Loading

Grow Smart Business



teaserInfographic
Close

Search Articles

Most liked posts



Recent Articles

Popular Tags

accounting and taxes blogging blogs Branding Business Development business travel Capital Access Compliance Customer Service ecommerce Email marketing entrepreneur entrepreneurship Facebook Generational Marketing GrowSmartBiz Conference Grow Smart Business lead generation LinkedIn Marketing michael dougherty mobile marketing networking online marketing Raising Capital Resources retail sales sales process SBSI Search Marketing seo small business small business accounting small business hiring small business loans small business marketing small business resources small business technology Small Business Trends social media Technology Twitter Web Design Workforce

Categories

Posts Tagged ‘Capital Access’

« Older Entries

Web.com Small Business Toolkit: Eileen Fisher Business Grant Program (Grants for Women Entrepreneurs)

April 1st, 2013 ::

Eileen Fisher Business Grant Program

Designer Eileen Fisher started her business with just $350 in her savings account. Now she wants to help other women by inviting women-owned businesses to apply for her ninth annual Business Grant Program for Women Entrepreneurs. The program celebrates top women founders of innovative companies that foster environmental and economic health in their communities. Up to five grants of $12,500 each will be awarded to prospective applicants. Recipients will also attend a two-day conference in New York City, meeting with past beneficiaries and Eileen Fisher teams, in early 2014. Only for-profit businesses or for-profit/nonprofit hybrids (social enterprises) will be considered for this grant. The deadline is May 31, 2013.

Tags: , , , ,
Posted in Capital Access, Entrepreneurs, Raising Capital, Resources, Small Business, small business | No Comments »

Web.com Small Business Toolkit: ProHatch (Crowdfunding)

March 14th, 2013 ::

ProHatch

Interested in crowdfunding to raise capital for your business? Start by educating yourself on this source of startup capital by signing up with ProHatch’s Online Crowdfunding Incubator Program for Small Businesses. The Online Crowdfunding Incubator provides free information and consultation on how to effectively prepare your business to successfully and quickly raise capital through crowdfunding–via social media and other online tools. “Coffee & The Crowd” is an online webinar training program series that gives participants an opportunity to enjoy a free cup of Starbucks coffee, compliments of ProHatch, while being educated on the latest information about crowdfunding and business preparation by both ProHatch and industry experts. Register now; participation takes place this week.

Tags: , , , ,
Posted in Capital Access, Raising Capital, Resources, Small Business, small business | No Comments »

SBA Proposes Changes to 2 Small Business Loan Programs

March 14th, 2013 ::

By Karen Axelton

Are you seeking financing for your small business? Then you may be happy to know that the SBA is proposing changes to two of its popular small business loans that would result in streamlined paperwork and easier access to capital for small businesses.

“Streamlining and simplifying has been a key focus of our agency over the last few years,” said SBA Administrator Karen Mills. “The changes are the latest steps to reduce paperwork burden, with our eye on the larger goal of expanding access to capital and giving entrepreneurs and small business owners the financial resources to grow and create jobs.”

The proposed changes affect the 7(a) and 504 loan programs, and include:

Eliminating the Personal Resource Test: Small business borrowers will no longer have to obtain a maximum level of personal finance resources in order to qualify for a 7(a) or 504 loan. This will streamline the loan process by eliminating currently complicated regulations lenders use to determine how much collateral is required.

Revising the Rule on Affiliation: This change will expand access to SBA loans to businesses that, under current rules, wouldn’t qualify as small businesses under SBA’s size standards because they are associated with other companies. It also would streamline 504 loan applications and reduce paperwork requirements for both the 504 and 7(a) loan applications.

Eliminating the Nine-Month Rule for the 504 Loan Program: This change would remove a restriction that requires a business to include in its 504 project only expenses incurred nine months prior to submitting the loan application. The new rule would let businesses include expenses incurred at any time—such as costs for projects that were put on hold for more than nine months due to a natural disaster.

The 504 and 7(a) loan programs are the SBA’s biggest lending programs. The 504 program provides long-term fixed asset financing that small businesses can use to buy or improve land, buildings or equipment. The 7(a) loan program helps eligible small businesses access credit when they have been turned down elsewhere.

For more detailed information on the new proposed rules and their benefits, visit http://www.sba.gov/content/revised-oca-regulations-504-and-7a-loan-program.

