Private Investors and Small Business Financing

To most people the only source of loans are banks and credit unions. However the finance world has many more players than that. Real estate investors have long used private mortgage investors as a way of buying real estate. Small businesses are now learning they can also use private investors to secure the funds they need to expand their businesses.

Private investors are individuals who are willing to lend their money to other people. In return the private lender receives a higher interest rate than they would get if they just put their money in the bank. Every private lender has their own lending criteria, which is often less strenuous than the red tape of a bank. I don’t meant to imply that getting a private loan is easy or guaranteed, rather just that the terms and conditions of a private loan are far more flexible because you only have to convince one person of the merits of your business proposition.

Make sure the business deal is a good one. Don’t waste your time or theirs by approaching them without a business plan or having done your due diligence. You often only have one shot to impress a private investor so don’t go into the meeting unprepared. Be confident but take any critique they offer to heart. They may help you by giving you solid insight into why you should not go forward with the plan you presented them or at least show you where your plan is weak. Listen carefully and take notes on what is said if the person declines to invest. You can tweak your business plan for the next potential investor. Or maybe the investor will say that you should fix the plan and come see them again.

Most private investors are savvy business people themselves and will understand a good business transaction when they see it. They will also be able to see through any scam someone may try to pull. Private lenders are not going to invest in a bad deal. If your business idea has merit then chances are the private lender will discuss terms with you. You are not obligated to take the terms of their loan anymore than the lender is obligated to fund the loan. Negotiate the terms to see if you can get a lower interest rate if you think it is too high. Don’t be afraid to ask for a lower interest rate or a longer period to repay.

Get Familiar With Your Business Marketing and Finance

In any business, launching your product in the market is an event that comes at the end of your planning cycle. If you are expecting that you will first launch the product and then work backwards, you will be making a huge mistake. The starting point is with having a business plan in place along with sales strategy, product positioning as well as promotions and distribution plans in place.

Along with your product strategy runs the sales strategy and promotions plan too. All of these are aimed at building continuously a customer database that can be worked upon for getting sales leads. The database building is not one time job ending with product launch but all your promotions and interactions with community through internet posting, forum and blogs should be aimed at adding customers to the database.

Just technical capability and knowledge will not make you a good businessman. To be successful you must know the other functional areas that are important in business namely marketing and finance. Though you may not be involved in day to day operations, you should be involved as management and be able to control the operations.

A successful businessman is he who always keeps a watch on competition and is ahead of them. He is also aware of the environment in which he exists including socio, economic and political climate around him.

The future of your product and your business is governed by your investment into innovation and quality. These two if you focus on and get it right, they can take you ahead of competition and help you retain the leadership for a long time.

To be able to build long term future of your business, it is essential that you have a short term as well as long term plan and vision for your business. Product innovation and R&D should be a part of the plan and focusing on these two along with adapting tomorrows technology today will undoubtedly push you ahead of competition and make you a leader in your segment.

Your aggressive growth strategy should also involve plans to get into joint venture with other companies so that you are able to leverage both on your strength as well as borrow from your partner‘ strength and grow your business faster.

Joint ventures can be extremely profitable for both parties provided they are in line with your strategic business plans that you have drawn up for yourself and your company. Besides the partners should share the same ethos, values and outlook that you have towards business as well as opportunities. It is important to ascertain these factors before committing huge financial resources to the JV partnership.

3 Online Home Based Business Ideas

Online Home Based Business Ideas

Succeeding with Home Based Work is becoming more achievable each year with online tools and solid advice. First, you need to have a strong command of the English language to acquire home based work with a North American company from anywhere in the World. Accompany this with your knowledge of computers and various software secondly, and you are on your way to achieving home based work from anywhere in the world.

The following ideas will help find the home based work you are looking for.

