Finding proper business financing is not easy at the best of times for most small and medium sized business owners and managers.
There are a number of reasons that collectively explain why the business financing market can be so difficult to understand and navigate.
But probably the single biggest reason is the lack of useful information about how the business financing market actually works.
Business financing information and education sources predominantly come in two forms: 1) Text books; 2) Major bank advertising.
If you’ve ever read through a educational finance text book or taken a business financing course, you already know how difficult it can be to apply the theories, principles, and strategies to a small or medium sized business.
Our formal education system provides limited information as to how the market place works, how to plan for financing requirements, how to manage periods of growth, decline, transition, start up, etc.
Sure academic books and courses can go through all these areas in great detail, but is the information practical, real world, something you can relate to and apply yourself as a manager or owner of a small or medium sized business?
In most cases, the answer is a resounding NO.
Most finance text books speak to big business financing dynamics that are not easily transferable to small and medium sized business scenarios.
Outside of the formal education system, the next great source of business financing information is the information provided by the major banks, which they tend to make available to you by the boat load through their broad based marketing campaigns.
Unfortunately, the information by itself seldom helps you determine if a particular institution would be able to provide you with financing, or what would be required to qualify for a loan.
The good news is that business financing sources continue to grow in numbers as more and more lenders carve out a particular piece of the market to service.
In order to take advantage of these alternatives, you need to have a solid approach in place when seeking business financing.
Here’s a short list of things to consider
>>> Develop a solid, ongoing, understanding of both your personal and business assets, income, and cash flow.
Regardless of the business financing model, these elements will always come into play to some degree.
Being able to demonstrate a solid understanding of your business financials is also an indication of your ability to manage the underlying business.
>>> Monitor and manage your personal and business credit.
Small and medium sized business financing is focused on both personal and business credit histories.
Regular reviews of both personal and business credit reports from the major credit reporting agencies are important to avoid errors and credit practices that can severely damage your borrowing power.
>>> Develop your marketing position.
Yes, seeking business financing is a marketing exercise.
When applying for business financing, you’re marketing your business to lending sources and they in turn are marketing their business financing programs to you.
Think of the lender as a customer to better understand what they’re looking for. Then, develop a business proposal that addresses all their potential needs and concerns.
>>> Research Lending Sources
There are lots of business financing sources. But there is also lots of variation in the types of business applications each one is prepared to consider.
Broad based lenders rely on credit history and net worth. As you get more specific in terms of financing application and industry, lender programs become more narrow and can be harder to locate.
You need to consider things like industry, sector, and geography when looking for business financing sources.
Financing consultants and business loan brokers can be an excellent source of information to aid you in this process.
>>> Qualify The Lender
Before you make a formal application, find out if the lender has the programs and lending track record to meet your specific needs.
Too often, the lender is doing all the qualifying.
>>> Compare your options
Depending on the scenario, there can be several financing strategies that could work for your business.
Make sure you take the time to compare before making a decision. The extra time spent could save you considerable time and money in the long run.
>>> Start Today
Regardless of what your business financing needs are right now, you should regularly invest time staying on top of your business financials, monitoring your credit, and researching financing sources that fit your industry and potential future requirements.
When the time comes to acquire capital, your proactive efforts can make all the difference in getting the capital you need with terms and timing that are acceptable to your business.
Brent Finlay makes it easy to understanding business financing. Learn how to locate and secure proper financing for your business. To receive your free 6 part mini-course visit the business financing website
Small businesses aspiring for growth need to keep an eye on performance improvement through online business training courses. To measure up to the ever evolving business world, small businesses need new skills to facilitate workforce gains and to generally meet the competent needs of operations in tandem with its competitors.
Small business training for employees provides an additional skill and exposure to the individuals and to the business. It is more flexible and less strenuous to do an online business training course. This consequently improves your company to continue effectively. Most small businesses fail to recognise the beneficial aspects of training its employees. Among many other advantages that come with training are the following benefits:
To Effectively Improve Your Company’s Competence
Training your employees will result in a better customer service, improved business skills, and growth in productivity. This ultimately makes your business more competent and competitive in the market. It is important to always advance the skills of the employees as the business world is dynamic and overly competitive. The direct tragedy of non-trained employees is the incompetence to match up the necessities of a contemporary society. It is important to consider an online business training course if the difficulty is time or cost of doing a recommended training.
