Arizona Business Development
Arizona Business Development means Going Global. More businesses in Arizona are developing trade ties to foreign country’s that ever before. The balance of trade and changed and the number of opportunities in emerging markets for Arizona Business owners is growing.
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When it Comes to Business Funding, It’s not What You Know It’s Who You Know
To improve ones chance of becoming a successful business owner whether operation is a major organization or a small company, one must first ask — how can I fund the operation successfully? It is obvious that businesses create cash flow, and when managed well, the cash flow will usually keep businesses operating well. However, there are the times like starting a new business, expanding or experiencing a revenue shortfall, when every business will require an outside capital infusion. Solutions come in two varieties, planned and unplanned. It is by far better to have an organized plan.
For the start-up business, rarely will a person succeed if he or she cannot find the needed capital to open its doors to the public, and maintain an existence while the company’s product or service gets known. Therefore, it is imperative to get the all needed startup capital. One of the main reasons people do not get startup capital is due to lack of resources. Few people realize most start-up businesses (over 90%) are funded by private investors (also known as angels). What compounds this problem is the fact that most people have spent much time around persons in about the same income bracket as themselves. It is just true; most people know very few wealthy people and even fewer financiers. Therefore, when he or she sets out to become a business owner, the resounding question of ‘where do I find the money’ gets asked and more times than not, the would-be entrepreneur is at a dead end. Occasionally, the person seeking to start a business will go to the banks. Yet unfortunately, the information we get about banks and their willingness to fund small business is too often misinformation. For example, fewer than three percent of startup businesses are funded by banks regardless of ones FICO score and the meritorious nature of the business. So, having minimal knowledge about funding, coupled with a deficiency of friends, financiers and associates with disposable capital is the brick-wall that is insurmountable for most business people wishing to startup a company. We will show the reader solutions later in this article.
But let us address the expansion business first. The expansion business has a little better luck with banks due to having some cash flow and financial history. However, this segment of businesses has just slightly better success in getting bank funds than startups as banks normally require collateral value in excess of the cash value to consider a business loan request. Therefore, having an organized plan of attaining capital is still off-the-table. For the vast majority of expansion stage businesses, it is still guess work whether or not they can get the capital to expand.
Finally, when a company is experiencing a shortfall of capital, which commonly happens to strong companies, it seems the occurrence happens right about the time the company is growing and actually experiencing success. Yet, growth means hiring, training, product development and so-forth. Thus, capital shortfall at this stage is in many cases a death sentence.
So, what to do?The real truth is found in the old proverbial “it’s not what you know it’s who you know”. There is another concept that is self evidencing; it never hurts a company to know a few millionaires. This applies whether you fall into any phase or stage of business or industry. Having wealthy people surround you can never be superfluous, you just can’t have too many millionaires around if you run a business. Don’t beat yourself up if you like so many have failed to acquaint yourself with wealth, just don’t put it off any longer. If you are doing something in business, or thinking of doing something in business, you have the perfect opening to meet wealthy people, and perhaps have them invest with you. Joining your local Chamber of Commerce for example, business clubs, networking services like Linkedin or Meetup.com will give you plenty of networking opportunities and possible investor referrals. Further, there are small business development centers (SBDCs) around the country that provide investor referral services along with other consulting services for small and start up businesses at no cost. Finally, there are many investor leads companies that survey investors and have databases of accredited investor leads that like private investment opportunities. Just remember, there are millions of active semi-philanthropic investors and they are waiting to hear from small business owners like you. The catch is — they can’t fund you if they can’t find you!
BreadStreet Author: SJ Fortenberry
This article brought to you By BreadStreet Investors’ Union at http://BreadStreet.com
“Bringing Investors and Entrepreneurs Together for Profit”
BreadStreet.com was established in 2004 to help entrepreneurs meet qualified business investors.
BreadStreet.com provides instant access to a 10,000 + investor database. Both start-up companies and well established organizations are welcome.
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The Small Business Kick Start Action Plan
The Small Business Kick Start Action Plan is a workbook for entrepreneurs containing topics and questions that will help guide them in making their business a success.
The Small Business Kick Start Action Plan
Local Small Business Marketing & Promotion Online
Helping local Small Business Owners Market and promote their local businesses more profitably online. Explains why traditional marketing doesn’t work and give them resources to start their own online marketing program.
Local Small Business Marketing & Promotion Online
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Veterans Small Business Loans
The U.S. Small Business Administration has rolled out the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community attempting to establish or grow a small businesses. Financial loans can be found and qualify for SBA’s maximum guaranty.
The SBA has many programs targeted to assist economically and socially disadvantaged individuals, and to help rebuild economically depressed or economically shattered communities. According to Joel Szabat, the SBA’s Chief of Staff, “The SBA has only one set of programs designed to help people, not for who they are or where they live, but for what they done. These are programs the SBA has established to serve those who have taken up arms and risked their lives for our country.”
Patriot Express was recommended to the President by the task force of returning global war on terror heroes, led by the Secretary of Veteran’s Affairs, Jim Nicholson.