1. Surveys.
Completing surveys is one of the lucrative options you have when it comes to work from home.

Cons: Be aware that not all survey companies are established and trustworthy. A clue would be survey companies that ask for money prior to taking part in their surveys. Another caution would be companies that offer points toward winning prizes as opposed to paying an amount of money per survey.

Pros: Far more reputable companies exist and grow stronger each year. Reputable survey companies do not charge a red cent to send you surveys. These survey sites will act like middlemen, giving a list of market research firms willing to pay cash for your opinions. The best of the best state straight away the amount of money offered and the estimated time to complete the survey(s). Stick with these and you can make legitimate cash ongoing as they store your data, making it quicker each time to complete the survey. Once you are established in their database, they will email you when new surveys become available. (this can be several times per day)

2. Freelancer Writer.
Numerous websites offer a landing place for you to start your freelance writing career.

Pros: A freelance writer works whenever and wherever they wish. In fact, a freelancer is their own boss because they bid on the home based work that interests them and work whatever time of day they wish. One of the best things about freelance websites is that freelance writers do not need a Bachelor’s or Doctorate degree to get work in such sites; however, writers with higher education are very welcome varying on the topic. The freelance writers with the higher education and the strongest grasp of the English language can earn higher fees by their education and skills ranking their writing higher. If you can write well in English, you can start writing articles.

You can easily make some cash writing and often payment options are really flexible. The most efficient companies will pay you weekly, or on the 15th and on 25th every month. These website are serious and may be an option you wish to consider when deciding on home based work. There are many categories and a multitude of articles at all times.

Cons: Initially, you may only be allowed to write one article every 40 minutes, but companies will erase this limitation when you get a few reviews. Elite writers, as described in the above paragraph, make the most money, according to the company’s rating system.

3. Video Creation
Get paid to create videos as home based work.

Pros: One of the best things about these website is that many video creators are paid per video view. This area of income generation has grown huge over the years and there are a multitude of opportunities!

Feature Your Ads and Start Your Business Today!

Is your business at its cradle stage? Wondering how will it grow in a very short time? Are you thinking of advertising your business but don’t know how to proceed? Then this article is going to show the way ahead to prosper your business today. Advertising your classified is not at all a tough job these days. Rather there are sites which advertise your classifieds absolutely free! This feature is a good initiative for the fresher in their business. There are various other packages offered like bronze, silver, gold and even basic according to your affordability. Each of them is having their own listing for a given period of time.

At its initial stage, you would like to get comments for further improvement of your promotion. This interactive feature does surely boost your business. The tags given to your classifieds give a specific search for your buyers. Keeping an account of your invoices is a must for your business. These websites do reduce your tension of maintaining these invoice records. Pending in voices can seriously cause headaches later on. You can give warnings to your clients with this facility. Remember that the purchase order number and the tax payments are mentioned in the invoices. They do also make you aware of the discounts availed to the buyer in your business. Now you can see the advantages of posting your ad in?

Do check the orders that are made along with their details informing you about the deals that are still in your hand. The VAT identification number verifies the identity of the buyer. Under the “Add” option you can enter new classifieds to your account. The ‘Parent’ and ‘Category’ option give urgency to the more directed search to your buyer. You can further give a detailed account of your product by describing the product details, brief contact details (keeping clarity in your business location). You can also upload the relevant videos, sounds and even photos for your business promotion. The private setting gives you the right to choose your customers.

Don’t miss out to check out the “Sale Pending” in the classifieds list. It helps to keep an eye on the sales of your products. Only few of the websites give these added advantages to the user. The databases for these detailed information like pending invoices or the sales pending options are provided by the administration of the website. This ensures total security to your business transactions. Definitely, the pending approval is needed for further negotiations between the seller and the buyer. Before you proceed to send the invoices to the buyer, make sure to brush off the records of the previous negotiations made with them. This would make a hassle free environment in your business.

These lucrative features are available in European Classified sites like you can access the Google map with the list of recent and latest featured classifieds. That means you can check the origin of the classified. Browsing the classifieds on the basis of states or region saves time for your search.

