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10 Good Reasons Why Small Enterprises (Small Businesses) Fail

You’ll agree with me that there are so many small businesses which have contributed a lot to the growth of economy. They have created employment opportunities for many families although some remain to be small throughout their operational life.

It is obvious that those who are starting new ventures have objectives to achieve. And to mention each business has got its own objectives to achieve such as maximization of profits and sales, minimize costs, maintain a certain level of production and labor force etc.

Failing of a business opportunity is what an entrepreneur won’t want to happen. Inasmuch as we agree with the fact that there are firms which have succeeded, we should also accept the fact that a good number of them have failed even before two years lapse after they commence business.

If aspiring entrepreneurs addressed the reasons why small businesses fail, then they will not fall to be victims of the same causes of failure. This is because they’ll be in a position to identify these causes and fix them before it’s too late.

Now you may be asking yourself as to why some businesses remain to be small throughout their operational life despite some of them making profits or are capable of growing.

4 Reasons Why Small Business Remain to be Small

1.) The owners of these businesses prefer not to expand their businesses. Some sole proprietors do not want to be bothered with the challenges of managing a big business. They don’t want to employ people to assist them in running their businesses but instead they prefer to be assisted by their family members.

2.) The nature of the product/service the business is involved in doesn’t allow expansion. There are people offering products/services which make it difficult for their business to grow.

3.) Lack of capital for expansion. There are small businesses which are viable and have the potential of growing but they lack enough capital. Such businesses have the challenge of securing funds from financial institutions. Lack of capital plays a negative role in hindering the growth of small businesses.

4.) Very low demand. If the business has a very low demand for its product or service, then at the end of the fiscal financial year/trading period the business won’t realize profits, and if it does, it’s very low, therefore the chances of it expanding are very minimal. Just to mention, realization of inadequate profits as a result of very low demand hinders the growth of small businesses.

However, there must be a starting point and as such, every business starts as a small entity and it gradually grows to a medium entity and eventually it becomes a big business entity which is either a private limited company or a public limited company. Note that a partnership business can also grow to become a big business.

Reasons Why Small Businesses Fail

1.) Wrong Reasons For Commencing Business: People who start a business for wrong reasons haven’t succeeded. Just because another person is making high profits in a certain line of business doesn’t mean that you will also make the same amounts of profits as him/her if you start the same business.

2.) Poor Business Management: When there is poor management of the business it becomes difficult for such a business to succeed in its operations. Finance, marketing, purchasing and selling, planning, hiring and managing employees is what most new business owners fail to execute effectively thus making their small businesses to fail.

3.) Lack of Commitment: Starting a business requires someone who is committed in ensuring that it succeeds. Neglecting the business will cause the business to fail. Many small businesses have failed because the owners didn’t take their time in monitoring performance and in marketing them. Some business owners leave their businesses to be managed on their behalf by incompetent people who lack book keeping knowledge and the knowledge of managing a business.

4.) Lack of Finances: Small businesses have failed because of lack of adequate finances. Some of the owners underestimated the amount of capital required and as a result of this underestimation some ended up running out of operating capital thus ending the operation of their businesses.

There are those who have no reserves which has led them not to be able to take care of loses and disasters when they occur thus making them to quit business.

5.) Over-Expansion of the Business: This has led to failure of many small businesses. This happens when there is borrowing of too much money beyond what the business requires so as to expand the business. Moving to markets that are not profitable is also over expansion of the small businesses.

An ideal expansion is the one that is driven by customers due to their high demand for the products and services which leads to high sales thus the business experiences good cash flow.

6.) Location: The place where the business is located is critical in determining its success. Small businesses have failed because of them being located in areas that are not ideal for business. They should be located in areas that are accessible, populated with people and has demand for their products and services.

7.) Personal Use of Business Money: This is the biggest challenge facing many small business owners. They withdraw money meant to operate their businesses to meet their personal wants and needs. If they continue to withdraw money from their businesses without returning it, their businesses will eventually run out of finances therefore forcing them to end the operations of their businesses.

8.) Lack of Delegation: Small enterprises have failed due to owners not delegating some of the duties to their employees. They think that if they delegate them, then their employees will not perform these duties as they would personally perform them. When such owners fall sick or are away from their businesses, then the operations of some tasks will be paralyzed till they resume to work.

