Posted on

The Business of Budgeting your Business

The Business of Budgeting your Business

A budget? So, who needs a budget? You do-that’s who.

Unlike the government we actually need to balance our checkbooks. A budget allows you to identify spending habits, and allows your business (or personal) to make necessary adjustments and changes.

       Don’t just be in business to stay in business-be in business to grow your business

There are many areas to delve into for a complete business plan, for practical purposes we will stick to budgeting and a few essentials.

Check list: All of this and more inside my 16-award winning book:

“the sexy little book of finance III” 2 books in one-Personal & Business

  • Your budget should be on a spreadsheet in excel or another format so you can update.
  • Personal budget and Business information should be part of your routine.
  • Make copies of all serial numbers of vehicles, laptops, cell phones, or any other important information of equipment.
  • Copies of any operators or employees who have access to any equipment, vehicles, should have their drivers license and insurance so you have the information and can check any expiration dates.
  • Credit card numbers, expiration dates, and all employees who assigned a card
  • Record of all policies or contracts
  • Starting inventory and ending inventories (daily, weekly, monthly, and annually) or as deemed appropriate for your business model
  • Bank loans, all financial information stored & backed up daily on a private server or encrypted cloud program
  • ADD your own categories.

You should have a full marketing plan (in writing), websites with SEO search, game plan how are you going to market your product or services – internet-seminars-mailers-email campaigns-workshops-etc. If you are looking for money from a bank or lending institution all this will be necessary. Everybody thinks they can apply and get approved in 15 seconds with 3 little questions and nothing else to provide…SORRY, little things like bank statements, tax returns, personal financial statements (free on our website) just to mention a few things. You can see what else may be required on our website.

Now back to budgeting…

 

Month _________________                          Beginning Cash Balance $ ___________________________

Category                                 Estimated Budget                        Actual                       Difference

Revenue/1099                         _______________                  _______________      _______________

Accounts Receivable               _______________                  _______________      _______________

Investment Income                 _______________                  _______________      _______________

Interest Income                       _______________                  _______________      _______________

Other                                       _______________                  _______________      _______________

Total Actual Income:              _______________                                                      _______________

EXPENSES

Rent/Lease                              _______________                  _______________      _______________

Loans                                       _______________                  _______________      _______________

Accounts Payable                    _______________                  _______________      _______________

Inventory Purchase                 _______________                  _______________      _______________

Equipment Purchases             _______________                  _______________      _______________

Office Supplies                        _______________                  _______________      _______________

Cell Phones                              _______________                  _______________      _______________

Phone/Internet/Fax                 _______________                  _______________      _______________

Advertising                              _______________                  _______________      _______________

Printing                                   _______________                  _______________      _______________

Postage                                   _______________                  _______________      _______________

Payroll                                     _______________                  _______________      _______________

Payroll Taxes                           _______________                  _______________      _______________

Health Insurance                     _______________                  _______________      _______________

Repairs/Maintenance             _______________                  _______________      _______________

Automobile Expense               _______________                  _______________      _______________

Gas/maintenance                   _______________                  _______________      _______________

Auto Insurance                        _______________                  _______________      _______________

Business Insurance                 _______________                  _______________      _______________

Accounting fees                      _______________                  _______________      _______________

Retirement contributions        _______________                  _______________      _______________

Web hosting                            _______________                  _______________      _______________

Other                                       _______________                  _______________      _______________

Total Actual Expenses $ _________________________

Total Income________________ minus Total Expenses______________ = Ending Balance_______________

Be Prepared-Be Informed-Be Successful

The last time I got instant gratification – I got food poisoning

https://lendingcapital.net

Posted on

CREDIT and Small Business

I know some of this seems redundant from previous blogs I have done, but, it seems I need to repeat some of the highpoints (or low points depending on how you look at it). Here is short summary of what you need to get together.  

Remember this: Almost 90% of all bank loans get turned down. 

  • Check your credit BEFORE you apply. Places like www.creditchecktotal.com  will give you all 3 bureaus. 
  • CORRECT or explain anything that is negative.  
  • Create a marketing and game plan (in writing to present) 
  • Create a BUDGET  
  • Complete a PFS (personal financial statement) 
  • 3 years business and tax returns 
  • 3 years personal tax returns 
  • Profit and loss statement 
  • Cash flow is one of the primary things lenders look for-generally most lenders give around 20% of annual sales 
  • List number of clients (lenders like lots of clients-low number of clients means high risk to a lender 
  • Get your SBSS score (small business scoring service). You can get this at Nav.com  
  • If you are looking for an SBA loan: the requirements are a  minimum score of 140, most lenders will NOT provide a loan if SBSS score is under 160. The range is 0-300 
  • SBA loans are difficult to get and can be expensive and take up to 3 months or more to fund.  So, if you are in a hurry look elsewhere that is why we offer short and long-term loans. 
  • Personal FICO score-0-840 most lenders want 650 
  • D-UN-N-S number (Dun and Bradstreet-100 as the highest a score of 80 is good-free  
  • Most secondary lenders (non-bank) have very short terms and require daily or weekly ACH payments form your bank 
  • DO NOT apply at several banks or lenders at once or keep applying-every time you do this it pulls down your credit score-you will not get a loan. 
  • Most lenders require a minimum of 3 – 6 months in business and do not do startups. 
  • Have a website, subscribe to places like Yoast (SEO), Rankcrew.com for backlinks, make sure it is HTTPS (secure) you can have the greatest website but who cares if nobody can find it. 
  • Have engaging content-you only have around 2 seconds or so for someone to keep looking or come back to your site (like this-a blog) 