There are approximately 1.2 million men and women on active duty, 1.8 million in reserves and the National Guard. Of that total, 1.5 million have been deployed to Afghanistan and Iraq since the war on terror began.
There are nearly 45 million veterans in America today. Veterans are an important part of the small business community. According to the SBA’s statistics, 15% of veterans are self employed.
Eligible military community members include, Veterans, Service-disabled veterans, Active-duty service members eligible for the military’s Transition Assistance Program, Reservists and National Guard members.
Also eligible are current spouses of any of the above and widowed spouses of a service member or veteran who died during service or of a service-connected disability. Eligibility for Reservists and National Guard members is limited to current members of the Reserve or Guard (and their current spouses). Former Reservists and National Guard members (and their spouses) are not eligible, unless they qualify from active duty as Veterans.
Certified copy of a DD Form 214, which is provided for everyone other than dishonorably discharged veterans is required on all Patriot Express loans.
The Patriot Express loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases.
Due to the special nature of Patriot Express, particularly the level of authority and autonomy delegated to lenders under this initiative, SBA is particularly concerned that Patriot Express loan proceeds be used exclusively for business-related purposes.
SBA therefore expects lenders to use reasonable methods to ensure that loan proceeds are used for business-related expenses, which means conformance with verification procedures at least as thorough as those used for their non-SBA guaranteed commercial loans.
At a minimum, lenders must thoroughly communicate to borrowers that all SBA loan proceeds must be used only for business-related purposes, must clearly set forth that requirement on the loan authorization, and must secure a certification from the borrower that all loan proceeds will be so used.
Patriot Express loans feature SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan. Lenders cannot charge prepayment fees on SBA loans.
More Military Small Business Loans Articles
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Social Entrepreneurship
There is a movement across the globe today that says solutions to society’s most pressing social issues cannot be left up to the government to determine. Social entrepreneurs are business owners that decide to defend myself against the work of engaging with social problems implementing systems that offer broad-scale change.
Entrepreneurship of the Social Kind
A social entrepreneur uses the principles of entrepreneurialism to develop a business venture that brings about social changes. The performance of an enterprise is normally measured by profit and return on investment. Social entrepreneurs frequently do their work through non-profit organizations, but this does not preclude them from being profitable. These businesses go the further step of adding a social value component.
Fast Company Magazine publishes an annual list of the best social entrepreneurs that fit their definition: “using the disciplines of the corporate world to tackle daunting social problems.” These are a few of the winners:
ACCION International. This is a nonprofit organization that provides business services and microenterprise loans to men and women in Asia, Africa, Latin America and the U.S.
City Year. This nonprofit organization takes young people from various backgrounds in the U.S. and South Africa and engages them in a year of full-time service and gives them leadership skills they can use to change the world.
College Summit. This is a national college access program in the U.S. that gives schools and districts the means to increase the college enrollment rate, especially from students with low-income backgrounds.
Mercy Corps. This organization takes places in the world afflicted by conflict, poverty and oppression and helps to transform them in peaceful, productive, prosperous communities.
Social entrepreneurs typically are completely committed to transforming their area of concern and it is the driving force behind their business. They have the skill to carry a vision to the ultimate in practical manifestation. They have they uncanny knack for enrolling masses of people in their strategy, which is decidedly user-friendly and easy to implement.
Are You a Social Entrepreneur?
The Utah Microenterprise Loan Fund is a non-profit community development financial institution that makes loans to new and existing small business owners in Utah who are not able to access traditional bank and/or credit union funding
If you’re the kind of business person that can see solutions where others can only see problems and you have the creativity and drive to develop a venture that resolves the issues, you may be a social entrepreneur. You will be driven to affect social change while using your business skills to generate the revenue to make it happen. Like any other small business, with the right business plan and startup funding, you can become profitable while creating long-term change where it matter the most.
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Small Business Micro Loans
Small business start up capital can sometimes be inadequate. One option that is available to the small business owner is a micro loan. These loans are specifically designed to give aspiring business owners start up capital in addition to giving a boost to already established businesses. They also consolidate and enhance micro businesses. They target the unemployed, poor entrepreneurs and people who are not considered bankable. They are individuals who lack any form of collateral, stable income and a good credit history.
Micro loans helps the small business owner in many ways. This includes help with the working capital, purchase of office equipment, machinery, supplies etc. Compared to the conventional bank loans, micro loans are easier to obtain. These loans are usually handed out by community lenders. This is after careful evaluation of the borrower’s credit history. These lenders get these funds from the SBA. They then disperse them to their local communities. They’re usually located in a nonprofit community and have ease at dispersing funds.
When you want to get a micro loan, you have to have some form of collateral or guarantee from the business owner. Another requirement for these loans is that you will be required to undergo training and business management instruction to qualify for this loan.
Projects that normally qualify for this kind of loan are the ones with skill enhancement elements. These projects are those that are aimed at improving the quality of life for those in low income areas. Also included in this category are projects that promote people who are in self-employed businesses and also creates employment for others. Micro loans have helped many people achieve their dream of having purpose in their life while simultaneously earning a living.
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Microbusiness Advancement Center
