Utah Business

Archive for January, 2009

Tougher times are expected for small and medium sized business. Business failures are expected to rise by a staggering 50% which means that failed businesses could peak around 32,400 in 2010; this would be the highest level recorded since 1992. The Federation of small businesses said that they had recorded a dramatic increase of 214% in the amount of calls to their legal advice line on redundancies from concerned small businesses in the fourth quarter of last year.

Their members are concerned about jobs and how to hold on to jobs; small businesses are usually the last businesses to make employees redundant. The calls are asking how to make employees redundant, how do I do it, what action should I take, this is extremely worrying when it is thought that 32,400 business may go bust. On average each small business employees approximately 5 members of staff; this means that 150,000 people could lose their jobs from small businesses this year.

The federation of small businesses is the voice of small and medium-sized businesses in the UK; they have over 215,000 members, who employ more than 1.3 million people with a combined turnover of £10billion. The federation of small businesses are proposing a five point plan. They believe that small business can help to get us out of this recession if the government were to give small businesses more contracts, the government improves employment paperwork, government improves access to traineeships or apprenticeships and improves the position of the banks giving money to small businesses. This will rely on the bank mangers releasing and relaxing the money supply to small businesses and not having a knee jerk reaction to this recession. As quoted by Stephen Alambritis.

This government under Gordon Brown and Alistair Darling need to realise that small businesses are the back bone of the economy and that they need to ensure that this recession is as short as possible. To do this they need to spend copious amounts of money to implement a massive job creation programme to keep unemployment down and taxation revenues up. Then hopefully we may ride out this recession!

It’s not just a case of the government supporting the Banks and the Car industry; we need more far reaching initiatives for employment across the economy. The recent incentive released by the government was to assist employers recruiting people who had been unemployed for six months or more. This initiative is flawed as the government will provide £2,500 to employers for training any new recruits as long as the new employee has been unemployed for more than six months. So now employers may be tempted to only recruit people who have been unemployed for six months or more for the additional money that is available.

Gordon Brown and Alistair Darling should look across the pond to Barack Obama’s newest policy to create 3 million new jobs in America. This initiative is expected to cost some $850 billion to implement along with other help offered to their car industry and the banking sector.

all listening attentively about lenders on the radio, television, newspapers, and the Internet of promises to be “small business friendly”, “small business oriented”, wanting to be your “personal small business advisor” and a panoply of packages taking care of all your business needs. What small businesses really need is money, not personal hand caring services. So is there anyone out there really making small business loans? Yes. If you know where to look you can find one.

You can generally categorize banks into: 1) 10% that are actually making small business loans now and are serious about doing so, 2) 70% who will talk to you directly and indicate they are not making small business loans at this time because of the economy, and 3) 20% that slap you on the back, invite you in, and readily take your application. It is the latter group that gives us the most heartburn. It is not unusual after the initial review of your application papers for a bank represented to signal you have a good chance. Overjoyed, you begin to make plans, including executing contracts and receiving quotes for inventory, raw materials, or merchandise. Two months later, after the fourth loan committee review, you get a call that they have decided not to make the loan. The reason has little if anything to do with credit. It is typically something that was never been mentioned before and after reflection, it seems like an excuse not to make the loan in the first place.

Loan brokers such as myself are victims of the same misleading behavior. I cannot tell you how many banks have looked me in the eye and said: “Sure, we are making lots of loans. For unsecured loans of $75,000 to $150,000, we just need a credit score above 680, in business for over a year and a half, and decent financials. Real estate security is not required. We would love to entertain your applications.” Right.

What they really do is pour over the applications and pick 1 out of 100 that has the following fantasy credentials: a platinum credit score that Bill Gates would be proud of and which could support a small country, gushing positive cash flow, little competition, executed contracts stacked high on your desk, then a booming market niche. In other words, someone who doesn’t need the loan in the first place. You know the old adage: banks only give money to people who don’t need it.

