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3 Ways to Find the Necessary Funds to Start Your New Business

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So, you’ve decided to start a business. Congratulations! You’ve got a great idea and a plan, but now comes the hard part: finding the funds to turn your idea into a viable business. Fortunately, there are lots of ways to obtain the funds you need to get your business off the ground — and also quite fortunate, starting a business on the internet is actually much more cost-effective than if you were to start an offline / franchise type of business.

Before jumping into a few different ways you can gain access to money to fund your project or business idea, let’s first list some of the cost considerations you should have in mind when starting a new business.

  • Domain, website, hosting and design
  • Paying staff and employees
  • Company registration (Inc, LLC)
  • Office supplies, desks, computers
  • Legal counsel, outside consulting services
  • Insurance for yourself and employees
  • Rental, mortgages and franchising fees
  • Equipment, inventory, and products

As you can see, before we even get started with the investment and funding options available, there are already plenty of things you will need to map out and consider when starting a new business. As exciting as it is to go live with your new site or business, the more time you spend on the foundation and pre-planning process, the less headaches and more success you will potentially have in the future.

Once all of this is in place, you can then start exploring your options with the following business funding and investment options.

Self financing

Of course, the easiest and most straightforward way to finance your business is to pony up the cash yourself, making this an attractive option for many people. However, even if you can afford to go this route, there’s one big caveat that needs to thrown up: If your business flops, you are on the hook for all of the funds you have invested into it.

If you do want to go this route, there are several ways you can do it. First, you could simply tap into your “rainy day” fund for the start-up capital you’ll need. This could be in the form of your savings account, inherited funds, etc. One of the biggest advantages of investing your own money in your business is that it sends a powerful message to future investors that you are fully committed to your venture. Investors may be more likely to invest in your company if they see that you have something on the line, too.

You can also liquidate some assets to pay for the start-up of your business. If you have real estate, stocks or bonds, or something else of value that you can (and are willing to) part with, this can be a quick way to get the funds you need for your business. Remember, however, that there can be some consequences of liquidation some assets, such as real estate, in terms of taxes.

If your credit limit allows, you could also use your credit card to finance your business start up. This is a convenient way to order supplies, for example — while also allowing for the opportunity to rack up a bunch of rewards or bonus cash in the process. However, always be aware that because credit cards carry with them hefty interest rates, so your purchases could end up costing you much more than it would originally seem.

A home equity loan is another possibility for personally financing your business. If you own a home, you can borrow against the equity in it in the form of a line of credit. However, there are some restrictions that may make this a less-than-desirable option for some people.

Taking out a loan

If personally financing your business start-up endeavor isn’t the best option for you, there are other things you can do. If you don’t own a home, for example, you can approach a bank or another type of lender for a personal loan. Personal loans from banks typically come with lower interest rates than do credit cards. If your credit is quite low, you may struggle to find a bank willing to lend you money. In those cases, it may be best to go to an alternative type of lender for a personal loan. Click to find out more about your borrowing options if you find yourself in that scenario.

Finally, you can always borrow money from family or friends if none of these other options are viable for you. People who know and trust you may be able to help you out, and you can repay the loan when your business starts bringing in money.

Paypal Working Capital

For anyone that already have a business online and might be simply looking for money to put back into their company, there are many ways to borrow money from banks and lenders, but these often come with a lot of verification, history reports, and high interest rates. Paypal has not only changed the way customers and business make financial transactions in the world today, they’ve also changed how businesses can borrow and access lump sums of money as well.

Through the use of Paypal Working Capital, Paypal customers can borrow up to $100,000, while not having to go through a credit history check in the process. The decision on how much money can be borrowed and by whom, ultimately comes down to the account history and how much volume is currently being pushed through the account. What also makes PPYC unique is that the borrow money is paid back through the use of incoming payments to the account, and you get to select how fast the loan is paid back (usually in 15%, 20% or 30% increments). There is also a flat percentage fee that is owed on each borrow amount as well.

Money is Simply Waiting There for You

These are just a few of the ways that you can find the money necessary to start your business. There are lots of others, depending on your current financial situation and business goals, but these are some of the quickest and most convenient ways to get the cash flow you need to get your business off the ground.

