How to Open a Successful Business in the Digital Age

Are you looking to open a business but don’t know where to start? The digital age has changed the entire scope of doing business, from getting licenses, getting clients, and selling products or services, all of which happens online. Regardless of the type of business you wish to open, having a digital presence is the key to survival. Here are some tips on how to open a successful business in the digital age.

You Cannot Ignore Technology When Looking at How to Open a Successful Business

Even if you run a convenience store where people will find you no matter what, you still have to embrace the digital era. While opening a business may be a straightforward thing, not all are able to do it correctly.

You may have all the relevant tools and software to help run the business at your disposal, but still fail to get it right. So how does one become successful in this digital era? This post will take you through all that you need to know on how to open a successful business.

Things to Know About How to Open a Successful Business Before You Start

So, have you settled on starting a business? That’s great, but as you know, things have changed over the last couple of years. If you want a smooth entry, there are a few things that you ought to know beforehand about how to open a successful business.

Demolish your funding problems with 27 killer ways to get cash for your business.

Everything is Now on the InternetThe internet is much more important to how to open a successful business than it used to be. Approximately 53% of shoppers will research on Google to find more information regarding the product or services that they wish to purchase. This includes finding more about the vendor by looking for reviews online.

These numbers are a great eye-opener; hence, the need to have an online presence if you wish to be found by prospects.

The best way around this is to invest in a good website, have an active social media presence, and a good PR strategy.

There’s a crucial aspect you must consider when it comes to websites: Search Engine Optimization (SEO). This is a way of making your website search engine-friendly, making it easier to be found online by ranking higher in the Search Engine Result Pages (SERPs). There are many factors to consider when it comes to SEO, such as technical SEO, On-page SEO, and off-page SEO. In a nutshell, once you have a business website, you are not there yet. You still need to optimize it for search engines.

The other crucial thing to know is that almost everyone is now on social media, and you can leverage this platform to boost your business. Some of the ways to effectively utilize social media include:

Create brand awareness
Engage with your audience
Respond much faster to customer inquiries and concerns
Promote your products or services
Instil trust about your brand in your target audience.

You need to choose social media platform that resonates best with your business and invest more resources to help grow your audience and engage the current ones.

Digital PR involves getting reviews from third-party websites, independent reviewers, and get featured on local listings. This is a great way to boost your online visibility, and people will gain more trust in your business.

Getting Funding

Any business needs starting capital, regardless of how big or small the venture is. You need to conduct extensive research on your business to identify how much you need to be operational. Apart the materials and equipment required, you also need to factor in the labor cost and any unforeseeable miscellaneous expenditure.

Furthermore, depending on where you live, you may need certain licenses so as not to get into trouble with authorities.

Furthermore, you need to factor in a marketing budget. While creating a website and social media pages might not seem expensive, it can be costly. This is especially true when you get a professional to help you manage them. For instance, you may need to hire a web developer, an SEO specialist, and a social media manager who will increase your audience and engagement levels.

One way to reduce these is to learn the trade yourself. You can easily register with some of the best online learning platforms to increase your knowledge.

Once you know how much in total you may require for your project, the next step is to identify where to get the funding.

Some of the most effective ways of funding your business are:

Bootstrapping

According to Investopedia, bootstrapping is the act of starting a business with nothing else other than your personal savings. Before you start, have some money in your savings account to get you started. For this to happen, you may plan and save for a while.

Demolish your funding problems with 27 killer ways to get cash for your business.

Venture capitalists

Venture capitalists are individuals that invest in businesses that have potential. You need to reach out to them with a proposal of your venture, indicating the scope of business, the predicted results, and what you need to get the business up and running.

Crowdfunding

Crowdfunding has grown as a popular funding method for upcoming businesses. One can get assistance in various ways, such as getting a loan to start the business, investors, grants, or other people would assure you to purchase your product once ready, to give you enough money to take it to the larger market.

Have Financial Discipline

Many businesses fail within their first few months due to mismanagement. This is often a result of financial indiscipline. Before you start making any money, you should have a system in place that will help you take control of your finances and identify business trends. Accounting and bookkeeping are some of the most crucial parts of running a business. This shouldn’t be an afterthought.

With these three tips in mind, you are ready to open up your business. But under the current circumstances with the digital age, you are still not there yet. What’s missing? Here are a few pointers to help you navigate the ever-competitive digital market.

How to Open a Successful Business in the Digital Age

Research Your Market

The first thing to do is conduct market research to determine whether your business would make any financial sense. Are the people you wish to sell ready for your product? Have they shown any signs of interest in that particular service? What is the competition like? Are there any businesses of the same type in your area?

Before you settle on any business, you need to find out what other people have to say about it. Do not only rely on the responses of your friends and family. Talk to others also.

Identify Your Target Audience

Never get into the market hoping to attract the right people into your business without having pinpointed who you wish to target. What is your product or service? What type of people are likely to purchase more from you? Which group are you likely to convince to buy from you? That is what we call a target audience.