9.) Not Diversifying: Small enterprises which have only one product/service to offer are prone to fail easily compared to those that have a variety of products/services.

10.) Procrastination and Poor Time Management: Postponements of tasks which the small business owners feel to be unpleasant to perform has made the small businesses to fail. An example of such tasks include following debtors to pay their debts (debt collection).

Time management remains to be a challenge for many people who own small businesses. If important tasks like delivering products to customers, purchasing stock etc are not handled in the appropriate time, then the business will lose its customers.

The above are not all the reasons why small businesses fail, there are more reasons.

Best 10 Small Business Ideas Of 2020

Do you feel bored with your regular nine to five job and looking for starting a business? Are you looking for starting an extra earning source? Or, do you want to start a small business in full swing eyeing to make it your career?

The idea of starting a business can be exciting and all it requires is time, effort, money, and a fresh idea. We can definitely help you with the ‘idea’ part.

Let’s get started with 10 small business ideas of 2020 that can get you started.

Cooking/Baking: This doesn’t need a huge capital. If you already have the skills, you are good to go. Make a slow start. If necessary, work from home. Select your preferred arena such as Braising, Stewing, Steaming, Baking, Roasting, Grilling, etc. Start with 2/3 items and start delivering. Everyone likes a nicely cooked home meal. Advertise within your known area and let your cooking do the rest.

Tutoring: This is probably the most known source of earning, though most of us don’t try to take this on another level. Tutoring is not limited to teaching academics. It can be a huge business opportunity with these extra steps:

– Know how to play a musical instrument? Teach your dexterity.

– Can make small yet handy crafts? Teach your techniques.

– Good at editing or designing? Teach your skills.

– Able to sing, dance, art, cook, or anything as such? Teach your expertise.

– Confident in applying your makeup just right? People always asking, how are your attire always so perfect? Teach your mastery.

– Know how to click the perfect picture? Teach your knowledge.

To summarize, find out what you know because there is a huge number of potential students out there searching for your service. Remember, learning will never go out of fashion.

Babysitting: Bet you have spent a fair share of time taking care of your baby nephew and nieces. Now is the time to use that experience. Watch the kids when their working parents are too busy to do so. Make your family and friends your brand ambassador in this case.

Interior Designer: Have a fascination with a beautifully organized home? Then start learning of course! Online courses about the basic interior are not very hard to find. After gathering enough knowledge start doing small projects, take pictures, make a portfolio, and open a website or online page or hand out flyers if needed. The want of virtual assistants is huge in rate.

Break the norm saying, Interior Designers are only for the riches. Provide your service in all possible ranges and see your business booming. Due to growing demand, you may count interior design as one of the best among 10 small business ideas of 2020.

Customized Jewelry: Have a thing for jewelry? In that case, this business is for you. The opportunity in this field is huge with its growth projected at 5-6% per year. From golden to wooden, no jewelry will ever be old-fashioned. This is perfect for a small capital side business. Due to the rising popularity of customized jewelry among fashioned seeker women, this can be considered as one of the best among 10 small business ideas of 2020.

Develop an app: There are apps for anything and everything these days. From finding all your essential files to finding a good night’s sleep, there is an app to the rescue. Coding skills or no coding skills, learning how to develop an app will only bring you potential business opportunities. Start with some marketing research and you are off to a great start.

Translator: Now will be the time to put your language skills in use.

Employment of translators is projected to grow 19 percent from 2018 to 2028 which is much faster than the average for all occupations. If you know more than one 2nd languages then you’re in luck and in great demand.

Create your channel: A YouTube channel can earn around $3 to $5 per 1000 views. A successful YouTuber can earn millions by a single video. If you are up for it, this can be your only earning source as well. Hence this idea can be considered as demanding ideas among 10 small business ideas of 2020.

If you have a passion for travel, standup comedy, music, dance, animation, teaching, creating, or anything of such sort, start sharing with the world.

Learn about YouTube guidelines and know your tools. A decent location and a good camera can increase your chances of income.

Ghostwriting: All ‘BoJack Horseman’ fans know about Diane and how she was a successful ghostwriter. She was never out of work and nor will you be if you have a passion for writing. A ghostwriter may not get credit for their work but it’s a lot of money.

