checking account while others offer so many free transactions per month, and then start charging. The more free transactions allowed per month, the better. Even though these fees may seem small they do add up.

Other services that might carry fees but most often do not are on line banking services and bill pay. Make sure that you choose a bank that does not charge for these.

Minimum balances are often a requirement for business checking accounts. If your balance falls below the minimum amount, fees are tacked on. If your business is just starting out or your cash flow is unpredictable, make sure you steer clear of these accounts.

In most cases you will want to use the same bank for your savings account needs. In choosing a savings account, interest earned should be a top consideration. Most banks will offer a variety of savings options. Many times it is wise for new businesses to start off with a basic type savings account that does not require a minimum balance. While the interest earned will be small, it is paid on the entire balance. The money is also easily accessible should you need it.

Other, better options for the more seasoned businesses include money market accounts or Certificates of Deposit (CD’s). Money market accounts allow for more competitive interest rates, but usually require a high balance. CD’s have a guaranteed interest rate and are short term investments for times of 7 days up to 5 years. Money cannot be touched during the agreed upon time without paying a hefty penalty.

Finally, when shopping around take into consideration bank accessibility. If you only do business in the local area a local bank may be a perfect fit. If however, you do business on a wider scale you will want to make sure that there are branches in those areas.

This is a guest post from DepositAccounts.com.  Deposit Accounts offer tools for comparing bank accounts as well as current rates for business checking accounts.

0 comments - Posted by Robert Wagner at 12:17 PM - Categories:

Gulf Oil Spill and Small Business

As we all know there is a terrible thing happening in the Gulf of Mexico as we speak.  More then 500,000 barrels of oil have been dumped into our ocean killing almost everything it touches.  From animal life, to plant life, and even human life.  What kind of affect does this have on the small businesses surrounding the Gulf of Mexico and this oil disaster?  I have seen a number of MSNBC episodes where they are talking about the increase in the price of sea food, the decrease in tourism which means less revenue for the local businesses, and the devastating affect it may have for home owners in the area. 

With many businesses, they rely on a huge seasonal jump for their yearly revenue.  This being a small shop that rents skies in the mountains or a restaurant that serves tourist on a sunny beach
in the summer time.  The Gulf of Mexico if you have never been there is a beautiful place.  The water is clear, the waves are big and beautiful and the attractions are to die for.  With the current oil issues, the local small businesses owners are having a very tough time.  The 4th of July is usually a great revenue generator for the local small businesses and according to MSNBC, this year was silent as the grave.  Tourist numbers are down, not a lot of people came out to the beaches for the holiday, and goods just aren't being sold. You can get information about factoring invoice, unsecured business loan, and small business loans

Not only does this affect the local small business in the Gulf area but hundreds of small businesses around the country.  I spoke to my local butcher down at my community grocery store and he said it is getting quite tough to get shrimp and muscles.  He said its tough because thats a huge seller for him.  What about the distributors that distribute all the sea food the gulf produces?  What about the truckers that distribute the sea food?  What about the fishermen that catch the sea food?  What about the businesses that rely on sea food as apart of their business model?  The chain reaction is huge and goes or miles.  

BP has come out and said that they are going to offer financial relief to these small businesses for the damage BP has caused.  This financial relief will not be in unsecured business loan but something along the lines of a grant or a gift to the small businesses.  I don't know about you but I will believe it when I see it.  You would think that these small business owners are relieved to have financial assistance from BP and they are however, most small business owners don't go into business for the money.  They go into business because they have a passion.  Without customers, the local small businesses in the Gulf area are struggling because they cant do what they love, which is to do business.

The Small Business Administration (SBA) has programs designed to help small business owners in time of financial need to access business credit.  The SBA is aware of the situation in the Gulf and is doing all in their power to assist these small businesses where BP might fall short.  If you are looking for disaster financial assistance you can reach out to your local SBA office for SBA loans.

What is your opinion on what is happening in the Gulf?  Is BP to blame?  Is your business feeling any hardship from this issue?

0 comments - Posted by Robert Wagner at 3:32 PM - Categories: Trey Markel's Blog

My Experience from the College Life to a Start-Up

From USC’s Marshall School of Business to #2 at T3 Media Marketing - My Experience from the College Life to a Start-Up.