You need to point out the exact type of people you wish to target, as this will help you curate the right products or services. Furthermore, when it comes to digital marketing, you will save yourself a lot of resources when you target a specific group of people rather than generalized marketing. You have better chances at an increased return on investment (ROI) when you take on this route.

Conduct Competitor Analysis

Getting into the market without conducting an in-depth competitor analysis is simply gambling with your business. Find out what other companies like yours exist and how they are performing. If they’re doing well, identify their key strengths and see what you can bring to the market to outdo them.

Moreover, if your competition is struggling, find out what you can do differently to ensure that people come to you. Are the people getting valuable services from the competition? Are you willing to offer discounts as you start in a bid to lure more customers? How is the competition handling their online marketing strategies?

Always strive to be better.

Demolish your funding problems with 27 killer ways to get cash for your business.

Have a Business Plan

A business plan includes all the details necessary to help you run your business, incorporating every aspect of marketing, sales, and customer retention. You need to highlight what your objectives and goals are beforehand and work towards achieving them.

You also need to set up key performance indicators (KPIs) to help you understand the trends and identify if your business is headed in the right direction. This will help you tweak and change the strategies and your approach towards the business.

Embrace Technology

We have already talked about getting a website and an active social media presence to increase your brand visibility online. Still, there are many other ways to embrace technology that will make your operations seamless.

Business automation is the way to go in this digital era, and if you’re stuck handling most of your work manually, then you may sacrifice the revenue. Different businesses require different automation tools and software. Look for any manual tasks that could otherwise get automated to boost your work.

Final words

We hope that our complete guide on how to open a successful business in the digital age will help you get your venture on its feet. Remember that for you to succeed in the digital era, you need to be tech-savvy, understand who your audience is, know what your clients need, keep a close eye on the competition, and of course, have an online presence.

Lidia S. Hovhan is a part of Content and Marketing team at OmnicoreAgency. She contributes articles about how to integrate digital marketing strategy with traditional marketing to help business owners to meet their online goals. You can find really professional insights in her writings.

The post How to Open a Successful Business in the Digital Age appeared first on Credit Suite.

Business Revenue Financing

If You Have Unpredictable Business Income, Business Revenue Financing Could be the Solution You’ve Been Searching For

It is very easy to have a business with unpredictable income – especially when you have a startup venture. But business revenue financing can help you to smooth out the gaps in your cash flow.

Is Your Business Income Unpredictable?

This is the case for most businesses – you’re not alone. Unless you sell on a subscription basis, sales will go up and down. But in the meantime, you still have to pay for rent and equipment. And you absolutely must make payroll.

What is Business Revenue Financing?

It’s also called royalty-based financing. This is a way to raise capital from investors who get a percentage of the enterprise’s ongoing gross revenues, in exchange for money invested. In a revenue-based financing investment, investors get a regular share of business income until a predetermined amount is paid. Often, this predetermined amount is a multiple of the principal investment. It is usually between three to five times the original amount invested.

The business must make regular payments to pay down an investor’s principal. But this method of financing is different from debt financing. For one thing, interest is not paid on an outstanding balance. And there are no fixed payments. Payments to investors directly relate to how well a particular business is doing. If sales dry up, the investor gets a lower royalty payment.

Demolish your funding problems with 27 killer ways to get cash for your business.

What About Equity Financing?

It’s also different from equity financing. The investor does not have direct ownership in the business. Hence revenue-based financing is often felt to be a hybrid, between debt financing and equity financing.

In some ways, business revenue financing is like account receivable financing. With AR financing, a company uses receivables (outstanding invoices or money owed by customers) to get financing. The company gets an amount equal to a reduced value of the receivables pledged. The age of the receivables affects the amount of financing the company gets. See investopedia.com/terms/r/revenuebased-financing.asp.

Because repayment of the loan is based on revenues, the time it takes to repay the loan will fluctuate. The faster revenue grows, the quicker you’ll repay the loan, and vice versa.

The percentage of monthly revenues committed to repayment can be as high as 10%. Monthly payments will fluctuate with revenue highs and lows and will continue until you’ve paid back the loan in full.

The duration of the loan ultimately depends on the success of the business. The faster the business grows, the faster the loan is repaid. The RBF provider sees better returns the faster you pay the loan in full. This is one reason the underwriting process focuses not only on your current revenues, but also on your business’ potential to quickly increase revenues.

Providers will expect you to have a plan to increase your existing business revenue tenfold, as part of the application process. Since the loan is based on your current revenue stream, lenders will want to see potential growth opportunity for your business.

Investors’ expectation is that the funds that they lend you will be used to start and support planned growth. This is like what venture capitalists would ask for through a fundraising process. See fitsmallbusiness.com/revenue-based-financing.

