The Truth About Options For Loans For Small Business

The truth is revealed about options for loans for small business. The news suggests that the availability of external financing for small businesses has tightened or withered away completely. But this is not true.

SBA Business Loans are still available to companies looking to expand and can show a solid performance and longevity. Or if you are seeking start up business financing or a franchise loan, make sure the franchise has a good ratings. Knowing where to look for

If you are searching for SBA business loan, you should contemplate these options:

1. SBA 7(a) Loans. This program is for start up business financing and existing businesses, which is designed to help small businesses secure financing at reasonable terms through commercial lenders. To be eligible a company must be a small business as defined by the SBA and meet all requirements.

2. SBA 504 Loans. If you are purchasing commercial real estate for your business and are planning on occupying 51% or more of the space, than this is an option for you. SBA 504 allows a smaller down payment from the borrower which allows more reserve for cash flow. Usually the interest rate is competitive for the SBA portion of the loan, which is fixed for the entire life of the loan.

If you are seeking alternatives to SBA business loans, you should contemplate these options:

1. Securities Based Loan. This program provides terms based on its evaluation of the risk and future performance associated with your stocks, bonds, or US Treasuries that is pledged as collateral. This program allows you dual appreciation when the value goes up. Also the same number of shares that were pledged are returned to you when you pay back the loan and interest.

2. Self Directed IRA Loan. This enables the investment of your retirement accounts like your IRAs, 401(k)s, 403(b)s, Keoghs, SEPS etc., to be utilized either for the down payment or purchase of a business or franchise without tax penalties.

Borrowers need to discover all their options. Keep in mind that good companies are certainly going to make it through the tough times. Financing is available to small businesses that are in a healthy financial position. Entrepreneurs will need to stay agile during this time and be wise when it comes to finding extra funds for their businesses needs.

Why a Business Plan!

Many believe when starting an online business a business plan is optional. This isn’t true; if continued without a solid plan this could lead to a path of destruction.

Many think since they are the boss why a business plan; “I am working for myself so why would I bother”? Would you go on a trip or get married without a plan? Plans are necessary with everything we do. Business plans will help you get started and keep you focused. While developing a business plan this will give you an opportunity to think through all aspects of your business and will guide you too success.

Expensive software is need in order to establish a solid business plan. Of course software could help but is not necessary.

The only way to get started is by hiring a consultant to develop a business plan. Everyone should have a theme and/or strategy in mind before getting started ; or an idea of how the business should run. If not, all the consultants in the world won’t help. Find a coach or mentor to guide you through the process instead of hiring a consultant to do things for you. This would be more profitable and help with the learning process.

Many think an online business can’t be started until everything is set up perfect. If you wait until everything is perfect you may never get started. Fix it as you go. Just make sure the major points are as good as they can be and you have established a solid budget within the plan.

Once a business plan is developed it must be followed exactly or the business will fail. Sometimes detours or changes can be profitable to your long term plan. Don’t sweat the small stuff.

A business plan must be typed and professional with a minimum number of pages. There are no requirements on the number of pages; it can simply be an outline with solid goals. It can even be written on a wall as long as it can be understand and accessed when needed.

The only reason a business plan is needed is if a loan I being obtained. With or without a loan an investment is still required; either from savings or a family member. Wouldn’t it make sense to have a solid direction established for the business before making any investment? Again make sure the business plan includes a solid budget.

A business plan doesn’t need to be in writing. Like mentioned above it can be written on a wall but you will need it written down. Many think that as long as they have something in mind they can move forward. Honesty will you remember it or follow it?

All advice must comes from friends and family to have a successful business. Think about this; could a city slicker tell a farmer how to run a farm? Friends and family maybe great advisers if they are currently running a successful business. Keep in mind your business many be completely different making the advice they are giving meaningless. Advice can come from whomever. Remember that it is advice!

The bottom line; is it is very important to have a plan with a solid budget prior to start an online business. Once you have established the plan remember you can make modifications as your business grows. Never turn down advice, keep an open mind something that may seem trivial may come in useful down the road.

Is Traditional Business Taking a Backseat to Network Marketing?

More and More Americans are turning to the Network Marketing Industry rather than brick and mortar businesses.

In today’s unsure economy and with conventional businesses becoming more and more risky to venture into. A lot of those entrepreneurs are turning to the Internet network marketing industry to build their financial empires.

There are several reasons for this. 1 out of every two traditional businesses goes bankrupt within its first year of operation and the risk is just too high. From the initial investment needed to start a brick and mortar business to the capital they will need for their first few years of operation it sometimes runs into the hundreds of thousands if not millions of dollars to get a business profitable.

Network Marketing allows the average person to control their time as well as resources. With the power of the internet and the access to over 1.5 billion people around the globe that are on the web, it offers a robust platform to infiltrate a market with a fraction of the cost of a franchise or other start-up business.

With the Internet, you have no light bill, no employees, no payroll and very little overhead in comparison. Entrepreneurs like Donald Trump and Robert Kiyosaki are endorsing the Network Marketing industry and for good reason. In fact, Robert Kiyosaki said that if he had to build his wealth all over again, he would have done it in this industry.

The sad thing is, most people have a negative connotation about the industry because they just dont understand it or they have heard something from someone that had failed in the industry and got a bad taste in their mouth because of it.

The truth is, it’s the only way other than investments to create a passive income.

In today’s Internet Business model, it is not uncommon for people to replace their current income in just a few short months with a modest work ethic. The caliber of people that the industry attracts is astounding. Everyone from doctors, lawyers, CEO’s and Real Estate professionals are very attracted to the industry due to the time compounding and freedom it affords it’s top earners.

The price of admission is anywhere from $200 to $20,000 which is a steal compared to the hundreds of thousands people will invest in a franchise business. There is way less risk and way more reward.

In conclusion, if you have been thinking of owning your own business and know that the internet is where business is shifting, there has never been a better time to develop the skills and knowledge to build a successful network marketing empire.