/Business Finance

Business 101: Raising Prices Without Losing Customers

Increase word in 3d letters on a green arrow rising upward to illustrate improvement, more or better results, income or earnings

Who isn’t on the lookout for ways to make more money in their business? When you first start a corporation, you’re just happy to get customers at any price. But as you grow your business, you want to increase what you charge…without angering existing customers.

These tactics will help you bridge the gap between making more money and keeping the customers you have.

Tip 1: Only Raise Prices for New Customers

The best way to not upset existing customers is to not increase rates for them! Consider past and ongoing customers grandfathered in to previous rates, and only increase prices for new business. Continue reading “Business 101: Raising Prices Without Losing Customers” »

By | September 10th, 2015|Business Finance|0 Comments

Expect the Unexpected: Preparing for Surprises with Access to Capital

Glass bank for tips with money isolated on white

Regardless of the business you’re in, it pays to be prepared for unexpected expenses. While some surprises are less expensive than others, there are times when having access to extra capital can mean the difference between keeping your business moving forward or making do without.

A rainy-day fund is a good place to start. How much you should save to cover emergency expenses is largely determined by the nature of the business you’re in, but setting aside some of your profits every month to cover unexpected expenses down the road is just a good idea.

A short-term online business loan might also be an option to access capital quickly to cover an unexpected expense. Online business lenders are often able to offer approvals in a matter of minutes and have funds deposited in a business checking account in as little as 24 hours, making it possible to access capital quickly to address an emergency expense. Continue reading “Expect the Unexpected: Preparing for Surprises with Access to Capital” »

By | September 1st, 2015|Business Finance|0 Comments

3 Reasons You SHOULDN’T Take Out a Small Business Loan

545_4574386If you run a startup, in the beginning, things will be tight. You may dream of all the things you could do with just a little more cash. While small business loans are great in the right situations, there are specific instances where they can be more of a drawback.

If any of these are reasons you’d give for wanting to take out a loan, I encourage you to tighten your belt and find other ways to grow your business.

1. You Can’t Pay Your Bills

Seems like a good reason to take out a loan, right? But when you’re strapped for cash, with no knowledge of when money will begin to flow in, taking out a loan is like trying to fill a big hole with water…with a spoon. You may get the funds to pay  what’s due now, but what happens next month? And the month after that?

A Better Alternative: If you know you have invoices due and expect the money to come in soon, consider taking out a factoring loan against pending invoices. This is a quick, short term fix when you have money coming in soon, but need to cover expenses now. Continue reading “3 Reasons You SHOULDN’T Take Out a Small Business Loan” »

By | August 17th, 2015|Business Finance|0 Comments

Financing Startups: More Options Than Ever Before

705_3569539One of the biggest challenges a startup faces is finding the capital to get off the ground. Traditional lenders want to see a track record of a couple of years, and even online lenders typically want to see at least a year. Nevertheless, there are more options available today than ever before for entrepreneurs looking to fund their fledgling companies. Here are a few of them:

 

  • Friends and Family: Reaching out to friends and family remains one of the biggest sources of capital for early-stage businesses. According to Pepperdine’s Private Capital Access Index, a loan from family or friends isn’t at the top of the list for most entrepreneurs looking for capital, but it’s one of the top places they actually find it—and this applies to small businesses of all ages and size, not just startups.

 

  • Crowdfunding: If you can mobilize a large group of supporters to each contribute a small amount of money to your business idea, you might be able to access significant funding. Premium- or gift-based crowdfunding has been around the longest. In exchange for early access to products or some other premium, supporters “invest” in your company. A relatively new form of crowdfunding allows an entrepreneur to offer a true portion of ownership equity to potential investors in exchange for investment.

Regardless of which platform you choose, it would be a mistake to think of this as easy money. It requires a solid business plan and a product people can get behind to be successful.

 

  • The SBA: A small business owner with a good business plan, a personal credit score of 650 or better, and appropriate collateral may find success with SBA-guaranteed loans that carry low rates. Earlier this year, SBA Administrator Maria Contreras-Sweet also launched a new online tool called LINC, to help streamline the application process and connect business owners to the SBA-affiliated lenders in their area. And, in an effort to make small-dollar loans more available to business owners, they’ve increased the number of participating credit unions to fill that gap.

