By James Pruitt, Senior Staff Writer

Small business loans help entrepreneurs build, maintain, or expand their companies. Getting a business loan for your company doesn’t always require walking into a bank and securing funds.  There are also a variety of online small business lenders to consider, which may have easier qualifications and faster applications.

Small businesses account for a significant chunk of American economic activity.  The United States Small Business Administration (SBA) estimates that there are 32.5 million small businesses across the country. While the nature of each one varies, many hold one major thing in common: the need for business financing.

Remember that loans don’t provide the only recourse. Money for a small business may come from any of many sources, including grants and lines of credit. Each option comes with its own benefits depending on the business owner’s circumstances.

As for loans, good terms can provide crucial growth fodder for your enterprise. However, smaller businesses need to do their homework before taking the plunge. Consider how much your business needs as well as your eligibility. Alternative lenders, such as OnDeck and SGB Funding, can provide support for new business owners without a strong credit history, but only in exchange for less favorable terms. 

Business owners may obtain good credit by:

• Signing up for a business credit card,
• Establish ongoing relationships with suppliers, which may include obtaining trade credit. Many suppliers may extend credit which they report to credit agencies.
• Ensure prompt payment of any debts. Also remember that if you choose to incorporate your business, the business itself transforms into its own entity. The credit agency’s relationship is now with the business rather than you personally.
• Carefully monitor your progress with each of the credit agencies.

As for the application process, lenders generally look for evidence of a strong, consistent cash flow. These lenders tend to ask for, at a minimum:

• A recent statement of profits or losses
• Personal and business tax returns going back 2 or 3 years
• Business plan
• Any legal filings, such as Articles of Incorporation
• Any business licenses you or the other owners hold.

Credit scores can vary, but a score of over 700 should ensure good terms for a loan.

When choosing a lender, consider the types of loans available. These loans may include:

For example, “franchise startup loans” can allow a purchase of a branch of a larger company. Some entrepreneurs may purchase a franchise office for a larger company such as Mcdonald’s, 24 Hour Fitness, or any of a variety of other larger companies.

A “professional practice loan” may provide an option for a Veteran who’s just finished school. Some business owners need startup money even after they’ve gone through graduate school and received a license. Think doctors, lawyers, speech therapists, nurse practitioners, accountants, and Certified Physicians Assistants. 

Yet another example: “working capital loans.”:  Short-term loans are meant to keep the enterprise running, often through a crisis or downtime. Several Pandemic-era loans rescued various restaurants and entertainment venues during lockdowns to keep them alive through those difficult months.

Some loans may specialize even further. Many lenders offer “equipment loans” for business owners who need specialized equipment to stay running. Examples may include restaurants that need specialized cooking equipment and clothing companies that may need embroidery equipment, looms, and other devices. 

Check with the direct lender before considering any of these types of loans. Overall, different lenders provide different pathways to obtaining funding. A good relationship with the direct lender and an inquisitive approach to interactions with that lender could make all the difference. Getting the right information at the right time provides the best long-term outcome with a commitment to a small-business loan.  

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been you have enjoyed this second and final article in this mini-series and that it provided you with some valuable information. 

We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/

By James Pruitt, Senior Staff Writer

Remember the importance of the Small Business Administration, SBA in facilitating economic transactions for Veteran Small Business Owners. The SBA can facilitate loans as well as grants and lines of credit. Starting with the SBA, they can also assist Veteran Small Business Owners to find the best direct lenders.

The Small Business Administration often provides the first point of contact for funding. As for loans, the SBA can provide leads for the direct lenders most willing to provide government-guaranteed small business loans.   They can help with the next steps in forging a relationship with the direct lenders who will be your direct contacts after obtaining these loans. Best of all, the SBA tends to cap the APR to prevent the gauging of small business applicants.

Still, the terms may vary depending on government programs, and the direct lenders themselves have their own terms in their negotiations with the SBA.  Annual Percentage Rates, APRs for these loans may range from 4.5% to 35%. Let the buyer beware, shopping for the best deal through the SBA is not always a simple process.

In other words, it is the lenders themselves who finally determine the terms for any loans they grant you. These terms often depend on a vast range of factors such as your industry, your personal circumstances, and your financial situation. Some special SBA programs may consider veteran status, race, national origin, gender, or any number of other factors.

In the end, the SBA guarantees these loans. However, the small businessperson’s contact remains with the lender. Lenders may include banks, credit unions, and any variety of financial institutions the government has deemed worthy. 

Remember your direct contact will be a private institution. They, rather than the  SBA,  hold final discretion regarding the approval of your loan.

The SBA may serve as a crucial first contact for Veteran Small Business Owners seeking not just loans, but also grants and lines of credit. However, obtaining loans is a multi-level process. The private institution administering the government program will be your ongoing first contact. Becoming acquainted with the private institution itself is a separate process from getting to understand the SBA program that guarantees the money.

