What are the SBA Loan Requirements?

3 September, 2010 | admin | No Comment

Heading to the SBA is a great way to fund your business, especially if you can’t find a loan anywhere else such as a bank, or even a private investor.

If you’re unfamiliar with the SBA, it stands for the “Small Business Administration” and they are an independent agency of the United States.  They provide support, education on loans, as well as puts you in the right direction for training.

If you’re interested in signing up for a SBA business loan, there are a few requirements that you’re going to want to be aware of and I thought we could touch base on these.  This way, if you meet the requirements, you won’t have to worry about getting denied for a loan.

A description of your business

You can’t just walk into any SBA office and just tell them you want a loan.  They are going to laugh and you, as well as point you to the door.  Instead, you’re going to want to prepare a detailed business plan.  Include things such as the type of business you’re going to run, the sales figures, as well as anything else.

If you already own a business, be sure to prepare them with hard statistics such as your annual sales, how many employees you have, etc.

What kind of loan do you want?

When you want to get a loan from the SBA, what do you want from them?  They are going to want to have a specific number in mind when it comes to getting your loan.  How much money do you want?  What kind of loan do you want?  A detailed description is going to help you the most.

Get ready for collateral

Most SBA loans out there are going to require some sort of collateral.  That way, if you don’t pay the loan back, you’re going to find that they will have something of value that they can cash in and get their money back.  To secure the loan, this will be necessary most of the time.

Proof of your business

Whether your business is already running, or maybe you’re going to start out, you’re going to need to evidence to show what you have done.  If you already run the business, you’re going to find that you will have provide financial statements to prove your income, etc.  The more proof you have, the better it is for you.

There’s a good chance that as long as you have the documents mentioned above, you’ll have a good chance at getting approved for a SBA loan.  It’s always best to meet up with a professional to truly see what they can do for you.

To get more information, you can view their FAQ here.

Health Savings Account Rules for Businesses

1 September, 2010 | admin | No Comment

Credit: Flickr

If you have a business today or you’re thinking about starting up one in the future, you’re going to find that you’re going to need health insurance.  Long gone are the days where you could just sign up with your employer’s plan.  You’re a business owner now, so you have to do the health insurance shopping!

The great thing about health savings accounts is that you’re able to deduct all of your health insurance related expenses.  If you really do a breakdown of your health insurance cost analysis, you’re going to find that it may be lucrative to purchase a high deductible plan and write off your expenses.

If you want to sign up for a HSA, there are a few rules that you should consider when thinking about signing up for one.

The contributions you make

As a business owner, you can contribute to both your account, as well as your employee’s accounts.   If you make the contribution to your employer’s account, this is not taxable and will not be included with your employee’s income or wages.  Subject to the rules, employees can make one time transfers from their IRA to a HSA.  Every year, the contribution limits change, so be sure to know how much you can cap your account at.

As of 2009, you could contribute up to $3,000 as an individual.  If you have a family or you’re over the age of 55, you could contribute an extra $1,000, bringing the total to $4,000.

Using your HSA for spending

When you’re ready to take money out of your account, they must be for medical expenses.  As long as you make a medical contribution, you’re going to find that your purchases will be tax free.  Over the counter medication, as well as doctor’s visits can all be written off.  Be sure to save all receipts when making a payment.

I haven’t sign up yet, where can I go?

When I purchased my health insurance plan, I went to eHealthInsurance online.  The thing I liked about them was that I could instantly get quotes from a ton of insurance agencies in my area.  I could compare plan prices and didn’t have to deal with a pushy salesperson on the other end.  I would highly consider this site when contemplating a sign up.

Health savings accounts are a great route to take when you want to save money with taxes, as well as find great insurance plans that you can tie your bank account to.  There are a lot of them out there, so be sure to find what plan is right for you and your family.

5 Tips to Use Business Giveaways

28 August, 2010 | admin | No Comment

Credit: Flickr

Whether you’ve been to a trade show, a fair, or anything else, you may have noticed that there are some companies that are giving away everything from a t-shirt to a mug.

While it’s wonderful to get some free stuff, you’re often wondering if the strategy even works.  Well, if you have a business, giveaways are a big thing and if you want to get into that ball game, you’re going to find that it can work for you, but there are some tips to follow.

#1 Why do you want to give away this item?

Whether it is a small pencil or maybe it’s a t-shirt, you’re going to want to sit back and ask yourself why you’re giving this item away.   Do you want to get the word out about your business?  The key here is to make something memorable, so that people will talk about it.

#2 What do you want to give away?

There are so many things that you can give away.  When I think about the most popular items, I generally think about pens, mugs, frisbees, as well as other little things.  A great place to get ideas is on a site such as VistaPrint.

#3 What do you want to pay?

For every item that you buy, you will want to think about your ROI.  What are your ultimate goals.  If you spend $150 in pens, what do you want to see out of it?

#4 How does this work with your image?

Let’s say that you have a dentist office that you’re looking to promote.  It’s probably a silly idea to promote with a mug or a t-shirt.  Instead, hand out customized toothpaste with your name on it, or maybe a toothbrush.  You will want to make it tie in with your industry.

#5 How are you going to give it away?

Are you just going to hand it out to random people?  I would advise against this because I see old people all the time just grabbing stuff and piling it high in their bags.  Instead, make them do something for it, or maybe make them watch a small clip, etc.

Giveaways to work and you’re just going to want to think them through.  Where are you going to give them away?  What are you going to give away?  How much do you want to spend?  These are all questions to ask.  By asking them and answering them, you should get a better idea on how it can work for your business.

Older Entries »