As we step into 2024, the financial landscape continues to evolve, bringing new opportunities and challenges. In this fast-paced world, being financially savvy is more crucial than ever. However, common pitfalls can derail even the most well-intentioned financial plans. Here, we explore nine financial mistakes to avoid in 2024, ensuring your fiscal health remains robust throughout the year.
1. Ignoring Inflation and Changing Interest Rates
The economic environment of 2024 is likely to be influenced by fluctuating inflation and interest rates. Neglecting these factors can erode your purchasing power and investment returns. It’s vital to adjust your budget, savings, and investment strategies to account for these changes, ensuring your financial planning remains relevant and effective.
2. Overlooking Digital Asset Management
With the growing prominence of digital assets, such as cryptocurrencies and NFTs, it’s a mistake to ignore this sector. Whether or not you invest in them, understanding their impact on the economy and your personal finance is essential. However, exercise caution and do thorough research before diving into these volatile markets.
3. Failing to Adapt to New Tax Laws
Each year brings potential changes in tax legislation, and 2024 is no different. Failing to stay informed about new tax laws can lead to missed opportunities for deductions and credits. Consult with a tax professional to ensure you’re not overpaying or underutilizing tax-advantaged accounts.
4. Neglecting Emergency Savings
The importance of an emergency fund cannot be overstated. Life is unpredictable, and without a safety net, you’re vulnerable to financial shocks. Aim to have at least three to six months’ worth of living expenses saved, and more if possible, depending on your job stability and personal circumstances.
5. Disregarding Insurance Needs
Insurance is a critical component of financial planning. Whether it’s health, life, auto, or home insurance, being underinsured can lead to catastrophic financial consequences in the event of an unforeseen incident. Review your coverage annually to ensure it aligns with your current needs and lifestyle changes.
6. Underestimating the Importance of Financial Education
Staying financially literate is an ongoing process. The landscape is constantly evolving, with new products, services, and regulations emerging. Dedicate time to educate yourself about personal finance, whether through books, courses, or credible online resources.
7. Falling for High-Risk, High-Return Investments Without Due Diligence
The allure of quick, substantial returns can be tempting, but high-risk investments often lead to significant losses, especially if due diligence is overlooked. Understand your risk tolerance and conduct thorough research before investing in any high-return schemes.
8. Neglecting Retirement Planning
It’s never too early or too late to focus on retirement planning. In 2024, ensure that you are contributing sufficiently to your retirement accounts and are aware of any new retirement planning tools or accounts that could benefit you.
9. Failing to Create a Comprehensive Financial Plan
Lastly, one of the gravest mistakes is not having a comprehensive financial plan. This plan should include your short-term and long-term financial goals, investment strategies, and plans for debt management. Consider working with a financial advisor to create a plan that’s tailored to your unique circumstances.
Conclusion
Avoiding these nine financial mistakes in 2024 can significantly strengthen your financial health. Remember, successful financial management is about making informed decisions, staying adaptable to changes, and being proactive in planning and education. By steering clear of these common pitfalls, you can navigate the year with greater financial confidence and security.
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In today’s rapidly evolving business landscape, where disruptions can emerge unexpectedly from various corners of the world, ensuring business continuity and resilience has become paramount. Organizations that have weathered storms, both metaphorical and literal, share one common trait: a steadfast commitment to preparedness and adaptability. In this article, we’ll delve into the importance of business continuity and resilience, exploring strategies and best practices to fortify your business against unforeseen challenges.
The Crucial Need for Business Continuity and Resilience
Business continuity goes beyond a mere plan; it’s an overarching philosophy that champions the ability to adapt and thrive in the face of adversity. Whether it’s a global pandemic, a natural disaster, cyberattacks, or economic downturns, disruptions can spell disaster for unprepared businesses. Here are a few reasons why focusing on continuity and resilience is non-negotiable:
Mitigating Financial Loss: Disruptions can lead to revenue loss and increased costs. A well-prepared business can mitigate financial impact through strategies like remote work arrangements, diversified supply chains, and flexible cost structures.
Maintaining Customer Trust: Consistency is key to retaining customer trust. Businesses that continue to deliver products and services during disruptions demonstrate commitment and reliability, enhancing customer loyalty.
Staying Competitive: Organizations that can recover quickly from setbacks have a competitive edge. They can capitalize on opportunities while competitors are still reeling from the impact.
Compliance and Reputation: Certain industries have regulatory requirements for business continuity plans. Failing to meet these standards can result in legal consequences and damage to reputation.