Veteran Business Owners need to maintain closer contact with their direct lender. Even with SBA-backed loans, the direct lender provides information about the terms of the loan, especially in the initial negotiation process. Remember that the direct lender may have different loan programs for franchise business owners, those seeking equipment loans, and loans seeking short-term loans, including following natural disasters or emergencies. 

In our next article in this mini-series, we delve into the process of interacting with your direct lender. Short of an actual default, after obtaining a loan, your interactions with the SBA itself will likely be minimal. 

Interactions with these private lenders involve their own set of challenges. Additionally, the full range of private options vastly out scopes that of government-guaranteed loans. The wild frontier of purely private loans may not provide the same safety and may require more information beforehand without the safety net of a federal guarantor.

VAMBOA, the Veterans and Military Business Owners Association hope that part one of this two-part mini-series has not only been valuable but provided some unique perspective.   Stay tuned for the next article.  

We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/ 

By James Pruitt, Senior Staff Writer

As your business grows, your need for customer service grows with it. No matter what the quality of your product or service, and overall high-quality business requires established, reliable, good practices for interacting with their clientele. Remember, customers expect consistency.

Even before you acquire your first support staff, you need to start considering your customer service policies. Responses to customer demands should be consistent. Here are some ways to maintain consistency when growing your business.

“Professionalism” is the bottom line. In your business’s early stages, formulating consistent policies and ongoing practices may seem daunting Imposing these practices on any staff you may have may seem to pose an even greater challenge.

As your company grows, your brand grows. As you build your brand, remember the importance of consistency in quality control and service speed.

The following strategies might create a more consistent, professional customer service style:

1. Remember the importance of deadlines. No one will do business with you on an ongoing basis if they can’t plan their own schedule due to your unpredictability.
2. Your client’s priorities are your priorities. Your customers have their own bills to pay and expectations to meet. Your unpredictability may interfere with your client’s ability to meet their own obligations. In the early stages of your business relationship, you should get to know your client’s business and gain an understanding of how to accommodate their own schedule, as well as their supply and staffing issues.
3. Consider your website’s analytics and consider the SEO for your website. Search engine optimization has brought predictability and standardization into many industries. The right keywords and SEO practices can help bring your business practices in line with whatever clubs you want to join and those industries that you want to align with.
4. Keep your own business practices reliable and make sure your products meet the standards in your industry.
5. Place customer feedback at the forefront. Your customers help build your brand. Remember their importance in creating the most reliably satisfying product.
6. Keep in touch with technological developments and innovations. Take advantage of any measures to stay in touch with industry standards, including journals, word-of-mouth, and product updates.
7. Understand client schedules and respect them. Your clients may have their own clients, and each may have its own demands. Disrespect for their schedules disrupts the lives of many down the supply chain and is not good for your business or the business of your customers.
8. Please, no drama! Professionals should plan to minimize the unexpected. Business owners should plan for emergencies, keep proper insurance, and avoid excuses when things go wrong. Clients and contractors pay you for things to go right. They do not pay for drama and may expect recompense when a wrench gets thrown into their business plans.

When customers and clients contract with you, they pay for reliability. Veteran Business Owners should plan to keep their business practices consistent. Remember to research best practices in your industry and keep your own practices reliable enough that your clients and suppliers always know they will get what they bargained for.  

 VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/

By James Pruitt, Senior Staff Writer

We’ve all heard of “legalese.” It’s famously confusing. But how are we supposed to follow the law when barely understand the letter of it? We all must deal with business contracts, especially in the business world. But slogging through the thick language is enough to send the best of us into a trance.

What do Veteran Business Owners need to know? Let’s start with the basics that might help us wade through the marshland without getting stuck in the mud.

Business owners should understand the concept of offer and acceptance. An offer legally binds us and grants us the right to accept at any time before withdrawal. In fact, the offeror may withdraw at any time before acceptance. Business owners should realize the weight of such terms when dealing with customers and contractors. 

Weasel words abound, so scan any document you sign. Also, here is an important point. Not every contract involves a signature on paper.

Before you sign (or agree to) a contract, look out for these terms, however, worded, before any danger breach:

Offer: Remember that the offer itself carries its own legal weight. The offer in most cases grants the right to accept. Ideally, the offer carries terms precise enough to convey what is expected. Assuming a “meeting of minds” (and yes, that is a term of art), the offer becomes law upon acceptance.

Acceptance: When the offer is accepted, it binds both parties. An outstanding question remains: what are the terms? 

Negotiators need to think of what they are agreeing to. Also, think carefully about how you are supposed to agree to it. sometimes just behaving like you’ve sealed the deal is enough to bind you in court.

Breach: This is a magic word. A contract binds each party. The terms of the contract, however, may get wrangled over in court. Parties should always know what they agreed to. 

Force Majeure: Some legal terms are tough to pin down. Force majeure can encompass any variety of circumstances that make performance impossible. It is a fancy way of saying undue burden. 

Perhaps Hurricane Katrina just struck on the other side of the country, where you get your supplies. Maybe someone in the supply chain got the flu during the Pandemic. The situation will differ on a case-by-case basis, and the burdened party may be excused from performing their part of the deal.

