by abundantadmin | Mar 21, 2023 | Blog
Are you planning to start a new business or expand your current one? Running a successful business requires one to have the right expertise in providing services or making products. One of the areas you should focus on is managing your business finances. Here are essential financial habits that can enhance your business’s success.
Investing in Growth
Apart from meeting daily routines, it is crucial for business owners to focus on the future. This entails setting aside business finances for various growth opportunities that may arise and moving your small business in a stable financial direction. Growth helps a business attract the right stakeholders and focus on innovation, enabling it to compete healthily with others. Moreover, customers usually appreciate high service levels, while employees prefer businesses that invest in their careers.
Maintaining a Good Credit Score
As your business develops, you may need or want to buy additional properties, take more loans to finance your projects, or purchase additional insurance policies. A bad business credit score may affect the approval of these acquisitions and transactions.
One of the ways of maintaining good credit is paying for your debt funding on time. For instance, you should not allow your business’s credit cards to run a balance for weeks. You should also avoid applying for loans with high-interest rates.
Implementing a Good Billing Strategy
As a business owner, you may encounter clients who don’t pay their invoices on time. You should ensure your business has enough cash flow to meet its daily expenses to avoid delays and inconveniencing others. If you are facing billing issues, consider implementing a creative approach. For instance, you may introduce discounts for customers who pay their bills on time.
Monitoring Your Books
Although this may seem like an obvious practice, it is key to your business’s success. Whether you work with a bookkeeper or not, consider setting aside time to check and monitor your books. This enables you to familiarize yourself with your business finances, which may help you detect potential financial crimes.
Seeking financing is an effective way of enhancing your business’s success. Financial institutions can provide guidance and funding to help you meet your goal. At Abundant Wealth Financing, we offer exceptional financial solutions to our clients. Reach out to us today for more information.
by abundantadmin | Mar 16, 2023 | Blog- Marketing
How you promote your business online plays a big part in how much success you see. One classic method of improving your digital presence is by ensuring your website and related assets meet current SEO standards. Though paying attention to the latest trends is one helpful way to tweak your copy and see better results, you also want to be as specific as possible when it comes to the optimization process. One perfect example of this is learning how to implement local SEO into the process.
Start with Geo-Specific Directories
Where your business is listed will play a big part in its online presence. Before you begin optimizing your assets, you first want to make sure that your company is visible to people who exist in the communities you are targeting. Google My Business is a good place to start, as it acts as a modem yellow pages directory and aims to connect people in communities with local businesses. However, don’t limit yourself to one directory. Research the online community boards that might prove relevant and create a listing to attract an audience.
Research Local Keywords
The optimization process usually involves infusing copy with relevant keywords and phrases. These words are often based around current consumer search trends, meaning that using the right terms is likely to rank you higher across popular engines. To take advantage of local SEO practices, try to be geo-specific with the keywords you utilize. Adding the names of specific locations in your area can also prove advantageous, as it increases the odds of your listing coming up when locals are seeking services you offer. Keywords change often, so be sure to update your copy every so often to remain relevant.
Create Content for Specific Audiences
You might also find it helpful to cater some of your content to local audiences. When your business is situated in a specific location, it has the advantage of being able to relate to members of the community in a direct way. Use local legends, landmarks, and stories to craft content that people will find engaging, informative, or amusing. While you still want to keep some of your content broad to reach audiences near and far, cultivating a handful of unique pieces can provide you with a more robust return on your investment.
While search engine optimization has long been a trusted practice for business owners looking to improve their digital marketing strategies, you need to be as specific as possible in order to see the best outcome from your efforts. Contact Abundant Wealth Financial today to see how a geotargeted SEO campaign can boost your business.
by abundantadmin | Mar 14, 2023 | Blog
Starting and managing a business can be tough. You need skills, expertise, and proper guidance to achieve your objectives. For first-timers, these steps are helpful to start a small business successfully.
Learn More About the Business
Having a business idea is not enough. Research your idea and learn how your small business will serve your target audience, the demographics, the products and services, market trends, and competition.
Write Your Business Plan
You need a roadmap to structure your small business and make significant progress in the market. A business plan is a map and guidance to meet your objective. This is also the foundation for a successful business.
Find a Business Location
As you research your business idea, be keen on the location. Setting your small business in an ideal location is crucial to success. Consider other businesses and competition before deciding on the location.