Strategies for Ensuring Business Continuity and Resilience
Risk Assessment and Planning: Start by identifying potential risks that could disrupt your business operations. Develop a comprehensive business continuity plan that outlines procedures for various scenarios, from IT failures to natural disasters.
Diversified Supply Chains: Relying on a single supplier can be risky. Diversify your supply chain to ensure that disruptions in one area won’t paralyze your entire operation.
Remote Work Capabilities: The COVID-19 pandemic highlighted the importance of remote work readiness. Invest in technology and policies that allow employees to work from home effectively.
Data Security and Cyber Resilience: Cyberattacks can cripple operations and compromise sensitive data. Implement robust cybersecurity measures and backup protocols to safeguard against digital threats.
Cross-Training and Succession Planning: Don’t rely on a single point of expertise. Cross-train employees so that essential tasks can be covered even if a key team member is unavailable.
Regular Testing and Training: A plan is only as good as its execution. Regularly test your business continuity plan and provide training to employees so they know how to react in various scenarios.
Financial Flexibility: Maintain a healthy financial position that allows you to weather economic downturns. Avoid overextending yourself and consider building an emergency fund.
Communication Protocols: Establish clear communication channels to keep employees, customers, and stakeholders informed during disruptions. Transparency builds trust and reduces uncertainty.
Case in Point: Learning from Successful Resilience Stories
One compelling example of business resilience is the response of many restaurants during the COVID-19 pandemic. Faced with dining restrictions, they quickly pivoted to offer takeout, delivery, and even meal kits. Their ability to adapt and meet customers’ changing needs allowed them to not only survive but thrive in challenging times.
In Conclusion
Business continuity and resilience aren’t mere buzzwords; they’re lifelines that can make the difference between sinking and soaring during challenging times. By prioritizing risk assessment, planning, diversification, and adaptability, businesses can position themselves to navigate disruptions with agility and confidence. Remember, the true strength of a business lies not just in its products or services, but in its ability to rise above adversity and continue delivering value to its customers and stakeholders.
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To successfully land funding, you need to think like investor when reviewing the business plan. If you were considering lending money to a business what would be one of your first concerns? Naturally it would be the chances of the business failing. An investor lends money with the intent on getting a return on that investment. So it makes sense that the business plan should be evaluated from the same perspective by the business owner.
Small businesses have a high rate of failure according to the Small Business Administration. There have been many studies done to determine why this is so. These studies have identified common errors that businesses make, so you want to consider these problems before they ever become an issue. Realistically, potential investors will have them in mind before agreeing to lend money so being prepared to respond is important.
Typical reasons for small business failure include over-expanding to prove growth to investors, underestimating expenses or overspending, assuming too much debt based on revenues and cash flow and underestimating the competition. Also included on the list are choosing a poor location and lack of capital. The likelihood of these factors occurring in your business will be considered by investors evaluating a business plan.
If you have already thought through the reasons for failure, investors will recognize that fact. For example, location is high on the list of reasons for small business failures. Presentations to investors, therefore, should address the choice of business location and explain the competition and accessibility by customers. Making sure you address the reasons why your business could fail is an important step towards ensuring it doesn’t.
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One of the important components of a business plan is clearly defining objectives. Stephen Harper in Starting Your Own Business (McGraw Hill) writes, “Objectives can be viewed as dreams with a deadline.” The point he is making is that objectives should be specific in terms of projected amounts and timeframe.
For example, you would not write an objective like this: The business will grow over the next 5 years. You would write it like this: Sales are expected to be $2 million in 5 years and the business will be one of the top 5 niche market leaders. The dreams you have for the business should look ahead and establish where you want the business to be positioned or how much growth is expected within a set period of time. The dreams should also be reasonable, based in facts and business reality, and achievable.
For example, if you plan on opening 5 franchise businesses within 10 years (1 every 5 years) the objective should be stated as such. However, you should also be able to support plans for opening these franchises in the competitive analysis section of the business plan. If the market is already close to being saturated, those 5 new franchises may be difficult to open. When objectives are focused and sensible, the business plan will become a living breathing document that supports your dream.
If you are having trouble setting objectives for the business plan, there are some questions you can ask yourself to develop focus. Ask yourself what your ultimate goal is 5 years from now. Picture yourself as an entrepreneur 5 years from today and imagine the level of business success you want to succeed. Ask yourself questions like how many sales people you hope to have working and how much market share you want to gain. Picture yourself as successful and put your definition of success in writing.