Many started as a normal ghostwriter and ended up having an influential career out of it. Averagely, an adept ghostwriter can net $20,000 per project and over $50,000 if the client is a celebrity. Beginners on average earn around $5,000 depending on the topic and length of any text.

Freelance Content Writing: Content writing is undoubtedly one of the best among 10 small business ideas of 2020. In this age of digital marketing, content writers have their fair share of demands. If you have skill in formulating a well-structured story or article, this startup is for you.

One can write content for a variety of things like Web content, Blogging, Social media, ad and sales copy, Expert, or industry writing, Journalistic/news writing, Creative writing, etc. An experienced content writer can earn up to $1000 to $5000 a month.

If you already made up your mind to start a small business, that’s great! Don’t make a delay, pick up one from 10 small business ideas of 2020 above, and get prepared for a jump in the big space of business!

Small Home Biz – Top 10 Home Based Business Ideas and Opportunities For a Beginner

Kudos to the small home biz segment that brings into a significant number of the educated, senior and entrepreneur work force from the masses. This section comprises of the people who cannot resist the temptation of working in niche areas and utilizing their creative skills without the corporate intervention and hypes. The small home business sector provides them the essential opportunity they are searching for. No fancy skills like web designing, computer programming and scripting are required for these top 10 home based businesses. It is a small leap from a full-time office job to a full-time “working from home” which eventually gives way to flexible hours when there is a steady source of income.

My choice of “Top 10 home based businesses” that will give you an edge and expedite earnings to break even quickly with your investments are the ones that produce results and have ways to measure your incremental success in steps, however small. A birds eye view of the systems that will make you a self employed home biz owner –

Plug-In Profit Site (PIPS)

Niche Profit Classroom (NPC)

Ewen Chia’s Super Affiliate Inner Circle Club

Internet Marketing Centre (IMC)

Strong Future International (SFI)

Empowerism

Global Domain International (GDI)

The International Association of Home Business Entrepreneurs (IAHBE)

Warrior Pro

The Reverse Funnel System

Plug-In Profit Site commonly known as the PIPS program comes with a complete money making system that runs on auto-pilot. The package has everything – a professional website, reputed 5 affiliate programs, pre-written sales letter and automated emails by an autoresponder. It is all about earning a residual income from the internet. The advantage of the program is that it gives a kick-start to a newbie who is readily equipped with a useful internet product. A small disadvantage of the system is the initial cost of the membership programs and a 30 days training series that may end up in a total spending spree for an inexperienced marketer.

Niche Profit Classroom is a membership program that I have found very helpful from my personal experience. NPC provides one-to-one support, premier web hosting for 15 domains and ready made high quality niche websites that are very easy to customize and deploy. The video tutorials are very educational and are made keeping the view of a novice who is new to the internet with no expertise in computer skills. Every month, you get instant access to two ready made businesses and a step by step approach to implement the blueprint. The membership fee is slightly on the higher side for newbies who have just come in but worth investing.

Ewen Chia’s Super Affiliates Inner Circle Club is a monthly membership program in which the super affiliate shares the secrets, strategies and resources on how to make a fortune from affiliate marketing and various other online techniques. The membership provides 5 modules out of which three of them provide new content every month. One of the modules contains products that you have PLR (Private Label and Resale Rights) that alone is worth your investment in the program.

Internet Marketing Centre has 12 modules and each module contains a number of lessons, resources along with bonus materials that are broken down into small steps so that you can follow the time-tested, proven business building techniques in order to make profits. There is an action plan for you to follow once you read the lesson. You should join only if you are serious and ready for investing a significant amount of the one time yearly fee. With the latest upgrade, it comes in different options of quarterly payment as well.

SFI for more than ten years is successfully showing masses how to build a highly profitable internet business from the comfort of the homes. By promoting TripleClicks, an online store, the affiliates can earn commissions by simply referring the people to store. To grow in SFI, you need strong referral and sponsoring skills that can be easily built up with the online SFI training.

Empowerism is a great web based home business that provides state-of the art website, powerful SEO tools to help drive free traffic to your site, comprehensive training with full access to resources and free “Excellence” magazine that is filled with latest online success tips and strategies. The only thing which may deter one’s online business is that one needs to be good in referring and building network.

IAHBE is an organization that champions the home-business opportunities and provides access to an unparalleled, one-of-a-kind business building arsenal of your own. You will have at your disposal, dozens of exclusive reports, interviews with the internet’s most successful entrepreneurs, and much more!

