Starting Your Own Business: A Step-by-Step Guide

Starting Your Own Business: A Step-by-Step Guide

Starting your own business might sound like an intimidating challenge. However, it doesn’t have to be this way. Launching a startup can be one of the most rewarding experiences that you’ll ever have but it requires a lot of hard work and dedication. This post will go over some things that you should know in order to plan your own venture as an entrepreneur.

Decide What Kind of Business You’ll Be In

Startups come in many forms and there are countless options on the table. You can start a consulting firm, a mobile app development company, a social media company, and so on. The type of business that you choose will depend on many different factors, including your interests and the market for your product. You also have to make sure that the business that you have in mind is not simply a passion project; it should be something that you’re willing to stick with long-term. Once you’ve decided on what kind of business you’ll be in, you will be able to focus more on the industry.

Research Your Market

It’s imperative that you research your market. Thorough research will not only help you choose the right market but it will also help you decide on the right product or service to create. You will want to learn about the needs of your audience and how you can satisfy them. Once you have a better grasp of these factors, you should have a clearer idea of what your business should focus on and how you should market yourself.

Develop a Unique Product or Service

You must make sure that you’re offering something that has real value for your customers. Specifically, you’ll want to think about how you’ll develop your product or service and how you will differentiate it from your competitors. Pay attention to what similar startups are offering. Perhaps a company is selling a product that people are interested in but the product has some issues. This insight can inspire you to make your own product that is better than that of your competitor.

It can be difficult to stay motivated and focused when you’re planning on starting your own business. You might get side-tracked by other things in your life, you might be struggling with financial issues, you might have decision fatigue, and so on. That said, by following these steps, you should be one step closer to launching your own business.

Abundant Wealth Financial offers a wide range of funding solutions for new and small businesses. From startup capital to SBA loans, equipment, lines of credit, real estate, and more, our team will work with you so you can get the financing you need for long-term success.

Is a Line of Credit Within Reach of Your Business?

Is a Line of Credit Within Reach of Your Business?

Lines of credit are like the Holy Grail for small business owners. These financing tools are incredibly powerful, but many people also feel like they’re impossible to find. That said, there are many ways for an owner to qualify if they’re willing to think outside of the box. That can put funding within reach for a variety of business needs.

What Are the Traditional Requirements for a Line of Credit?

Normally, lines of credit follow pretty much the same general requirements as conventional loans. To qualify, your business needs several years of operation, consistent annual revenue, strong cash flow, and an impeccable credit score. This is good news if you have decent credit since you can probably get unsecured credit without issues.

Unfortunately, many small businesses have trouble reaching all of those things. The good news is that there are a few ways to make things easier on yourself. One is to put up collateral. You can secure a line of credit using inventory, real estate, vehicles (sometimes), or equipment. This lowers the other requirements to make getting approved easier.

What Alternatives Does a Small Business Have to Conventional Lines of Credit?

Conventional business credit isn’t the only door open to you. There are several other options depending on your goals and time in business.

One method is to approach a lender about financing from the Small Business Administration. The SBA can help you get a small business loan or line of credit that meets your objectives. You may be able to use the funds to remodel your business, purchase inventory or take care of similar needs. These lines of credit cap out at $5 million, but your total amount depends on revenue.

Another option is business credit cards, which operate similarly to a line of credit and have lower requirements for credit score. The only downside is that any credit card carries a higher interest rate than lines of credit. That means you need to be extra careful with how you spend the money and how you repay it. Still, credit cards can be a great way to balance out your cash flow.

Last but not least is crowdfunding. This relatively new method of obtaining financing isn’t quite like a line of credit, but it can be used to get support for day-to-day activities. If you need to upgrade computer equipment or improve other facets of your business, it’s worth looking into.

Abundant Wealth Financial offers accessible and unsecured lines of credit for new and existing businesses of all types. Contact our offices today to get the funding you need.