Which Companies is Business Revenue Financing Best For?

Business revenue financing is perfect for entrepreneurs looking for fast, easy money with little headaches. You can easily get approval for financing as much as $500,000, within 72 hours, based on a simple review of business bank statements.

This program works to help clients get funding, based strictly on cash flow as verifiable per business banks statements. Lenders will not ask for financials, business plans, resumes, or any of the other burdensome document requests that most conventional lenders demand. You can get approval even with bad credit.

One class of businesses which find RBF appealing are those too small to attract venture capital. This also includes businesses which would not normally attract VCs, like mom and pop businesses. VCs are more interested in industry-disrupting businesses.

Businesses can still have solid revenue streams, even if VCs don’t take an interest. Such solid revenue streams can grow and be sustainable for a long time. BRF can be a good fit for companies that fit this mold, because revenue-based lenders make loans based on growth potential. They are not looking for the huge returns that venture capitalists demand.

BRF is great for companies where the ownership wants to retain control. Some businesses will be growing quickly enough to attract the attention of venture capitalists. But the ownership might not like the idea of diluting their equity or giving some degree of control to a venture capitalist. With RBF, you get a loan to repay to the lender. It does not require release of an equity stake in your business, as you would have with funding from a VC.

Demolish your funding problems with 27 killer ways to get cash for your business.

Did You Know that Credit Suite Offers Business Revenue Financing?

Credit Suite works directly with lenders. We work with hundreds of investors and lenders, through several different funding programs. These lenders all offer their own different and unique lending requirements. It can be tough to navigate these alone and know all your options. This is where we help. For more information, go to creditsuite.com/business-loans.

How Do You Qualify for Business Revenue Financing?

This program is one of the easiest, most hassle-free ways you can get business funding. To determine approval, lender will often review 4 – 6 months of bank statements. All the lenders are looking for is consistent deposits. They want to see deposits showing your revenue is $120,000 or more, with $150,000 required for unsecured.

Lenders will also verify that you have been in business one year or more. Lenders are also looking to see that you don’t have a lot of Non-Sufficient Funds (NSFs) showing on your bank statements. They also want to see more than 8 deposits in a month going into your bank account. In essence, all they are looking for is that you manage your bank account responsibly and have a decent number of consistent deposits. If you meet these simple criteria, you can get approval!

Can You Qualify for Business Revenue Financing If You Have Credit Issues Now?

Our revenue financing program is perfect for business owners with credit issues. Lenders are not looking for, nor do they require, good credit to qualify.

You can even get approval with severely challenged personal credit and poor credit scores. You can get approval regardless of personal credit quality, even if you have severe recent derogatory items and collections on your credit report. This is one of the best and easiest business financing programs that you can qualify for, even if you have personal credit problems.

Demolish your funding problems with 27 killer ways to get cash for your business.

Get Fast Funding with Business Revenue Financing

You can get pre-approval for our revenue financing program, within 24 hours. Also, you can get a formal approval, within 72 hours from submitting your application.

Get your money in your bank account, within 7 days or less from applying. Our clients love this program partly due to how easy it is to apply and get approval, and how FAST you get your funds!

You can get money consistently from our Business Revenue Financing Program. Over 80% of our clients come back for even more financing after their initial approvals. Typically within 3 – 6 months of approval, you will get an opportunity to get even more money than you got before. And all you will need for approval for additional funding is a quick review of your last 2 months bank statements.

You can get your money in your bank account within 24 hours or less. Our revenue financing program helps you rapidly grow and scale your business. You will have ongoing access to receive more and more funding easily, and very quickly, just when you need it!

What are the Benefits of Business Revenue Financing Through Credit Suite?

Get 24-hour pre-approval. Loan amounts to $500,000; $150,000 for unsecured. Application to funding in 7 days or less. Get approval for additional future funding. Easy bank statement review for approval.

Pay no application fees. Also, get approval with bad credit. There are no collateral requirements. 3 to 36 month financing terms. Get approval for up to 12% of annual revenue.

Business Revenue Financing: Takeaways

Business revenue financing is a means of getting a loan. Investors lend based on your business’s potential to grow and earn. Your business pays the loan back with royalty payments. Royalty payments go up and down based on business revenue. If your business makes less, then you pay back less. BRF investors often get three to five times what they put in.

Business revenue financing works well for businesses too small or conventional to attract VC interest. It’s also good for businesses where there is VC interest, but the ownership wants to retain control. It’s also good for entrepreneurs with poor personal credit. All they need to do is show revenues. Credit Suite offers a business revenue financing program. We help you navigate the complexities of several lenders with varying requirements. Let’s take the next step together.

The post Business Revenue Financing appeared first on Credit Suite.

How to Create the Perfect Business Slogan

Have a favorite slogan?

That catchphrase that just sticks in your head like a catchy tune. Sometimes it even has a little jingle or rhyming structure that adds some flair. You know it works because it stays with you. You remember it, and you remember the company it stands for.