Your working capital decides how stable your business will look in the long run. It is crucial to find means to sustain your business’s cash flow. The availability of conventional and alternative financial institutions should help you secure funds for your small business.
Create a Budget
Making costly financial mistakes is easy when setting up a small business without a budget. A budget helps you know your priorities and spend objectively as your business grows.
Choose a Business Structure
The amount of tax you will pay, daily operations, and the risk you will manage gets determined by the business structure you settle for. Seek expert help to learn the relevance of a business structure before choosing and applying one.
Choose a Business Name and Brand
Every small business needs a name and a brand to attract customers. Choosing a unique and relative business name and brand is crucial in this case. You easily attract customers and retain a good reputation with the right business name.
Register Your Business
Running a legitimate business is crucial. Ensure you handle the many legal issues by working with business lawyers and other professionals. You easily grow as a small business after registration.
Look for Business Insurance
You need business insurance to protect your assets and employees. Find a reputable insurer and buy policies to cover your small business properly.
Hire the Right Staff
Every startup business needs skilled and experienced staff to grow. You avoid mistakes and find it easy to navigate your small business with the right staff.
Starting a small business can be hectic without proper guidance. At Abundant Wealth Financing, we help you achieve success through reflective guidance. Contact us today.
by abundantadmin | Mar 7, 2023 | Blog
Starting a small business and reaping from its success are two different things. For some entrepreneurs, the legal go-ahead to sell goods and services feels outstanding. However, that’s not all. You must have the strict business sense to keep your small venture growing daily. Keep reading the following tips to navigate your business for more benefits.
Hire Professionals When Necessary
The personnel you staff your small business with will inevitably determine its growth directly and indirectly. Qualified workers, for instance, will deliver excellent results, treat customers passionately, and stay up with the trends since they have the necessary business soft skills and vice versa. Therefore, consider a well-structured recruiting strategy to hire professionals to fill the available job openings.
Engage Your Customers
The primary goal is to meet your customers’ needs in time and as they wish. Customer relationship management forms the backbone of maintaining the existing ones and attracting new prospects. Therefore, learn to take time to understand what your clients require, how often they make purchases, and what they’re likely to buy next. Once you have this information, tailor and match your goods or services to the fast-changing customers’ specifications.
Build a Unique Brand
In an already-flooded industry, it’d be unwise for small business owners to reproduce the duplicate of existing products into the market. The rule of thumb is to identify a market gap and channel all your energy and resources to fill it. Further, build a distinctive brand that’s uniquely identifiable and easy to pick from other substitutes. And the only way to attain this is by delivering unmatched quality products to your customers.
Utilize Social Media
These days, it’s easy to reach your customers and promote your new products with just a click. It’s also a way to improve convenience and timeliness on your and buyers’ sides. Hence, create a solid online presence, create a referral program, use e-payment plans, reply to interested customers, and give feedback on time; the list is endless.
Success is every small business entrepreneur’s dream, regardless of size and niche. And, since its accomplishment calls for finances, keep the lack of it far away from drawing you back from achieving your goals. Abundant Wealth Financing has your back! Contact us today and experience more about the available funding options. You’ll be happy you did!
by abundantadmin | Feb 28, 2023 | Blog
he process of obtaining a small business loan is a complicated one. However, military veterans have access to special programs through the United States SBA. Before you decide to pursue funding to grow your small business, it’s important to understand your options and the requirements for qualification.
VA Small Business Loan Explained
As a former member interested in starting a business, you are going to need some business funding. While you may be able to obtain funding through a traditional lender, you also have access to VA small business loans through the SBA. The Department of Veteran’s Affairs has nothing to do with these small business loans.
Just like traditional funding, these loans are provided by a lending partner and require repayment with interest. The difference is the SBA works with lenders to establish guidelines to reduce risk to the lender. This typically means lower interest rates and longer terms.
