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Capitalizing Your Business for Success

Every business needs capital to grow, no matter whether it’s a mom-and-pop storefront or a mature multinational corporation. Startups face particular challenges, however, given that they are generally untested and unproven.

For a new business in today’s economic climate, securing enough funding from a bank may prove a difficult proposition depending on how much it needs to borrow and how much collateral it can offer. For that reason, some entrepreneurs turn to courting investors or financing the business themselves. Both of these methods have own pros and cons.

venture capital — photo credit: Bikerock via photopin cc

Investor Cash Can Be Blessing and Curse

Money from outside investors can be very appealing for the simple reason that a business owner is not risking his or her own nest egg on the new venture. In addition, investor funding can help fuel massive growth in a relatively short term. However, that has the potential to be both a blessing and a curse. Uncontrolled growth can bring challenges – business owners may have little time to consider and refine their product and/or strategy as they become consumed by the demands of daily operations.

Large sums of outside capital can also bring publicity and media attention. On the plus side, that exposure can create word-of-mouth buzz, bringing customers without the expense of traditional advertising. On the flip side, however, a heavy amount of attention can overwhelm a startup, ratcheting up demand beyond supply capacity and threatening to undo any initial positive press with a wave of customer dissatisfaction.

In short, a new business must be ready for all eventualities when it hits the market.

Bootstrapping for Controlled Growth

Unless we’re dealing with the likes of Bill Gates or Warren Buffett, the option of self-financing a business – also known as bootstrapping – probably won’t yield the quick growth and flash of an investor-funded startup. What it can offer, instead, is an enhanced level of control and stability, which may prime a business for long-term success. When owners bootstrap, their business can only grow as fast as their revenues and their ability to pay employees. That makes it less likely that customer demand will outpace the quantity or quality of the goods, or the capabilities of the workforce.

Of course, there are tradeoffs. Bootstrapping means the owner assumes the financial risk if the business fails. It may also be tricky to cover expenses, especially in the early days when sales volume is low. This is where a business owner may need to get creative, at least in the short term, in generating revenue and trimming expenses, which could include reducing or foregoing a salary. Other possible options include working from home to avoid office rent and using social media and other technology for low-cost marketing.

Funding Help Available for Small Businesses

There’s no denying that having a pot of cash at the ready would probably make life easier for startup businesses. Still, there are ways to grow a business with little or no capital. Online affiliate programs, for example, can provide a revenue stream – a business earns a commission each time a visitor to its website clicks a link to another firm’s products. Joint ventures, meanwhile, allow business owners to pool resources and share expertise.

The Small Business Investment Company (SBIC) program, which is part of the U.S. Small Business Administration, seeks to help business owners secure private funding and long-term loans, with the overall goal of boosting private-sector job creation.

In FY 2012, the program provided financing totaling $3.1 billion to more than 1,000 small businesses, a 17% increase over the previous fiscal year. Almost one-third of the recipients were owned by minorities, veterans or women, and/or located in low- to moderate-income communities.

According to the Small Business Administration, about 65,000 jobs were sustained or created as a result of SBIC-related financing in 2012.

Whether entrepreneurs and small business owners tap into government programs such as the SBIC, finance themselves or seek backing from outside investors, they have options for securing startup capital.

About the Author: Dean Vella writes about business and leadership on behalf of University Alliance, a facilitator of online certificate programs in business administration, and leadership and management.

Scandalous Investment Schemes: Is Your Business at Risk?

Recent economic conditions have made investment fraud a very prominent problem among small businesses. These businesses, often looking to recoup losses they incurred in their investments or to their company retirement accounts are being swayed by con-artist financial advisers that are more interested in their own bottom-line than the security of the investments they are offering. Four of the most common fraudulent schemes out there consist of familiar sounding phrases.

1) Exchange Traded Funds Commonly known as ETF’s, these funds carry a very high risk to any investor. Most ETF’s consist of very volatile and exotic financial products that would not be the first choice of any low-risk investor. Additionally, these brokers or advisers often fail to tell the small business that an ETF is often not able to be liquidated at short notice in the event that the company needs to raise quick cash.c

2) ForEx ForEx is the slang term for Foreign Exchange trading. This type of trading deals with buying and selling foreign currency against each other for a profit. Most people do not understand how ForEx works, including most brokers. This type of investment is classed as very high-risk.

3) Precious Metals As many people know, gold and silver prices have skyrocketed since the beginning of the recession. This has spurred many financial advisers to recommend purchasing gold products. However, most investors are unaware that gold is sold in many different ways and at different values. Gold bullion, for instance, is priced differently than gold coins. Likewise, gold stock certificates in a mine are much different from investing in jewelry grade gold. Most advisers encourage gold investments because they are very high-commissioned sales, not because they are beneficial to the buyer. Additionally, many people believe they “own pure gold,” when in fact they only own gold coins.