Does your brand need a slogan? Probably. Here’s why.

What Is the Purpose of a Business Slogan?

A good slogan is catchy and bounces around your head like an earworm. However, a good business slogan is more than just a catchphrase.

It’s a rallying point for your brand. It envelops everything you stand for and everything you offer to the public.

It’s a battle cry, of sorts.

In fact, the etymology of the word slogan reflects just that. The term comes from a Gaelic Scottish term used as a battle cry. In the early 1700s, the term slogan described catchphrases used by political or other groups.

These days slogans are more important than ever as we are awash in visual and audio media, from TV and radio to the internet and digital media.

A great slogan cleverly sums up what you do, inspires engagement with your audience, and sticks with them until they need your product or service.

Your slogan can be written and spoken after your brand name, to help people remember what you’re about. You might place it just after or under your name or logo on your website, social media, marketing materials, or use it in ads. This helps your slogan become synonymous with your brand name.

Why Should Your Business Have a Slogan?

Is it worth taking the time to create a slogan for your business? In most cases, yes. Getting to the heart of your business and finding a phrase that wraps everything you stand for in an unforgettable way can become a powerful brand asset.

A great slogan ranks up there with your business name, logo, and web design.

In many ways, it can bolster your brand marketing strategy. Here’s why.

A slogan can give you a memorable identity.
A slogan provides a foundation for a creative marketing campaign.
A slogan speaks to values to rally around.
A slogan helps you take a stand.
A slogan helps customers remember you.

These are just a few of the many benefits of creating a slogan for your business. If you’re convinced, it’s time to get started on putting your slogan together.

How to Create a Business Slogan

It’s a tall order to create a short and simple slogan that absolutely hits it out of the park. The best slogans are short, unusual, and simple to pronounce.

It’s not easy, but it’s worth the exercise to come up with the right slogan.

Consider What Makes Your Brand Special

Before you can start to create a slogan, you have to think about what your business is offering the world. A few things to ask include:

What are you selling, and why does it matter?
What values is your company built on?
What do you stand for?
What change do you bring to your customers?
What change are you trying to bring the world?

A few places you can look for inspiration include your:

mission statement
vision and values statements
company history
target market and their values
brand assets like infographics, webinars, or e-books.

Determine Your Goals

When it comes to marketing efforts, you should always start with your sales goals. What are you trying to accomplish? What are your plans for the future, and how do you get there?

It’s easy to get off track here if you don’t stay focused. Don’t just focus on the number of sales you want to make; think about how you want customers to feel about your brand and what solution you really deliver.

Consider this—Goodyear sells tires, right? However, when consumers buy tires, they aren’t concerned with what type of rubber or the years of research the company put into developing the proper tread. Consumers want tires that will keep their families safe; that’s the real purpose of the brand.

Keep your guiding documents at the forefront and let them drive your journey toward your slogan. It’s critical to stay on-brand as you are creating your slogan.

Think about what you need this slogan to do for your brand:

What do you want people to know about your brand?
What products or services should be the focus?
What values and visions do you want to communicate?
What solution does your company really deliver?

Let those answers guide you to the right business slogan.

Start Writing

Whether you decide to hire an outsourced marketing consultant or keep it in-house and write it for yourself, the first step is to start developing ideas.

Just start writing. How many ideas can you come up with?

Write them all down. Don’t limit yourself or do any editing yet. Now is the time to just let the ideas flow. Let one idea inspire another. Dare to be a little off the wall. Don’t stop until you run out of ideas.

When you start petering out, start thinking about your brand name and try out some of the ideas after it. How do they sound together?

Imagine a radio or television commercial. Describe your services or products and think about how those slogan ideas sound at the end of that description.

As you test the slogans out loud, you may start developing more ideas. Write them down! Don’t stop to edit. Just keep adding to the list.

Dare to Be Original

It may be tempting to go out and listen to other slogans, but you probably already have enough of those rolling around in your head.

We hear so many slogans that our brains are already primed to know what sounds good and what doesn’t.

Listening or reading a bunch of slogans while creating your own could do two things detrimental to the process:

They could cause you to accidentally steal the structure or concepts of other slogans you love. You definitely don’t want to sound like everyone else.
Getting into the competition mode can stifle your creativity. As you read others’ slogans, especially ones you consider successful, you might start to judge your ideas. Great ideas develop organically on their own; don’t let competition stifle them.

Make It Timeless

Slogans need to stand the test of time. You want people to associate your brand name with your slogan, which means it has to stick around for a long time so they can hear it many times.

This means avoiding anything too contemporary or trendy. Some things to avoid could include:

playing off a popular series or song title
building off a political campaign slogan
reflecting a current pop culture reference
using “new” slang

To create a timeless slogan, use words and phrases that are universally understood, at least by most speakers of your language.