Types of VA Small Business Loans
There are several options available for veterans who are interested in a small business loan, including:
- Standard 7(a) loans
- Military Reservist Economic Injury Disaster Loans
Qualifications for VA Business Loans
The qualification requirements vary based on the loan type, personal credit score of the applicant, and other factors. The basic requirements for the 7(a) loan program are:
- Business exists for profit
- Engaged in/propose to do business in the United States or it’s territories
- Business owners have invested equity
- Other alternatives have been exhausted
Other Financing Options for Veteran Business Owners
If the above options do not match your needs, there are other programs available for veteran business owners, including:
- Street Shares
- Service-Disabled Veteran-Owned Small Business Program
- Hivers & Strivers
Resources for Veteran Business Owners
If you plan to establish your own business, there are several resources available to help, including the following:
- National Veteran-Owned Business Association
- Regional Business Associations
- Veterans Business Outreach Centers
- American Corporate Sponsors
- Entrepreneurship Bootcamps
Do You Need Finance Options for Business Growth
If you are a United States military veteran interested in starting or growing your small business, you have options. Contact Abundant Wealth Financial to learn more about these options and more.
by abundantadmin | Feb 21, 2023 | Blog
If you are a business owner who is pursuing an acquisition, there are certain things that you need to keep in mind, including:
- Growth opportunity offered by the target company
- Purchase price
- Financing terms
If these things do not align, there’s a chance that the acquisition will fail. One of the most common mistakes is to focus on the purchase price without considering the present and future growth plans of the target company. Two of the most challenging aspects of a business acquisition is securing the required capital and the most ideal financing terms.
Acquisition Financing Options
When it comes to business acquisition financing, there are several options available and each will have its own unique set of eligibility criteria, cost, expectations, terms, and covenants. These options are:
- Bank Financing
- Seller Financing
- Asset-based Financing
If the business you are trying to acquire has a lot of assets, a strong profit margin, and positive cash flow, you should be able to obtain traditional bank financing. On the other hand, if your goal is to acquire a service company with a lot of receivables and short-term assets, it can be harder to obtain traditional financing.
You can improve your chances of getting a loan by finding a lender that has historically financed the type of business you are trying to acquire. If the seller has a relationship with a financial institution, try talking to them. Also, you don’t have to accept rejection- just find another lender to discuss your options with. After all, different lenders use different qualification criteria.
For small- to middle-market transactions, the seller may be willing to finance a portion of the transaction. The easiest way to do this is for the buyer to make a down payment and the seller holds the promissory note for the balance of the purchase price. The business, as well as its assets, act as collateral.
The terms vary based on the specific agreement between the parties.
Recently, asset-based financing has increased in popularity as a viable funding source for business acquisitions. An asset-based loan is a revolving loan secured by the assets of the business. Typically, the loan is 65% to 80% of the value of the asset class.
The primary difference between traditional financing and asset-based financing is what the lender considers when underwriting the loan. In the case of traditional financing, the lender looks at the cash flow first and then the collateral value. On the other hand, in the case of an asset-based loan, the lender considers collateral, debt load, and quality of earnings.
The primary disadvantage of asset-based financing is the interest rates, which range between 12% to 28%.
Equity financing involves securing equity from sources such as angel investors, private equity firms, and venture capitalists in order to raise the capital to pay the seller as well as to put working capital into the business.
At this time, most private equity firms are looking for deals with $2+ million in earnings and $10+ million in revenues. However, the owner must be willing to give up 51%+ of the company. So, the buyer won’t have debt but will have to give up control of the company.
In addition, most of these firms are looking for a 25% minimum rate of return on their investment. While each has its own expectations and exit strategy, generally they hope to sell the business or take it public within a certain period of time.
Mezzanine financing is a combination of debt and equity, involving a variety of technical terms such as equity investment, senior/subordinated debt, and private-placement transactions.
In recent years, the size of the mezzanine industry has grown over the past year and is expected to continue to grow as we move into the future.
Ensure Your Deal is a Success
In order to ensure the best chances for success in any deal structure and the best terms, make sure that your offer and/or business plan is well structured. You should base your plan on the combined business- not just the current one. The plan should show how combining operations will improve collateral and cash flow, as well as increase growth. If you need more help with your business acquisition financing, contact Abundant Wealth Financial today.
by abundantadmin | Feb 16, 2023 | Blog
If you have an annuity and have short-term funding needs, you may want to consider annuity financing. This is the process of taking a loan directly from the annuity or using its value as collateral for a loan from an outside source.
Why Consider Annuity Financing?