GDI Fight the recession with the most powerful home business, an easy program to build an income from home. GDI offers a great product – domain, web hosting and it is 100% free to sign up for. This eliminates a lot of objections that prospects have when they are looking at online business opportunities. There is absolutely no risk involved.

WarriorPro comes with a subscription to Host4profit, membership to the world famous Warrior Forum and a complete Ad tracking system. It pays you for each person that signs up for a Host4Profit hosting account either through your PIPS site or individually and is a great way of earning residual income.

The Reverse Funnel System is an extremely profitable business built in the PIPS website where you get 100% commissions. It is not a scam but requires a significant money amounting to $2K to $5K for the membership schemes that are quite expensive. Hence it isn’t for all and does not provide a launching pad for people who are not prepared to invest.

Today there are thousands making it big with their home based business. Success is certain for tenacious people who are there for the long haul. Just take up some or all of the above and give your best shot.

Small Business Ideas With Low Investment

1. Mobile Shop Business- Mobile Shop: Nowadays everybody is using Mobile Phones, and there are more opportunities to grow in the future. The way Mobile Market is growing, according to the price of opening a mobile Shop, it will be a very profitable business. You will not need too much capital for this. Start with a small shop and increase the shop as soon as income increases.

2. Grocery Shop Business- Grocery Store: Grocery Shop has always been counted as a good business idea. The biggest thing is that you do not have to have any special talent for it. In areas where the Grocery Shops are low, you can easily open Profit. If you also add the convenience of Home Delivery in this shop, it will grow faster.

3.Blogging Business – Blogging: Blogging is also a low investment business. If you write well and you have knowledge of computer and internet then this field also has immense potential for you. There are limitless possibilities for Future in this business. The beginning will be slow, which is in every business, but in a few days it can earn millions of rupees. Its best thing is that students and Part-Timers can also do this business.

4. Event Management Business – Event Manager: Event Managing is also the highest business at present. India is a country of festivals and festivals and people here organise events on weddings, birthdays and other small occasions. Most people are not able to do all the work of the event due to the busyness, so they need an Event Manager like you who can manage all the tasks and work from other workers. This is one of the Fastest Growing Businesses.

5. Beauty Parlour Business – Beauty Parlour: This business is the best and easy business for women. You can open a nice Beauty Parlour by doing 2 or 3 months Beautician Course. According to the way the use of Makeup is increasing nowadays, the future of this business is golden.

6. General Store Business – General Store: Opening a general store of everyday items in use can also be a great and profitable business. In it you can place Soaps and Shampoos, Beauty Products, Stationary and more. Women can also do this business with men. There is also great potential for Future.

7. Real Estate Business – Real Estate Agent: Nowadays everybody wants to buy their own house or take a plot and want to build their house on it. You can help him by opening Real Estate Agency. I know a lot of Real Estate Agents who help people choose home or land according to their liking, and in return receive commission of 1-2% of the cost of property. This is one of the most profitable businesses in Future Prospects.

8. Health Club / Gym Business – Health Club / Gym: At present every person, whether old or young, Ladies or Gents, all want their health to be good. For which they go to Health Clubs or Gyms and work out there. You can also earn good by opening a health club or gym in a good area. In Future, when your Health Club starts receiving good income, you can open its second branch in another area.

9. Computer / Laptop Repairing Business – Computer / Laptop Repairing: If you come to repair computer then it can prove to be a Best Business for you. But even if it does not come, nowadays many government and private institutions and Laptop Repair courses run. This course is usually three months old. You can easily open a Computer Repairing Shop by doing this course. Given the increasing use of computers, this business can be considered as beneficial for Future.

10. Trainer / Tutor – Trainer / Tutor: You can also earn good money by becoming a Trainer or Tutor. It requires a lot of money for this. If you are good in the field or in which case your guts are strong, then start teaching them to other students or people. If the number of learners increases after a while, then you can add some more Tutors or Trainers. In this way you can take this business to a very high level.

11. Professional Freelancer – Professional Freelancer: Maybe you do not consider Freelancing a business, but do you know that many people are earning a lot of money by opening Freelancing Agencies and as freelancers. If you have Web Designing, Software Development, Writing, Photo Editing, Writing, Translation etc. or any other talent you can easily earn money by becoming a Professional Freelancer. Nowadays there are many freelancing platforms that provide work to freelancers. The biggest advantage of freelancing is that you determine the time and cost of your work. There is considerable potential for this business to grow in the growing online world.

