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Start 2008 off right...with a new and successful small business!!

Sticking it through all the way is important in business. This concept seems very straight forward; however, it can be incredibly difficult for business owners to achieve if they are not completely committed to their business venture. Every day we get applications in our office from business owners who are looking to change industries completely. And it's not just a parallel shift: for example, becoming a real estate appraiser after previous experience as a mortgage broker may seem like a simple change in the same field of expertise, but these two professions are far from similar. So why do current business owners often want to make such a drastic change?

Consider this: very recently, we met a new client who came to our office, Initial Underwriting Group, in search of business financing for a new venture because the restaurant he currently owns is in serious financial trouble. It seems that instead of repairing the financial issues that the restaurant is facing, he had chosen to start yet another new business that he thought may be more profitable. The new business? An automobile window tinting shop. From what we were able to gather, this entrepreneur had little experience with window tinting, and he simply did not want to face the harsh reality that sometimes businesses go through rough patches, which makes the owner's dedication and commitment to the business even more important. Now, the restaurant owner could have applied with IUG for business financing to help with the financial issues the restaurant was already facing, but we want to examine his motivation for starting a new company rather than salvaging his current one. Is he bored with the restaurant business? Is his true passion for cars his real reason for letting his restaurant go and incorporating himself with his hobby? Does he just not respond well to obstacles in life, whether it be business or otherwise? And how many more times are we going to see him here at IUG applying for yet another business loan for yet another business venture?

All in all, we here at IUG encourage business owners, both new and current, to really examine their own motivation for the business fields they choose to enter into. Here are a few tips to help you with the choice of a new business venture in your future:

1. Write a business plan: Not only do lenders want to see a professionally presented business plan when reviewing your file for business financing, this will also help you to really dig deep into what exactly your business entails, both financially and emotionally. Not sure where to start? IUG now offers Business Plan Writing services!! Contact jwardle@initialunderwriting.org for more information.
2. Plan your work and work your plan: Understand that starting a new business is not easy, but having at least 24 months in the future planned out with regards to daily tasks, networking and building relationships, and taking time periodically to re-examine your business status is essential to the success of your business.
3. Write it down: We all know that nothing is legally enforcable unless it's in writing, so apply this concept when starting your business. Put your daily, monthly, quarterly, and annual goals on paper and save them where you will see them constantly. Keep in mind that you may think of it today, but you won't necessarily remember it tomorrow.
4. Keep yourself motivated: Constantly remind yourself why you started your business in the first place. If you're not passionate about the business you've created from scratch, then it's just another job. The moment you forget the reasons that your business idea became a reality, then it's time to move on.

Remember, you know more about your business than anyone else, so keep the mindset that you're going to do whatever is necessary to keep your business in your hands and in the hands of the consumer. Remind yourself that acquiring a business loan may be the first step in starting your new business or maintaining your current one, but it's definitely not the last.

Be sure to search the web for "strong business credit" (in quotes) to learn more about how you can get your new business up and running in as little time as possible!!

Ilya Bodner

Initial Underwriting Group

Posted by Ilya Bodner on 01/04/2008 08:23 AM

Comments (4)

4 Comments on Start 2008 off right...with a new and successful small business!!

JAN

2008

Ilya,

This is my first year with a "plan of attack".....so far so good...

The daily followup is not up to snuff yet, however I ma a very methodical persona nd I believe that it will become second nature,

AUG

What Is Hard Money and How Will It Benefit You?

Have you heard the term "hard money," but you're not sure what it means? Perhaps you know what it is, but you're unsure where to find it. Hard money is financial backing from private investors in the form of a loan. It is one of the best ways to get a business project off the ground, but you have to know how to obtain it the proper way.

Hard money loans are often used for construction projects. Typically, the lender loans the money in stages. For example, let's say you own a plot of land and you want to develop it. A lender will agree to back you on the project. They will loan you a percentage of the money at the beginning of the project,more during the middle of the project and a final installment near the completion of the job.

Lenders often pay the contractor for their work directly. For instance, once your contractor completes the foundation of the new building, the lender pays them a specific amount directly. Then, when the electricians finish wiring the building, the lender pays them directly as well. All contractors receive their payments direct from the hard money lender.

Private investors often prefer this approach because it gives them greater control over their money and their investments. You don't have to be a big real estate mogul to get hard money from investors. Many investors are willing to support many different types of projects. Private investors will financially back projects like single family residences, condos, townhouses, apartment buildings, hotels, motels, office buildings and shopping centers. However, they will not usually invest in undeveloped land.

While hard money lenders are willing to loan to residential investors, they most frequently invest in commercial real estate. This is due to today's instability in the housing market. Commercial investments are simply a safer bet for recouping funds an investor puts into a project. Because of skyrocketing foreclosure rates in the modern housing market and property values dropping at record rates, there is considerably less risk involved for the investor in commercial projects.

Commercial real estate is a very competitive market, but hard money investors are willing to buy properties, remodel existing structures and even build new properties. The commercial real estate market is still alive and well. In fact, today's commercial market is very similar to the residential market that profited so many people just a few years ago.

Hard money lenders are still in the game. In fact, they are busier than ever because banks are making the lending process more exclusive than ever due to a record number of people defaulting on their loans. Knowing how the private lending process operates is half the battle when it comes to finding private investors for your commercial real estate project. With a little research and networking, you will find the perfect backer for the commercial real estate project of your dreams. The hard money for the project is out there; all you have to do is find it.

http://fidelitymutualmortgage.com

SEP

A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business.However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are.When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own.

Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information.

Good luck,

Ilya Bodner

Small Business

Owner Initial Underwriting Group

SEP

Initial Underwriting Group (IUG) Initial Underwriting Group grew out of the financial side of working with small business owners. Our staff and executive team come from a background of debt settlement, debt restructuring, financing planning and investments. In the process we came to the realization that the average small business owner is forced to stretch to pay their consultants, and give the time that must be devoted. Making the leap to helping business owners was logical and bound to happen over time. We realized that the average small business owner knows little about business credit and often makes the mistake of mixing their personal credit/debt with their business credit/debt. We began working with customers - the small business owners, by showing them how to separate the two. IUG was formed because of this need. And our specially trained agents work one-on-one with small business owners.

Sincerely,

Ilya Bodner

Small Business Owner

Initial Underwriting Group

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