So post your classifieds today and prepare to be a successful businessman!

Internet Business Ideas – Turn Your Hobby Into an Online Business

When brainstorming Internet business ideas a few years ago, I found that many hobbies can be turned into an online business. I turned my favorite puzzle into a profitable website, ranking in the top one percent of all websites for traffic according to Alexa.

An out of work friend of mine recently asked me how he could earn money from a home based business. I suggested that he turn his hobby, or something in which he has a lot of interest, into a profitable website.

I told him about a young teenager that earns over $4,000 per month writing about her favorite vacation spot. Another young father built a website around birthday parties for children. He earned over $2,000 per month in only six months. Today he owns five websites that pay him over $10,000 per month.

In all of the cases above these individuals wrote about their hobby or interest. They found a niche, and created a website about that niche. They monetized their websites with Google AdSense and sold related products through affiliate marketing.

Steps To Turn Your Internet Business Ideas Into Profit

To turn your Internet business ideas into a profitable website, you need to follow these steps:

Brainstorm Your Niche

The first step is to brainstorm your Internet business ideas. You are looking for keywords (the search terms people use to find your niche website) that have sufficient interest, yet little competition.

If you intend to monetize your website with Google AdSense, you need to be sure there are also enough advertisers who bid for your keywords to sell their products or services.

Build Content

Create a website by writing one page about each profitable keyword. Use search engine optimization to create a search engine friendly page. Most importantly, write to over deliver content that your visitor is seeking.

Build Traffic

Once you have thirty pages of real content, you should begin to build back links to your website. This will boost your page rankings in the search engines and increase organic traffic to your website. You can post articles in related blogs to your niche, write articles for article directories, and get listings in online directories to build links and traffic.

Pre-sell Your Visitors

People do not like to be sold. People prefer to be informed. Write helpful articles that deliver what your website visitor is seeking. Use short active sentences and every day language to convey your message. This makes your visitor comfortable and they will begin to trust you. People who trust you are more willing to buy from you or follow your recommendations.

Build relationships with your visitors. Publish a monthly newsletter to keep in contact with your website visitors.

Monetize Your Traffic

Begin monetizing your Internet business ideas only when you have at least fifty unique visitors coming to your website daily. You can join Google AdSense for passive income.

You can also sell related products to your niche. Either create your own product or sell someone elses‘ product. Look into affiliate marketing programs for products that are sold on commission.

Yes, you can turn your hobby or interest into a profitable online business. Search for Internet business ideas that interest you or that you are willing to learn about. Then create a website that delivers useful information that people are searching for. Build traffic and then monetize that traffic. Many of the top websites follow this route to success. I did. You can too.

The Evolution of Financing a Small Business

For years I have read the popular business magazines, all having so called experts write articles for entrepreneurs on how to finance their business. “The top 10 strategies for financing your start-up”, “How the SBA can help your small business“, “Personal credit is the key for entrepreneurs” and so on. In most cases I’m willing to bet those writing these articles are journalists that have never had a successful start-up. How can I come to that conclusion you may ask? Because of the bad advice they give.

Going to the SBA for a loan, using your retirement funds, tapping all your personal credit cards or giving up 75% of your idea to an investor are all ideas I have read from the popular magazines. The thing is, in every one of these cases you are using your personal credit and not separating you from your business. You are putting 100% of your credit and assets at risk.

I have worked with thousands of small business owners who have been very successful without the need to use their personal credit cards, retirement funds or fill out stacks of paperwork and wait months for a response from SBA backed banks. In fact I have seen entrepreneurs with access to hundreds of thousands of dollars without giving up a percentage of their company or having any of the money show up on a personal credit report. Sounds good right? Well, there is one catch. You will need to go through the evolution of financing your business. You can’t start at the end. This is the problem with most entrepreneurs. They want fast results and aren’t willing to wait. By taking the quick fix they give up ownership and put their personal credit at risk.