Image by Flickr user mrsdkrebs (Creative Commons)

Tags: , ,
Posted in Capital Access, Raising Capital, Small Business, small business | No Comments »

Small Business Optimism Takes a Nosedive Post-Election

December 13th, 2012 ::

By Maria Valdez Haubrich

The recent presidential election seems to have put small business owners into a tailspin—at least, it has if the latest Wells Fargo/Gallup Small Business Index is any indication. In November (post-election), the Index dropped to -11, down from 17 in July. Entrepreneurs have not been this pessimistic about their businesses since July 2010.

The Index measures small business owners’ current feelings about their businesses, including financial status, ease of getting capital and credit, sales, cash flow, number of jobs. In the first two quarters of the year, small business owners were becoming increasingly optimistic, and the Index hit a high of 23 in May. (For comparison, before the Great Recession hit in 2008, the Index was almost always above 100.)

In November, small business owners’ future expectations for their financial situation, cash flow, capital spending and hiring during the next 12 months all worsened significantly, Gallup says. Specifically:

  • One in five small business owners (21 percent) believe the number of jobs at their company will decrease over the next 12 months. That’s the highest percentage Gallup has measured since the Index began in 2003.
  • One in three (34%) predict their company’s capital spending will decrease over the next 12 months — the highest percentage since July 2010.
  • Some 30 percent of small business owners expect “poor” cash flow during the next 12 months — the highest Gallup has measured to date.
  • Some 28 percent expect to be in a “poor” financial position 12 months from now — the highest Gallup has measured to date.

While future expectations were primarily responsible for the overall drop in the Index, the small business owners’ assessments of their current operating conditions also declined in November, falling 9 points to -10.

The results suggest small business owners, who were previously fairly neutral about current operating conditions, have become pessimistic not only about the future but the present as well.

“As entrepreneurs, small-business owners tend to be optimistic by nature, and relatively more optimistic about the future than the present,” Gallup’s results note. Will the small business owners’ outlook lead to a weakened economy going forward? If small business owners live up to their plans to cut capital spending and reduce the number of jobs at their companies, it could do so.

How do you feel about the results? Do they jibe with your outlook?

Image by Flickr user M Hildingh (Creative Commons)

Tags: , ,
Posted in Accounting and Taxes, Capital Access, Compliance, Raising Capital, Small Business, small business | No Comments »

Bad News for Small Business: VC Investments Decline

November 15th, 2012 ::

By Maria Valdez Haubrich

Recently, we posted here about the growth in angel capital investments. Now, there’s some not-so-good news for small businesses about venture capital. The most recent MoneyTree survey from PricewaterhouseCoopers and the National Venture Capital Association reports that in the third quarter of 2012, VC investments shrunk both in terms of overall dollars (down by 11 percent from the second quarter of 2012) and in terms of deal volume (down by 5 percent from the second quarter of 2012).

VC dollars and deals also declined year over year. What’s behind the shrinkage? PWC and the NCVA say that venture capitalists are exhibiting extreme caution with the capital they have available. Instead of making new investments, they’re focusing on the companies that are already in their portfolios. Compounding the problem, there are fewer new venture funds, which is cutting into the amount of capital that can be invested.

Of course, the bad news may not affect you if your small business is in an industry that finds it easier than average to attract venture capital. Here’s a closer look:

  • As of Q3 2012, software companies were still the most popular type of VC investment, accounting for $2.1 billion invested in 304 deals. (That’s still a 12 percent drop from Q2 2012, however).
  • Life sciences (which includes biotechnology and medical devices) investing increased in terms of dollars but declined in deal volume compared to Q2 2012.
  • Internet-specific investing (companies whose business model depends on the Internet, regardless of industry) declined by 12 percent in dollars and 8 percent in deal volume compared to Q2 2012.
  • The clean technology sector (alternative energy, pollution and recycling, power supplies and conservation) had a 20 percent decrease in dollars but a 2 percent increase in deal volume.
  • Financial services, healthcare services, business products and services, and retailing businesses saw increasing dollar amounts invested in Q3 compared to Q2.
  • In contrast, companies in the media and entertainment, semiconductors, telecommunications and IT services sectors all saw a decline.
  • Companies in the software, media and entertainment, and IT services industries received the most first-time rounds in Q3 2012.

Your industry isn’t the only thing that matters when you’re looking for VC investments. Where your business is located matters more than you might want to think. Over half (58 percent) of VC funding in Q3 2012 went to businesses in California, Massachusetts and New York.

Image by Flickr user Horia Varlan (Creative Commons)

Tags: , , ,
Posted in Capital Access, Raising Capital, Small Business, small business, Venture Capital | No Comments »

Is Your Small Business Struggling With Cash Crunches?

