How To Raise Capital For Your Business When Your Bank will not Help

Raising capital for a business seems like it should be pretty straightforward. It’s not. Banks often want you to post significant collateral for your business. If you’re just starting out, you probably don’t have anything that the bank can hold as security for the loan. While that might seem like a major roadblock, you can overcome this by raising capital through other sources.

Angel Investors

Angel investors are people who invest in businesses in exchange for a share of the profits that you generate. These investors are always accredited investors and act as either direct advisers for your company or as major shareholders. You have to be incorporated in order to attract angel investors, but many companies exist to make this process easier for you.

For example, the Go BIG Network Investors’ Circle are networks that connect you to angel investors. Inc.com also publishes an updated database of angel investor networks so that you can stay focused on developing your business.

Reverse Merger

Going public is one way to raise funds for your company. By going public, you can issue shares of your company to the general public, and investors will buy those shares from you. The money you get from those investors can be used for any business-related purpose. Of course, investors become part shareholder in the company, so you’ll need to work for your investors’ best interest by growing the company.

Shareholders can also vote on who remains on the board of directors and can affect the direction of the company indirectly through this type of voting. While going public is often expensive, there is an easier way to do it than issuing an initial public offering (IPO). It’s called a reverse merger. A reverse merger is when you purchase an existing public company that has failed, but is still public. Once you buy the company, you structure it so that it buys out your existing, non-public, company. The result is that you now own a public company and can sell shares to the public and raise the funds you need.

Peer-To-Peer Lending

Peer-to-peer lending is a relatively new form of lending when compared to traditional banking. It refers to the process of borrowing money from private investors, using a traditional bank as the intermediary. Companies like prosper.com exist entirely for this purpose. Investors sign up to the website and loan money to promising borrowers.

The loans are typically repayable within 3 years, but you may negotiate the interest rate on the loan. After you place a loan listing, investors bid on your loan. The bidding process is part of the funding process. With each bid, your loan becomes partially funded. An investor may contribute $50, $100, or $1,000 or more towards your total loan amount. Instead of one bank funding your entire loan amount, many investors make a partial contribution to your loan. When your loan is fully funded, the financial intermediary sends the money to your bank account via a direct deposit transaction.

Factoring

Factoring is similar to a cash advance. A factoring company advances you money based on your current accounts receivables. In other words, you sell your invoices to a factoring company, and that company advances you an amount of money equal to 75 to 85 percent of the total value of the invoices. The factoring company may also charge you a fee on top of the discounted rate it advances you. This is a good option if you need liquidity now, or your company is starved for cash and it normally takes you a long time to collect on your invoices.

About the Author: Guest post written by Elizabeth Goldman and brought to you by Wonga – the short term loan experts.

3 Reasons Your Domain Name Does not Matter as Much as You Think

domain name tipsWhen the dotcom boom first started, well, booming in the late nineties and early two-thousands, businesses suddenly realized they needed to get online, and fast. There was a mad dash to buy as many relevant domain names as possible in a gold-rush-style form of cyber real estate development. Today, many of those domains have been turned into some of the most popular and influential websites in the world, while others were turned into obscure websites that have remained obscure or have slowly become error pages in a failed Google search link.

What many neglected to realize then was that a simple domain name can’t get you anywhere; you have to have something to back it up. And, to the lament of those early developers, with the advent of search and social media, domain names are now even less important. Don’t ever question the effectiveness of a simply, catchy domain name that perfectly matches the site it represents. That is the sort of domain everyone should be going after. But, what’s truly important these days is not the domain name, it’s what you do with it.

1. Google Finds Content, not Domains

In most instances today, if you’re business isn’t online, it doesn’t exist. The same could be said for low Google rankings. If your products don‘t pop up on the first few search pages, they may as well be non-existent in terms of Google search. In order to get users to see your business page, you have to optimize your pages so Google can detect the type of content that users will be wanting to find when they go to your site. You could have a domain name that is a perfect match for your business name, but if you don’t know how to market your products online, a fancy sounding name is about as far as your domain will get you.

2. Most Links are Hidden

Another way to get users to stumble upon your site is to promote it via social media and online articles, while providing links back to your own site. Usually links are either represented as HTML code hidden underneath representing word, or they are shortened to fit on applications like Twitter and Facebook. Your link will rarely be displayed as showing the entire domain name, no matter how great it is, or how relevant it is to your business. So don’t think that posting a link to your site will make users want to click on it because of the domain name, alone, if they can even see the domain name at all.