4) Energy Schemes Whether it is oil and gas investments or green technologies, most of these schemes are considered very risky. Many of these schemes are for start-up capital or new ventures that have no proven track record.

5) Fraudulent Association Advisement of an investment fraud lawyer is recommended if these situations arise, as they are some of the most common ways fraudulent transactions are committed. Brokers “associate” themselves with a large company, even though there is no connection between the entities. The business owner assumes the investment proposal is valid because of the association.

6) Special Deals Think of a Ponzi scheme and you will understand this ploy. These sellers offer an investment deal that they are only willing to offer to specially selected investors.

7) Off the Books These deals are not only risky, they are illegal. The adviser offers you an investment opportunity that they are “aware of” even though it is not coming through their investment firm.

The best way to avoid fraudulent acts by financial advisers is to do diligent research about the investment, the company offering the deal, and the adviser themselves if necessary. If you find that you have been a victim of one of these schemes, or believe that you are a victim of another type of investment scheme, you are encouraged to seek the professional services of a fraudulent investment attorney.

Ann Bailey contributes business articles relating to investment processes. The preemptive advice of an investment fraud lawyer like Page Perry, an Atlanta based specialist in guiding investors, could help small business owners protect themselves from unscrupulous financiers preying upon sound investment hopes of business owners everywhere.

Photo Credit: http://www.flickr.com/photos/digitalcurrency/2438119267/

Using Job Hunting Websites Effectively

Many people today struggle with finding jobs. While driving around an area or mailing out resumes seems to be outdated, job hunting websites can be just as frustrating, especially since many sites are full of spam. These are a few ways on how to get the best out of job hunting websites.

One of the best rules of thumb is to use only 10% of your job search time on these sites. In order to make your time count, choose job sites that are run by Google or have similar formats. Indeed.com and SimplyHired.com have millions of jobs and are some of the least “spammy” job search engines. It’s not enough to just go to these sites though and do a general search. Use the filters that will help you to use your time wisely. You can use a keyword or job title and then narrow your search by filtering for company name, location, salary range, and many other filters that are often important. The advanced search options can be your best friend and focusing on two or three sites and really digging in can help your job search to be more efficient.

Many of these sites will also notify you when new job postings appear in your particular area. Sign up for email alerts that will deliver new job postings each day. This is a great way to get a quick dose of information about these positions and not waste a lot of time doing a new search every day or even every few days. Be warned that even with these tips, you may still get a lot of job postings that aren’t in your field.

If you’re really trying to be efficient with your time, it can be a good idea to avoid the larger sites. Niche sites specific to your field can be your best friend. For someone who is looking for a job in the technology area, Dice.com is a great site that has technology-specific jobs. For someone interested in non-profit work, Idealist.org has only jobs specific to that area. Government jobs can be reached through the U.S. government site. Also, many fields have online databases where jobs are frequently posted.

A surprisingly great resource for job searching online is Craigslist. This is one of the few sites that aggregators don’t tap. This is a good source if looking for a job in a particular area. If you are a top executive or are looking for a highly experienced job, this is not a great source. However, for entry-level positions and internships, this is a great site. Many hospitals and healthcare centers also choose to post on Craigslist, so any medical professionals can easily search through the postings on this site.

These are some basic tips on how to get the best out of job hunting websites. If you use these tips effectively and are able to focus on a few key websites, your job search will be streamlined and a much better use of your time.

Article Inspired by: Apply Direct

Mobile Recruiting Trends: Are you Ready?

One of the most important aspects of recruiting is learning how to properly utilize technology. After all, we no longer live in a world where you will spend most of your time looking for qualified job candidates by making phone calls or attending networking events. Most recruiters now spend the majority of their time working on a computer, tablet or cell phone, and they are able to use all of these devices to find the perfect candidates without needing to leave their office.

Which Trends Should I be Using?

If you do not currently have a cell phone or tablet that is synced directly to your desktop, then you are missing out on one of the easiest ways to recruit. After all, it is imperative to be able to access your contact lists and your calendar at all times, and setting up this connection between your computer and your mobile device will put everything that you need at your fingertips at all times. It is also important to fully take advantage of social networking sites.

For recruiters, however, LinkedIn should be their site of choice instead of Facebook. The LinkedIn site enables anyone to search for people who have specific skills or who have worked for specific companies and this can make the process of finding qualified candidates go much more smoothly. Some recruiters also make good usage of software to help them track the availability of individuals who they believe would be a good fit in the future.

Do I Really Need a Mobile Website?

More and more people are using their mobile devices to search for jobs. This shouldn’t come as much of a surprise since there are now more cell phones than toothbrushes in the world, and for well over 25% of Americans, their mobile device is the primary way they access the internet. If you do not have a site that caters to these users, find a web design company to create one for you so you don’t miss out on these opportunities. After all, if a job seeker does happen to stumble upon your standard website with their mobile device, odds are they will leave quickly to find a mobile-optimized site.