Objectives will become clear when you take the time to look into the future. Though a business plan is not a crystal ball, it is a driving force with strategies for achieving success. Set clear objectives first and the rest of the business plan will be a lot easier to develop.
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How do you convince investors your business idea is worth the risk of investing money? You may have the most innovative and creative idea ever put forth, but that doesn’t mean anyone is going to invest in it. Even a good idea can flop if it’s not implemented correctly. Of course, the most well-known example in business history is the 1958 Edsel. The car had a poor name, a poor pricing strategy and was manufactured during a recession. It remains to be seen if the modern-day Chevy volt will be classified as the “new” Edsel for similar reasons.
Investors are willing to accept risk, but they will do everything in their power to ensure they understand how much risk is involved. Investors are not the same as business speculators in most cases because they want a value proposition that includes a very good probability of earning positive returns. There are many different factors investors will consider to determine risk, and you should assess them first.
Risk is a function of management competencies, available collateral, market acceptance of the business idea and time. To convince investors your business idea is worth the risk of funding, you will have to first prove that the people implementing the plan are fully competent and capable of running a business. Investors will also want reliable collateral. You need to show that the product or services can be efficiently brought to a willing market. Finally, the investor will want to assurances that the payback agreement in terms of time will be met. Payback in terms of money is taken care of by the other factors of competency, market success and collateral.
You can convince investors to fund your projects by developing a sophisticated business plan that clearly and carefully shows the level of risk the investor is assuming. The good news is that the time spent developing a business plan in the first place reduces risk right away.
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Branding is one element addressed in the marketing section of the business plan. It’s also the image presented to angel investors when searching for business funding. Contrary to popular belief though, branding is not just about a trendy logo or elaborate advertising. It’s the element that represents you as the business owner, the quality of your products, and the level of customer service. Brand is composed of your individuality and your company’s value.
Branding is a complex concept which is one reason why it’s often reduced down in people’s minds as being mostly about advertising. The assumption is that if the target market is aware of your logo, then branding efforts have been successful. However, it goes much deeper than advertising, which is why your business plan must present more than an advertising plan to potential angel investors.
Business brands is about the quality and value that underpins the entire business. It’s the projected image, but more importantly it’s the tie-in for everything the company does or will do. business brand is a broad brush that covers marketing, pricing, the level of customer service and the business culture. Branding pervades the business plan and is not simply one element in the marketing plan.
Common question angel investors ask always concerns brand. What do you want your brand to project to the marketplace? Is it quality, innovation, creativity, problem solving or all of the above? Branding is important to startup companies as well as established companies. In fact, branding for startups can perform an important job for startups on limited budgets by making advertising efforts more effective. Clear and distinct branding differentiates the company in the minds of customers, thus giving the company more value for marketing dollars spent.
Before preparing a business plan to present to angel investors, make sure the brand is well defined. Branding is not just advertising. It’s the element that ties your entire business together.
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Lots of talk on what position lenders take when offering SBA programs. Lots of different banks that are approved for SBA programs have different criteria. This is based on the risk level the bank wants to take. The SBA generally guarantees about 50% of the bank funds. This makes it attractive for banks to offer better incentives to businesses. Start-up businesses are also welcome and can sometimes qualify on lower FICO scores for what SBA calls Micro Loans. Usually, SBA minimums are around 620-640+ with a good Business Plan and a $50 max amount. Here are other Minimums broken down for existing businesses:
SBA 7(a) 650+
SBA 7(a) Express Loans 650+
SBA CDC/504 Loans 680+
SBA CAPLines Program 660+
SBA Export Loans 660+
SBA Microloans 620-640+
SBA 7(a) Loans
These are the most common SBA loans and generally what people think of when they think of an SBA loan. It’s a general loan that businesses can use for almost any purpose. Unfortunately, they’re also among the toughest to qualify for, with an estimated SBA loan credit score minimum of 650.
SBA 7(a) Express Loan
Designed for small businesses that need a smaller amount of cash (up to $1 million until Sept. 30, 2021, then $500,000 after that) in a faster amount of time, the SBA Express loan is not much easier to qualify for and has similar qualification requirements to the regular SBA 7(a) loan.
SBA CDC/504 Loan
SBA CDC/504 Loan is designed to help businesses buy owner-occupied commercial real estate or heavy equipment. Most people who qualify have a 680+ credit score minimum and require a 10% down payment on the purchase.
SBA CAPLines Program
This is essentially an SBA line of credit designed to meet short-term or seasonal working capital needs. You can generally qualify with a credit score of 660 or higher with short-term collateral such as unpaid invoices, receivables, or other collateral.