It is simply psychology 101. Banks are filled up with loan officers and they have to show they are busy. If their boss walks into their office and sees nothing on their desk, they might be laid off. They have to show they are busy earning their salaries, which means receiving applications and going through the review process. It’s gotten so bad that the other day we had a client whose grandfather helped found the bank, whose father was best friends with the president, and who had received two successful loans before. Even he was turned down. Nor do they tell you the large SBA commercial loan department job layoffs of employees throughout the nation.

To prevent being too caught in this trap, look your banker in the eye and ask these questions:

1) “Tell me honestly. I don’t want to waste your time or mine. I know the credit crunch is quite depressing and there is really no secondary market. Are you actually entertaining small business loans at this time or should I wait.”

2) “How many small business loans have you personally made in the last 30 days?”

3) “What are the loan terms of the last three loans you made, including interest rate and monthly payments, for the amount of loan I am seeking?”

4) “How long will it take before I get a definitive answer?”

5) “Can you briefly describe to me the process I have to go through to get the final approval? Will you be the one making the final decision? What other people superior to you or committees will make that decision?”

But do not despair. There actually are real live prime lenders out there making small business loans. They just need to know where to look. In the next article I will discuss if such loans are available to startups.

Can a single parent really run a home business?



Want to give your kids a better life? Wonder if a home business is right for you?

Many single parents find themselves in a position where they can’t make enough money to pay all of the bills, put food on the table and give their children some of the extras that they would like to.

But, many times, working a second job isn’t an option because of time, health or just the fact that they would like to be able to spend some time with their kids before they grow up and start their own family.

Another deciding factor is money. Many single parents just don’t have the money that it takes to start a home business.

Many home businesses cost a lot just to join and then you have to buy stationary, business cards, advertising, letterhead, a desk, chair, printer, computer, fax machine, new phone line for your business and then there is the long distance charges that you are liable to run up in the course of building your business.

Who can afford all of that and take care of their kids too?

With many home businesses you end up filling your home with unwanted products and you run up your phone bill or spend time on conference calls, meetings, etc. Who wants that?

Single parents need a home business that is tried and true with no scams and no unwanted products piling up. They need to be able to earn money at home without having to invest and arm and a leg into all of the usual office equipment.

They need a home business where they can earn residual income (month after month) for work they did months, or even YEARS, ago.

They need to work with a company that has been around for many years, showing their stability, and that has NEVER had a late payment. This way they will KNOW that they will be paid.

Single parents usually don’t have a lot of money to invest in a home business so they need a company that provides a professional website already setup and hosting included with no extra charges.

So many home businesses might look like they are low cost and a good deal but you end up paying extra for a website and hosting and sometimes there are hidden fees you don’t even realize until it is too late.

Since many single parents don’t have a credit card. So then what do they do? Most businesses online require you to have a credit card. Your best bet is to find a home business that has more payment options like using a credit card or Paypal. This way the millions of people who don’t have a credit card can still start a home business..

Trying to raise a family alone is hard enough and then worrying about money too just makes a tough situation even worse.

So many single parents dream of the day that they have a home business where they will be able to spend more time with their family & not have to worry about money anymore. The best home business for most people but especially for single parents is the ability to work when YOU want to and to be able to do this with a small monthly fee and to only need to spend 1-2 hours a day on their home business. This way they can start their home business while they still work their J-O-B.

Many single parents are looking for a home business with the opportunity to make $3-10,000 a month. They need a home business that can start bringing in money in as little as 90 days. The opportunity to make that kind of income that quickly would make a big difference in the family of a single parent home.

Imagine for a moment, taking your loved ones on great vacations and living the life you are meant to instead of struggling for every penny? As a single parent you probably dream of the day when this is your reality instead of just a dream.

Ok, now it is time for a reality check. If you are thinking of starting a home business you need to realize that what you earn depends upon what you put into your home business. No business whether it is online or off, home based or not will not bring in money if you don’t work them. You cannot get something for nothing

Now, you are probably thinking…

Where on earth am I going to find a home business where I can work at home in my spare time, earn the money that I need to in order to support my family AND have it meet all of the guidelines listed here?

Think this sounds impossible? Would you like to find out more about choosing a home business, avoiding scams. and more?

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