 

Extra Steps You Can Take to Use PPC Trends to Your Advantage

Pay-per-click ad solutions have consistently proven popular with business owners for many years. This is largely due to the fact that PPC services provide the opportunity to save money without sacrificing direct results from marketing initiatives. Like most digital solutions, however, PPC trends are always changing to meet the new demands of consumers. In order for your business to remain relevant in its advertising attempts, you must do your part to learn more about the fads and tactics shaping the world of pay-per-click ads. Look at these tips and forget your own path to online success.

Leave Familiar Territory

After using PPC solutions for a set amount of time, you might grow comfortable with your decisions. When an ad is producing results, you may not feel inclined to make any adjustments. While there is some validity to the adage “if it ain’t broke, don’t fix it,” you will never be able to take your company to new heights without taking some risks along the way. Testing new sites and channels can be a great way to explore other horizons. Conducting ad tests on sites you’ve never used before might introduce you to better results than you’re used to. 

Tweak Your CTA

When you’re advertising your services on the internet with pay-per-click ads, you don’t have the luxury of a lot of time or space. This means that you need to be as concise as possible with your message. Since every ad must contain some type of call to action, you should give yourself the opportunity to look at PPC trends surrounding CTA verbiage. Test out a few different options and then use analytics to determine which of the choices produced the best outcome. These simple steps can help you drive more traffic to your site via your ads.

Consider Automation

There are a number of processes involved with marketing your company’s services on the internet. Since you want to dedicate as much focus as possible to the most important daily tasks, it can be useful to learn more about your options with automation. Taking some of your marketing responsibilities and automating them might be the perfect solution. Don’t jump right into the decision, of course. Take your time and play around with which aspects of the PPC process you would be able to automate without concern, then conduct a few tests to see if it is a worthwhile endeavor.

Understanding the latest PPC trends can play a big part in how successful your ads prove to be. The more you know, the easier it will be to craft a digital marketing strategy that effectively takes all possible angles into consideration. Contact Abundant Wealth Financial today to learn more about our PPC solutions.

How to Apply for a Business Credit Line

How to Apply for a Business Credit Line

Credit lines have been one of the most popular cash flow management tools for companies in the U.S. for decades, and for good reason. They are flexible, they can be used to address any cash flow need that falls within their limit, and with the right assets backing them, they can also be quite inexpensive. If you have never applied for business lines of credit before, there are a few steps to it, but it is not as complex as a loan to purchase an asset. In fact, most credit line approval processes are designed to be easy to navigate.

1. Research Your Lenders

There are a few common requirements for credit lines like your basic business information, proof of insurance, and proof of collateral asset ownership or value. Beyond that, the particulars are unique from one lender to the next. Proper research gives you a chance to compare shop for both interest costs and simplified application processes. Use that opportunity to make the whole proposition easier on yourself.

2. Prepare Your Financial Documentation

Your application package needs to substantiate your income with financial statements in addition to providing information about your location, tax ID, and other important business information. Pull together bank statements, projections, and income statements from your own accounting people to show that you can afford the payments even if the credit line winds up maxed out for some reason. That makes it easy to approve your business.

3. Document Your Collateral’s Value Clearly

The most common asset to use when applying for lines of credit is real estate, and each lender offers a different LTV based on the land value and your credit line. If you do find someone who offers credit against equipment, the same principles apply but you generally do not get as high an account limit. Either way, you need to demonstrate your ownership of the collateral and document any other loans against it or issues that might affect resale if the credit line is foreclosed upon.

4. Be Ready To Communicate

Like many financing application processes, there is a certain amount of back and forth when negotiating lines of credit for small businesses. Often, the approval process is held up because of missed messages or borrowers who do not prioritize fast responses to queries. Be prepared to offer up additional requested information and to confirm approval amounts so you can do your part to get a credit line approval quickly. If you do, you will be surprised at how easy the process can be.

Abundant Wealth Financial offers accessible and flexible lines of credit for new and established businesses. Contact our offices today to get the capital you need.

How Can a Supplier Diversity Program Help Your Business?

How Can a Supplier Diversity Program Help Your Business?

Business owners should consider their supply chain and its effect on their business model. Building a business that supports minority- and women-owned businesses is important to your customers. Your customers need to be aware that you are committed to supporting demographically diverse vendors. One of the most effective ways to do this is to implement a Supplier Diversity Program.