SBA Export Loans
SBA Export loans are designed to help small businesses fund new exporting operations with cash flow solutions that allow more flexible terms to international customers. By proving a viable export operation, you can qualify for this loan with a credit score minimum of 660.
SBA Microloans
Microloans are small loans (up to $50,000) with softer credit score requirements (a minimum of around 620-640) than other SBA loans. You’ll also need to provide some collateral that could cover the loan amount and a sound business plan.
SBA can be a powerful alternative for financing and raising capital. Funded.com has a Lender Match program to match startups and existing businesses with SBA programs and conventional lenders. You can sign up for a free trial and get matched.
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The most well-known cryptocurrency is called Bitcoin, and it was made for it that created blockchain technology. A bitcoin is a form of money like the U.S. dollar, but it is digital and employs encryption to control the creation of new currency units and to verify the transfer of funds.
Cryptography is used all the time in our everyday lives. For example, we use it to safely send passcodes for shopping online placed above a white complex system. The cryptosystem is also used to store your username and password on bank servers and in email clients. In our Internet – of – things world, cryptography protects all information sent, verifies people and devices, and connects devices.
Security flaws in critical infrastructure can be caused by weak or unrecognized cryptography. In addition, brand equity is eroded because of the public’s interest in publicly disclosed data. Therefore, keeping an eye on how cryptography is deployed and handled in the modern workplace is necessary.
Cryptocurrency types
1. Ethereum (ETH)
2. Tether (USDT)
3. USD Coin (USDC)
4. Binance Coin (BNB)
5. Binance USD (BUSD)
1. Ethereum (ETH) – Ethereum is a decentralized blockchain-based platform that safely sets up a peer-to-peer network that runs and verifies application code, called smart contracts. Intelligent contracts let people do business without a centralized authority they can trust. Utilizing the Ethereum Virtual Machine and the native Solidity scripting language, developers may create decentralized applications on Ethereum. Competent contract developers who used Ethereum benefit from a vast ecosystem of developer tools and recognized best practices that have developed over time as the protocol has matured.
2. Tether (USDT) – According to the market cap, Tether is the third-largest cryptocurrency. Some economists, including a member of the U.S. Federal Reserve, are concerned about this.
Stablecoins, like Tether, is a relatively new concept. To avoid the high volatility associated with most cryptocurrencies, these digital currencies are linked to tangible assets like the U.S. dollar to maintain a stable value. For sample, Bitcoin beat an all-time high of about $65,000 in April before its value tripled over the following two months.
Tether was made so that it would always be worth one dollar. As a result, although the value of many other cryptocurrencies often changes, the price of Tether is usually equal to $1.
3. USD Coin (USDC) – USD Coin (USDC) is a stable digital currency tied to the U.S. dollar.
USD Coin is a regulated stablecoin that runs on blockchain technology. It was released in 2018 by Centre, a group started by Circle and Coinbase.
Stablecoins are a type of cryptocurrency whose value is tied to another asset, like a fiat currency, a commodity, or even another crypto coin. For example, USD Coin wants to stay at the same value as the U.S. dollar.
Stablecoins like USDC are used differently than cryptos whose prices change, like Bitcoin (BTC) or Ethereum (ETH). The only reason for this cryptocurrency is to be a stable store of value, not an asset that, in theory, gets more valuable over time.
4. Binance Coin (BNB) – BNB is a cryptocurrency (token) issued in 2017 by Binance. Between the 26th of June and the 3rd of July, it was published and released for the first time via an Initial Coin Offering (ICO) crowdfunding campaign.
The native coin of the BNB Beacon Chain and BNB Smart Chain, BNB fuels the BNB Chain ecosystem. One of the world’s most widely used utility tokens, BNB may be used in various applications and use cases and traded like any other cryptocurrency.
BNB reduces its entire supply to 100,000,000 BNB via an Auto-Burn method.
5. Binance USD (BUSD) – Binance created the 1/1 USD-backed Binance USD (BUSD) stablecoin in collaboration with Paxos, as well as the New York State Department of Financial Services has authorized and controlled it (NYDFS)
Although USDT has enormous trade volumes, it is not fully supported by cash reserves and has run into reputational problems. BUSD, in contrast, has undergone more thorough auditing procedures and operates on numerous blockchains. As a result, both two currencies offer quick transaction speeds and affordable fees.