The evolution of business financing starts with a solid foundation for your business. A solid foundation is comprised of several parts. The first of which is structuring your business entity appropriately. I recommend to every entrepreneur that you use a Sub Chapter S-Corporation, C-Corporation or Limited Liability Company to operate the business. This is the first step in separating the business owner from the business. The next phase of building the solid foundation is to ensure the business is in compliance with the lending markets. Several business owners are surprised when I tell them most lenders we work with when reviewing a credit application will first call directory assistance to see if your phone number is listed. It’s a simple check, but it’s the first flag that will be raised for them if the business isn’t listed. Why would a lender finance a company that doesn’t want anyone to find them?

There are hundreds of other due diligence phases that a company must go through in order to ensure the owner and business are not considered “high-risk” for obtaining credit and financing. The more a business has in place to show that it is a real business the more likely a lender will grant credit to that company.

The second step in the evolution of small business financing is to define what the business does, what makes it unique and why it will be successful. The business owner must create a one-page “sales pitch” for the business, also referred to as an executive summary. The executive summary can be used when applying for credit, seeking investors and developing marketing campaigns.

Business owners need to keep in mind when seeking financing that the most important thing for a business is to produce a profit. Without revenue there will be no profit. Marketing the business will help produce the revenue and the executive summary will help create the marketing.

Third, a company must build a business credit report separate from the owner’s personal credit. By working with trade credit, the single largest source of lending in the entire world, a small business can tap into limitless leverage for buying goods and services they need to start, run and grow the company. The beautiful thing about trade credit is in many cases it’s free money. If a vendor grants terms of net 30, a business owner has the ability to use the vendors goods or services for 30 days without interest before they need to pay the vendor. The other wonderful part of trade credit is that there are companies offering products and services small business owners need who will report the credit to a business credit bureau. The reporting of the trade line will create a business credit profile separate from the personal credit of the business owner. Eventually the business will be able to access more and more credit under the business name only if it maintains a positive business credit score.

The more credit received under the business name the more likely other companies will grant that business credit. No one wants to be the first in line to grant a business $50,000 in credit, but if others already have they will be more inclined.

Fourth, is to use the owner’s positive personal credit score in combination with a positive business credit score as leverage for obtaining hundreds of thousands of dollars in unsecured lines of credit for the business. The key is to do this with lenders that don’t report the accounts to the personal credit bureaus but rather the business credit bureaus. Many banks offer business lines of credit and loans, however finding the right type of product from these banks can be tricky. A business owner needs to make sure the loan or credit line they apply for reports only to the business bureau.

By keeping business debt separated from the personal credit report, a business owner has the ability to keep their personal credit score high. The more a business owner uses their personal credit in the business, the lower the score will drop. Credit scores determine the ability to buy homes, rates on car insurance, and several other factors. Keeping a personal credit score above 720 is extremely helpful in the business owner’s personal and business life.

The fifth stage of the business financing evolution is to look at other alternative financing the business may be able to obtain. Leasing is one key area. Why use precious cash reserves to buy equipment or software when you can make a small monthly payment? In addition 100% of the payment on the lease is expensed.

The final stage deals with investors. The majority of investors don’t want to look at companies unless they have already progressed through the business evolution stages outlined above. Keep in mind that an investor is not just investing in a business they are investing in the business owner as well. If the business owner has tapped every available resource for credit and cash personally and never taken the time to establish business credit, financing or lease arrangements an investor will toss that company’s proposal in the garbage quickly.

Not every business owner will find themselves at the stage they need an investor. They may have a combination of enough cash-flow, credit and financing in place from the early stages that they won’t need additional capital. However, if a business needs to grow with the help of additional capital or financing there are two typical ways an investor will look at the deal.

The first is through debt financing and the second equity financing. Debt financing with an investor is where they provide a loan to the business in exchange for a pre-determined amount of interest. Equity financing is where an investor puts money into a business in exchange for ownership. There can also be a combination of debt and equity.

