Moe Tamani's Internet Marketing and SEO Blog, Articles and Search Engine Optimization Tips » credit http://www.moetamani.com My Internet Marketing and SEO Blog Fri, 29 Oct 2010 06:01:56 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 5 Ideas for Dealing with the Credit Crisis http://www.moetamani.com/small-business/5-ideas-for-dealing-with-the-credit-crisis.html http://www.moetamani.com/small-business/5-ideas-for-dealing-with-the-credit-crisis.html#comments Sat, 27 Dec 2008 14:45:59 +0000 admin http://www.moetamani.com/?p=290 5 Ideas for Dealing with the Credit Crisis

internet marketing Articles from Moe Tamani, the SEO Services Consultant.

If you’re a small business owner, you’re all too aware of the current economic crisis and how it’s affecting small businesses all over the country. The most profound effect of the economic crisis is in the availability of credit. The news is grim, but it doesn’t have to paralyze your business. Here are 5 ways to deal with the credit crisis and its effect on your small business. Diversify Your Borrowing. Big banks have really gotten themselves into a quandary with messy mortgages, but local banks have primarily remained outside of the mortgage disaster. Try visiting community banks to find out what they have to offer you. Many local banks are highly interested in lending to companies that keep money within the community. Peer-to-peer borrowing is another option that you might consider, and is attractive to private lenders for the same reason that community banks are interested in lending to businesses who will keep...]]> 5 Ideas for Dealing with the Credit Crisis

internet marketing Articles from Moe Tamani, the SEO Services Consultant.

If you’re a small business owner, you’re all too aware of the current economic crisis and how it’s affecting small businesses all over the country. The most profound effect of the economic crisis is in the availability of credit. The news is grim, but it doesn’t have to paralyze your business.

Here are 5 ways to deal with the credit crisis and its effect on your small business.

  1. Diversify Your Borrowing. Big banks have really gotten themselves into a quandary with messy mortgages, but local banks have primarily remained outside of the mortgage disaster. Try visiting community banks to find out what they have to offer you. Many local banks are highly interested in lending to companies that keep money within the community. Peer-to-peer borrowing is another option that you might consider, and is attractive to private lenders for the same reason that community banks are interested in lending to businesses who will keep money within the local area.
  2. Offer Less Credit. You’ll be in a better position to deal with the credit crisis yourself if you cut back on the capital that you need to run your business. This necessarily means that you will be able to conserve your capital if you offer less trade credit for your customers. Another option is to reduce your accounts receivable by reducing amount of time you give your customers to pay you, and by offering incentives to pay you early.
  3. Cut Back. This is a common sense idea, but the less capital you need to run your business, the less credit you require. This is a really a great time for you to step back and get a big-picture view of your business. What small changes can you make that will allow you to cut back on the amount you need to borrow? Some ideas include leasing your equipment instead of borrowing money to purchase it. You might also consider utilizing sales representatives who work on commission instead of hiring salaried employees.
  4. Raise Equity. Since the debt markets are more immediately effected by the credit crisis, try other sources of equity such as venture capitalists, friends, family, angels, and strategic partners. And if that doesn’t work, you might try getting equity from your venture’s founding team. This necessarily means that you’ll be less diversified since you’re putting your own capital into your own business, but you’ll also avoid having to ask lenders who aren’t lending to give you money. A final option is to fund your business using retained earnings rather than funding your business through borrowed money.
  5. Sell, Sell, Sell. Sell any valuable assets that your business might have. Selling your equipment and leasing it back is an effective way to avoid borrowing more money. And making the switch to leasing from owning might give you enough cash to keep your business going.

The obvious solution to the credit crisis is to wait it out. Things will eventually come back around and the future won’t look quite so bleak. But the bottom line is that you need to keep your business going until the future starts to look a little brighter. These 5 steps are just a few of the ways you can cope with the credit crisis without having to close up shop completely. You probably have a few of your own tricks up your sleeve. The most important thing is to be creative and to do whatever it takes to keep your business running. It’s your passion and your life, so keep it alive until change comes along!

