With the continuing talk of a global credit crunch many small business owners have been wondering if and when it could hit them and how it could affect their plans for the future. Whilst small businesses are generally immune from any direct fallout, the sort of nervousness seen in the market place can indirectly affect even the smallest of businesses.

During the good times there is a feeling that nothing can go wrong and so as long as business owners have a half decent idea and good security or collateral to back it up, then they have no problem in obtaining finance. But once the ‘feel good factor’ ebbs away then attitudes can slowly change over time.

All is not lost though! There are still some steps you can take to persuade your bank manager to either support your new business idea or support your expansion plans. Here are some of the things you can do.

Review Your Plan or Idea

All the best plans in the world change over time as the general business climate changes. Nothing ever stays still and the businesses that survive know that their market never stays still.

Take a step back and examine whether your market has changed. Have recent events dented the confidence or purchasing ability of your target market? Will your customers be thinking twice about ordering your all-singing-and-dancing product or service? Will they no longer be able to accept your high price even taking into account your quality service? Have your costs significantly increased rendering your idea or business unprofitable?

You must not make the assumption that because your plan was viable a few months ago that it is still viable today. Be wise enough to re-look at all the underlying factors that made you come to the conclusion it was a good idea. Is it still such a good move?

Write a Business Plan

So many business owners still don’t write business plans; they don’t see the value obtained in exchange for the amount of time invested in researching and writing one. Even in the good times banks like to see a Plan but during times when banks may need more persuading then a Business Plan is essential.

Whilst many regard Business Plans as documents written solely for the bank this is not the case. A Business Plan must be seen as a tool which can act both as a summary for the bank and as a control and check for you. A well researched Plan will help you understand the pitfalls of your new venture; it will highlight the flaws in your thinking and potentially save you from making an expensive mistake.

Before you approach the bank commit to writing a Business Plan; it may be less painful than you think!

Watch Your Cash Flow

When the business community starts talking about downturns and that dreaded ‘R’ word sometimes the talk can become a self-fulfilling prophecy! Businesses can quickly decide to tighten their belts and soon your orders dry up and it takes longer for you to get paid for work you have already done. Cash becomes tight.

You need to be prepared for this. Review all your expenses. Do you really need all the ‘toys’ that go with running a business today? When did you last review your supplier’s pricing? Are you still getting the best deal in the market? Are your payment terms very clear such that all your customers know that if your invoice says 30 days, then you mean 30 days and not 60 days!

The vast majority of business failures do not arise because of lack of profit, it is usually down to lack of cash. Cash is the life blood of all businesses and without it businesses die. Don’t fall victim to this one; watch your expenses and chase the cash.

What does this have to do with getting the bank on your side? Simple. Your bank likes to see a well run account. It does not want to see an account that is under pressure and it certainly does not want to see itself returning your payments due to lack of funds. In times like this you need your bank working for you, not against you.

Talk to Your Bank Manager

If your business is beginning to suffer for many owners the natural tendency is to adopt the ostrich position – head in the sand! Problems do not go away by themselves, no matter how hard you try to convince yourself.

If your problems are beginning to affect your business then one of the first people you need to go and see is your bank manager. The old saying, ‘Forewarned is forearmed’ is so true. No one likes surprises sprung on them and a banker is no different. You must share your concerns and who knows, they may even be able to help you!

Hiding away from the Bank is no solution. A lack of facts or being kept in the dark is a sure way of creating panic and this can lead to incorrect and disastrous decisions being made. Avoid this by talking and informing.

Banks can be known for making life tough but you have a part to play. Make it easier for your bank to support you by providing them with all the necessary information they need and don’t forget that you have your part to play by taking the right decisions for you and your business.

Robert Warlow

Small Business Success

There are plenty of reasons to want to open up your own business, but right now it is one of the few ways to fight back against unemployment. However, being out of work can cause you to get behind on bills and then your credit report goes into the tank. There is hope though as there are ways to get small business loans for people with bad credit.

Bad credit does cost you, but it is not the end of the world. As long as you are pro-active about it, you may still get approved for a small business loan. Get a credit report on yourself and see where you are at. As you go over the report, make notes as to why things happened and be ready to discuss them in detail with a lender.

A great option for someone that has questionable credit is to deal with the SBA instead of a bank. These lenders are usually non-profit organizations and require a small fee to process your paperwork, but they will work with you if you have a good business idea. Getting turned down initially is not the worst thing in the world as they will tell you what you need to do in order to get the committee to pass the loan.

The first step in wowing the SBA is to have a professional business plan. This is the most important document that you are going to prepare for them and you want to make sure that it is done right. If you have no idea how to do one, hire someone who can. It will be the best money that you have ever spent.

However, even the most prepared still find themselves with the challenge of getting approved. Before you ever go forward, make sure you have a backup plan. This means that you want to find people that are willing to co-sign for you and help get this loan approved. Worst case scenario you offer them dividends during the life of the loan.