Improving Loyalty and Staff Retention
As a business, staff retention is a saving to the business and its future prospects. Employees have their own aspirations for growth and they may want to venture out to look for that satisfaction. However, if the training opportunity is available to them, they find their professional growth in the business and are likely to stay longer. It is a fact that such training will definitely add them new skills and promote their contribution to the business as well as building their self-esteem. Giving them a chance to improve their skills makes them realise that you value them enough to invest in them.
Improved Business Prospects and Profits
The ultimate objective of running a business is to maximise an opportunity to make profits. Training employees makes them more competent and qualified to promote your business in the marketplace. This will have an effect and an increased business means more profits.
Makes Your Business Competitive
Stagnating is the worst effect that can kill your business, so by ensuring that your staff are constantly advancing, you continue to grow in business and remain competitive within the industry. It is expensive and very disorienting to employ new staff. An online business course for your employees can make them more eligible for internal promotions. Unlike new employees, you will have the benefit of a complete and knowledgeable staff for your business, who are people you know and you can trust.
Exposes Business Weaknesses and Skill Gaps
Training makes the business realise what they have been doing wrong and henceforth, the business can more easily identify any skill gaps in the market and even within the existing employees. This will propel your business to work on filling the gaps which will assist the staff to fulfil their role effectively.
Training is therefore a valuable and profound investment for the business. For the many businesses that may not have adequate time, an online business training course would be more appropriate. The staff will have a much higher sense of job satisfaction, which will improve their motivation towards their work and the business generally.
There are several Web Host giants on the internet that provide private label rebranding to small business owners. This might be the best opportunity to “piggyback” on well-established businesses if you are just starting out in internet marketing. This gateway for unlimited wealth is made possible due to the growing demand of digital marketing in regions that are outside the scope of these large corporations.
In order to gain a share of the market, these corporate web companies offer reseller plans to small businesses which take their products and services, rebrand them and sell to business owners at a profit. These products include domain name services, web hosting, online storage, business productivity software, and tools.
There is quite an advantage in being a small business retailer because one is able to customize their business at the local level and meet the demands of their growing market on the World Wide Web. Let’s look at the definition of digital marketing to understand why the demand has grown significantly over the past decades.
What Is Digital Marketing
Digital Marketing involves all functions that are geared toward promoting online business activities. This includes but is not restricted to products and services in subcategories such as Domain Name registration, web hosting, email marketing, web design and development, software applications, sales and marketing, social media marketing and consultation, and all medium through which businesses and individuals advertise and market their products online.
Retail Marketing refers to activities geared toward end users of a web-based business solution such as domain names registration, web design services, software apps for business and personal use, social media management, web hosting and other activities that promote online communication.
As the need for business solutions intensifies, business persons become increasingly concerned about meeting the demands of the online industry, and therefore the Pros and Cons of the internet business become relevant.
The Cons of Digital Marketing
One would think that the more customers you have, is the more profits you are likely to acquire but the truth be told, the more the business will become more challenged due to competitors, need for online bandwidth, web creativity, uniqueness, and need for customer service due to increase in customer queries and the need for technical support.
The Pros of Digital Marketing
Fortunately, some web hosting reseller business plan come with independent customer service team that manages concerns and queries of clients on their behalf. Another positive thing about being a domain reseller is the handling of payments and processing of sales. As a web hosting reseller, you are given the opportunity to re-price your products to earn commissions from your own business.
Another pro for being a reseller is the fact that starting your digital marketing business does not require an exorbitant startup cost nor high overhead expenses to operate effectively, nor initial products, compared to other online ventures. Products are sold through the distributors but your private label is displayed discreetly in the sales operation and therefore your business receives the credit!
How Do I Become A Web Hosting Reseller?
There are two ways to become a Web Hosting Reseller and Domain Name Registrar. One can sign up as an affiliate or an actual reseller.
An affiliate gets a commission from advertising online products that the Web company (suppliers) market, using links and codes on approved websites.
Reseller uses their own brand to market the Web Company’s products (supplier) and services at a higher rate of returns. End users see the reseller’s products and services as their company’s brand and not the Web Company’s image.
Affiliates display the name of the wholesaler or provider (Web Company) through banner advertisements and other forms of internet marketing, similar to a franchising arrangement.
How Much Does It Cost To Run A Web Hosting and Domain Name Business?
It is very alarming to find out the actual cost of starting your own internet business. The subscription for a reseller license varies from $89-$499 annually and it depends on the provider or web company. Most persons prefer to do business with Web companies that offer a variety of affordable products and services. Once a business plan is purchased, one can start selling immediately online.
Some Web companies provide a retail storefront with the domain name search field. Other features include the following:
Dedicated customer service team support for your clients
Marketing software to assist in promoting their brand online. Resellers are expected to purchase their domain name to start promoting their retail internet business.