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Entrepreneurship

Time is Money: How to Maximize Both as an Entrepreneur or Business Owner

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Are you wearing too many hats? Being pulled in a hundred different directions? Having trouble completing tasks because new things keep coming up?

You’re probably a business owner.

The hours you spend working are as important as the money made in that hour. Your time is money; wasted time results in wasted cash. You can change this with some simple time management hacks.

Your productivity depends on your time management. Once you master this, everything in your business will become simpler. Keep reading to learn how to make the most of your time as a business owner.

Invest in Great Employees

Many business owners find themselves hiring employees far too often. A high turnover of staff means the time you take to plan and to train goes to waste.

The trick to saving time on hiring is making the right hires in the first place. And, making the job so great they don’t want to leave!

You can do this by creating an Employee Development Plan. Any employees that you truly value and depend on should have a path for growth. They should have benefits and perks that make working for you worthwhile.

When recruiting new hires, be very detailed in what you’re looking for. Weed out the lazy, unenthusiastic applicants from the hard working and passionate candidates.

Once you hire great employees who love working for you, they can take a load off your plate. Remember to ask for their feedback and input on new ideas. You trust them to do a good job, so you can delegate tasks to them.

Track your Time

Spend a week recording everything you do from morning to night. You can do this with Google Calendar or on paper. Write the tasks you work on each hour or the free time you spend.

After one week, review your log.

How many tasks did you switch between in any given hour? How many tasks comprised of you fixing other people’s work? Did you miss any deadlines or lose out on any profit?

You may realize you’re working an extreme number of hours per week. Or, that you’re struggling to move projects forward because you aren’t focused enough.

This problem is very common for business owners. It gets solved by automating and delegating tasks.

Automate Tasks

Thanks to the magic of technology, we don’t have to manually complete many tasks. If you haven’t leaned into automation, now’s the time to start.

Automation is when you let technology automatically complete tasks without your constant approval. You set up the rules and expectations, then the frequency of the automation. After that, your load is a little lighter.

Here are some tasks automation can help with:

  • Email marketing
  • Assigning inbound leads
  • Following up with networking peers
  • Offering free content to attract leads
  • Identifying the hottest leads
  • Tracking accounts receivable

The list goes on and on. Did you know that 80 percent of top-performing businesses use automation for marketing? 80 percent of these highly successful people can’t be wrong.

Look at your business’s tasks and systems. Where could automation help you?

Delegate Tasks

Not all tasks can get automated; some should get delegated. As a business owner and entrepreneur, you’re used to doing everything yourself. “If you want it done right, do it yourself” right?

Wrong.

Most of the time, “done is better than perfect.” You need to decide which tasks demand your attention and which ones your employees can do.

This might mean training your top employees on new roles and duties. This is great because it shows them you believe in them and it lightens your workload.

Look back at your time log for the week. Find at least three things that you can delegate. Start the process of transferring those responsibilities to someone else.

This will give you more time to do the things only you can.

Work in Batches

Jumping from one task to another in completely different realms is awful for productivity. Switching gears all the time ruins your focus and lowers your energy.

Instead, start working in batches through calendar blocking.

Schedule your day to complete all like-minded tasks in the same block of time. That could mean spending all of Monday morning working on payroll duties. Or, all of Monday afternoon updating the company website and planning new components.

Consider using an app for all your scheduling needs, like this company. Every employee can download the app and have access to all work-related things.

By staying in the same realm of tasks for a larger chunk of time, you can focus completely on that umbrella of tasks. You can use your time more efficiently and get more done.

Get Organized

Look around your office. Is it messy? Is there clutter everywhere, especially on your desk?

This is a subconscious productivity-destroyer. How can your mind think clearly when your space feels confused and chaotic? Both you and your employees are less productive when the space is messy.

Start by cleaning your personal office. Your desk should only have things you use every day or make you happy. File loose papers or shred them.

Declutter the floor. Boxes should get put away and objects returned to their home in the office. Hire a cleaner to deep clean the space.

Then, set new expectations for your staff on office cleanliness. Like tools need to get put back after use and don’t leave rotten food molding in desk drawers.

You may need to buy some organizational systems to keep this momentum going. Get some low-maintenance plants to put around the office and lift the mood. Make the office a calm and clean place to work for everyone.