October 2nd, 2012 ::

By Karen Axelton

Despite their best efforts to manage their companies’ cash flow, half of small business owners have suffered a sudden cash crunch in the past 12 months, according to a new survey from Citibank.

The Citibank Small Business Pulse found that weak sales were causing cash flow concerns for the majority entrepreneurs. Even though 73 percent say they personally manage their cash flow daily—not trusting the job to anyone else—30 percent say they are still struggling with challenges such as slow or delinquent receivables and customer bankruptcies, and 24 percent say late or non-payments have caused their companies an unexpected cash crunch.

Despite their awareness of the importance of cash flow management, small business owners in the survey admit that they struggle to crack down on customers. Some 78 percent say they’ve extended customers’ payment terms in the last 12 months, and nearly one-fourth say that “making a collection call” is the most uncomfortable aspect of managing their business finances.

The cash-flow issues these businesses faced weren’t all due to slow-paying customers. Forty-one percent of entrepreneurs blamed “lackluster consumer spending” for their cash crunch, while 28 percent said it was due to expected sales failing to materialize.  Overall, the need to maintain sales was the number-one concern small business owners expressed, cited by 78 percent.

Still, small business owners in the survey feel hopeful about their own business finances, even if they don’t feel as rosy about the economy as a whole. While 85 percent think the nation might still have a double-dip recession, 43 percent think their business’s 2012 sales will top last year’s, and 56 percent expect their businesses will either meet or exceed their 2012 revenue goals.

Small business owners have reason to feel confident. To achieve those sales goals, more than half of companies surveyed say they have “reinvented” their businesses in the past year, either adding new products or services, overhauling their technology, or both, in order to become more competitive in a tough marketplace.

What can you do to keep your cash flowing? Small business owners in the survey are doing all the right things—except for one. It’s tough, but following up on late-paying customers and doing all you can to ensure you get paid is essential if you want to keep your business in the black.

How is your business’s cash flowing?

Image by Flickr user Alan Cleaver (Creative Commons)

 

Tags: , , ,
Posted in Accounting and Taxes, Capital Access, Compliance, Small Business, small business | No Comments »

Web.com Small Business Toolkit: Biz2Credit Women in Business (Financing for Women Entrepreneurs)

September 11th, 2012 ::

Biz2Credit Women in Business

Biz2Credit, which has been connecting small and midsized businesses with lenders and other business tools since 2007, has recently launched their Women in Business site. The site targets women business owners whose companies have been in operation for less than three years and have under $1 million in sales and fewer than 50 employees. Owners can take advantage of the small business financing package, which includes a business plan prepared by Biz2Credit’s small business experts; one month of financial consultation by a Biz2Credit case manager; access to a financial snapshot of your company; and recommendations for increasing credit scores, lowering interest rates and more.

 

Tags: , , , , ,
Posted in Accounting and Taxes, Capital Access, Compliance, Raising Capital, Resources, Small Business, small business | No Comments »

Will the Community Bank Crunch Squeeze Small Business? How to Find Out

September 6th, 2012 ::

By Maria Valdez Haubrich

If your small business has received loans or lines of credit from a community bank—or was hoping to do so—you might find it becoming more difficult. Inc. recently reported on a coming crunch that is hitting community banks, with possible ill effects for small business owners who depend on those banks for capital.

The problems stem from the Troubled Asset Relief Program (TARP) which gave banks nationwide funds from the U.S. Department of the Treasury that had to be paid back with interest. While Inc. reports that the nation’s larger banks have already paid back their TARP debt, about 300 community banks across the country haven’t yet done so.

The Treasury Department is winding down the TARP program, raising interest rates for banks that still have outstanding debt to pay back. These banks are being hit with a perfect storm: In addition to the need to pay back principal and higher interest, new federal regulations as a result of the Dodd-Frank Act require community banks to have more available cash for emergencies.

The result? Many community banks are being forced to cut back on lending to small business in order to handle their TARP responsibilities and have enough cash. That’s bad news for small businesses, which rely greatly on community banks for their capital needs.

Inc. cites FDIC data that smaller banks (those with $5 billion or less in assets) made $336 billion in small business loans in the first quarter of this year. By comparison, banks with $5 billion or more in assets made loans of $311 billion to small businesses. Small business loans account for nearly one-fourth of all loans by community banks, compared to just 5 percent of bigger banks’ lending.

How can you know if your bank will be affected by this issue? The best way is to talk honestly with your banker. Ask whether the bank accepted TARP funds and, if so, whether they have paid the money back. If not, try to get the banker’s take on how this responsibility will affect future loans to small business.