Try to keep it shorter and avoid any complex phrases or words.

Keep it simple, and a bit straightforward, to help make sure it stands the test of time.

Appeal to Your Audience

As with everything in marketing, you need to consider your target market when you’re putting together a slogan.

How do they talk? Are you using language and syntax that is natural to your audience?

If your target market uses a certain register of English, you can lean into using that style of language. Remember what we talked about above, though.

You don’t need to stylize your slogan to match a certain trendy or slangy way of talking, but you can ensure you use language your target market can relate to.

Another aspect to keep in mind as you shape your slogan is what is important to your target audience. What do they want from your brand, or your competition? What’s important to them?

Think about what they are actually getting from your brand, but dig a little deeper. What are their aspirations? What do they envision their life to be with your brand?

Speak to those needs, rather than just your benefits.

Pare Down Your Ideas

Time to start paring down your ideas. Don’t be afraid to be a bit brutal. It can be hard to nix your favorites, but use the ideas above to weed out slogans that don’t work.

Which ones are too trendy or contemporary? Let them go.

Which ones are too much about your brand, and not enough about your target audience? Take them out.

How’s your list looking now? Do you still have too many ideas? If your list is still too long, here are a few more filters to take out the ones that won’t work as well.

Which ones are too long?
Which ones aren’t very memorable?
Which ones sound too much like someone else’s?
Which ones do you just not love?

Pare them down to a few that will really work. It’s okay to still have a few great ones. How do you decide what to do next? Let’s look at the last step.

A/B Test Your Top Ideas

Do you still have two ideas left to consider? If you aren’t sure which is “the one,” it’s time for an A/B test.

How do you do that? Start by asking friends, colleagues, or business associates. You might also consider using a focus group.

Whichever path you choose, make sure you present each slogan in the same format. For example:

Create a branded logo with each of your slogan ideas.
Design a newsletter header with each slogan idea.
Record a demo commercial with the slogan ideas at the end.

Now share with your audience. Which one do they respond best to? Is there a clear winner?

If not, consider the feedback they share. Think about the criteria listed above. Did one not appeal to them? Was one not as timeless? Or was it too confusing? Keep in mind that simple is usually best. You can also use A/B testing in paid ads to see which slogan draws in the most traffic or sales.

Best Business Slogan Examples

Let’s get down to the specifics and look at some slogans that work and analyze why they are so effective.

McDonald’s Slogan

Best Business Slogan Examples - McDonalds

Bah, bah, bah, bah, bum. You’re already singing it.

The “I’m lovin’ it” slogan from McDonald’s comes with its own little jingle, but that’s not the only thing that makes it work. It’s simple, it’s memorable, and it’s aspirational. It speaks to a happy life full of things you love.

Burger King

For decades, Burger King touted a brand that let you live life on your terms. The “Have It Your Way” slogan accomplished speaks about their products and about a greater vision in life. You can have your burger your way, and just maybe, you can have life your way, too.

In-N-Out Slogan

Best Business Slogan Examples - In n Out

Sometimes simple is best. The In-N-Out slogan is an example of a timeless, simple slogan that speaks directly to what its customers want.

FAQs About Slogans

What makes a good slogan?

It’s short, memorable, and speaks to the target audience. Ideally, it should be timeless so it can be used for years to come.

What is a slogan example?

McDonald’s “I’m Lovin’ It” jingle is an example of a catchy slogan.

What are good slogans?

Burger King’s “Have It Your Way” stood the test of time, by speaking to the burgers and an aspiration. In-N-Out’s “Quality You Can Taste” slogan is simple and holds up over time.

How do you create the perfect business slogan?

Start with your own business goals in mind, then think about your target audience and what’s important to them.

Creating a Catchy Slogan Conclusion

When it comes to setting yourself apart in the market, branding is crucial. From your visuals to your voice, every component needs to speak to a common goal of who you are and what you’re about.

More importantly, they need to speak to what your target market is looking for. Your slogan is another piece in this puzzle, giving your marketing collateral and campaign another element to work with. Get creative, but stay on course, and create the perfect business slogan for your brand.

What’s your favorite slogan?

How to Solve Your Business’s Lack of Capital with 401k Business Financing

How Can 401k Financing Help a Business?

The world of business involves many risk-taking attempts. Business owners experience numerous obstacles from the moment they plan and start their business to maintain it and make sure it grows. From developing your business ideas to looking for qualified people to hop on board your venture, starting a business takes a lot of courage, patience, and knowledge. Financing via a 401k could be an avenue you haven’t thought of.

All businesses face different kinds of hurdles and challenges in the process of starting and growing their venture. The Small Business and Trade Alliance conducted the Small Business Trends survey on over 2,400 current and aspiring business owners in the United States. This survey included questions about their current biggest obstacles as business owners.