]]> http://www.moetamani.com/small-business/5-ideas-for-dealing-with-the-credit-crisis.html/feed 0 6 Options for Funding Your Small Business http://www.moetamani.com/small-business/6-options-for-funding-your-small-business.html http://www.moetamani.com/small-business/6-options-for-funding-your-small-business.html#comments Fri, 07 Nov 2008 01:30:05 +0000 admin http://www.moetamani.com/?p=176 6 Options for Funding Your Small Business

internet marketing Articles from Moe Tamani, the SEO Services Consultant.

One of the most burning questions entrepreneurs ask is how to go about funding their new businesses. Fortunately, there are as many answers to the question as there are businesses. This is a two-edged sword, however. While there are plenty of ways to fund a new business, the options can be overwhelming. As you ponder how you might go about funding your business, consider these 6 options: 1. Investments and Savings. This is the most logical place to start when finding business funding. If you’re serious about starting your own business, then you should be willing to put your money where your dreams are. The advantage of...]]> 6 Options for Funding Your Small Business

internet marketing Articles from Moe Tamani, the SEO Services Consultant.

One of the most burning questions entrepreneurs ask is how to go about funding their new businesses. Fortunately, there are as many answers to the question as there are businesses. This is a two-edged sword, however. While there are plenty of ways to fund a new business, the options can be overwhelming. As you ponder how you might go about funding your business, consider these 6 options:

1. Investments and Savings. This is the most logical place to start when finding business funding. If you’re serious about starting your own business, then you should be willing to put your money where your dreams are. The advantage of financing your own endeavors is that you’re not beholden to anyone if your business goes under. The disadvantage, of course, is that you can completely wipe out your savings if your business fails. So consider what percentage of your assets you’re willing to liquidate for the sake of the business.

2. Family and Friends. This is a good option for many business owners, but consider it seriously before you start asking your own friends and family for money. Borrowing money from people with whom you are close can be risky business as it can cause lots of tension. Even if they tell you that they don’t expect you to pay them back, the issue will always be the elephant in the room.

3. Second Mortgage. One option for raising money is to use the equity in your own home. This carries a lot of risk, however. The disadvantage is that the money will have to be paid back whether or not your business is a success. But the advantage is that the interest might be tax deductible on this low-interest source of funds.

4. Credit Cards. This is a very risky option, but one that many business owners opt for anyway. It’s easy to get a line of credit, and many credit card companies will be willing to let you charge great amounts. The interest rates are high, though, and you could end up with hundreds of thousands of dollars of debt if your business fails.

5. Angels. These are individuals who invest in start-up businesses in exchange for part ownership. Angels usually provide the seed money and are typically a business’s first formal investors. Be aware up front that some investors will simply give you the money and leave well enough alone. Others, however, will expect you to gladly accept whatever help or guidance they’d like to give you, so be clear from the very beginning what the role of the angel investor will be in your business.

6. Venture Capital. Venture capitalists are essentially more aggressive angel investors with much higher expectations. While angel investors will often write you a check and hand it to you with a smile, venture capitalists will write you a check and hand it to you along with an enormous pile of legal documents. They will expect to give a great deal of input, and they will probably be quite unhappy if your business isn’t run the way they feel it should be run. Instead of giving help and guidance, they will often give ultimatums and demands.

If you’re seriously considering using a venture capitalist, choose wisely. Don’t jump at the first offer you receive. If your business idea is good enough for one capitalist to be interested, it will interest others as well.

Regardless of how to choose to finance your business, spend your money wisely and follow a specific plan of spending and paying back. Consider your options carefully and choose the one that will allow you to get the job down while retaining the amount of control you’re most comfortable with. In the end, the less you have to borrow, the more you will own.

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