How To Determine The Strength And Weakness Of Your Business

Know your game before making a bet if you intend to win. This basic mantra is applicable to all situations whether it's the recipe of a new dish you intend to experiment with or it's about your business. It is only the definite knowledge about all the intricacies that can help you achieve the highest.

Knowing the precise strengths and weaknesses of your business is extremely crucial, especially in the present era, marked by cutthroat competition. All the key decisions including investments, portfolio management, financing, product diversions, promotions, etc., are largely dependent upon your business's capabilities and shortfalls. The way to success is by deploying your strengths to the best and at the same time working out on your weaknesses. However, this obviously implies, exact understanding of both the fundamentals.

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However, the whole fact again boils down on the 'How to' question. I understand the importance but suggest a way to do it. Do I require a specialist to perform the task for me or can I undertake the entire exercise all by myself?

Well, I would suggest a right mix of both the alternates. It is your business, so your involvement is necessary, but expert opinion always helps so seek professional guidance.

Prerequisite1: Have an open mind and accept your shortcomings.

Prerequisite 2: Involve all - opinions are important - there are many who know their specific line of operations better than you do. Your employees are experts in their field. Trust them.

If these two aspects are accounted for, the remaining task becomes much easier.

To start with the exercise, divide the entire business into few broad categories and analyze them. The bifurcation could be among different departments or could be in different categories like manpower, material capacity to produce and grow product specifications and other supporting functions like marketing, research, etc.

Workforce, at a very fast rate is appearing among the statements as an asset, so you must ensure that it's an asset to you. Keep a check on the turnover, absenteeism and employee morale. Make sure that you are not always dealing with increasing politics or adverse unionism. They must be a company's strength.

Material capacity to produce and grow has important implications on your firm's capacity to sustain and compete in the end. Make sure that you create a reserve in the end. If it's not already created, it will serve as a huge weakness.

Product specifications refer to the features and services offered, especially in comparison to the competition. In the long run, the uniqueness and the ability to customize each requirement is all that matters. Make sure to add the innovative touch to your offerings for them to be strengthened.

Last, but extremely important, are the supportive functions like research and marketing, which if ignored, weakens your base itself.

All these and many more aspects deserve a closer look for the promised success. So nurture your business in the right direction by understanding the systems well.

How To Determine The Strength And Weakness Of Your Business

How a Business Line of Credit Works

A business line of credit works in a very similar fashion to that of a credit card. One of the best benefits of using a business line of credit versus a loan is that you are able to draw down the balance as needed. This ensures that you are only paying interest on the portion of capital that you are using at any given time. As such, if your business does not require all of its capital upfront then you may want to consider using this type of credit facility for your company.

In almost all circumstances, you are going to need to provide a substantial amount of collateral for your business line of credit. Common pieces of collateral include business property, personal real estate, vehicles, inventory, accounts receivables, and the ongoing positive cash flow associated with your business. If you are a business that is already in operation then you can expect that the interest rate associated with your business line of credit will be significantly less than if you are a new business. As an alternative to this type of financing, especially if you are starting a new business, you may want to consider drawing a home equity line of credit against your personal residence. Of course, the risk associated with this type of capital is extremely high. This is due to the fact that you are pledging the value of your home as collateral for a new business venture. However, and as discussed before, you are most certainly going to have to give a personal guarantee as it relates to your business line of credit.

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When you are approaching a financial institution for this type of financing, you are going to need to have a well developed business plan or business prospectus. In this document, you will need to provide a loan amortization table, an anticipated profit and loss statement, cash flow analysis, balance sheet, and business ratios page. Additionally, most financial institutions will require you to submit at least three years of tax returns as it relates to your personal income as well as the income that is produced by your business. Your accountant or financial adviser can assist you with putting together the package that is necessary in order to present it to the bank.

In closing, a business line of credit is one of the best ways to finance your company due to the fact that it gives you a tremendous amount of control over how you can use the funds. The interest rates are usually lower and the costs related to the credit facility are lower as well.