It’s Even More Important Now

Although the pandemic, without a doubt, can be considered one of the greatest challenges of 2020, the survey also contained questions about non-pandemic-related challenges. Among these top challenges include recruiting and retaining employees, marketing and advertising, time management, administrative work, and managing and providing benefits. The number one challenge, at 23%, however, is the lack of capital or cash flow.

In the United States, around 20% of small businesses fail in their first year and 50% in their fifth year. The lack of capital is one of the numerous reasons small businesses end up throwing in the towel.

Business owners are usually thoroughly aware of and keep a close watch on how much money is needed to keep the company or the business going. It includes expenses such as daily spending, payroll funding, paying fixed and varied overhead expenses like rent and utilities, and payments for external vendors or suppliers. They also make sure to explore various and alternative investment strategies as a way to increase their funds.

Keep on Top of Things

On the other hand, business owners who do not closely monitor expenses and revenue generated from sales of products or services are more likely to fail than succeed. In addition, it can lead to inadequate funding, which could ultimately put the business out of operation.

With this, it is critical for aspiring and current business owners to be in tune with the financial state of their business. Financial challenges and hurdles are inevitable and are part of the business process. However, business owners must explore various ways to fund their venture. There are several ways to get financing for your business. Getting business loans is one of the most common methods to do this.

Another way to solve your business’ lack of capital is to consider 401(k) financing. What is 401(k) financing? First, this article will discuss what 401(k) financing is and how it works. Next, it will tell you more about how 401(k) financing can solve your business’ lack of capital and, lastly, the benefits and possible risks that come with it.

Demolish your funding problems with 27 killer ways to get cash for your business.

What is 401k Business Financing?

401(k) business financing is one way your small business can solve its lack of capital. Also referred to as Rollovers for Business Start-Ups (ROBS), 401(k) business financing is a small business financing method. This method allows you to withdraw money from your retirement account to start or fund your business without having to pay a tax penalty or an early withdrawal fee.

An important thing to note is that Rollovers for Business Start-Ups merely gives you access to the funds you have in your existing retirement account. This method is ideal for those aspiring and current business owners who lack capital but do not qualify for a loan, do not want to go into debt or do not have any cash-on-hand available to fund their business. This method does not consider your credit score, on-hand collateral, or past experiences to qualify for it. The main components of this method would be the retirement account you have. Such as a 401(k) or an Individual Retirement Account (IRA), and the amount of money you have in it.

Demolish your funding problems with 27 killer ways to get cash for your business.

How does 401k Business Financing Work and How Does It Solve a Business’ Lack of Capital?

In 401(k) business financing, your retirement plan serves as your investor. To access these funds without having to pay a tax penalty for early withdrawal fees, it is critical to, first and foremost, establish a ROBS (Rollover Business Start-Ups). This structure consists of several components which must adhere to certain requirements for compliance with the Internal Revenue Service, or IRS—the federal agency responsible for overseeing, administering, and collecting taxes.

The first step would be to establish a C corporation, also known as a regular corporation. It is the only entity type allowed to sell shares to a retirement account and within the ROBS structure. In this way, it will help release your business’s funds.

Your New Plan

Next, put together a retirement plan for your new business. Although there are other options such as profit sharing and defined benefits, most business owners opt for the standard 401k. You will need a custodian to manage the investments in the plan and have the responsibility to keep records, administer the plan, and modify its investments the way you deem fit.

After this, roll your existing retirement funds from your plan into the new retirement plan under the C corporation. Since the funds have already been rolled over to the company retirement plan, the plan then buys stock in the C corporation through a QES transaction or a Qualified Employer Securities transaction. Thus, it is the step wherein the money is rolled over and made available for the business to use.

Why Do It This Way?

The first step is essential since you would not be able to do a QES transaction without it. Finally, once the QES transaction is finished, your retirement funds can now be accessed by the corporation. You can use them to solve your business’s lack of capital. Or you can pay off the pending expenses you may have.

The Benefits of 401k Business Financing

401(k) financing, also known as ROBS or Rollover Business Start-Ups, offers numerous benefits for aspiring and current business owners alike. This financing technique may come off as complex. Still, it is one of the ways to solve your business’ lack of capital. Here are some of the benefits of 401(k) business financing:

Flexibility and control over investments

In 401(k) financing, you have control over your retirement funds. It allows you to support your business and make it grow financially. Through this, your business has the potential to earn a significant return with tax-deferred growth.

Terminate or reduce debt

Most loans require monthly payments, which may eventually turn into debt. Unlike most loans, 401(k) financing gives you the ability to use the funds you already have. In addition, since 401(k) financing does not require you to pay interest, it helps reduce your day-to-day costs and other operating expenses you may have.

Collateral free

The only requirement of 401(k) financing is a qualified retirement account. You will not need to put up a down payment or sign over a property to receive the funds. This is unlike most financing methods that will require you to do so.