Positive or negative? The potential benefits of using cryptocurrencies
Cryptocurrency’s many benefits
Some firms could benefit from using cryptocurrency. Among the benefits:
1. Many cryptocurrency transactions are rapid and straightforward. Bitcoins can be transferred from one digital wallet to another using a smartphone or computer.
2. For cryptocurrencies to exist, a public ledger known as the blockchain must record every cryptocurrency transaction. There is a way to keep someone from spending coins they don’t possess, manufacturing clones, or canceling transactions. This means there are no transaction costs because there are no intermediaries to deal with. Payments in cryptocurrencies are becoming increasingly popular, especially among large corporations and industries such as fashion and healthcare.
Risks of using cryptocurrencies
There are some downsides to adopting cryptocurrencies for a company:
It is possible to remove your crypto money or lose your virtual wallet. Additionally, websites that allow you to store your cryptocurrency remotely have had thefts.
Some people don’t believe converting “actual” money into Bitcoins is safe because the value of cryptocurrencies like Bitcoins might fluctuate greatly.
The Financial Conduct Authority (FCA) does not supervise the bitcoin market; thus, there are no regulations to safeguard your company.
It may lose value and turn worthless if businesses or customers switch to another cryptocurrency instead of yours or stop utilizing digital currencies altogether.
Exchanges for cryptocurrencies are susceptible to cyberattacks, which might result in a permanent loss of your money. In addition, Bitcoin is vulnerable to fraud. People are frequently duped into making such transactions by scammers using websites like Facebook, Instagram, and Twitter.
How to Implement Bitcoin into Your Business
Around the world, businesses and diverse brands are beginning to use cryptocurrencies, notably Bitcoin, for transactional and operational needs. Even if its value is unstable, more and more individuals are becoming aware of its benefits. The methods listed here can help you incorporate bitcoin into your operations and start reaping its benefits if you own a business and wish to start accepting it.
What You’ll Need to Get Started
If you want to accept and move any cryptocurrency, you must have the following:
Wallet for Cryptocurrencies
Because cryptocurrency is a form of electronic cash, you’ll also need a digital wallet to store it. There are a variety of cryptocurrencies that you can use to pay for your services. Use a digital currency wallet that can keep many currencies. Banks that accept Bitcoin and other cryptocurrencies can also be linked to your cryptocurrency wallet.
The Bitcoin Address
As with all bitcoin wallets, your wallet has a unique built-in address. Numbers and letters make up the code. Wallets for digital currency have a function that allows users to generate Q.R. codes from their digital money. Payouts can be made to this address or Q.R. code by sharing it with others. A transaction can’t be canceled or reversed once it’s been sent because of the technology. Refunds cannot be requested either.
The Secret Code
The digital access to your bitcoin wallet is coded into your private key. Your bitcoin wallet’s private key is also unique; if you lose it, you won’t be able to access it. It is possible to set up an optional password for some wallets. If this is the case, you should keep your private key on a USB flash drive or similar storage device.
The Most Suitable Ways To Use Cryptocurrency in Your Company
1. Paying Your Employees with Cryptocurrency Is One Way to Use Cryptocurrency in Your Business – Paying your employees with cryptocurrencies and then converting them into fiat cash can be done at any time by the business owner. The rate might be frozen depending on an employee’s salary. When converting digital currencies, you can utilize the current market value. Payroll payments to employees might begin on a specific date.
Business owners can help employees decide how much of their earnings they’d like to accept in fiat cash and how much would be in cryptocurrency. Because everyone’s financial situation is unique, it’s preferable if employees have some input on how much they receive. Employees will likely take up to 20% of their wages in bitcoin.
As a business owner, you may also talk to your employees about what kind of cryptocurrency they prefer. Employees’ risks should be considered while considering cryptocurrency. To introduce students to digital money, they can use numerous methods and tools to convert digital currency to fiat currency.
2. Create your Bitcoin Company – Incorporating digital money into your company website is possible because of the variety of alternatives available. If you own a retail shop and accept payments online, you may introduce your clients to a new type of cashless payment by offering bitcoin as a payment option. Such considerations will aid in your search for the best solution for your business.
Pay Manually
Clients can use your public address or Q.R. code to make payments. As a result, the digital currency you purchase will be delivered immediately to your online wallet. Numerous wallets have detailed instructions for those who don’t know how to do this.
Summarize
Investors are reaping the benefits of adopting cryptocurrency since it is money. In addition, businesses are beginning to accept it as an alternative to fiat cash because it has lower transaction fees. In the modern world, there are more options than ever to encourage customers and employees to pay with cryptocurrencies. The gradual transition from cash to digital money will benefit everyone.