What Is a Supplier Diversity Program?

This program is a strategy designed to recruit and utilize minority-owned businesses for your supply needs. These companies can be any combination of women-owned businesses or any enterprise identified as a small business by SBA. These potential suppliers employ over 12 million people according to a report by Dun & Bradstreet. By focusing on contracting with these vendors, your business makes a significant impact on these businesses and their employees.

How Do I Establish a Program?

Before you create your Supplier Diversity Department, evaluate your current supply chain. You may already have established contracts with many minority-owned vendors. After you establish your baseline, contact SBA to determine what percentage of qualified vendors are in your industry.

With the above information, you can create a strategic plan to improve your vendor diversity. Be sure to modify your mission statement to reflect your goals. The most successful Supplier Diversity Programs begin with a top-down implementation. Ask employees, customers, and business partners for recommendations.

How Should I Monitor the Program?

Many business owners hire a Supplier Diversity Manager to manage the program. They help identify categories you may not have considered – women-owned businesses, disabled veteran-owned businesses, or LGBT-owned businesses. Managers can also work with suppliers to complete necessary forms that identify them as minority-owned suppliers. These forms help you meet your goals.

As the business owner, you should establish standards your company will achieve. Keep these things in mind as you evaluate your program:

  • New businesses should incorporate supplier diversity as a primary business objective. Building your business based on this goal helps all employees understand your commitment from day one.
  • For established business owners, communication regarding this new strategy should come from you. Work with individuals or small teams to make sure everyone understands the policy and how it will benefit the company.
  • Maintain a system that details and evaluates your vendor guidelines. Ensure that your team is working with strong vendors that provide quality products on your timeline.
  • Meet with vendors to see what other needs they may have. You can help strengthen both your and the vendor’s business network.

Building a Supplier Diversity Department will help establish your business as a forerunner in your industry. Your customers, vendors, and employees will see your commitment to embracing diversity and improving your brand reputation.

 

Financing Real Estate Purchases for Small Businesses

Financing Real Estate Purchases for Small Businesses

Investing in commercial real estate is a common tactic for companies looking to grow. Buildings work as both investments and operational facilities, allowing you to reduce lease overhead while gaining an asset that can be refinanced or sold as needed to further your company’s interests. Many businesses eventually invest in commercial property outside of just operational facilities as well, either for secondary income or as a speculative asset. Depending on your reasons for purchasing, you may want to consider a loan from the Small Business Administration.

SBA Loans for Commercial Properties

The SBA has two loan programs that allow for property purchases. The 7a program allows companies to purchase property to be used as operational facilities, with some allowance for partial use as income property if that is a minority of the purchase’s purpose by square foot. The 504 program also allows you to purchase commercial buildings, but it is a multi-asset loan, so you can also use it to finance equipment. The fact that it can finance all the assets needed for a startup to begin operating is why it is so popular, but it is also why it is not useful for businesses seeking to buy investment properties beyond those needed for their own operations.

Commercial Mortgages from Banks and Private Lenders

If you are looking for a low overhead, long-term loan to buy a property for your small business and you do not qualify for SBA loans because it is for investment purposes only, you can probably still finance it with a traditional commercial real estate loan. Commercial mortgages have lower LTVs than residential ones and slightly shorter terms, but you can still find 60-70% LTV on 20-year loan terms, which is more than sufficient for most long-term investment properties, especially income properties.

If you are buying a commercial property that is more valuable than the SBA program can accommodate or your business income is outside its criteria, commercial mortgages are also a great way to finance your operational property investment as well. They offer some of the lowest loan rates you will find for assets in general, and there are no prepayment penalties if you decide you have the reserve capital to own your commercial property outright before the loan amortizes. The best part is that as you accrue equity from the property value appreciating and the loan is paid down, you can use it as a source of low-cost financing via a credit line or bridge loan.

Contact Abundant Wealth Financial today to start exploring our commercial real estate financing programs. Our team will work with you directly to create a tailored solution to help you reach your goals.

 

Does Your Company Qualify for These Unique SBA Loans?