12. Interior Decorator – Interior Decorator: Everyone wants his house to look beautiful, because of his good impression on the people coming. People often hire the interior decorators for this. You can also help those people by starting the Business of Interior Designing. In return, you get good money too. There are also unlimited possibilities for Future. Apart from home you can decorate the interiors of Office and Shops too.

13. Bakery Business – Bakery: Bakery is also a very good and long-term business. It does not require much investment in starting. You can easily start it and make Bread, Toasts, Biscuits etc. and deliver it to nearby market. You can also do Home Delivery of your products. More information on bakery business and project reports can be found on this link – How to Start Bakery Business – Project Report

14. Home Canteen – Home Canteen: As the population continues to increase, work is also increasing and in the same proportion, Offices are also increasing. Office staff can not find the time to take lunch to their home or hotel. You can open a Home Canteen and bring food to their office for them. You can do this work only from your home and the income is also very high.

15. Electronic Store – Electronic Store: You can also open an electronic store by investing a little more investment. Nowadays demand for TVs, Fridges, Kitchen Appliances has increased so much and anyone can earn good earnings easily by opening an Electronic Store.

Things to Be Remembered Before Applying for a Small Business Loan

If you want to start your new business or if you wish to expand the existing one, it is advisable that you should apply for a small business loan as quickly as possible. It is vital that small businesses are not eligible for this type of fund and it is important that you have to be cautious before you apply for this type of fund. If you have to ensure that you fulfill the eligibility criteria successfully and if your business maintains good reputation, it is vital that you should improve your scope to get it in the best possible way. This article will highlight on a few essential tips that you should follow in order to apply for this type of fund to the best of your abilities.

The first thing that you should follow is to obtain one copy of credit report of your business and that you have to ensure that it is an accurate one. All you have to do is to acquire one copy of this kind of report from the popular credit reporting organization as quickly as possible. There are several lenders who wish to read this kind of report before they start to review loan applications without any kind of delay.

Once you manage to get this kind of report, the next step that you should follow is to get the financial statements of the last three years as quickly as possible. The financial statements include the income statement, balance sheet and other relevant details in the best possible way. Plus, you should be able to show the current financial statement of the last three months. You may also have to produce other relevant documents such as balance sheet, income statement and so on. You should also be able to provide the details of your business plan as much as you can.

The next step that you should follow is to write down an executive summary as quickly as possible. It is vital that this kind of summary should have all the relevant information such as the background of the business, its brief description, the exact time within which you want to repay this type of fund and so on.

You should also prepare an appropriate loan proposal along with relevant details such as the exact amount of loan that you want to borrow and the exact purpose that you want to borrow and so on. Once you are able to prepare this kind of proposal, the next step that you should follow is to prepare an effective statement for loan repayment as fast as you can. It is vital that it should include all the relevant details such as the way you wish to repay this type of fund, the exact time within which you want to repay it and so on.

The final step that you should follow is to submit this type of application and to provide the relevant documents to the appropriate lender within the scheduled period of time. It is vital that you should wait for a certain period of time before this type of application has been sanctioned by the concerned authority.

Start a Small Business

The sad reality is that so many people dislike what they do for a living. Take a moment to think about your daily grind. Do you enjoy what you do for a living, day-in and day-out? If the answer is no, then why do you keep at it? There are so many different things you could do to earn a living in this world. The trick is to sit down and brainstorm your countless income opportunities. If you have yet to do so, it is high time you go started. While you may have not considered it yet, you can start a small business from the comfort of your own home. This is a wonderful idea that far too many men and women overlook. Can you imagine being your own boss?

When it comes to starting a small business, the toughest obstacle is initial income. While you may have your golden idea, and you may even have the supplies or know-how to get started, there is that notion of not being able to earn a living and pay the bills right off the bat. Okay, this is where you take a deep breath. There are business loans at your disposal, which can assist you with getting the financial stability you need in order to get started. One thing is for certain; you cannot let this minor obstacle prevent you from starting a small business. If you never take the chance, you will never get away from that job you dislike.