The old bait & switch,” get approved in seconds and get funded in hours”- in lending instant gratification can cost you a lot of money. High interest, short terms, and not as much as they promised or even turned down after they actually pull your credit. 

We hope this helps you, our goal is always to help businesses and individuals who want to start a business. 

We have realistic lending programs from established to start ups-Lendingcapital is a national direct lending platform. 

Regards 

Frank 

https://lendingcapital.net  

We are SSL Certified,-Malware & Google Blacklist secured  

 

 

 

Posted on

Be in Business-Stay in Business-Grow your Business-essentials you need to do

Over the years many ups and downs. stress, no money, no access to money, everything that could go wrong -did. I think I have seen, experienced, or heard it all.

But, alas, this is my 21st year in business (a lot of perseverance, bull headedness, and determination), my successes and failures have helped me develop systems that help business stay, develop, and grow their businesses. I have written 6 financial books here is my shameless plug: 16 major awards, “the sexy little book of finance III, it contains personal development, budget’s, investment, and retirement strategies, but also business strategies (2 books in one). My other book, Seminar marketing for sales professionals is still selling from 2003-why?  With all the phishing, email blasts, mailers, nobody pays attention, my book is back to basics for marketing and one on one strategies.

Besides all the major headaches and regulations that affect us in business like 550 filings for 401K plans, ERISA, Section 125 plans, IRS tax filings, and on and on it goes.

Here are things YOU MUST DO:

Whether you are a startup or established

  • Develop a budget, do it on an excel spreadsheet.
  • Develop a detailed business plan and strategy, review your plan at least annually to see if you have met, failed, or exceeded your goals.
  • Develop a marketing plan-how are you going to penetrate the market? Seminars, advertising, mailers, email lists, shows, cold calls, face to face door knocking? Check out your competition to see how they doing and what is effective.

        How do you separate yourself from everyone else? SERVICE

Service

Ethics

Reliability

Value

Integrity

Contact (using a CRM)

Extraordinary product selection

Services and products that fit your client’s needs (a niche market)

Go back to basics: I call it FABASS (my first job with 3M company taught this-what a novel idea)

Features

Analysis

Benefits

Advantages

Sold

Keep it simple

  • Join as many organizations as possible, branding is huge (logo, name recognition, etc. Most are free like Manta, Yelp, WordPress, Listen, LinkedIn, Facebook, Yahoo, Twitter, Alignable, Hootsuite
  • Website-must have along with SEO underwriting. Who cares if you have a web if they can’t find it. Reasonable SEO like YEXT and ALEXA
  • Use quicken or other software to pay and track bills and expenses
  • List out your debt, liabilities, and assets in detail – P&L
  • Develop a spread sheet of inventory or merchandise to track costs and profits
  • Make sure if you offer a 401K plan you are in compliance-if you do not use a outside fiduciary (3(38) plan, then you must do the due diligence on fund selections, timeliness of payroll deposits within 7 days or as IRS riles as soon as feasible possible), conducting quarterly meetings, disclose fund costs and fees to employees. Your free 401K plan may come back and put you out business on an IRS, ERISA or DOL audit.
  • 5500 filings for your healthcare plans, most do not do this, (ERISA)
  • Record all credit cards, loans, inventory, cell phones, vehicles, insurance.
  • IMPORTANT: Google changed the rules converting to Penguin, now they changed again-if you are HTTPS -ssl certificate Googler may not scan you for tracking or block you. Your website will come up unsecure…

You will need all this (at a minimum) if you are applying for a bank loan, or any type of financing, and success. Lenders look at how well prepared, organized, marketing strategies, P&L etc.  you are to help determine if they are going to lend you money.

I have changed my business model many, many times over the years, some through necessity, some through insights to new markets, the key a is never stop learning, and never think you are too successful to change or listen to new ideas.

Frank J. Eberhart, CEP® RFC® Author

President

http://www.Lendingcapital.net

Buy my book: Seminar Sales & marketing Techniques from my website