3. Social Media Stands on Your Business Name

Social media is the next frontier in internet marketing, as the latest Google Panda updates seem to indicate, it could to be heading toward becoming the next frontier in Google search ranking, as well. Your business (as represented by your website, Twitter account, Facebook page, etc.) is what users will be interacting with, commenting about, and trying to find online through social media. Your domain name needs to be simple and memorable, but the real footing your business needs to prosper online will be in its name and reputation. Make sure your business name is what you lead with, and what you stand on when it comes to social media. Users will be looking to interact with your business, not your domain.

About the Author: This is a guest post by Eliza Morgan who is a full time blogger. She specializes in writing about business credit cards. You can reach her at: elizamorgan856 at gmail dot com.

Why Businesses Should Use LinkedIn

Business owners may feel that LinkedIn is just another task that needs to be dealt with in an already busy day. However, there are some compelling reasons why businesses should use LinkedIn for attracting potential employees, brand building and networking.

Setting up groups

Businesses who are seeking applicants interested in their industry can set up a group on LinkedIn. Setting up a group is simple; groups can be created so that anyone can join or restricted to invitation or acceptance only. Simply select the level of control that your company is comfortable with.

Attracting talent and clients

While some businesses may use LinkedIn only for talent purposes, there are other effective uses. LinkedIn allows users to set up options for developing contacts, seeking new contracts and allowing interaction. This makes LinkedIn an ideal platform for searching for potential clients.

linkedin tips

Testimonials do matter

LinkedIn allows businesses to request testimonials or references from current clients, employees and previous clients. This can be very helpful, especially for a business that is just getting started. Testimonials help a business develop a strong online reputation. Additionally, these testimonials are readily available to share with others whether they have a LinkedIn account or not.

Brand building

One of the best things about using LinkedIn is that you help build your brand. Because LinkedIn allows a business to set up individual profiles for the management team as well as a business page, building a business brand is easier than on other social networking sites. In addition, a presence on LinkedIn is often seen as more professional than having accounts on Twitter or Facebook.

Networking opportunities

Some businesses may see LinkedIn as simply another networking site or social media site that must be managed. With time at a premium, many do not feel that there is a great deal of value in any social media site. Businesses who feel that they must decide between sites should select LinkedIn because it is often seen as more valuable for business networking purposes.

LinkedIn provides an ideal platform for networking, with like-minded business owners. Online meet-ups are also possible if you set up and use a closed group appropriately. Sharing your business expertise allows you the opportunity to establish credibility as well, which is helpful in attracting better talent and additional customers.

About the services

Businesses should take the time to familiarize themselves with the platform that LinkedIn offers. In addition to networking, brand building and building credibility, there are numerous opportunities for advertising. Whether you elect to promote your business using many of the free opportunities or use the paid opportunities, LinkedIn provides the tools that most business owners need.

LinkedIn can be used as a contact management system, a screening system for new employees and a recruiting method for small and large business owners. Take the time to explore the features of LinkedIn and decide which package works best to meet your needs. There are countless ways to gain exposure for your business whether you are a Fortune-500 company or you are just getting started. LinkedIn is simple to use, is very flexible and offers a number of benefits for businesses. Consider adding LinkedIn to your companies marketing and hiring strategy; the benefits will far outweigh the time that you spend getting your account set up.

About the Author: Tim works with coxcabledeals.com for his “real” job.  In the mean time he works on his own thing.  Once this is closer to becoming a reality he will definitely be using the benefits of LinkedIn for networking and business development.

Image: nan palmero / Flickr

How Recycling, Reducing and Reusing Can Increase Profitability of a Business

Many companies have made the dramatic discovery that going green makes cents. While exacting environmentally friendly practices, businesses can save money. Companies that make it a priority to recycle, reduce, and reuse earn reputations as responsible businesses that are also likely to attract consumers and clients who care about the green movement. The following tips are ways that businesses can transform into a greener company.

Recycling Tips

Use recycled products whenever possible. Recycled paper for printing and copying needs can easily be purchased and tends to be less expensive. Recycled ink cartridges should also be purchased for cost savings. Eco-friendly office supplies are widely available and cover the spectrum of office needs; supply chains sell everything from recycled Post-it Notes to paper towels for the staff room and bathrooms.

Many companies simply throw away outdated electronic and computer equipment. Instead of sending these items to the dump, call a company that buys this outmoded gear. Such companies are popping up everywhere and will often come and haul it away. If there isn’t a company in your area that will pay for the items, consider donating them to a library, school, or some other organization. This will increase the business’s popularity in the community and may also be reported as a tax write-off.

Reducing Tips

Going paperless or at least substantially reducing the amount of paper printed or copied is an increasing trend among businesses that care about the environment. Encourage employees to correspond over email and take pains to monitor the amount of paper used. Whether the company is large or small, set paper-reduction goals; when staff meets the reduction goal, have some rewards on hand—buy lunch, award gift certificates, etc…Not only will you save money buying less paper, you will increase staff morale—which is a great way to increase profitability, too. Staff can also decrease paper use by printing double-sided whenever possible.