How a Business Line of Credit Works

ELOC - Corporate Credit -Equity Lines Of Credit - To Help Your Business Cash Flow

Corporate Equity Lines of Credit are established by one or more lending institutions, banks etc. This type of business credit allows the business owner to provide for a safety net for the business in critical times. The funds can be used for what ever the business needs, Cash flow short falls, payroll, and seasonal periods.

ELOC's can and should be considered from the day your start your business so that your will be prepared and things are in order for your business when it comes time to applying for your Business Credit lines. In most cases your business will need to be incorporated and established for at least two years, develop a strong vendor based that reports your trade references to Dun & Bradstreet. Plan your goal for obtaining credit and vendors from day one. If you are not sure if the vendor is a member ask, if not ask them to report, if they do not report find a vendor that does. it will pay off in the long run for you. Get your Duns number for your business from Dun & Bradstreet as soon as possible.

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As the corporation ages and maintains good trade lines with your vendors the amounts of credit can and should increase, a maximum loan amount is unlike your personal home equity loans, the ELOC is based on the amount of your reporting trade lines and payment history. So if you are buying things for your business on credit make sure they report!

This ELOC or Equity line of credit from your bank or banks permits the borrower to use the money as needed without re-applying each time for a new bank loans.

When considering to use your ELOC Corporate credit Line, my recommendation would be not to use more than 30-40% until you have establish the amount of credit you are looking for in your business. Borrowing is an easy process like writing a check and the business gets the money as the business needs it.

The Corporate Credit ELOC is paid back over a period of time either principle and interest or interest monthly. This will be determined by you and the lender. In most cases you will only have to pay the interest payment. Again, I would recommend paying the ELOC down as you can to save money on interest payments that can be used for your business later.

The interest rate varies from one lender to another. Commercial interest rates are higher than consumer rate because of the risk associated with the unsecured commercial Line of credit. The business ELOC will be tied to prime rate plus points. This is a great way to borrow for your business than any other methods of borrowing, such as hard money loans, or personal loans. Their fees can be very expensive.

Corporate Credit ELOC's are available in most states. Look for additional articles about ELOC's or Equity Lines of credit solutions, I will be releasing various articles to assist with a better way to get financing for your business.

Good Luck with your Business & ELOC Needs!!!!!
Cole

Copyright 2008 Wm Cole Smith

ELOC - Corporate Credit -Equity Lines Of Credit - To Help Your Business Cash Flow

Online Bad Credit Small Business Loans: Business Loans 24 Hours

Need finance to start or extend your business? But if bad credit affects you from doing so, then avail bad credit small business loans. Bad credit small business loans are loans approved to all bad credit borrowers that help such borrowers to give a kick start to their business.

Online bad credit small business loans are short term business loans that look for all business needs and requirements like for buying of raw materials, machinery; paying of wages etc. These loans are helpful for all bad credit borrowers for starting of new business or for extending, reorganizing of the previous business.

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Online bad credit business loans are secured as well unsecured in nature. Secured online bad credit business loans require borrowers to keep his assets as security to guard the loan amount. Borrowers can keep any of his assets like house, jewellery, vehicle etc as collateral against the loan amount.
Unsecured online bad credit business loans do not require borrower to plea any security as assets. The most acceptable collateral for bad credit business loans is property but according to lender policy other things are also accepted

The main advantage of online bad credit small business loans is that it gives a chance to improve upon the credits score for all bad credit borrowers. Borrowers can avail bad credit small business loans and by following the terms and conditions can work on to improve his credit scores and thus credit history.

Since bad credit small business loans are available online, all bad credit borrowers can easily avail benefits of online bad credit small business loans. Borrowers just need to research properly before finalizing on the particular deal by a lender. Online is one of the best medium to avail online bad credit small business loans.

Bid good bye to all your harassments which you used to face because of your bad credit scores. With online bad credit small business loans all your business needs can be looked after more easily and effectively.

Online Bad Credit Small Business Loans: Business Loans 24 Hours

Getting a Business Line of Credit With Bad Credit

A bad credit can lead to faulty business lines. This may even have a negative impact on the credit history of a person. Businesspersons have to consider many factors to get rid of this negative impact from their business lines.

A businessperson needs planning to fix his/her terrible credit. After this, that businessman has to note down the right plan and arrange for suitable loans from various finance institutions to start a new business. Virtually, everything in this world is based on finance.