While some of the new career apps have been getting excellent reviews, it is not realistic to think that an applicant that is searching through ten career sites will want to download as many apps. If you have a mobile site that offers easier to use searches and functionality, job seekers can access your information quickly from any mobile device. If you do not respond to the career-seeking mobile users with a simple interface and a great mobile experience, your competition will.

How often do Recruiting Trends Change?

Every time there is a new technological announcement, you can be virtually guaranteed that it will impact the world of recruiting. For example, when smartphones were first released, they enabled recruiters to be much more efficient since they could carry their emails with them in their pocket. Now these phones have developed so much that recruiters have easy access to specialized apps that help them find, track and contact potential candidates. It is also extremely helpful that recruiters can now access their calendar from anywhere because this helps them prevent double booking their time.

How often should I Implement New Recruiting Trends?

Although some people feel more comfortable waiting for others to test out new technology before they embrace it, you do not want to get left sitting on the sidelines. After all, if you wait six months to try a new mobile recruiting trend, all of your competitors are likely to have already used it to locate several prime candidates who you missed out on. Therefore, it is not a good idea to take a wait and see approach with new mobile recruiting trends. Even if you try something and it does not work as expected, it is better to get the jump on your competitors than to find yourself always lagging behind.

At this point, all signs indicate that mobile recruiting trends will overcome the entire recruiting industry. Therefore, if you want to be able to compete, you will need to take advantage of every mobile option that is available to you. Make sure that you implement your mobile plan immediately if you are not already using one, and keep up on industry related news to find out when each new trend surfaces.

Author Shelby Warden researches the latest trends to write articles that can help you succeed. The 522 Digital LLC web design company in Washington DC provides a wide range of services for their clients so they can complete in today’s demanding business environment. Their experts will create the perfect mobile site to keep job seekers coming back to you time and time again.

Photo Credit: http://www.flickr.com/photos/johanl/5144798765/

In Business in Houston? Best Tips for Making Your Commute Safer

When you work at a business in Houston, the daily commute is a fact of life. On a good day, traffic flows along like easy water in the bayous. On a bad day, it makes the Mad Max movies seem tame. Here are some tips to make the drive easier for you and your fellow road warriors.

1. Know where you’re headed and what’s coming. Check weather and traffic reports before you leave the house. Houston is a big town, and sunshine in your backyard doesn’t mean it won’t rain on the way to work. Find out if there are any accidents or closures between you and the office. You have plenty of alternative routes, so design an exit plan that will ease you out of gridlock. Knowing that you’re prepared when you head for work gives you confidence to tackle the road.

2. Get off to the right start. A good breakfast doesn’t belong in the front seat while you’re driving, so fill up before you head out. That cup of coffee gets to go along, but only in its own holder; otherwise, you might be wearing it to work. Tune in some relaxing music or enjoy an audio book. Let your morning mantra become peaceful mind over traffic-related matters. Your commute will be more enjoyable, and everyone will be safer on the road.

3. Don’t let distractions derail you. Office calls dominate so much of your time, so give them and yourself a break. Turn off your phone, and tune in some easy listening. Keep front seat clutter to a minimum by organizing the necessary diversions. Every gadget has a purpose, and it has a holder too. Don’t fumble for a better view of the GPS system; mount it so that you know where you are at a glance. You’re a better driver when you’re focused.

4. Make your car a comfortable chariot. Keep it uncluttered, free of distractions and running like a champ. Routine maintenance is your best protection against engine trouble on the way to work. It’s also a safety issue; working turn signals and properly operating brakes are vital to navigating Houston freeways. A quick inspection once a month gives you peace of mind every morning when you leave for work.

5. Make quick work of accidents whenever possible. No one likes surprises on the morning commute, but anticipating trouble makes fender benders easier to manage. Houston even has a motto for these accidents: Steer it, and clear it. Houston automobile lawyers might suggest that you pull over to the shoulder as quickly as possible, and exchange information with the other driver. Call your insurance company, then use your cell phone to take pictures of the damage to both cars. Make notes, and contact a reputable attorney – never assume that a simple fender bender will stay simple.

Navigating the daily trip into the office is part of your business. It doesn’t have to be hard just because you’re in Houston. With these tips, your drive will be easier and safer, and you’ll be a better road warrior ready to conquer the morning ahead.

Former news reporter Ann Bailey compiles this information for all drivers headed to work across town in Houston on a daily basis. Houston automobile lawyers work vigorously on claims to protect their clients, and their businesses and livelihoods when they are injured through the fault of another driver.

Photo Credit: http://www.flickr.com/photos/64738468@N00/7038762729/