Your company can reduce energy use by turning off equipment when it isn’t being used. All equipment should be turned off at night and over weekends to capitalize on this energy savings. Naturally, decreased energy usage translates into lower monthly energy bills. Also, be sure to turn off lights in the evening and reduce heat and air conditioning at night, too.

Encourage employees to share office supplies and equipment. It’s easier than ever to network printers and copiers. Staff can also share small items like pencil sharpeners and staplers at specially created “share stations” around the office.

When it comes to the staff room or company kitchen, encourage employees to reduce the need to buy plastic ware and paper plates. Keep dishes and silverware on hand. Be sure to have a place for employees to keep their coffee mugs and water bottles.

Reusing Tips

Packaging supplies can often be reused to reduce the cost of buying new materials—which can be quite expensive. Padded envelopes can be re-labeled and bubble wrap can be saved. Whenever your company receives reusable items in the mail, encourage them to keep them in the supply room instead of throwing them away.

Your staff can collectively save the business money by reusing various office supplies like paper clips, clip boards, and file folders. Instead of buying new office furniture, refurbish the items you have. Apply fixes to broken items instead of ordering new ones. This attention to reuse can definitely increase a business’s profitability.

Request an employee to make routing slips or note stacks from office scrap paper. This often simply involves a paper cutter and a bin of used paper.

Wrap-Up

None of these green practices can be construed as overly difficult. They simply require encouragement and commitment. Going green in the office is an earth-friendly policy that will also translate into increased profitability for the business.

Other green ideas for a company to consider include:

  • Purchasing green cleaning products
  • Doing businesses with other environmentally friendly companies
  • Encourage employees to car pool
  • Create a “green” committee to investigate new ways to keep the business green
  • Propose a green “Secret Santa” event for the holidays encouraging employees to give one another homemade items or used items from home.
  • Decrease the company mailing list and increase its email list.
  • Invite an environmentalist to speak at a staff meeting about more ways your company can go green.

About the Author: Guest post contributed by Kris Rayner, on behalf of GeneralWasteCollection.co.uk, specialists in the collection and disposal of general and recycling waste collection.

Office Supplies Do Not Have To Cost An Arm And A Leg!

bright paperclips

When compared to other important acquisitions for the office (furniture and equipment), office supplies appear to require a minimal investment. However, how do you explain the fact that each year billions of dollars are spent on purchasing office supplies only in the United States? While the price of acquiring these basic supplies is rather low, keep in mind that you will need to restock quite frequently. Therefore, when you add up the individual investments dedicated for this purpose in a single month, you will be surprised to learn they are not as cheap as you initially thought.

In order to avoid spending a large portion of your business budget on office supplies, you need to set up a process of managing and controlling the consumption. Managing the supplies should start with verifying your past orders and determining which of the items are absolute necessities and which are simply nice to have. In case you discover items that are present on constantly ordered list, but nobody really uses them, then you can start to eliminate them systematically. In addition, you should re-evaluate the office supplies you are acquiring regularly and see if you can get them for less.

Due to the fact that most businesses have an online presence today, you can save a lot of time and effort when comparing office supplies offers. In short, you do not have to go down to the depot and note down the prices because you can check that out on websites and office supplies portals. Besides comparing and reviewing the offer, you can choose to order the office supplies directly from online sources. In the eventuality that you are making an order online, it is advisable to account for the shipping fee. Nonetheless, take note that most reputable office supplies providers will include free shipping for orders worth a minimum threshold.

If you are happy with the office supplies provider (new or old) and you purchase a significant amount of supplies each month, then you should negotiate a purchase contract. In order to be able to turn the tide of the deal in your favor, it is advisable that you evaluate which of these items you acquire more frequently. Afterwards, focus on getting a lower price or a discount and you will benefit from great savings. As a side note, because the purchase contract means regular expenses and hefty amounts of office supplies, this strategy works optimally for larger companies (with at least 100 employees).

Another method of conserving some of the cash spent on office supplies is to consider bulk orders. Therefore, instead of purchasing 100 sheet packs of paper often, a better approach is to acquire 1000 sheet packs at once. While this is by far the best method through which small companies can reduce the costs on office supplies, there are two crucial aspects worth mentioning. First off, the company must have the necessary budget to afford purchasing 1000 sheet packs (or other bulk supplies). The second aspect implies figuring out if you have the necessary (available) space to store bulk office supplies in a manner that will not negatively impact on the working space.

Be prudent and smart when it comes to amassing savings on your office supplies!

About the Author: Gerard Lee owns a stationary outlet whose mainly involved in selling . Through his blog he is willing to let people know how they can save money on buying .