Continue reading “Financing Startups: More Options Than Ever Before” »

By | July 14th, 2015|Business Finance|1 Comment

How to Form a Corporation: The Lowdown on Issuing Corporate Stock

573_3572833One of the perks of forming a corporation in Texas, Tennessee, or any state, really, is that you have the option of issuing stock. Having stockholders can provide a much-needed cash infusion for your business.

Let’s look at what it takes to complete this super simple process.

Step 1: Decide How Many Shares You Want to Issue

Once you’re incorporated, if you want to offer stock and share ownership of your company you can purchase stock certificates. Now, if you formed an S Corp, you are typically limited to 100 shareholders, although you can fill out paperwork to raise that number significantly higher. But you don’t have to open up all your shares at first, especially if you think you might want to raise funds later. Continue reading “How to Form a Corporation: The Lowdown on Issuing Corporate Stock” »

By | February 27th, 2015|Business Finance|0 Comments

Starting a Business? Can You Afford it Right Now?

1180_4683697No matter how good your business idea, no matter how passionate you are about your new idea, no matter how thorough your marketing plan, there is one factor that can completely put a halt to you starting a business.

That something is your finances.

If you don’t have the funds to start a business, you shouldn’t do so. Trying to start a business with less than you’ll need for the first year or so could end up a disaster, and have you wasting time and money on an idea that wasn’t set up for success to begin with.

How Much You Need

You’d be surprised how much money you need to start a business. Not only do you need enough to cover your startup expenses and money to keep you afloat until you start turning a profit, but you also need to be able to cover your personal expenses until you can take a salary from your company.

Numbers vary, but most say you need enough to cover 6-24 months’ worth of expenses, both business and personal. Continue reading “Starting a Business? Can You Afford it Right Now?” »

By | February 16th, 2015|Business Finance|0 Comments

CorpNet CEO Nellie Akalp Provides Money-Saving Tips on Las Vegas FOX 5

Our CEO had yet another television appearance on Las Vegas’ FOX 5, where she provided several useful tips for anyone who wants to start a business to save money.

1. Increase profitability over last year. Reduce your advertising in exchange for more affordable marketing, like social media.

2. Review your P&L. See what you can outsource vs. move in-house to save money. You can save on shipping, web development, and other services if you comparison shop.

3. Incorporate your business. A corporation or LLC can give you better tax breaks.

4. Consider alternatives to an attorney. Find business filing services that can incorporate a business or file an LLC at a fraction of the price.

5. Look for home-based business tax deductions. This can reduce what you pay in taxes. 

Click below to watch the video.nellie

By | January 13th, 2015|Business Finance|0 Comments

Does Your Business Need a Cash Injection?

715_3679013If you have been operating your business for a while and are looking to grow your company, it might be time for a shot of cash to help you achieve your goals.

Why It’s Good to Reinvest in Your Company

Simply put, reinvestment means growth. If you take all the profit after you’ve paid your vendors and put it into your own pocket, you’re stunting your own growth as a business owner.

Reinvestment means you can get technology and tools that make your work easier. It means you get to explore new potential products, or conduct market research to better understand your customers. It means you can afford to hire help, taking some of the pressure off of you to do it all. Continue reading “Does Your Business Need a Cash Injection?” »

By | October 15th, 2014|Business Finance|Comments Off on Does Your Business Need a Cash Injection?

4 Ways to Secure Funding for Your Startup

According to a recent Forbes article, 8 out of every 10 businesses fail within the first 18 months. Some fail due to poor customer service, poor management or unclear knowledge of the marketplace. But on the surface level, many of these businesses simply run out of cash.

Good money management is the key to staying afloat as startups meet the obstacles of a starting a new business. Bplans, a blog for small business owners, covers some of the main sources of funding that SMBs can secure for their startup.

Bplans Funding Infographic

By | September 29th, 2014|Business Finance|Comments Off on 4 Ways to Secure Funding for Your Startup

The Move Toward Crowdfunding Means Good Things for Small Businesses

Now that the dust has settled a bit on this thing called crowdfunding, more small businesses are starting to look at it as a viable alternative to traditional small business loans or funding from venture capitalists.

Wait, What is Crowdfunding?

When a company wants to raise money, such as to open a second location or add a product line, they can use crowdfunding to do so. That means that they post a project on a crowdfunding site like KickStarter and invite their network to participate.  Continue reading “The Move Toward Crowdfunding Means Good Things for Small Businesses” »

By | May 30th, 2014|Business Finance|Comments Off on The Move Toward Crowdfunding Means Good Things for Small Businesses