There are a couple of reasons you might want to consider annuity financing, including:
- Emergency needs such as a down payment on a home, supporting a family member, home repairs, or medical expenses
- You don’t want to give up your annuity due to tax and surrender penalties that would lower its value
How Does Annuity Financing Work?
Before we explain how annuity financing works, we’ll explain the basics of deferred and non-qualified annuities.
A deferred annuity has an accumulation period in which it grows. At the end of this period, you can annuitize it, which converts it to an immediate annuity. This is when your payments start. This type of annuity can only be used for a loan during the accumulation period.
A non-qualified annuity is funded with post-tax dollars, while a qualified annuity is funded with pre-tax dollars. You may be able to borrow money during the accumulation phase on your non-qualified annuity. However, financing with a qualified annuity may be more complex.
Here are your financing options:
- Take a loan directly from the annuity
- Use the annuity as collateral
Advantages & Disadvantages of Using Your Annuity for a Loan
Annuity financing has several advantages and disadvantages, which we will explore below:
The advantages of annuity financing are:
- Annuity financing allows you to avoid surrender charges. If you surrender a portion or all of the annuity for cash, you’ll be required to pay a fine. In some cases, these may cancel out any gains you’ve accrued.
- Annuity financing allows you to avoid paying taxes and early distribution penalties. If you liquidate an annuity before you are 59.5 years old, you’ll be charged a 10% penalty on the amount that you withdraw.
The disadvantages of annuity financing are:
- You may have to pay an early distribution penalty if you do not pay it back within the specified period of time. In addition, the amount withdrawn is subject to income tax by the federal government.
- You reduce the amount that is available to earn interest, which reduces the growth of the annuity.
- There are certain restrictions, which means this may not be the best use of your tax-deferred status.
Is Annuity Financing a Good Idea?
As a general rule, using your annuity for financing, selling it for a fraction of its worth, or surrendering it are the last resort. If possible, its best to have emergency funds set aside in flexible products such as an online savings account. You may also want to consider meeting with a tax advisor or other financial professional to discuss your goals and get some advice. If you need help, contact the experts at Abundant Wealth Financial. We can help you examine your options to get the funds you need.
by abundantadmin | Feb 14, 2023 | Blog- Marketing
Like most technology, web development adapts and changes seemingly at the speed of light. As a coder, you may be concerned with keeping up with new methods and industry trends. Therefore, these are a few ways you can maintain and improve your coding skills.
If you want to improve your basketball skills, your coach will tell you to increase your practice and do it regularly. The same strategy works for many other types of skills, and coding is one of them. The more you practice, the better your coding will be. Therefore, sit down and practice every day.
As you continuously use your skills, you will begin to see mistakes easier, your typing and analysis will be accelerated and you will learn about new practices early in their development.
You can also take courses on new coding processes, and you should continuously learn about internet security and any new strategies that can help you secure your programming. Test out code editors, and when you find the one you like best, learn it inside and out. Some of these tools have features that can accelerate your productivity as well.
Also, don’t just stick with the programming language you know. However, don’t worry about learning every coding language that is out there. You can gain a general knowledge of those that are regularly used in web development while mastering the fundamentals of programming in general.
Challenge yourself. Find tutorials on new languages or build plugins that can help you and others. However, don’t get discouraged if you struggle with a concept or project. Remember that you may be working on projects developed by individuals with decades of coding experience.
Take Regular Breaks
Regular downtime is also valuable. You should not spend all day every day focused on improving your coding skills, especially if your regular job involves coding. You can actually lose productivity if you don’t spend time away from your projects and practice time.
Share Your Knowledge
The best way to learn and solidify your knowledge is to teach someone else. Therefore, you can improve your web development skills by sharing your knowledge with others. As you develop lesson plans, you will improve your organizational skills and teach your mind to put your instructions in the right order.
Remember, you don’t have to write about code, especially if you aren’t a strong writer. Instead, develop a video course or slide presentation that details different tips and tricks with a specific type of programming language or code editor tool.
It will take a bit of time and dedication, but you will find that by implementing these tips, your programming skills and productivity will increase. Contact Abundant Wealth Financial to learn more about effective web design services.
by abundantadmin | Feb 7, 2023 | Blog
If you were to ask a small business owner where to get financing, they would probably be able to immediately list a few options. Chances are, they have a bank account somewhere, so the bank may be their first suggestion. Then, they may recall where they got their financing when they needed it.