Even if your bank is not affected by TARP, be aware that small business owners whose own banks are cutting back on lending may start approaching your bank for loans. In other words, if you were considering applying for a loan or line of credit, the time to act is now.

Image by Flickr user Alan Cleaver (Creative Commons)

Tags: , , ,
Posted in Capital Access, Raising Capital, Small Business, small business | No Comments »

Small Business Owners’ Economic Outlook: Holding Steady

September 3rd, 2012 ::

By Karen Axelton

As election season begins in earnest, how are small businesses feeling about their own—and the nation’s–economic outlook? Capital One’s second quarter 2012 Small Business Barometer, a quarterly survey of U.S. small businesses, asked entrepreneurs about their current financial conditions and what they expect for the next six months, and found steady, but modest growth.

Gains that began in 2011 are continuing in 2012, the survey found. Some 45 percent of small businesses say their companies are facing the same economic conditions as last quarter, and 38 percent say their economic conditions have improved. Just 17 percent felt economic conditions were getting worse. Asked about their own businesses’ financial situation, 44 percent say it’s better than it was a year ago, 40 percent say it’s the same, and just 15 percent say it’s worsening.

What’s more, 37 percent of small businesses plan to add jobs in the next six months—a two-year high. Sixteen percent say they have job openings they can’t find qualified people to fill, a slight increase from the previous quarter.

As for the coming six months, small business owners are cautiously optimistic, rating the national business outlook at 6.0 out of a possible 10 points—mostly due to concerns about sales and profit margins. Reflecting this cautious attitude, most of the small businesses surveyed say they plan to keep spending, business development and investment consistent with current levels. Seven in ten will keep spending at the same levels—a two-year high, 9 points higher than last quarter and 5 points higher than last year. Just 15 percent of companies expect to increase business development and investment spending.

One positive sign is that one-fourth of small businesses have tried to obtain financing in the last 12 months—the highest percentage in the past nine quarters of survey data.  While 42 percent of small businesses say getting financing is harder than it was six months ago, that’s down 10 points from the percentage who reported difficulty the previous quarter.

“We’re seeing some hesitancy and concern about prospects for the remainder of the year, as well as a limited line of sight to growth,” said Jon Witter, President, Retail and Direct Banking at Capital One. “Small business owners are moving forward with continued caution and pragmatism as they consider their plans and projections for the coming months.”

How does this outlook compare with your own? Are you feeling optimistic about the months ahead?

Image by Flickr user carlos.a.martinez (Creative Commons)

 

 

Tags: , , ,
Posted in Capital Access, Raising Capital, Small Business, small business, Workforce | No Comments »

How to Prepare Your Business for Expansion

August 30th, 2012 ::

By Karen Axelton

Do you have big plans for your small business? If you’re gearing up to add a location, expand into new markets, add ecommerce to your offerings or start selling internationally, there are some things you need to consider before you grow. Here’s a shortlist of things to think about to make sure you’ve got all the bases covered.

Your company’s structure. If you need to adjust your legal form of business in order to take on more investors, add partners or meet the requirements of the new state/s where you’ll be doing business, now is the time. Consult an attorney to make sure your company dots all the I’s and crosses the t’s before it’s too late.

Your company’s name. The name that has served you up to this point may not work so well if you’re going national, international or in a different direction. Ask friends, family and customers what they think your current name conveys. If it doesn’t convey what you’re trying to accomplish, brainstorm some new ideas and use surveys and focus groups to test how well they work.

Your company’s trademarks. If you’ve changed your name or logo in preparation for the expansion, make sure you protect them with a trademark. Visit the U.S. Patent and Trademark office’s Trademark section to learn more about applying for trademarks and to apply online.

Your operations. If you don’t have an operations manual for your business, now is the time to create one. You’ll want to standardize your operating procedures so they can guide you in your growth and ensure that all facets of your business—every location, employee and sales channel—deliver the same customer experience.

Your employees. Expansion requires employees you can trust to do what you’d do when you can’t be there. If you’re not comfortable with delegating, you’re going to have a problem. Start now to develop a strong bench of key managers who can be “you” when you’re not around.

Your financing. Given today’s tight lending environment, hopefully you’re financing your expansion from within. But whether or not you’re seeking outside capital, it’s smart to develop a business plan that will guide your expansion and put the money you’ll need in black and white. Develop a “Plan B” you can follow if the financing you seek doesn’t come through. In fact, develop Plan C and D, too.

Image by Flickr user Tatters:) (Creative Commons)

 

 

Tags: , , , ,
Posted in Business Development, Business Law, Capital Access, Compliance, Raising Capital, Small Business, small business, Workforce | No Comments »

« Older Entries