No credit check

Since 401(k) financing is not considered a loan, a credit check is not included in its requirements. With this, no evaluation will occur, and you can proceed with 401(k) business financing even if you have a low credit score, as long as you have a retirement plan.

Deposit via ROBS

The funds in your 401(k) plan may also be used as a down payment for your small business loan (SBA). Reducing debt is considered to be one of the top benefits of 401(k) business financing.

Demolish your funding problems with 27 killer ways to get cash for your business.

Final Thoughts on Using Your 401k for Business Funding

Aspiring and current business owners are no strangers to the challenges and obstacles of starting up and growing a business. Although these hurdles may be intimidating and sometimes overwhelming, you can overcome them.

One of the top challenges small business owners face, aside from the impact and effects of the pandemic, is the lack of capital. However, this is a matter that you can solve through 401(k) business financing. When done correctly, it helps business owners fund their venture. And it does so without worrying about tax penalties, early withdrawal fees, and falling into debt.

Navigating 401k business financing and how it can help solve your business’ lack of capital can seem intimidating if it is new and unfamiliar to you. However, finding the right company that offers a 401(k) financing program can help ease your worries.

We Can Help!

Let Credit Suite help you with that! Credit Suite offers a wide range of programs, from their 401(k) financing program to other business loans and business credit programs. So whether it be a 401(k) financing plan or other business loan and credit programs, Credit Suite has got you and your business covered!

Jill Santos is an early childhood educator and a freelance content writer for The Stock Dork. She is passionate about serving others through research, education, and the arts.

The post How to Solve Your Business’s Lack of Capital with 401k Business Financing appeared first on Credit Suite.

Help Your Children Build Business Credit with EIN

As a parent, you want to do everything you can to help your child succeed. If they are running a business, you likely want to help them get funding. You probably realize that your help needs to go beyond simply providing funding yourself. Even if you can do that, you need to know how to help your children build business credit with EIN, apart from their social security number.

Dos and Don’ts When Trying to Help Your Children Build Business Credit with EIN

When you have a credit score for your business that is attached to your EIN rather than your SSN, you have access to much more business financing that you otherwise would. The thing is, a business credit score does not build passively like a personal credit score does. You have to intentionally work to establish and build a business credit profile. So, how can you as a parent help your children build business credit with EIN? Here are some dos and don’ts.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Don’t Pay for Tradelines

There are many companies online which promise to sell ‘seasoned’ tradelines. If a company has poor or little credit, you can pay several hundred or several thousand dollars and have your child’s business piggybacked onto the account of someone with established excellent credit. By doing this, new business owners can seem more creditworthy than they really are. Most consider this unethical. Do not help your child buy tradelines to establish or build a business credit score.

Don’t Try Piggybacking Your Own Credit

In this scenario, a creditworthy borrower’s accounts are used to improve the credit of an unrelated, or a related, third party, like a child. A creditworthy borrower adds the third party as an authorized user of his lines of credit. But he or she does not actually provide the third party with credit cards or account numbers to let the third party make charges against that account. As a result, the authorized user never actually uses the credit

The benefit to the third party is an improved credit rating . It ‘shows’ they are already approved for higher limit revolving accounts. In theory, showing you already have credit is supposed to make you more creditworthy for higher limit accounts. Many companies claim to be able to secure $100,000 – 250,000 credit lines once these accounts are reporting. This is dishonest as well, even if it is your own accounts your child is piggybacking on, and even if you authorize it. It is viewed negatively by the Federal Reserve, the FBI, and credit companies.

Do Consider Signing as a Guarantor

A guarantor loan is a loan that you sign on to for someone else. You guarantee that you will repay if they default. Sometimes this is a better way to help a family member with funding than providing cash. Of course, if they fail to meet their business obligations, then you will bear the brunt of that – and lenders will likely come after you to make up for any losses they incur.

However, if they handle their obligations responsibility, this is a great way for someone to build a personal credit score. Even though business credit accounts do not affect personal credit, some business credit score calculations take personal credit score into account. So, this could also help strengthen the business credit sore of your child.

Do Consider the Credit Line Hybrid

This is a unique type of loan that you can help your child get by signing on as a guarantor. If you have a personal credit score of at least 680, you can help your child get the Credit Line Hybrid. They can usually get a loan of five times the amount of your highest revolving credit limit account, up to $150,000. Honestly, this is more than what you could get when applying for credit cards. Furthermore, you can get cash out on this program.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

Here is the best part. There is no impact on your personal credit with this type of financing. All payments report to the business credit profile, so your child can build credit for their business associated with the business EIN without your personal credit being affected.

Do Consider Helping Pay for a Business Credit Expert

Now, here is the number one best way to help your children build business credit with EIN. Help them work with a business credit expert. There are very few things that are worth paying for when it comes to building credit, whether personal or business. This is one thing that is definitely worth it. Here is how a business credit expert can help your child.

