Import Export financing – providing capital to exporters The SBA supports export financing to small businesses when financing is not otherwise available on reasonable terms. The program encourages lenders to offer export working capital loans by guaranteeing repayment of up to $1 million or 90 percent of a loan amount, whichever is less. The loans have: Guarantees of up to $1.1 million or Guarantees up to $1.25 million if it’s combined with an international trade loan A reasonable turnaround. [...]

Many find the idea of running a small business appealing, but lose their motivation after dealing with business plans, investors, and legal issues associated with new start-ups. For those disheartened by such risky undertakings, buying an existing business is often a simpler and safer alternative. Advantages The main reason to buy an existing business is the drastic reduction in start-up costs of time, money, and energy. In addition, cash flow may start immediately thanks to [...]

State Unemployment Tax State unemployment taxes are also paid by the employer and are not deducted from the employee’s wages. Each state has a different rate and different wage limits from which the taxes are calculated. For information on state-specific unemployment taxes and contact information for the agency that administers your state’s unemployment tax, use the Business Owner’s Toolkit. Payroll Services Generally, hiring a payroll service is a very good idea. Businesses [...]

The pre-payment fee calculation is as follows: during the first year after disbursement, five (5) percent of the amount of the pre-payment during the second year after disbursement, three (3) percent of the amount of the pre-payment or during the third year after disbursement, one (1) percent of the amount of the pre-payment. Size The Small Business Act defines an eligible small business as one that is independently owned and operated and not dominant in its field of operation. [...]

How to do it Without being aware of it, most business owners do market research every day. Analyzing returned items, asking former customers why they’ve switched, and looking at competitor’s prices are all examples of such research. Formal marketing research simply makes this familiar process orderly. It provides a framework to organize market information. Market Research – The Process Step One: Define Marketing Problems and Opportunities Step Two: Set Objectives, [...]

eMarketing E-mail marketing is one of the most effective ways to keep in touch with customers. It is generally cost-effective, and if done properly, can help build brand awareness and loyalty. At a typical cost of only a few cents per message, it’s a bargain compared to traditional direct mail at $1 or more per piece. In addition, response rates on e-mail marketing are strong, ranging from five to 35% depending on the industry and format. Response rates for traditional mail averages [...]

Glossary Of Small Business Terms # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z K       PREVIOUS PAGE Table of Contents NEXT PAGE Page 87 Click Here to download this book in PDF format. [...]

An important step in the small business start-up process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision. Because of the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch. Although the success rate for franchise-owned businesses is significantly higher than for independent businesses, [...]

Like home insurance, business insurance protects the contents of your business against fire, theft and other losses. It is prudent for any business to purchase a number of basic types of insurance. Some types of coverage are required by law, other simply make good business sense. The types of insurance listed below are among the most commonly used and are merely a starting point for evaluating the needs of your business. Liability Insurance – Businesses may incur various forms of liability [...]

FARMS AND AGRICULTURAL BUSINESSES are eligible; however, these applicants should first explore the Farm Service Agency (FSA) programs, particularly if the applicant has a prior or existing relationship with FSA. FISHING VESSELS are eligible; however, those seeking funds for the construction or reconditioning of vessels with a cargo capacity of five tons or more must first request financing from the National Marine Fisheries Service (NMFS), a part of the Department of Commerce. MEDICAL FACILITIES [...]