Does Your Company Qualify for These Unique SBA Loans?

Many people know about the Small Business Administration’s flagship loan programs because they have been operating for decades, refining and expanding their criteria over time to accommodate issues like franchise financing and changing definitions of small business income. What is less well-known is the wide range of additional programs offered for everything from credit building to disaster relief.

Over the last 15 years, several loan types have emerged, including microloans for short-term business needs, but many of them are niche programs compared to SBA loans for major asset purchases. Two of the more important newer loan types for startups and companies with limited resources have been around since 2018, though, and it’s important that the companies who could benefit from them learn about what they can do.

Community Advantage Loans

This program was piloted in 2018 and was designed to connect borrowers with credit obstacles to 7a program lenders by providing both application support and additional lender guarantees. When you work with the Community Advantage program, you aren’t necessarily applying for a new type of loan, but for help accessing the loan types that other businesses have benefited from. If you have been turned away through the traditional 7a program for issues with your business plan or supporting documentation, this could be your path to approval as well.

Express Bridge Loans

While the SBA is most well-known for its long-term lending, the administration has worked on making short-term lending more accessible. The microloan program is one version of this initiative, and express bridge loans are another. Where traditional SBA loans often have long approval times due to the dual approval process by the government and lender, the EBL program is designed for fast approvals.

The EBL application process is designed to identify your financial needs and the ways they have been impacted by recent disasters. It is vital to many companies’ disaster recovery efforts because Express Lenders approved by the SBA can move quickly based on application information, but your business does have to be operating in a disaster zone to qualify. Even if it is not an everyday loan you can always use, companies that operate in disaster-prone areas should consider it as part of a response plan.

Learn More About Additional SBA Loans

If you are interested in finding out about the half dozen or so additional programs beyond the SBA’s flagship offerings, all you have to do is check out the administration’s official web page. You will find resources on everything from which franchises work with the SBA to what approval times average for different programs.

Abundant Wealth Financial offers a wide range of SBA solutions for working capital, equipment, large business assets, acquisitions, and more. As a financial firm in good standing, we have the ability to expedite loan requests for our clients. Contact our offices today to get the funding your business needs.

 

Everything You Need to Know About PPC Ad Solutions

Marketing your business online can prove as complicated as it is costly. In order for you to reach a wide audience, you need to exercise caution in order to ensure that you don’t spend a small fortune along the way. Though it can seem like the most effective services are the most expensive, this is not always the case. In fact, you can see some impressive results by looking at services like pay-per-click ads. PPC solutions can help you see results without breaking the bank, so it can be wise to take a closer look at the service.

What Is Pay-Per-Click Advertising?

Basically, pay-per-click advertisement services are a cost-effective alternative to traditional ad options. In the past, the common way of advertising a business was by renting ad space. This could be a space that exists in the physical world, like a magazine or bus stop, or it could be a space in a digital sense like a website or social channel. Pay-per-click revolves around digital environments and removes the need to pay for the space itself. Instead, you only pay when a visitor successfully clicks one of your ads.

What Are the Benefits?

There are a number of immediate advantages that you can expect when it comes to using PPC ad solutions. For one, you will not need to worry about wasting your money. Instead of putting out cash for advertisement services that yield no results, you will be able to control your budget and apply funds only when you see success. What’s more, pay-per-click solutions offer you the opportunity to analyze your success. Review data surrounding which ads are seeing the most clicks and it can help you make better decisions moving forward. 

What to Consider in Advance

You may also find it useful to conduct a bit of research in advance in order to see the most success with your ads. Dive into the interests of your target audience, paying close attention to what websites your customers frequent most. This can make it easier for you to determine which sites will yield the best results in terms of ad placement. The more you know about what your customers prefer, the easier it will be to find a great fit for where to put your ads online. 

Getting the most from a digital marketing plan is all about learning what services are available to you. Learn to see better results and save money by pursuing sensible options like PPC ads and getting more out of your experience.  Contact Abundant Wealth Solutions today to learn more about our PPC solutions.