If you would prefer a little guidance, then you should consider helpful websites that can further assist you. Some sites that can help you start a small business are BeneTrends.com, FlyCti.com, and MyLLC.com. Go ahead and take a look at these websites and see what all they offer in regards to information and tips regarding small business startup. The website known as sba.gov can also aid you with your small business plan. This is actually a small business planner site that provides free information to business owners. Finally, you may want to check out entrepreneur.com for tips and info as well. There is plenty of data at your fingertips.

You might be amazed at how many small businesses are started every day in the United States alone. Often the key is simply being driven to succeed. If you know your business will be successful, and you really pour your heart and soul into it, you can make it work for you. In this day and age location is no longer such a major issue. Especially when so many small businesses are started online. If you make the entire world your potential customer base, then you are likely to make a higher income when you start a small business. However, if your live in a large community, you can make a good living with the right small business, as long as your product or service is needed there.

Some Useful Tips On How To Start A Small Catering Business

Since a lot of people love to eat, many entrepreneurs view this is an opportunity for them start a business that can be quite profitable. However, setting up and opening a restaurant or food truck can be an expensive and time-consuming venture. If your heart is into succeeding in the food industry but don’t want to go through the hustle and bustle of opening a restaurant or food truck, starting a catering business may be your best option.

The good thing about opening a small catering business is that you can operate one right in the comfort of your home. This means you won’t have to spend more money on buying certain cooking or baking equipment and wares since you already have the basic items or even everything you may need for this venture.

To make sure that you are on the path to starting a small catering business the right way and to ensure its success, there are certain useful tips you can follow. These tips include the following:

Make sure you meet the local health and safety codes for home-based catering. Although you are not opening a restaurant, you still need to apply for and get a business permit or operating license. Learn about the process of getting one and the different health and safety codes that you will have to meet or pass as well.

Create a list of all the equipment and wares you need and make sure you have them. The equipment, wares, and supplies you will need for your kitchen will depend on your type of operation. If you plan on cooking your food at the venue’s kitchen for a particular event, you will only need the most basic commercial prep supplies in your home. The same principle will also work if you will be cooking from a mobile kitchen or creating a temporary kitchen at the event sites. In such instances, you will need mobile coolers or refrigeration units, basic kitchen supplies, steam table pans, kitchen work tables, disposable catering supplies and food carriers. You will have to invest in cooking equipment like a fryer, convection oven, and range (if you don’t have them yet) if you will not be using a temporary or mobile kitchen for the events you are catering. Since you are just starting, you can rent other items such as chafing dishes, catering display items, and table skirts. Once your business is going well, you can consider buying these items to save money in the long run by reducing your rental costs.

Invest in catering software. Using the right software for catering can help you a lot in keeping track of and managing your business. Catering software can help you quickly and effectively calculate your costs. It will help you become more organized with all the tasks and information that you need to manage since this will provide you a platform where you can document contacts, data, budgets, team schedules, activities, etc. Finally, with this software, you can come up with and present your clients with professional and impressive proposals.

Finally, work on getting clients for your catering business. Using catering software can already help you out in getting clients. Aside from this, come up with a solid marketing strategy, capitalize on your low profile (ie. sell your business as providing “the best homemade comfort food”) and offer tastings so that you can win some clients.

Learn more about optimizing the right catering software and other useful tips to have a successful catering business here.

Free help by SBA for Small Business Loans

Why should anyone be interested in helping you for free?

The government benefits if it gives small business start up loans and that is why it helps.

o Statistics show that small businesses number more than the big businesses.

o Small businesses employ more than 50 percent of the work force.

o Small businesses contribute to more than 50 percent of the nation’s GDP-Gross Domestic Product.

o Small businesses are the principal source of new jobs.

Starting a small business or expanding your small business is not easy. Expert guidance and help is given to you for free by SBA. The US Small Business Administration was established in 1953 and has business offices in every state. SBA works with thousands of lending, educational and training institutions nationwide. It does not provide grants but offers counseling. Government small business loans are offered to many entrepreneurs. Look up the web sites of the state economic development agencies to know if it is available in your state.

SBA is only a guarantor of loans offered by banks and other private financial institutions. The lending institutions that agree to terms of the SBA provide loans to small businesses through SBA. In case of inability of repayment of loan within the stipulated time; the SBA pays the lender the agreed upon guarantee amount, and the borrower has to pay the SBA the entire amount.