The majority of small business owners believe this is where they should start, with the investor. In reality this is the last place a business owner should look. Investors want to use their money to grow a business by having the money spent on revenue generating activities. The typical small business owner that goes to an investor says “I need a million dollars to start my business.” When asked what they’re going to use the money for they say, “start-up costs and payroll”. This is where the investor walks away. No investor wants to fund a project so the business owner can make payroll, buy office furniture, equipment or office supplies.

This is the perfect example of the evolution of business financing. The company starts out as an idea, then structure is put in place. Next, the business becomes real with licenses and a sign outside the building. Next, the business creates an identity with the right message. Then the business obtains trade credit that separates the personal and business credit in order to obtain larger lines of unsecured credit. All of which is used to build the infrastructure of the business without maxing out all the available credit for the business or business owner. Last, the business has the ability to seek investors because it has done everything required to create the solid foundation.

» Read more: The Evolution of Financing a Small Business

Starting a Business With Unique Internet Business Ideas

When you are thinking about running a business online there is so much that you can do. There are millions of different ideas out there that you can run a successful business with, you simply must pick one. However, when you are going through your list of ideas, you might want to find one that is unique. This will help you to stand out more, as well as to succeed because you are something that is not appearing everyday. The more you standout online, the better you are going to be able to garner web traffic.

One of the most unique web business ideas out there is to simply open an online store. Is it impossible? A big no! However, do not make this another one of those boring web stores that sells the exact same items as Amazon. You should try to sell something like t-shirts that have pictures of famous people on them, or maybe even something that it so controversial and provocative, you must think it up yourself. The sky is the limit, but a lawyer might need to get involved if you hit up against certain subjects. Free speech is great, but make sure you are within the realms of what it covers!

Now that you have a basic starting point, you might want to try something even more unique. There is quite a bit of material out there, you must simply go after it. You could start a site that took in the days news and made comments on it. While some might find it funny, others could find you angering and controversial. This is an idea that you could really make some big bucks with, as a pundit, and maybe even spin off into your own tv show.

Internet business ideas do not always have to be something that you plan out. Some of the best internet businesses have come from simply having an idea and putting it into action. For example, Google did not plan to become involved in advertising as heavily as they did. They simply happened to try it, found that it worked, and went for the big time. The more you try, the more that you will learn about what you are doing. Sometimes, you may fail. This is what happens in life. Nearly 80% of businesses fail within the first year, so if you are able to get an idea up and off the ground within a year and keep it running, you are doing well!

When you are thinking abut internet business ideas you should always think about what you could make a living off of. While some internet businesses might be nice for a hobby, the time that they take can be quite hefty. The more likely you are able to make the stuff you are doing into a full time business, the better off you are going to be. Grow something positive and make a difference by starting your own internet business ideas that make people really amazed!

Make Big Money In Real Estate

Real Estate is one of the oldest forms of investing known to man.

Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case.

As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country.

Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.

One of the problem of Real Estate is his lack of liquidity. Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.

There is a difference between a land speculator and an investor. A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.

If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.

Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.

Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.

Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:

* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.

* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.

It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.

Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.

When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.

Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today’s prices. Then hold the property until you can resale for large profits. Don’t sell all your desirable properties and keep just lemons.

If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register’s Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell.

As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits.

Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don’t buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical. Constantly look for bargains and quality properties with exceptional features that will make the sale easier. Follow up on For Sale signs, make inquiries.

When discouraging elements occur, minimize your losses by whatever means available. Don’t throw away money on repairs for poorly located property or in an area of surplus rental units.

Before you attempt to sell, find out how the prospect can use the property profitably. Ask yourself if you would purchase it if you were in the prospect’s shoes. Ask yourself if the future use will fit any of the many types of specific businesses. Can a hospital, a bank, an apartment complex, condominium or professional building be located on the property.