If Time is Money, Are You Spending Yours Wisely?

As a business owner, you’re supposed to be hustling and grinding. But, you can do more by working smarter, not harder.

Boost your productivity and profits by getting better at time management. Put systems in place that save you time and let you focus on important things. Your time is money; making better use of it will result in higher earnings.

For more tips on being a business owner, productivity, and making more money, check out this article.

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Entrepreneurship

The Ultimate Guide To Streamlining Your Accounts Payable Process

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Let’s face it: the process of improving and streamlining your accounts payable process can feel like you’re drowning in a sea of busywork. It’s also one of the most important, yet overlooked, processes within a business that can actually make you go from negative to positive in monthly ROI. This is especially true with online businesses, as many of use are using various automation, SEO, and marketing tools that have built-in recurring monthly costs… but how many of them are we actually using, yet still paying for?

This is something I occasionally talk about on the blog, as it’s a great reminder to always keep an eye on not just what your monthly expenses are, but also what they are actually being spent on. We all watch the incoming and outgoing money within our businesses and brands, but many of us will forget to actually look through our credit card and banking statements to see who is billing what. Soon enough, you could have thousands in monthly recurring bills, and not even realize that you aren’t utilizing such services.

It’s not just affiliate marketers and bloggers that have to deal with these types of issues, it’s businesses of all sizes — and it really comes down to the various payment processors, invoice tracking, and tax software being used. The truth is that an inefficient accounts payable system costs you in time , money, and anxiety. Between chasing down your tax information, waiting for invoices to be verified, and frantically paying bills at the last second, things will slip through the cracks.

You won’t just lose money. Your company’s reputation will suffer as a result. You might lose important business relationships that you’ve worked hard to build.

It’s time to make a change for the better.

Read on to learn how to improve your current accounts payable procedures.

1. Look for Patterns in Your Payments

The first thing that you need to do when you’re ready to make over your accounts payable process?

Think about how you can get out in front of upcoming payments.

The best way to do this is to look for payment and invoice patterns, and then create a matching schedule of accounts payable.

For example, do you know that your supplier sends you a bill on the first Monday of every month? If so, you know that this payment to your suppliers is a fixed cost every month. You should schedule an automatic payment, since it will likely be in the same amount each time.

Additionally, figure out who you sent the most money to, the most frequently.

This will help you to keep better track of your spending pattern, and know who to prioritize when it comes to getting payments out on time.

One more thing you might discover during this review process?

The fact that you’re not exactly spending your company’s money in the most effective way. Taking a closer look at things won’t just help you to spend less time each month on accounts payable.

There’s also a good chance that it will help to save you some serious money.

2. Define Your Invoice Payment Strategy

You know that paying invoices on time and in the correct amount is an essential way to maintain excellent relationships with freelancers and suppliers alike.

However, if you’ve noticed that your accounts payable process seems to be missing the mark when it comes to invoices?

You need to make a change — and fast.

First of all, decide when you’ll pay the invoices that are sent to you. Is the goal simply to get them paid as quickly as possible? Or, is it better to send payments at a set date?

Determine the payment method that you use. Will you write them a check, or do they prefer to get their money sent to them via systems like PayPal? And which method of payment works best for your business?

You should also make sure that you have a strong record-keeping system in place when it comes to your invoices. That way, even if something does go wrong, you’ll be able to track exactly when and how it happened.

One final piece of often-overlooked advice?

It’s simple: make sure that you have the right employees working on accounts payable.

Is now the time to create a specific accounts payable department, as opposed to assigning invoices to “whoever has time” to complete them? What short of qualifications do the people working in accounts payable have? What sort of training program have you implemented?

These are certainly all things to consider — and to speak with your team honestly about.

If you need to hire someone new, then the cost of bringing them on will likely pay for itself in the time the rest of your team members will earn back.

3. Consider a Payment Automation System

Of course, if you’re truly serious about improving your current accounts payable process, then you’re likely going to need to invest in a payment automation system.

Look for a system that allows you to make payments in a variety of currencies and payment methods. You should also decide on an option that helps you to eliminate as many rejected payments as possible.