Going out on your own can be a scary thing, but if you believe in your idea and the SBA is behind you, you have a very good chance of succeeding. Everyone works harder when they are doing it for themselves. By following the tips above, you are one step closer to getting that financing and becoming your own boss.

When you are in business for yourself, you need to realize that you have to take full advantage of EVERYTHING that is available to you. I understand that locating money for your business needs is not as easy as ordering a grant book from a guy on television with question marks all over his suit, but the truth is YOU CAN INDEED use the federal government to grow your small business.

The government backed loans that you want to look into is the Small Business Administrations (SBA) GAAP loan used for business expansion. Now, you may be thinking that obtaining Federal Government small business loans through the SBA would be terribly difficult, but what if I were to tell you that 99.9% of EVERYONE that applies gets the loan immediately? Truly amazing isn’t it. For many years, the Federal Government small business loans have been granted to the general public, it’s simply a matter of locating the one that is best for you.

Getting back to the GAAP line/loan, there is not a better or easier way for you to fund your business. Here are a few of the points why it is such a good thing to go after.

1. It is an unsecured line, which means that there are no assets or collateral needed to obtain the loan.

2. It is quick. The approved funds can be in your account in 10 business days.

3. Extremely low interest rates , because they are government backed.

4. Almost everyone is approved.

The trick to obtaining these loans is to find them. We have made our business out of jus locating these sources and you would be surprised at just how many government backed programs are available. All are nationwide and you simply have to know the right person to contact and let them know what you need.

So to wrap things up….Can you locate and use the Federal Government to fund your small business in the form of a loan? Yes indeed you can.

You will find information in this article very helpful if you are a looking for steps to take in finding small business loans for women. While most loan agencies do not discriminate and want all borrowers to have specific profile, there are a number of government and private programs that are designed to encourage women business owners. These small business loans for women are limited, and require certain certification to get them.

When it comes to getting loans for your small business, it sometimes pays to be different. Being different includes being a woman, since most businesses are owned by men. It also includes minorities, and disability. Let us take a look at some of the guidelines that are required by the government programs and private agencies you need to meet.

• The most important step in getting any business loan regardless of being a woman or not is a business plan. You must have a plan. A plan will help the loan agencies have a good understanding of your potential business and plans for success.
• Majority of the business must be owned by a woman. By majority, it means at least fifty one percent of the business should be under the ownership of a woman.
• The business must be managed and operated mainly by women. Being only an investor does not qualify you to get small business loans for women. You must be part of the daily operation of the business.
• You must have a business that is not closely connected to other businesses not owned by women. It must be an independent business and investment has to be made by women.

Once you meet the guidelines and are certified as a woman-owned business, you will qualify to take advantage of the resources out there to help start or expand your small business.

Statistics show that most new small businesses are started by women. There are several Federal and State Loan programs available for women, minority groups and ex-servicemen. Single mothers are in a particularly strong position. Several highly successful businesses were started by women, including the well-known Elizabeth Arden and Estee Lauder cosmetic brands.

Where to start

Should you have an idea for a small business but require funding and find it difficult to get a loan, there are programs to assist, as part of the U s Governments drive to get Americans back to work.

There are grants available under certain condition for businesses such as child-care centres or tourism businesses, depending on your state. These grants would only cover part of your costs and would be dependent on other funding being available as well.

The Small Business Administration {SBA} is a good place to start looking. They do not loan out money directly, but provide guarantees which make it straightforward to get loams from the usual commercial sources. In addition they can advise as to which type of grants and loans are available and most suitable for a particular type of business, and which government or private institutions provide funding. You can find their web-site at http://www.sba.gov. A complete list of the forms and other requirements to qualify for a loan or loan assistance is available on this website.

The Office of Women’s Business Ownership

The SBA provides a complete service. It offers training and advice as well as assistance with starting and managing a small business… It has an Office of Women’s Business ownership with the avowed of encouraging women in business. They are also the gateway for women’s businesses which wish to be suppliers to the Government and have lists of contracting opportunities available. As such, they can have a large influence in providing an entree into what can be a very competitive market… They are in a position to provide advice and assistance with all aspects of starting or running a business, including such topics as licensing requirements, as well as a loans and grants search API an, legal requirements among others, all tailored to the needs of women. They are experienced in the pitfalls and hurdles that might be faced and can assist with avoiding or overcoming any problems.

Should the OWBO not be able to assist directly – an unlikely event – they will be able to advise as to where appropriate assistance might be found instead,.

The best time to start a business is now

There has never been a better time for a woman to start her own business, despite what the economy may seem like. Remember, despite the figures as to how much the economy has contracted, there are still huge sums of Money in Circulation. A resourceful Person with the right idea and financial resources would do well to take advantage, so that the business can benefit from a recovery. Starting your own business is a big step, but there is a lot of help and even mentoring available from other sites such as SCORE (www.score.org) so that anyone can feel confident that they do not stand alone. Help is always near at hand.