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Finance is the backbone to run every business activity. Even a homemaker plans for her finances, as money is essential to run the house. Usually, big businesspeople hire finance managers to look after their finances.

These finance managers manage finances in a proper way. There are special business schools that teach finance as a subject to improve many things in business. Things are now improving and so is the finance management to avoid people getting into dire credit business lines.

Help:

Bad credit business loans are a perfect way to help a financially unstable business to get back on its feet. When a person plans to start a business, financial management is very important at the initial level of planning, without which it is not a good idea to start any business.

If the planning is not proper, it can lead to serious credit business lines. When people manage money or finance properly, they can secure their futures. This is beneficial in both the case of individual as well as organization.

Moreover, people need to check as how the taxes influence their financial decisions. Money is necessary to pay for education, goods, real estate, automobiles, buying insurance deals, investing, and saving for retirements.

An individual needs to keep a few things in mind to avoid getting into the bad business lines. Certain important questions that businesspersons need to ask themselves for both personal as well business needs are, how much money is required at various points in the future, where the money will come from, how to back for unforeseen events in life, what the possible risks in the financial market are and how to transfer assets.

A person also has to consider about the funds for corporation activities, as finance is a huge topic. The Internet is the best source to gather information in this regard. In short, take care of finances to avoid dire credit business lines.

Business Cards:

Many credit-providing companies understand that some businesses incur losses and get into debt. Even after that, these businesses have the potential to stand on their feet again. For such businesses, bad credit business credit cards are made available by some agencies to pay off the debt. To get such types of credit cards, the businesses need to show accurate credit history and clear the present credit card debt.

Some companies take interest in rebuilding the bad credit business. The organization need to search for these kinds of creditor companies that offer business cards with bad credit business.

Getting a Business Line of Credit With Bad Credit

Looking For a Start Up Business Line of Credit?

Key to any startup is maintaining cash flow. Of course, if you are new, getting startup funding for your company can be difficult because..... you and/or your new venture are new and have no track record. Bit of a catch 22 situation there.

However something you may want to think about is unsecured loans are loans that do not require any cash down, home equity, personal assets, or business assets of any kind. Obviously, unsecured lending is a valuable option for startups which have property or assets they want to protect. Should you default on the loan and its unsecured versus secured, your property and/or assets will be protected from any liens.... now while these are attractive, can you really find such an animal?

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Without a doubt, an unsecured business line of credit is probably the most valuable financial tool that a small business owner can possess. Essentially, the credit line works like a huge credit card but at times can have added benefits like check writing and lower interest rates as compared to most business credit cards.

An unsecured line of credit loan is extended by banks or other types of lenders. The amount of the credit line offered is based solely on the credit worthiness of the company and does not require a personal guarantee. Even though unsecured business lines of credit have been in existence for many years, it still comes as a surprise to many small business owners that the program exists or that their company can even qualify.

One typical, and smart question that you should ask yourself is why would banks make unsecured line of credit loans? The answer is simple. Banks and other lenders are already making unsecured lines of credit to you as an individual. Why shouldn't they offer a commercial program? So in reality, it is not nearly as big a stretch as most people think.

If you think about it, almost every American carries at least one Visa, MasterCard or American Express credit card in their wallet or purse. I know in my wallet, with multiple businesses + personal, I carry 8 credit cards at a time. In this case, then one way to think is that the total of all the credit limits on all the cards is your total line of credit. Now, we don't advocate going out and rapidly blowing that but change a way to change your perspective on things.

The credit cards and the limits on each are issued to you based on your credit worthiness as an individual and are totally unsecured. Therefore, it makes good business sense to offer an unsecured credit line program to corporations. In fact, corporations could be viewed as more stable than an individual and are more likely to use the lines more frequently. When you are a startup, of course this gets a little tricky and requires some unique techniques above and beyond the scope of this article.

But, if you have a startup and are looking for capital credit lines, you should really look down this path. Fortunately, just like your personal credit cards, you only pay on what you use and for a new business, we suggest you play it very conservative. However, when you get your credit line, it gives your business access to capital when you need it.

Looking For a Start Up Business Line of Credit?