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Poor management is often referred to as the main factor of why businesses fail. Lacking or poorly timed financing is a nearby second. Whether you are a starting up business or expanding your business, adequate capital is important. Yet it is insufficient to essentially have enough financing; understanding and planning are necessary to control it well. These qualities will ensure business owners to avoid mistake like having a wrong type of financing, or underestimating the cost of borrowing money.
Ask yourself this question before inquiring about financing:
Do you need more capital or can you work on with your existing cash flow?
How do you characterize your need? Do you need the money because you want to expand? Or as a cushion against risk?
How vital is your need? You can get the best terms when you foresee your needs rather than looking for money under pressure.
How big is your risk? All businesses suffer from risks and danger, and the level of danger will influence expense and accessible financing plan B.
How strong is your management team? Management is the most important element surveyed by money sources.
Possibly most importantly, how does your need for financing mesh with your business plan? If you don’t have a business plan, make writing one your first priority. All capital sources will want to see your plan for the start-up and growth of your business.
Don’t assume all money is similar
There are two types of financing: equity and debt financing. If you are looking for money you should consider your business debt to equity ratio – the difference relatively concerning dollars you’ve borrowed along with dollars you’ve invested in your organization. The harder money masters include invested in the organization, the more it really is for you to entice loan.
If your company has an excessive percentage of equity to debt, you may want to seek debt financing but if your company has a high percentage of debt to equity, experts say you should increase your ownership capital for added funds. In this way you will not be over-leverage to the point of ruining your company’s welfare.
Equity Financing and Venture Capital
Most small scale businesses use limited equity financing but with debt financing, additional equity mostly come from non-professional investors like friends, relatives, employees or customers. However, the most common source of professional equity funding comes from venture capitals. These are institutional risk takers and may be groups of wealthy individuals, government-assisted sources, or major financial institutions. Most specialize in one or a few closely related industries.
Venture capitals are sometimes seen as deep-pocketed financial gurus looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns and return higher-than-average profits to their shareholders. Venture Capitals earn money by owning equity in the companies it invests in. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Changing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.
Debt Financing
Banks, savings and loans, commercial finance companies, and the SBA are some of the sources for debt financing. State and the local government have come up with programs in the recent years to give encouragement to the growth of small business to help increase the economy. Family members, friends, and former associates are all potential sources, especially when capital requirements are smaller.
Banks traditionally have been the major source of small business funding. Their main role has been as a short-term lender offering demand loans, seasonal lines of credit, or single-purpose loans. Banks generally have been unwilling to offer long-term loans to small firms. The SBA guaranteed lending program encourages banks and non-bank lenders to make long-term loans to small firms by decreasing their risk and leveraging the funds they have available. The SBA’s programs have been an integral part of the success stories of thousands of firms nationally.
In addition to equity considerations, investors or lenders mostly require the borrower’s personal guarantees in case of default. This will assure that the borrower has a sufficient personal interest at stake to give attention to the business. For most borrowers this is a burden, but also an obligation.
More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.Funded.com
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Business plans are a bit like tornados. There is a core that is tightly woven and concentrated and from that core there are a number of spin-offs even as the tornado keeps moving. An effective business plan is always concentrated on the ultimate mission, in constant motion, and ready to spin-off whatever is needed for a long-term successful business.
The power of tornadoes has been witnessed by thousands of folks over the last couple of years. They can wreak incredible damage if anyone or anything in its path is not prepared. The business plan can be a powerful tool for business success but can also cause a lot of damage if it is never amended to take into account what blocks its path. For example, a new competitor enters the marketplace and your business fails to respond because it’s not in the business plan.
High quality business plans are never really completed because they need to keep moving with the market, the customers, the competitors and the economy. One of the reasons so many companies failed during the Great Recession was due to inertia. They insisted on doing business according to the business plan that was not updated to accommodate the new economic conditions. There are also thousands of business that have failed or are failing because they did not respond to changing consumer buyer habits.
Right now there is national big box company relying on showroom floors that is struggling to survive in a market where customers have changed from buying computers and equipment locally to buying online. If the company had stay tuned to the marketplace, and revisited and adapted its business plan, there is a good chance that management would have developed alternative selling strategies that improved its competitive position.
The business plan is the core plan and from it you need to spin out changes, market responses, new opportunities and so on. The core of the business plan does not change from its inception, but the details will change with the competitive environment. The business plan should not be like a tornado wreaking savage damage because it refuses to change course. The path should always be well-defined and obstacles removed through strategic planning.
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