Start Up Cost
There is no mandatory startup cost for a Web Hosting Business, however, it is suggested to start with at least $300-$500. This would include the cost of the subscription plan, a domain name for your business idea, a web designer to customize the storefront (optional), business cards and other marketing paraphernalia to help provide greater access to your target market.
There is reseller’s support, community pages, manuals and online support to help you succeed in making your business profitable.
The process of starting an internet business is simple, and while there could be challenges in securing a viable market in your region, there are no geographical restrictions. Savvy business operators stand a greater chance to earn real attractive residual income annually, in a relatively short time.
What To Expect as a Web Hosting Reseller
Business owners are able to tap into the tremendous wealth of the digital marketing business industry as it is one that never sleeps! It has often been said that you can earn money while you sleep, and since the internet generates over a billion dollars per day, more and more persons have experienced this reality. Currently, there are Web Hosting Resellers who are making $10-30K (USD) per month.
Once you are patient, open to exploring online business opportunities, and enthusiastic about providing internet business solutions for individuals and companies, then you are ready to build your digital empire.
After reading this article, if you are asked: “what is the best internet business?” I am quite sure that you are in a better position to give a logical answer. However, you must realize that no matter how skilled one is, or how many customers he or she has garnered to do business with, real success comes through smart teamwork. The late Steve Jobs once quoted; “Great things in business are never done by one person, they are done by a team of people.”
Are you thinking of becoming a Web Hosting and Domain Name Reseller? Then check out Digital Marketing Business. We provide digital marketing solutions for individuals and corporate clients who want to manage a lucrative internet business.
Steve is a successful business owner who takes his business very seriously. He focuses on growing his business and has several employees. People love his products and services and are sharing them with others. What Steve is struggling with is making his business financially fit. It seems like his business is always tight, and he is barely making it each month. Sound familiar?
This is what we hear from many business owners. They want to grow and be successful, but they are missing some tools to assist them in staying profitable. Here are four tools you can implement into your business to be financially fit.
1. Know Your Overhead Cost – It is easy to know what the cost is of each product or service you sell, but many business owners fail to include their overhead cost when figuring their numbers.
Profitable businesses know what their profit is on each product or service after their overhead cost is included. Overhead costs often include, administrative expenses like office supplies. Other expenses may also include marketing and advertising, employee related, facilities and equipment, vehicle related expenses, insurance, and tax related expenses.
Companies should know the percentage of breakdown related to each product sold, each procedure or job performed, or each service that is provided.
This allows the business owner to price their products and services at the right price. If the overhead cost is not included, it can cause the business to lose money on each sale that they are making.
2. Manage Your Cash Flow Regularly – Cash flow is so important for a financially fit business. If a company does not have a good eye on their cash flow, it can cause them to struggle every month.
Knowing what money you have coming in, and what money you have going out each week and each month will help you to know what you need to bring in each week to manage the bills that are going out.
It will also assist you with meeting goals like buying that piece of equipment that will make you more profitable or investing the money to increase overall profitability. Look at a statement of cash flows; a statement of cash flows will show you what money is coming in and what money is going out each month.
3. Pay Attention to Your Numbers Each Month -Waiting until the end of the year to get your bookkeeping in place for your tax accountant can be a very costly mistake. A financially fit business pays very close attention to how the business is doing on a weekly and monthly basis.
They know how much they need to make each week in order to be a profitable business. They also look at their financials each month to see what they need to do in order to improve the next month overall performance.
If a company fails to do this, they have no way of making important business decisions because they don’t know where they are at. Not know where your business is at will cause your business to fail. If a business isn’t growing, they are dying.
4. Know Your Financial Ratios – Many business owners don’t know what business ratios they need to track in order to be profitable. Knowing the right ratios can help a business owner know what decisions they need to make to move their business in the right direction.
As an example, one of the ratios that a business needs to track is the current ratio. This ratio will help them track how healthy their business is. A healthy business will have at least a 2 to 1 ratio, so $2 in assets for every $1 in liabilities. If the business is carrying inventory, it is important to have a 4 to 1 ratio.
To determine the current ratio, take the current assets and divide them by current liabilities (Current Assets/Current Liabilities.) Once you have the current ratio, it can be tracked each month to determine if your company is moving in a good direction or if you need to make some changes in your business to move it in the right direction.
Implementing these tools into a business can make a huge difference on how profitable a business is. A small hinge on a gate can help a large gate swing back and forth, just as a small step in the right direction can make a huge impact on a business.