Author:  Eric Henningson

College was fun. Work is work. However, work is what you make it.  I dabbled in Entrepreneurship in college, creating a social networking and Craigslist inspired website for USC Students after I saw a void in that area online.  After a summer of talking back and forth to my website manager in India, my site launched and I was pretty excited.  However, Facebook came out with their own version of Craigslist a week prior to my website launch, and unfortunately a week after that, USC came out with "My USC" which pretty much did everything my site did, but better.  To make a long story short, I learned a heck of a lot creating a business and even more about myself in the process. 

To sum it up, I majored in Entrepreneurship and Marketing, graduated about a month ago in May 2010, and now I am the Director of Marketing at T3 Media Marketing.  Going from college to the working world was a huge, if not the biggest in my life, transition.  After working for a pharmaceutical company, an insurance giant, and for myself, I quickly discovered that being in a start-up company is exactly where my interests and talents intersect. Where else can you set your own hours, do what you enjoy, and make whatever money you deserve?  In essence, you really are what you make of yourself.  Money & success will come if you put two things together: knowledge of the industry/niche you are going after, and the desire to get things done.

Teaming up with the owner of T3 Media has enabled us to do just that.  After seeing a fundamental flaw in the small business sector online, Trey Markel mapped out his own destiny by creating T3 industries with a passion to help small businesses achieve their goals through a single website.  Instead of small business Entrepreneurs having to go to all types of websites and businesses to meet all of their business needs, especially business financing, Trey’s vision is a one-stop Internet shop that would give small businesses all the tools they need to grow and survive. The initial phases toward this goal have been started and I have been given the responsibility to carry out a vision that is shared between the two of us: keeping small business Entrepreneurs like us happy and determined to carry out their dreams through an easy to access online portal.  Our dream is to turn this fictional place into a reality, and we are eager to make this happen.  We believe that if we build it, they will come… You can get information about factoring invoice, unsecured business loan, and small business loans

0 comments - Posted by Robert Wagner at 1:31 PM - Categories: Trey Markel's Blog

How to Network as a Business

Networking is one of the most important aspects of an online business, especially with the easy platform of Linked In. This is a website that allows you to make connections as a business professional, and it can be effortlessly used to promote your business on the Internet.You can get information about factoring invoice, unsecured business loan, and small business loans

 However, all networking needs to be genuine and effective, so here are some of the best tips to get you started:

Join groups. There are many different groups on websites like Linked In and other locations online, so become a part of a group that you are passionate about. This will help you to meet like-minded professionals that you can make business connections with, so joining a group will be much more effective than you may think.

Ask open-ended questions. If you are hoping to network online, there is nothing worse than self-promotion. You absolutely must ask open-ended questions to people you interact with to create legitimate and solid business relationships.

Become a resource. If people see you as an authority or expert in your field, they will continue to come to you for information. You don't necessarily need to have several degrees to be an expert, but you do need to be thorough, passionate, and knowledgeable about your business niche.

Express what you are looking for. Instead of beating around the bush, make sure that you approach any business relationship or connection with a sense of direction. Let people know how they can help you and how you hope to help them, which will avoid any ambiguity or misunderstandings.

Follow through. Within networking online, you will probably be given an extensive list of connections or referrals. However, there is nothing worse than being wishy-washy and not following through, so make good on your word in getting back to or setting up a meeting with a business contact.

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0 comments - Posted by Robert Wagner at 9:36 AM - Categories: Business Financing Options

7 Steps to Starting a Business from Home

By Rieva Lesonsky

Are you considering starting a business from home? Technology has made it easier than ever to work from home, and the concept is also more acceptable than it’s ever been. But before you decide to set up shop in your spare bedroom, take these 7 steps.