Can the SBA help you?

Small business is one that is independently owned and operated and is not dominant in its field of operation. SBA has regulations to determine whether your business qualifies as a small business. You could look up the SBA website or federal government regulations to find out if your small business startup loan or small business loan for expansion qualifies. Your business has qualified then the next question that any lender would ask you, is: Do you have a business plan?

Most lenders would require a detailed description of the business you are going to start up or expand. Look up the SBA site http://www.sba.gov/starting_business/index.html for planning options and counseling. The many things that SBA helps you is

o Writing a business plan

o Getting the loan

o Marketing

o Licenses and Laws

o Patents and copyrights

o Selling to government and abroad

o Hiring employees

o Buying the right equipment.

Notable among it various programs are Small business loans for minorities, Small business loans for Women, Small business loans for veterans and young entrepreneurs. The various small business loan programs offered by SBA are.

Basic 7(a) Loan Guaranty

This is the primary business loan program. It is offered to those who do not qualify for loans through the normal lending channels. The terms offered by SBA are more flexible. Valid loans are those where the proceeds of the loan are used for sound business purposes. The maturity is 10 to 25 years depending upon working capital and fixed assets. http://www.sba.gov/financing/sbaloan/7a.htm

Loan Prequalification

Low income borrowers, disabled business owners, exporters, rural and specialized industries are the target for this program. Bad credit small business loans do not fall in this category. The applicant has a credit merit then it is easier to secure the loan. http://www.sba.gov/financing/sbaloan/prequalification.htm

Certified Development Company (CDC), a 504 Loan Program

This is a variant of the Basic 7(a) loan to obtain real estate or equipment for expansion or modernization. http://www.sba.gov/financing/sbaloan/cdc504.htm

Micro Loan, a 7(m) Loan Program

This is available in selected locations in most states. The SBA stand as guarantor to organizations that provided the loans, technical assistance and management for small scale financing. Not-for-profit child-care centers can also avail these loans for working capital or purchase of inventory or supplies. http://www.sba.gov/financing/sbaloan/microloans.htm

Disaster Recovery

Home owners, Property owners in disaster areas qualify for this loan program. Term of the loan is 30 year and the rate of interest is below 8 percent for those who can obtain credit elsewhere and below 4 percent for those who cannot obtain credit elsewhere. http://www.sba.gov/disaster_recov/loaninfo/property.html

8 Golden Success Secrets for Small Businesses

Running a small business is as challenging as trekking to Mt. Everest without having oxygen cylinder, prior practice, and a valid map guide. The challenges are only because there are no authentic rules that can lead a small business towards success while other major obstacles comprise: low budget, limited manpower, and lack of efficient resources. But as a small business owner, you must delve into the passcodes that help you decode the secret patterns of operating a successful startup or small business. It not only helps you to sustain your current growth but also excel your business planning’s to achieve higher objectives. There are a few suggestions based on real-world experiences, which can assist you to hit the bull’s eye.

1- Utilize the power of social media:

Nowadays, the entire world revolves around social media and if you are able to use its full potential, it can immediately help you increase your sales and brand reputation with very minimum resource and effort. Social networking sites like Facebook, Twitter, and LinkedIn, help you connect with a large scale of users, where you can directly interact with them, thereby allowing you to convert them into your potential clients. It forms a two-way channel that not only allows you to put your message across but also, listen to what your targeted audience want, which eventually goes a long way in improving and growing your business.

2- Research and analyze your competition:

A business turns to be successful only if it runs on some finely grinned facts and figures. And competition analysis is one of the most important elements of the process. Competition analysis tells you the strength you will require to establish your brand in the market as well as it helps to prepare your business planning adequately so that you could avoid the chances of business failure. An additional benefit of competition research is it allows for designing and developing more feasible and user-oriented products that eventually help you attain a competitive edge over the current market.

3- Work as per your plan but be flexible too:

Efficient planning is a roadmap that drives your business to the top in the long run with predefined routes. It is always advised to stick with our planning even if we face a few hurdles while running our business given that the strategies are designed after in-depth analysis. And day-to-day challenges should not incline you to alter with whatever you planned. The winners always back their business plannings regardless of the stiff challenges, but on the other side, a successful business requires the owner to be flexible enough to embrace new changes. Adapting the new ideas and concepts not only makes a business owner take smart decisions but also, keeps their core planning intact and fresh.