Parties: A contract should make clear the identity of the parties. 

Indemnity, Waiver, Hold Harmless: Each of these terms is a fancy piece of jargon to get someone off the hook. 

First, a contract may indemnify against harm to third parties, assigning liability entirely to one of the contractors. 

Second, a waiver may spell out conditions under which some responsibility under some circumstance.  Occasionally, a contract may even waive liability for a court claim. These clauses may or may not be completely enforceable and should be read carefully.

Third, a contract may hold a party harmless in cases of harm to the other party. Again, these clauses have varying degrees of legality, and their validity should be verified by an attorney.

Now let’s see what happens after a breach:

Arbitration or Mediation: In some cases, parties may agree to pass through a professional who will settle disagreements. They may escape a trial in court, but the resulting decision is considered an enforceable contract.

Forum/Choice of Law: Sometimes, the physical location of a court case may influence the outcome of a court case. Other times, controversy arises over the law to be applied case itself.  Lawyers routinely fight over these questions. The law is not the same in any jurisdiction. Similarly, the forum, or physical location, may unduly burden one party. For this reason, parties often spell out these issues beforehand during the formation of the contract.

Liquidated Damages: Contracts may prescribe a preset compensation in case things fall through. These clauses are usually enforceable when reasonable.  However, remember that “reasonable” may be a matter for the courts to decide.

Severability: Sometimes, part of a contract is simply unenforceable. A severability clause ensures that the rest of the contract is still in force.

Each of these terms may be referred to as something else. However, all appear routinely in business, and even in personal transactions. An understanding of the basic principles behind each can term prevent a serious headache for everyone involved.

Disclaimer: This article is for informational purposes only. It was not written by attorneys and should not be considered legal advice.  VAMBOA recommends that you consult your own attorney before entering into any type of legal agreement.

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/ 

By James Pruitt – Senior Staff Writer

Newcomers Should Consider Breadth as well as Depth. In Fact, They Should Emphasize It!

Before broadening your scope, a Veteran Business Owner should develop a name for themselves in a niche field after finding demand for their services. A specific niche in the economy can ensure a minimum stream of income before the business slowly diversifies.

Remember, large online stores can suck the life out of smaller companies.  However, newcomers often have the flexibility to develop a neglected market share that the Goliaths simply don’t bother with.  These stores often miss out on the market for specialists and hobbyists.   These segments can often give entrepreneurs a foot in the door to short-term profits as well as better things to come.

Find the Right Forums

What is the key to finding the right niche? Business owners should find the right place to familiarize themselves with their audience. 

To get their foot in the door, beginning marketers should do two things. First, narrow down your focus as much as possible. Two, make sure you are part of a community of fellow travelers.

Even for eCommerce, brick-and-mortar venues still matter. Perhaps a sports league or school group may break the ice of a frosty reception and lead to promising business relationships.

Remember the importance of finding the right clients early on. These clients may provide crucial positive feedback and referrals to help your business grow.

Use the Internet to its Full Potential

Social media often provides fertile ground for new connections. Unfortunately for marketers, some people simply aren’t that active on social media. 

However, remember that the online world is full of workarounds. Some business owners simply may not use social media extensively. In such a case, the best option really is to get your start setting up social media accounts specifically for your business. 

Remember, the first customers often have the most to offer the business, in terms of feedback, referrals, and repeat patronage. The initial cultivation of these initial relationships can lead to the growth of your new social media sites.

Additionally, some of your best potential customers may avoid social media. Such clients may turn up on special interest and hobby sites. New business owners may benefit from engagement on these specialty sites. Never spam, of course, but developing relationships with fellow travelers could mean big business later. Here, the new business owner’s depth of engagement with that special interest may come in handy. 

Develop Your Company in Phases

Starting a new business occurs step by step.  In the initial excitement, the grandest ambitions may distract even the most level-headed entrepreneur. However, no one gains from pouring resources into lofty goals before establishing a proper foundation.

Remember the value of initial marketing efforts. These measures set the stage for planning the scope of the enterprise, as well as the necessary operations procedures that may become the everyday life of the business.

The subsequent phases could refine the company’s style of professionalism after its personality has been established. Here is the time to refine the culture and aesthetics to reflect the life of the company after it has already begun. 

Prioritize

On a related note, while it’s true that the devil may be in the details, the perfectionist in us may lose sight of the “here-and-now” issues that really matter. Minor tweaks in website design matter less than, for example, procuring those crucial initial contracts and finding the right supply chains.

For example, changing the font on a website shouldn’t take too much time when bigger work needs to be done. An office in its first few months can do with less than perfect décor. Sometimes, the best plan is to delay the little things, perhaps even until more specified expertise becomes available.

Summary 

Basically, new business owners should put first things first. A good business plan should come before a snazzy website, and an involved client base should precede expansion into unknown territory. The early stages of a business are an easy place to lose focus and shift in the wrong direction. These wayward shifts can waste time, and money, and in some cases even destroy the enterprise.

VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:  https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here: https://vamboa.org/dell-technologies/