However, if you were to ask them where to access private equity financing, they may not be so sure. Most of the time, when this topic is mentioned, they will suggest that you check with an attorney or accountant, or they may mention a private equity investor that approached them at one time.
Unfortunately, small business owners who are seeking capital and private equity investors don’t connect due to a variety of factors. This is typically because small business owners don’t know where to turn or there is a shortage of capital providers in their area. In addition, most private equity investors are only interested in businesses in a specific industry, certain cash flow profiles, and of a certain size.
Private equity investors look for companies they understand, with a management team they can connect with. They also prefer to invest in companies where they can add value. Beyond that, they place priority on transactions that benefit their fund.
In order to determine if private equity financing is right for your business, you must understand that there are advantages and disadvantages:
Advantages: Private equity financing provides you with capital beyond what you would get through traditional financing, as well as the chance to pursue a growth/acquisition initiative.
Disadvantages: Private equity financing can be expensive- traditional financing is almost always going to be cheaper.
The biggest problem isn’t financial but allowing an outsider in as a business partner. In traditional financing, the lender isn’t involved with the day-to-day operations of your business. They need regular statements and payments, and need you to abide by the terms of the agreement- but that’s all.
A private equity investor, on the other hand, is hands-on. If you do not have a board of directors, they will make one. If you do, they will take a seat on it. Then, they will set a strategy and create rules for future infusions of capital.
Private equity investors want to work with entrepreneurs that will be good partners and accept advice and feedback for growing the company.
If you’re interested in pursuing private equity financing for your business, take your time and do your research. Don’t wait until you need the money to get started with your search but build relationships and bridges ahead of time. Ask your accountant, lender, or attorney if they know of any private equity investors in your industry and area. Additionally, contact Abundant Wealth Financial for more information. We can help you determine if private equity investing is right for you.
by abundantadmin | Jan 24, 2023 | Blog
If you’re interested in starting your own business but don’t know where to start, a franchise might be a good option. However, unless you are independently wealthy or you have savings, you are going to need financing for your business.
In this article, we’ll offer you a few funding options for financing your franchise. We will also explain what you should and should not do when it comes to franchise funding.
Options for Funding Your Franchise
When it comes to funding your franchise, there are several options, including:
Franchisor financing: some franchisors are willing to finance the purchase of the franchise.
Traditional bank loans: if you have a decent credit score, a solid business plan, and a relationship with a bank, you may be eligible for a commercial bank loan
SBA loans: the SBA offers several loan programs, including the 7(a) or 504 loans. In this type of loan, the SBA guarantees a certain percentage of the loan, making it attractive and less risky for the lenders.
Alternative lenders: if you do not qualify for commercial loans or SBA loans, you may consider alternative options. The approval rate is much faster- but the rates are high and terms are shorter.
Personal assets: if you do not have the cash to cover your startup costs, consider using your assets to fund the venture- as long as it does not impact your own financial stability.
ROBS (Rollovers as Business Startups): typically, if you withdraw money from your retirement before you are eligible, you must pay a penalty. However, the ROBS allows withdrawals without penalties.
Crowdfunding: some people choose to turn to online forums to raise the money for their franchise efforts.
Loans from friends and family: if none of the above options work for you, consider asking your friends and family for a loan- but keep in mind that this could cause the relationship to become strained.
Do’s & Don’ts of Franchise Funding
When it comes to financing your franchise, there are certain things that you should and should not do. We’ll explore these below:
Do’s of Franchise Funding
Below are a few of the things you should do when you’re seeking funding to buy a franchise.
- Carefully weigh all of your options, considering the advantages vs. disadvantages of each one.
- Make sure to do your research and make sure that your personal finances are in order.
- Obtain a pre-qualification to find out ahead of time just how much you qualify for.
- Decide if you want to own more than one unit.
Don’ts of Franchise Funding
Below are the things you should not do when seeking franchise financing:
- Don’t give up on obtaining funding
- Don’t underestimate your funding needs
- Don’t assume all providers are exactly the same.
- Don’t wait until the last minute.
Learn More about Financing Your Franchise
If you want to start your own business but are hesitant about starting it from the ground up, a franchise may be a good option. If you want to know more about financing a franchise, contact Abundant Wealth Financial today. We can help you evaluate your situation and determine which option is best for you.