5 Common Pitfalls to Avoid When Flipping Home

5 Common Pitfalls to Avoid When Flipping Home

Flipping homes has gained a lot of popularity and attention over the years. The ease and viability of these projects are often inflated by depictions on television and social media. If you want to keep this from turning into your worst nightmare, here are five pitfalls you’ll want to avoid if you want to get into the home-flipping game.

Underestimating the Size and Scope of the Project

A Fix and flip project is often a far more arduous undertaking than many people realize. While social media and television may give you a false sense of timeline and assurance, you must understand that investment properties take a significant amount of time, energy, money, and patience.

Waiting to Explore Your Financial Options

Fix and flipping homes require different financial backing than it would for your primary residence. You will want a reliable lender who offers loans for flipping projects or hard money loans. Waiting to the last minute can produce poorly informed options and loans with unappealing terms.

Assuming You Can Do it on Your Own

Many potential home flippers are surprised to learn how aggressive the housing market is and how many options there are. If you try to embark on this journey on your own, you are bound to fail. You need a knowledgeable real estate agent to help you navigate the stressful process of finding the right property. They will not only negotiate your deal, but their expertise can prove invaluable in locating the right property to flip.

Lacking an Understanding of the Housing Market

Doing your research is also a must. Don’t rely solely on your real estate agent. While they will be an essential partner in your process, you should also understand the trends in the housing market to give you your best chance at turning a profit. Timing your fix and flip project correctly will play a pivotal role in the resale and profit of the overall process.

Relying on a Single Contractor

If you are going to make flipping homes a habit, you need more than one contractor in your arsenal. Contractors can often be incredibly busy, especially during months with more temperate weather. By relying on a single contractor, you can all too easily find yourself stuck in the flipping process with little leeway. If you want to avoid unnecessary and costly delays, you need more than one contractor.

Fix and flip properties are often not the silver bullet in your financial portfolio; however, they can prove to be far more successful and profitable if you avoid these all-too-common pitfalls. Don’t let the flipping process get the best of you. Instead, set yourself up for the most successful process you can.

Abundant Wealth Financial provides financing solutions designed specifically for property flippers. Contact our offices today to learn more about our fix and flip loans, as well as our fix and flip lines of credit.

 

5 Benefits of Leasing Instead of Buying New Equipment

5 Benefits of Leasing Instead of Buying New Equipment

When your business needs new equipment, you have a few different options. You can lease it, get a loan or buy it outright. While there are certain situations in which owning your equipment may be the better choice, there are several benefits to equipment leasing.

1. Lower Upfront Payment

Buying equipment outright can put a dent in your company’s savings and, even with a loan, you may need to make a downpayment. With leasing, this is not usually the case. Most often, you are only required to make your monthly payments which can reduce the financial burden on your business.

2. No Added Debt

A lease is a rental agreement and, because you are not taking out a loan, there is nothing to pay back. This means that there are no interest fees to worry about, and it won’t affect your credit-to-debt ratio.

3. Easier Upgrades and Replacements

Depending on the kind of equipment your business uses, you may find that it quickly becomes outdated. If this is the case, then equipment leasing is likely a much better option for you than purchasing. With a lease, you are only required to keep the equipment for the length of the agreement; after this, you can switch it out for something more recent.

4. Included Repair Costs

Even if the equipment is not something that will become obsolete quickly, that does not mean it will last forever. As it ages, your equipment will likely start having issues and require repairs more often. If you own it, then this work will come out of your own money. With a lease, repairs are often included. This makes it easier for you to get the necessary work done and reduces the need for emergency spending.

5. Lower Tax Payments

You probably already know that you can claim business expenses on your taxes. This includes your lease payments. Because these payments are the same every month, it makes it easier for you to prepare. In comparison, the amount that you can claim for equipment you own will lessen as the value goes down over time.

Equipment is an essential asset for any business. From furniture to computers to large machinery, these items are necessary for you to run your company on a day-to-day basis. Equipment leasing can simplify the process of getting what you need and is often a more convenient option compared to applying for a loan. If you don’t want to increase your debt or the technology you use is continually improving, then a lease may be the way to go. Contact Abundant Wealth Financial today to explore our equipment financing options.