4- Use informative materials to build trust and loyalty:

The Internet is the best medium to reach out to the huge audience with less effort, but you should keep the fact in mind that there is already a heavy flow of advertisements and endorsements all over the web. So, what can be an efficient way to create our presence with a significant impact?

There are definitely some better ways to do it like using informative online materials such as well-written blogs, well-designed infographics, animated videos demonstrating some set of skills, and presentation sheets, etc. Following such practices will attract a huge mass to our platform to learn and engage with us, which gives a sense of trust and ultimately convert them into our long-term clients.

5- Hire your weaknesses:

A small business consists of a team of limited dedicated professionals, having different skill sets of all the corners to tackle most of the business requirements. Small businesses, sometimes, compromise in some crucial areas since they can’t hire specific individuals due to the lack of budget. To get your business positioned to the top, please don’t bear with your inefficient area. Rush into hiring experienced professional(s) so that all parts of your business fire with the same intensity.

6- Be ready for mergers and acquisitions:

Even after working with your full potential, you may not generate enough force to compete with the leading competitors. Other small businesses with the same concept may face the same situations. Just find them and join in the talks to check the possibilities of the merger to form a combined force, which can provide the required pace and power to achieve the common business goals. Mergers have a long, rich history of producing successful businesses, so don’t shy away with it. Similarly, business acquisitions are a noble idea to inject more strength to our business if budget allows us to do so.

7- Keep the quality service always on:

Quality service is the most important source that keeps your client for a longer period of time and it spreads huge positive feedbacks in the mass, driving in a large number of new clients. There have been more than just a few businesses reaching to the top just on the base of excellent service and even without spending a bomb on advertisements and business promotions. While there are other businesses which have failed miserably because of giving no importance to the quality of the services they provided. All in all, having the sound quality of the products/services is the key to succeeding in today’s cut throat competition.

8- Don’t give up:

Running a successful business is not a child’s play since it requires a lot of guts, courage, and risk-taking capabilities. It, sometimes, shakes your ambitions when going through some rough patches, and you need to have the burning desires within you to keep it alive. Keeping patience is also an important character that the small business owner must have, as the formation of a business and climb the ladder of success, demands to wait for long period of time. So, as a business owner, you need to instill never give up attitude to see your dreams come true!!

Summing it up, though the above-mentioned points are not entirely foolproof but yes, following these points will definitely help you to become a smart small business owner who can defy all the challenges and get on the top of the competition. Of Course, the chances of success or failure of your business completely depends on your planning and execution.

The Small Business Administration Can Help Small Businesses

Businesses will find a vast array of services available to help them get their operations up and running, or to help them develop and grow their existing business. No matter how much money is available to spend for consulting; for small businesses, these services are well worth seeking out. Examples of the various types of help available are marketing advice, loans and business plans, as well as help from the Small Business Administration, which is an agency that was developed by the Federal Government to aid and assist small businesses in their day to day operations.

The Small Business Administration offers most of these services under one umbrella. The one service that an entrepreneur will probably find the most helpful is the free online training through the Small Business Training Network. Online education is offered in starting a business.

You can find information on business planning and writing a business plan, business management, finance and accounting, advertising and marketing, e-commerce and website building, international trade and retirement planning. Each course generally takes about 30 minutes to complete and is self-paced. For small businesses that are just starting out, the knowledge offered by these courses is a necessity.

Loans and grants are available for small businesses and can be researched on the Small Business Administration website, located at “Sba”. In addition to a knowledge library, users will find a planner that allows them to plan everything from their startup, to their day to day operation, and even to their exit, regardless of whether they are selling out or retiring.

There are also links to sites that can assist the small business owner in selecting software for their new company, information about international trade and government contracts, making healthcare choices, choosing a payroll and tax service, and form development. Networking and advertising advice is also available. There is a link to a chat room, which offers real time advice for those in need of immediate assistance.

Many new business owners, not knowing any better, seek out information from a variety of different places, not realizing that not all advice is good advice. For small businesses that can be a very bad thing. The Small Business Administration is an alternative that is both reliable and trustworthy.

Not all offers of assistance from sources outside of the SBA are legitimate. All advice received outside of known reputable sources should be scrutinized carefully before acting upon it, to avoid possible repercussions for bad decisions.