1. Keep it legal. Fewer communities restrict home-based business these days, but you still need to check with your local zoning board to make sure your address is zoned for business operation. If your business will involve frequent deliveries or pickups, clients visiting your home or employees or contractors visiting (which could cause parking issues) you could run afoul of the neighbors.
2. Play it safe. Just because you’re working from home doesn’t mean you’re exempt from the normal protections of business. You should still talk to an insurance agent about business insurance as well as property and casualty insurance, especially if clients will be coming to your home.
3. Choose your space wisely. Ideally, you want to work in a separate room with a door you can shut. That could be a spare bedroom, converted garage, basement or even a separate structure in your back yard. If you don’t have that much space, look into ways to create a dedicated area for your business. Even if it’s just a corner of the dining room, having a space that’s your own will make you more productive.
4. Equip yourself for success. Tech tools are crucial to the professionalism of your home-based startup, so don’t penny-pinch. You’ll want a computer dedicated solely to your business, and most likely a second phone line as well. Other productivity tools include a multifunction scanner/printer/fax machine and a good phone headset. If you’ll be on the road a lot or meeting clients at their locations, investing in a smart phone, laptop or netbook can help keep you productive out of the (home) office.
5. Set boundaries. You need to set ground rules with your family, friends and neighbors before you launch your business. Discuss your and their expectations. While many home-based entrepreneurs relish the flexibility of working from home, you should clarify your daily schedule with your family so they know when you can (and can’t) be interrupted.
6. Take care of the kids. It’s unrealistic to think you can work on your business while watching children. If you have small children who aren’t in school, you will need to arrange child care for at least part of the day. Some home-based entrepreneurs split the cost of a nanny or set up child-care co-ops where each person watches all the group’s children one day a week.
7. Know your limitations. Some people just aren’t cut out to work at home—they find the lure of the TV, fridge and YouTube too tempting to resist. Before you start your business at home, be honest with yourself about your motivation, temperament and focus level. If you don’t have what it takes to work from home, don’t set yourself up for failure. You can get information about factoring invoice, unsecured business loan, and small business loans

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva or visit SmallBizDaily.com to read more of her insights on small business.

0 comments - Posted by Robert Wagner at 8:30 AM - Categories: Rieva Lesonsky's Blog

What You Need to Know to Get a Loan From a Community Bank

By Rieva Lesonsky

I’ve been writing about small business and talking to small-business owners for nearly 30 years. During that time, community banks have always been a resource for entrepreneurs to get credit and business loans. One of the advantages of community banks was always their personal treatment. It’s easy for an entrepreneur to develop a relationship with a banker at a smaller bank—and it’s also a smart move.

But a few years back, when business financing was easier to come by, many small-business owners fell out of the habit of keeping their business bankers informed about what’s going on with their businesses. With a wide variety of places to turn to for business capital, entrepreneurs didn’t have to rely so heavily on community banks.

It looks like the tide is turning. Obviously, access to capital has been tough to obtain for the past few years, and entrepreneurs once again have been turning to community banks. The Independent Community Bankers of America, an organization of several thousand community banks, reported in March 2009 that its members were acquiring more new customers than before the credit crisis.

In recent months, however, more community banks have failed—largely those that got involved in troubled commercial real estate mortgages. As a result, community banks are facing tougher scrutiny from federal regulators, and in turn are looking more closely at their small-business loan customers, the Wall Street Journal recently reported.

For entrepreneurs seeking business financing, these changes mean it’s back to the old days for community banking. Here are some things you’ll need to know when seeking a loan from a community bank:

Be prepared. Community banks will want a lot of information about your business before they’ll give you a loan. Be prepared to provide everything they ask.

Be open. Bankers need to investigate your business thoroughly to prove the loan is not a bad risk. You’ll need to be willing to grant full access, whether to your financial records or tours of your business facility.

Be communicative. Even after you obtain financing, bankers will expect you to stay in constant contact with them. One entrepreneur cited in the Journal article supplies his bank with monthly financial reports. 

Be honest. Most entrepreneurs are happy to share good news with their bank, but keep bad news to themselves. That’s exactly the wrong approach today. If a key customer is slow to pay, or some aspect of your sales is hurting, be honest with the banker about the problems so the two of you can work together to find solutions.

Rieva Lesonsky is CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva or visit SmallBizDaily.com to read more of her insights on small business.

0 comments - Posted by Robert Wagner at 12:50 PM - Categories: Rieva Lesonsky's Blog

40-60 Year Mortgages. Risks And Benefits for Small Business Finance

 40-60 Year Mortgages. Risks And Benefits

Benefits Of 40-60 Year Mortgages

Added Flexibility. Even if your mortgage starts out at 40 years you can easily reduce that time by making extra payments. As the debt gets smaller you could refinance back to a 15 year loan later on.

Risks Of 40-60 Year Mortgages

What It All Means

This article was written by William Eve who is a regular personal finance writer for Home Loan Finder, a 100% free mortgage comparison and application service. Whether looking for an investment loan or first home loan, visit the Home Loan Finder website for more information and guides on competitive mortgage products.

0 comments - Posted by Robert Wagner at 2:47 PM - Categories: