The key to making advertising and marketing successful is found in knowing how to approach the market and using the right advertising strategies. The following ideas will help get the marketing started and get in motion a strategy to bring in more clients and more money.

Marketing Tips

Before a small business can implement and advertising strategy they need to first understand some key ideas to successful marketing. Some of the most common tips for small business marketing include:

• Customers and products: It is vital to know and understand the product that is being marketed and the customers that are purchasing the product or utilizing the services offered. This may sound like a no-brainer; however, it is often a much overlooked part of marketing. Many businesses, both big and small, often attempt to market to the entire purchasing public when they should be marketing their product to smaller, more select groups of people.

The group that should be marketed to is the focal group and is usually a section of the population that uses the product or service offered. For instance, if the service is errand running and assistance with getting around town, senior citizens would be an excellent core target; however, young adults in a college town might not be apt to utilize this service and targeting them would be a waste of advertising money.

•  The Message: The advertising slogan or message is vital. It should be concise, catchy and easy to remember. It must tell the customer exactly what the business or product does and why customers should use it.
• Marketing Materials: Every piece of paper that the small business uses is a marketing piece. Letterhead, envelopes, invoices, sticky notes, business cards, pens and pencils and much more. If it can have a logo put on it, then it should be considered a piece for marketing. One look around at coffee cups that people carry around every day is proof of the advertising power that marketing materials have.
• Networking: Networking is another vital marketing tip that is often overlooked. At the end of the day, many business owners are tired and simply want to go home; however, if some time and energy is invested in business groups such as the Chamber of Commerce, the number of business contacts earned can change the way the business operates and the money it makes. Networking is simply meeting more people who ultimately will help spread the word about the business.
• Referrals: Ask current clients and customers for referrals and use these to earn more business. Testimonials are powerful tools in advertising.
• Partner: Use the networking tool to find other businesses that target the same core group of customers. Partner with them in promotional materials where each company refers customers to the other. This can be a highly effective marketing tool.
• The Internet: Utilize the Internet to put get the business name out in the public. Blogs, social networks and other free options abound on the Internet that can help circulate the business name. Take the time to start a blog and keep it up daily so that the content is always fresh. The blog will have links to the company website and thus bring in more clients.

These are just a few tips on putting together a marketing strategy. The next step is finding places to advertise and put the marketing ideas to work.

Advertising

Today’s technologically advanced world has made it possible to advertise in many places for very little money. There are also other marketing strategies that won’t blow the budget and at the same time will help bring in customers. Some of these include:

• Social Network Advertising: These are typically pay-per-click advertisements. The ads are only charged for if they are clicked through. These are extremely inexpensive and can put the company in front of hundreds of thousands of viewers.
• Mail Outs: These can be inexpensive as well, if they are designed in-house. Once they are designed, the main cost is the mailing list and the postage. A mailing house can be helping with this part of the process.

These are just two of the many advertising ideas that are possible and can be successful when using the marketing tips presented earlier. Small business advertising is an essential part of a long and successful business.

Accepting credit cards has never been easier. Technological advances and the Internet has made it possible to accept credit cards through the Internet or have the credit card processing machine access the merchant network via the Internet instead of telephone lines. This makes processing the credit cards much faster than in the past.

Fees

Many small businesses avoid accepting credit cards because of the fees associated with the process. However, the number of people who use plastic solely and don’t carry cash mean that not accepting cards could be costing much more money than the fees associated with accepting cards.

Credit card processing fees range from 2.5 to 5.5 percent of the sale. This gap in the lower end of fees to the high end of fees means that the business owner must research the different credit card companies in order to find the one with the best rates. While this may seem like a negative aspect of accepting credit cards, there is no risk involved with credit cards such as having a check bounce or having to wait for the check to clear the bank in order for the funds to be accessible.

Getting Started

It is easier than ever to start accepting credit cards. There is more than one way to accept credit cards in today’s world. One is to use the typical method of a credit card terminal and having merchant status set up with the various credit card companies. The second is via the Internet and one of the many gateways that allow for credit cards to be processed and deposited into an account, such as PayPal.

The following information details the traditional methods of setting up merchant status. If the small business has a predominantly online presence then PayPal and other options can be easily implemented.

The first thing a business must do is acquire merchant status and have a merchant account at one of the many banks that issue certain credit cards, known as acquiring banks. This step can be done by either working with one of those banks or setting up an account with a credit card processing company, an option that eliminates some of the steps involved in getting started.

Setting up a merchant account is not simply a matter of filling out an application and everything falls in place perfectly. In much the same way that credit card applications are checked for credit worthiness, the merchant application is checked thoroughly to ensure that the credit card company is not going to lose money on charge backs.
The credit card companies will verify that the business is solid. This is simply to determine if the company has many refunds to customers which in turn would mean lost money to the credit card company.

Compare Merchant Accounts

It is important to compare merchant accounts when starting out. Many small businesses make the mistake of thinking they should simply stay with the bank that they do business with currently. However, the fees that are charged for merchant accounts may be much less at other banks. The services that are offered with the merchant account should also be compared. The business owner should be prepared to ask for better rates and negotiate with the provider.

There are some things that should be considered when comparing the offers, such as:

• Rate of the fees and how it is assessed.
• Software or hardware provided such as the processing terminal, paper for the machines, support should it go down, Internet access to the account and more.

The comparison of various services should be made and listed so that an overall picture is seen. This allows the business owner to make a decision that is based on facts and not guesses.

Integration with Current Programs

Small businesses considering credit card systems need to also remember to take into account their current accounting software and whether or not the system they are considering will work with it. This shouldn’t be a difficult part of the process since practically all business accounting software has built in components that are designed work with credit cards.

Watch Business Grow

Once a merchant account is established and the credit card company has set up the equipment, it is time to start accepting credit cards and watch business grow. Advertise that credit cards are accepted by putting the credit card logos on all marketing materials and invoices and business will increase dramatically. Credit cards are the number one form of payment in business and should not be overlooked when setting up accounting practices.

Types of Backups Available

There are many types of backup systems available, in addition to the online backup system. It is a good idea to start out by looking at each of these before deciding on the online backup system.

The first thing that should be understood is that backing up data should be done often, in fact, daily is a good idea. Some businesses have backup plans that run throughout the day backing up data in increments such as on every hour. This may be more robust than a small business needs or it could be exactly what is needed, depending on the type of business and the data being stored.

Hard Drive Backups

Hard drives have become very small in size with a very large storage capacity and portability that makes them an excellent back up source for small business. Portable, external hard drives are available today that can hold a 1T or more of data. This size external hard drive can usually suffice for a small business to hold the necessary data that needs to be backed up. Hard drive backup systems are relatively inexpensive and simple to operate. However, there are some down sides to this back up that need to be considered.

First, the hard drive back up must be set up on a rotating schedule so that there is always one copy of the backup offsite. This also means that there has to be a reminder or calendar that alerts the person in charge of the backup to rotate the hard drives. Secondly, hard drives do fail, they are made up of moving parts and so they are not without compromise. Should the hard drive fail, the business owner is left with no backup data unless they are using the secondary backup rotation plan.

Network Backups

Many small businesses have an IT company come in and initially set up a network backup system where the main data is backed up to another location on the network, such as a virtual server or even a separate computer. However, should the main network become compromised or damaged due to power shortages or other failures, the network backup becomes useless and the business is caught without a backup to restore operations.

DVD or Flash Drive

DVD and flash drives are not good ideas for backing up large amounts of data. These are great options for transporting a few files or perhaps banking information from the office to home; however, these are not feasible means of backing up large amounts of data. First, it would take a long time to copy all of the company’s data onto discs or flash drives and secondly, the probability of discs or flash drive becoming damaged or corrupt is high. These two options should only be used for copying small amounts of data.

Online Storage

Online data storage or cloud storage as it is being called is the newest and most robust method of ensuring that data is backed up and readily available when needed. The cost of online storage is very inexpensive. Small business owners don’t have to use an IT company in order to implement online back up and it can be set up to backup whenever the business wants.

Restoring data from an online storage company is as simple as the backup process and can be done from any computer with Internet access. These online companies guarantee security and the availability of the data anytime.

The most important thing to consider when researching online storage companies is their reputation and how the secure the data. Check references and speak to actual people who have used the company. It is important to know that the date being stored won’t be compromised and accessed by people who should not have access to it. It is just as important that the data be available at anytime, not just during business hours.

There are many different backup methods that are available for small business owners to choose from; however, choosing one that will be easy to use, inexpensive, and secure takes time and research. Online storage is quickly becoming the most used method for backing up data in both small and large businesses and should be considered one of the best options.

Customer service is one of the most important tools any business can have. It doesn’t matter how many customers or clients like a business, it’s the one that has a bad experience that will bring the most heartache. If customers try to contact a business and continually have no luck due to no one being available to answer the phone, it won’t take long for word to spread that the business doesn’t care about its clients.

Clients and customers who have to hold for long periods of time or who are greeted by a cold machine typically have an instantly negative connotation of that business and may choose not to use the business in the future. The other side of the coin is that if the missed calls are potential customers, money is being lost by the calls not being answered.

Image

Every business owner wants their image to appear polished and having a telephone answering service is one way to put on a professional image. The answering service is like the gate keeper that says who can and can’t get through while at the same time ensuring that everyone is recognized. Customers appreciate a business that is organized and well-run. Having a telephone answering service is one way to put this image in front of the public.

The small business answering service is the tool that can help any size business and will help the business develop a reputation for good customer service. Sometimes simply being available when a customer calls is half the battle in calming what could be a bad experience for a customer. There are different ways to implement an answering service in a small business; it doesn’t have to be a full-fledged company that answers the phones. The following information is presented to show the various ways of implementing an answering service for any size business.

The Receptionist

The receptionist is one way that a small business can handle answering the phones. This employee can multitask and handle things like filing and greeting clients. When the receptionist is able to do more than one job, it is easier for the small business to justify adding the cost of the wages to the budget. Having a receptionist gives the business a face and a voice that customers can relate to and get a sense of comfort that be business cares.

Remote Answering Services

The dedicated, remote answering service is a business that does nothing more than answer the phones and take messages for the business. The answering service has traditionally been used after hours; however, many businesses today use answering services during business hours. This is particularly true of a business that simply needs someone to give a voice to their business when customers call but that does not typically have many customer calls. The key for this type of business is that someone answers the phone and doesn’t leave the impression that no one cares.

Small businesses can save money using a dedicated, remote answering service. These are often much cheaper than a full-time employee. The business owner doesn’t have to worry about insurance, holidays, time off and absent employees. The answering service takes care of everything and delivers the messages when they are phone in to the service.

Technology and the Virtual Call Center

Technology has made major advancements in the area of call centers. Virtual call centers are similar to dedicated call centers. The calls that come in to the center can be answered from practically anywhere; many virtual call centers are actually people working from home.

The virtual call center can offer all the benefits of having a phone system in the actual building where the business is but not have to be in the building. Technology has made it possible to have multiple lines, toll-free numbers, music-on-hold, call forwarding and more incorporated into the virtual call center.

It is easy to see how a small business can incorporate great customer service with a call center using any one of the options presented here. Every small business should consider the various options that are available to add an answering service for their clients. The advantage that it gives them in the quest for customer service is one that will pay off in word of mouth and in business that won’t be lost due to no one answering the phone. In-house employees, dedicated answering services and virtual call centers are all excellent ways of increasing customer service.

Small business retirement plans are one of the best ways to save for retirement and at the same time defer tax-deductible money. The EGTRRA or Economic Growth and Tax Relief Reconciliation Act of 2001 provides many incentives for small businesses to save money for their golden years of retirement. This act literally allows small businesses to choose between saving the profits they make for later use in life and sending them to the IRS in the form of taxes, not a difficult choice to make.

Small business owners typically make their decision on a retirement plan based on how the plan will benefit them. Employees will benefit from having a retirement plan but the bottom line is that the selection of which plan to choose will ultimately be based on how the owner of the company will benefit. The good news for employees and business owners is that the new tools put in place by the IRS and the government has made it possible for both employees and owners to win.

Plan Choices

Understanding the different types of plans is the next step in the process of choosing one that will work for the business and the employees. There are several types of plans to choose from that will be explained below.

SEP (Simplified Employee Pension)

The Simplified Employee Pension plan or SEP is, as the name implies, the simplest retirement plan for a small business and self-employed people to set up. It is also the easiest of all the retirement options to maintain. An SEP can be set up by self-employed individuals who have no employees but pay taxes on earned money. The SEP is considered an Individual Retirement Account and if a small business chooses the SEP then it is a group of IRAs.

The SEP is a good choice for the small business because all of the contributions to the SEP are considered tax deductible. Additionally, the earnings of the plan are tax free until they are withdrawn from the account. If withdrawal occurs before retirement age, or 59, there is a penalty assessed on the money of 10%.

The SEP has both good and bad points that must be considered. One of the negative aspects of the SEP, for many people, is that these accounts do not allow loans to be taken from the account. These accounts also do not allow salary deferred contributions. There is also a limit on the amount of money that can be contributed in one year which may change annually and should be determined before the start of the plan.

The Individual 401k

The individual 401k is another by-product of the 2001 EGTRRA tax measure. This is an ideal option for the small business owner who has no employees or whose spouse is the only other employee. This type of retirement plan has higher contribution limits that are determined by the revenues that the business generates. For example, the contribution is typically maxed out at 25% of the payroll.

The Individual 401k is more flexible than the SEP and allows for loans to be taken for emergency situations and even has a contribution makeup plan that allows funds to be continued to catch up to the yearly limit if they are over the age of 50 and need to get their funds caught up.

Professional Advice

There are many other options that can be explored when searching for a retirement plan for a small business. However, the best advice that any small business owner can adhere to is to seek the help of a professional accountant or tax consultant. This will ensure that every possible option is explored and that all financial strategies are considered. Professionals who deal in tax codes and laws will be better equipped to point out the advantages and disadvantages of every option.

Small business owners have an important choice to make when putting together a retirement plan, regardless of whether the plan is for their own retirement or for a small group of employees. This decision should be made only after education and due diligence of the many options available.

There are two main options that can be selected from and then several options within those choices. The two main choices in accounting are hiring an employee and purchasing accounting software or paying an accounting firm to do the work. The differences between software and professional services are looked at herein and should help the small business owner make a decision.

In-House Accounting with Software vs. Professional Outsourcing

There are many difference in having an in-house accountant and hiring a professional accounting service to handle those tasks. Once these differences are understood, it will be easier for a small business owner to make a decision on which direction to move with their business.

Cost: The cost of using software and keeping accounting in-house must be compared to the cost of using a professional service. At first blush, many people think that hiring a professional company to handle the finances would be much more expensive; however, there are multiple expenses involved with having accounting software in-house and someone to work with the software and keep the accounting up to date. Some of those costs include:

Cost of the software: this can range from a few hundred dollars to several thousand dollars depending on how robust the software needs to be and how many features the business owner wants. Professional accounting companies tend to have the best software available and are usually able to provide documents to the business owner in whatever format is needed.

Training: This could be training involved in the software if the business owner is going to handle the finances or training a new employee on the software and the business practices. If the employee doesn’t work out, then there will be more money spent training another employee.

Employee Costs: Payroll, SS taxes, workers comp insurance, sick days, missed time that costs the company money and any other benefits that might be offered to the employee.

These costs can add up to substantial amounts of money. However, a professional service has these costs built-in and because they handle multiple accounts, the costs are not as evident or as high.

Risk: There are many different types of risks involved with accounting. First, no one is perfect and mistakes do happen. If the mistakes happen with an employee using software in house, the small business owner has to absorb those costs; however, when mistakes are made by professional services, they have to take responsibility for it and cover the money that is lost. These companies are insured for this type of mistake.

Another risk that can be cut is the risk of embezzlement. No one can provide 100% assurance that embezzlement won’t happen; however, professional services have insurance that will ensure any money that is embezzled is returned. On the other hand, when a professional service handles the finances, the small business owner has less of a hands-on role in the finances and must rely solely on the outside company to do things they way they want them to.

Laws: Professional service companies that specialize in accounting are often more up-to-date on tax laws and other changes that can affect the accounting department.

This can save small business owner money simply by not having to continually send their employee to educational seminars in order to stay on top of changes. However, many of the accounting software programs that are available today are able to keep up with changes through updates that are downloaded via the Internet.

Updates to accounting software programs are an important part of choosing the software. The program should be able to access updates on the Internet to keep the tax laws, payroll laws and other financial laws correct in the system so that the financials will be correct and the business owner won’t have to worry about tax problems and more.

Reliability: While having an in-house employee as an accountant does allow for closer monitoring of the billing and other financial tasks, it does not solve the problem of reliability. When someone is absent in a professional accounting firm, there is usually someone who can step up and fill in so that the work is complete. However, when the employee is an in-house employee, it can be difficult if the employee is absent, particularly if no one else in the business is able to use the software and fill in the gap.

Choosing between software that is used in-house and a professional services company is a decision that should be made after careful consideration of all the facets of each one. Ultimately, the choice will be one based on budget and how much oversight the business owner wants to have on the accounting.

CRM software helps a business keep track of sales, creates a client database and allows the business to offer more of what the customer wants due the built-in tracking programs. However, many small businesses put off purchasing a CRM program because they don’t know if they have reached the point in their business that they need to have this tool. The following information should help the small business determine when they need a CRM program and other information concerning the CRM.

Lower Cost Software

Today, the cost of purchasing CRM software has become much more affordable and so the decision to purchase CRM software isn’t usually about the cost. There are software programs that are as inexpensive and can be purchased on a monthly basis. This type of CRM software is typically not outright purchased, but is instead used for as long as the business needs it. The cost of this is much less than outright purchasing and allows for a more robust CRM program to be implemented for less money.

Businesses should consider implementing this lower cost software in the early stages of their business regardless of the number of employees. This early implementation allows for tracking of the business sales and clients to start early in the business and thus provide more accurate historical data later in the life of the business. The CRM will also be important in satisfying customers and ensuring that employees and customers alike are receiving the best the company has to offer.

Is CRM Worth Cost, Time and Effort?

Many small business owners ponder over CRM software because of the time that it takes to implement it and get employees trained on how to use it. This is another reason that implementing the software early in the business will pay off in the long run. It is easier to train someone on something when that is how they see the business being handled than it is to have them learn the business one way and then spring a new method on them.

Today’s CRM are so low-cost that it simply doesn’t make good business sense not to have one in place.

What Can CRM Offer

In order to justify adding CRM to a business, most business owners want to know what it will do for the business, some of those reasons are outlined below.
• Increase value provided to customers: CRM will assist the business owner by preventing the quality of the product or service that the customers receives from being compromised while at the same time simplifying the costs involved with the business practices. This could include organizing and reducing costs of travelling, reducing budgets for supplies or seeking better pricing for healthcare and other employee perks.

• Marketing: CRM is crucial in creating marketing strategies that are more effective. This means that the marketing programs that are in place will have to be examined to determine if they are effective or not. The only time that marketing budgets should ever be cut is when they are not working. Marketing is the last place that a budget should be cut as this is the area that is bringing in money to for the business.

• Contact Management: This is an important aspect of CRM in that it allows the business to keep track of all clients and what they have spent or done with the company over time. Many of the CRM programs will also integrate with other software such as email clients like Outlook. This type of management allows the clients who visit the business online to contact the business anytime and feel assured that their message will be sent to the company because of the CRM software that is in place.

Once the CRM recognizes that the client has placed a request, it goes into action and alerts the business owner via built-in tools. Most CRM software can be set up to reply to the client with a ‘thank you’ or other message that is customized by the business.

CRM software can save a business thousands of dollars in lost revenue simply because of clients not receiving an answer or ‘second touch’ from the business after they send in a request.

CRM has much more to offer a business than what is stated herein. The business owner should research and explore options in CRM that will benefit their business and choose the one they feel fits their clients and employees.

Small Business Cards vs. Corporate Cards

Corporate credit cards are more difficult to obtain than small business credit cards and so it is important that the small business owner research every available card to ensure that the one with the best rates and terms is chosen.

Small business credit cards are available from lending institutions as well as online. The process of being approved for a small business card is very much like applying for and being for a personal credit card and approval can be granted in minutes. There are many websites that allow small business owners to compare the different terms and rates available and apply online once they find the one that meets their needs and budget.

The Internet is also a great place to read various reviews on the credit cards that are offered. The small business owner can find out how other small businesses have fared using the various cards and if they ran into any unforeseen pitfalls such as rates that suddenly increased for no reason or the inability to have more than one card so that an employee could use it for gas.

Small businesses should look at more than the interest rate on the credit card they apply for; they also need to look at fees that may be incurred on the card and perk that are offered, if there are any. Some credit cards charge an annual fee and others do not. This is one of the reasons that the fine print on the cards must be read and the various cards compared line by line.

Reward Cards

Consumers everywhere know the value of reward points that come with using credit cards. Small business owners can cash in on these rewards as well. Many small business credit cards have reward points that can be accumulated and used for air travel on business trips or even supplies for the business. These reward points alone should not be the sole reason for using a credit card; however, if paid off on a monthly basis and interest is low enough, the reward points are an added bonus that can save money on pricier items such as airfare.

Multiple Cards for Employees

Corporate businesses are not the only businesses that need multiple credit cards. Often, a small business will want to give the marketing director or field salesperson their own credit card that belongs to the company. This is one feature that must be considered when looking at credit card companies because not all credit card companies offer multiple cards to one company.

Online Access

Most employers and small business owners want to be able to access the credit card account online. This allows them to keep up with the spending habits that are occurring within their business. This also allows small businesses to pay their bills online and keep from having to cut checks and spend postage to get the payment sent out.

Customer Service

It is vital that the credit card company selected by the small business have a customer service department that is responsive when needed. While it isn’t often that most businesses need to call their credit card company, it only takes one disgruntled employee or lost credit card to wreak havoc on the credit card. If the company is slow to respond to customer calls, the small business could lose money and time waiting for the situation to get corrected.

Security

Small business owners need to know that they cards they sign up for have security measures, such as daily credit limits that are only able to be broken by the owner or varying daily limits depending the card. For example, the marketing card could have one daily limit while the president of the company has no daily limit. This gives the business a better handle on the money that is being spent and keeps employees from going rogue and bankrupting the company with the credit card.

The best credit card for small business is the one that is able to offer the best interest rate with the best term. It will also be the card with the features that are needed by the company such as multiple cards for various needs, online access to accounts and excellent customer service. Once the small business finds the card that fits their needs they can apply for it and have it in their possession in a short time.

Choosing a Bank

Choosing a bank can be a daunting task, particularly in today’s economy. Banks are all too willing to hold money in accounts but aren’t quite as giving when it comes to loans, perks, and free services. In fact, many are starting to charge fees for services that have traditionally been considered part of the banking institution. Banking, especially for small business should also be based on relationships that develop between the banking employees and management team and the business owner.

Additionally, there are some other traits and services that should be part of the small business banking package and if they are not, they should either be negotiated into the account or another bank considered.

Online Banking

Online banking is not simply a perk, it is a necessity. Gone are the days of rushing to get the mail opened and a deposit ready in time to dash off to the bank to get it deposited. Today, companies, no matter how large or small, can choose online banking options that include scanning checks directly into their account, accepting wire deposits, paying bills online, having payroll direct deposited into employee accounts and many more banking features. Some online services also offer the ability to create invoices from within the bank’s online program and customize them to show the company logo and other company information. One thing that should be noted, the bank that is going to be work with the small business should not charge fees for providing online banking services. However, some aspects of online banking may incur a charge with some banking institutions, such as scanning checks into a check capture program. This is an important question to ask when researching banks.

Type of Bank

Many people think that all banks handle small business accounts; however, that is not completely true. Some banks, particularly the larger ones, are more adept and willing to work with small business accounts than other banks. Local, hometown banks sometimes are not capable of providing the services that a small business needs for its accounting purposes. There are some large banks that advertise that they work specifically well with certain industries. It is up to the business owner to determine up front if the bank is capable of working with their business.

Fees

In a perfect world, there would be no fees involved with banking; however, this is not a perfect world and unfortunately, banks do have fees. The good news is that business accounts have the power to negotiate some of those fees. Banks don’t want to lose business; they make money when they have funds deposited. Business owners must go over their bank options carefully and determine what fees are being charged and whether or not those fees can be eliminated by the bank. Many banks will waive their fees if a minimum amount of money is kept in the account. Other banks will waive fees if the bank is in charge of processing credit cards for the business. Shop around and make sure that any fees being charged are normal and comparable with other banks.

Credit Cards

Some banks offer business accounts credit card processing as part of a business package while others charge extra for the service. This is something that should be examined closely when looking into accounts for the small business. The processing fee for the credit card should be part of what is researched as each bank has their own set fee. In some cases it might be financially advantageous for the company to do credit card processing through a private company and pay less fees. Another credit card perk that is often associated with small business accounts is a company credit card.

This is a credit card that should have an accompanying lower interest rate than traditional credit cards because it is associated with the business account. The best banks for small business accounts are those banks that offer the necessary services and perks that a small business needs to succeed without charging excessive fees and interest rates. The small business owner should shop around to find the bank that best meets these needs as this is not always the same bank that handles their personal banking. If the bank has the services that are desired but has fees that are not wanted, the business owner should try to negotiate those fees down to a manageable and fair number.

Small business loans are not as confusing as grants can be as these are simply loans from local financial institutions that can be used to start up a small business. They are not typically as difficult to get as grants can be and don’t have as many stipulations as grants do. The following information concerning grants should help get the potential business owner started on their way to having a new business up and running.

Grants

Grants differ from loans in many ways such as the factors that determine eligibility and approval. Grants are dependent on how much money is available to given out as well as the business or project that the money is going to be used for and how that business will help society as a whole.

The majority of government grants for small business are awarded to businesses that fall under artistic development, scientific type work, research, educational work and businesses that support or are owned by minorities.

Unlike loans, grants are totally free and do not have to be paid by back; on the other hand, grants are much harder to apply for and have a lot of stipulations that must be followed in order to get approval.

Steps to Applying for a Grant

The process for applying for a grant is one that must be adhered to explicitly. The entire process is much more elaborate than simply filling out some loan applications and presenting a business plan.

The first step is to find out which grants are available for the type of business that is being considered. The Internet is an excellent source of information on where to apply for grants. Once the right grant has been found, it is time to start applying for the grant.

Every grant will have a set of exact instructions that must be followed completely. All grants require that a complete proposal be submitted that includes what the goals are that the business will accomplish and explains what the money is going to be used for in detail. This part of the application process is very important as it can make or break the grant approval. Many prospective business owners hire someone to write their proposal to ensure that it is polished and complete in every aspect. Some of the most important parts of the proposal to include are:

• The main goal of the business, what it offers the community;
• How the business will compete with other like businesses;
• Advertising strategies;
• How many employees will be hired;
• How they business will keep the government of grantor updated on the progress;
• Any research or background information that the applicant has about the demography of the area where the business will be located;
• Current financial status of the applicant.

This may sound like a lot of information to include in a grant proposal; however, grants are free money and the government of grantor wants to ensure that they are putting their money into a business that will not only succeed but will also bring something to either the community where it is located or to society in general.

Time Frame

There is typically a time frame that must be adhered to when applying for grants. The importance of this should be noted during the research for available grants. Grants typically have a deadline for applying and once that deadline has passed, the grant is no longer open for proposals. The deadline and other important timeline information is included with all of the information that is released in the Federal Register. This is the place announcements are made about grants and is available every day except weekends. The time frame is one of the most important aspects to consider when looking for a grant, choosing one that has a very short time left in which to apply is a recipe for disaster. Rushing the proposal is not a good idea and can result in less than the ideal application.

Loans

Small business loans are not as complicated to apply for and typically can be done in the local branch of any financial institution. The typical small business loan requires a business plan to be submitted that will show the bank that the business has a solid plan that has excellent chances of success.

Loans and grants are both great ways to pursue starting a small business. Loans are usually easier to obtain than grants; however, grants do not have to be repaid and so are worth the extra effort required to obtain approval.