The goal here is to find a platform that helps you through every part of the AP process — including making early payments.

Also, ensure that the payment automation system you choose helps you to keeps things secure and compliant. The right system will scan potential payees and identify potentially fraudulent or problematic companies.

Finally, make sure that you take a close look at the transaction fees of any payment automation system you use. Remember that fees are usually charged on a per-transaction basis. So, cut down on the number of individual payments if possible.

Looking to learn more about what makes a great payment automation system?

If so, be sure that you check out the Tipalti website, to learn how their platform could save up to 80% of your accounts payable team’s time.

Once you’ve implemented each of these solutions and accounts payable processes, you may finally be at zen with your personal and business finances.

Ready to Overhaul Your Accounts Payable Process?

We hope that this post has helped you to understand what it takes to truly improve your accounts payable process — and eliminate errors in the process.

Of course, tackling accounts payable is just one smart of what helps you to streamline your time at the office, and get more out of every day.

You need to ensure that you have a strong digital and print marketing strategy, that you employees feel motivated within the work environment, and much more.

Keep on coming back to our blog to score even more tips on how to take your company to even higher heights.

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Entrepreneurship

How to Pick the Best Business Credit Cards for Startups

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You obviously know about the existence of business credit cards, and you may have even heard about the benefits they give to companies, but you’re still worried about getting one for your startup. If that’s that the case… don’t be. I’ve personally used credit cards for my business expenses for over 20 years now, and as long as you stay on top of your payments, they are perfectly fine.

Right now, you may think you’re playing it safe by avoiding the plastic, but in reality, you’re missing out on a ton of great deals that could help your business grow and become more successful.

There are a variety of credit cards that you could choose from, and each card offers their own unique trademarks that you could use to your advantage. Let’s have a look at some of the best business credit cards for startups.

The Best Business Credit Cards for Startups That You Should Use

Depending on your type of business, you can gain some serious perks to help you level up your business game. Keep reading to find out more.

Decide How Fast You’re Paying the Monthly Bill

The first thing you need to worry about is the amount of time you think you will need to take care of your monthly statements.

Some companies can pay off their fees in full every month like clockwork. Others may only be able to pay off the bare minimum in order to keep things rolling. There are cards for both types of businesses.

If you know how to make the full payment each month, you should go for a card that gives you longer grace periods and a lot of rewards so you can capitalize on all of the benefits.

Charge cards are also handy for those who always pay in full. These little guys give you the money you need, as long as you’re able to pay it off within a 30-day time frame.

If you’d rather take your time paying off the card, then get a credit card that has a low-interest rate or a 0% APR to allow you time to pay everything off without any backlash.

As for my own personal and business expenses, I’ve always been a fan of American Express, and have been a customer of theirs since 2003. You can see a few of my other preferred business credit cards for entrepreneurs and bloggers as well.

Think About Operating Costs

One of the biggest reasons (if not, the biggest) why you want a credit card is to take care of the operating costs that come with every business.

Look through the spending log and see which of your operations takes up the most of your money, and then find a card that gives you benefits directly related to those operating costs.

For example, if you spend a lot on customer service, get a card that offers bonus points on spending in this category. That way you get returns as you spend cash.

Credit Expenses

The last thing that you should be worried about when choosing a credit card is are the credit expenses.

Different cards offer different costs on their monthly and annual fees. More often than not, this is directly related to the number of benefits and perks you get from using it.

The general rule of thumb is that the more basic the card is, the less you’ll have to pay in fees, and vice versa. It’s up to you to decide if you’re going to take the thrifty approach or if your business can fork the extra cash for the bonuses.

If you want to learn more about what card would suit your company best, check out this website for a list of credit card reviews and other things that could help your small business soar.

The One Stop for All Your Startup Business Needs

Now that you know about some of the best business credit cards for startups, you can make moves to grow your business! When starting to apply for different cards online, you may find better success with lower level credit options and stay away from American Express until you have a decent credit score or business history. If all of that already looks good, then apply away!

As mentioned, I’ve been making money online and helping businesses grow their reach and exposure for well over two decades now. If you ever have any questions or are in need of services, just send me an email and I’ll be sure to give you the answers that you need.

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Hi, I’m Zac Johnson

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