Learn How to Establish Business Credit for the First Time

Remember we said you have to be intentional about building a business credit profile. It does not happen passively like with personal credit. A business credit expert can start this process. They can review how things look right now, and help your child navigate the process of setting up their business to be a fundable entity separate from them as the owner.

This is the first step in not only establishing a business credit score, but in building an overall foundation of fundaility.

Learn How to Earn Business Credit With EIN Number

Establishing a business credit profile is just the first step. Before you can build a business credit score, you have to have accounts reporting on-time payments. It sounds simple enough. However, not all business accounts report payments. In fact, very few do. Even worse, those that do report do not make that information common knowledge.

It is absolutely essential to work with a business credit expert to find an initial net 30 account to build business credit. This is the fast way to build credit for a business. If you try to do it alone, you could have a ton of accounts that are doing your business credit score no good, because they are not reporting. You will also waste time applying for accounts and getting denied.

A business credit expert knows not only which accounts report, but they can help you start with the ones that you actually qualify for and work up to the ones that take more time.

This alone saves an enormous amount of time, and time is money.

Helping Your Child Build Credit for Their Business is Likely a Different Process Than You Expect

While there is a right way to spend money to help your children build business credit with EIN, there is also a very wrong way. Never pay for tradelines, and avoid allowing your child to piggyback off your own credit. Both of these options are dishonest. They are viewed negatively by experts. Furthermore, they can only help with personal credit anyway. There really is not a way to do this to help with a business credit score.

Signing a loan as a guarantor is fine, but again, it really only helps with personal credit. While this can have bearing on a business credit score, the better way is to sign as a guarantor on the Credit Line Hybrid. Payments on this type of financing can directly impact the credit score of the business itself.

Credit Line Hybrid Financing: Get up to $150,000 in financing so your business can thrive.

In the end, the number one best way to help your children build credit with EIN is to help them work with a business credit expert. This is someone who can not only help ensure their business is properly set up to build business credit, but that can also help them find accounts that report, and work on helping them build overall fundability. Get started now with a free consultation.

The post Help Your Children Build Business Credit with EIN appeared first on Credit Suite.

It’s Time to Build Credit for Your Business

Did You Know You Can Build Credit for Your Business?

Yes, you really can build credit for your business.

But let’s start with some definitions and background on business credit.

Business Credit

This is credit in a business’s name. It is not tied to the owner’s creditworthiness. Instead, business credit scores depend on how well a company can pay its bills. Hence consumer and business credit scores can vary dramatically.

Business Credit Benefits

There are no demands for a personal guarantee. You can quickly get business credit regardless of personal credit quality. And there is no personal credit reporting of business accounts. Business credit utilization won’t affect your consumer FICO score. Plus the business owner isn’t personally liable for the debt the business incurs. The same can be true for you as you build credit for your business.

Another advantage is that even startups can do this. Heading to a bank for a business loan can be a formula for disappointment. But building company credit, when done right, is a plan for success.

Consumer credit scores are dependent on payments but also additional components like credit use percentages.

But for business credit, the scores actually only depend on if a company pays its debts in a timely manner.

Business Credit Details

Being accepted for business credit is not automatic. Building business credit requires some work. Some of the steps are intuitive, and some of them are not.

Yet, it can be done easily and quickly, and it is much speedier than developing personal credit scores.

Merchants are a big component of this process.

Performing the steps out of sequence leads to repetitive denials. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.

Fundability is the Start of How to Build Credit for Your Business

Fundability is the current ability of our business to get funding. Some factors are within your control. Others (like your time in business) aren’t. Your online presence and data are one area which is at or close to 100% with your control.

For example, a small business needs a professional-looking web site and e-mail address. And it needs to have site hosting from a supplier like GoDaddy.

Plus, business phone numbers should have a listing on 411. You can do that here: http://www.listyourself.net/ListYourself/.

Additionally, the business phone number should be toll-free (800 exchange or comparable).

A small business also needs a bank account dedicated only to it, and it needs to have all of the licenses necessary for operating.

Licenses

These licenses all have to be in the specific, correct name of the small business. And they need to have the same business address and phone numbers.

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Keep your business protected with our professional business credit monitoring.

Build Credit for Your Business and Work With the IRS

Visit the Internal Revenue Service web site and get an EIN for the business. They’re free. Select a business entity like corporation, LLC, etc.

A company may start off as a sole proprietor. But they absolutely need to switch to a variety of corporation or an LLC.

This is to decrease risk. And it will maximize tax benefits.

A business entity matters when it involves taxes and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and tax obligations. Nobody else is responsible.

The best thing to do is to incorporate. You should only look at a DBA as an interim step on the way to incorporation.

Starting to Build Credit for Your Business

Begin at the D&B website and get a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the company. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for accuracy and completeness. If there are no records with them, go to the next step in the process.

By doing this, Experian and Equifax have something to report on.

Business Credit, Fundability, and Business Funding Applications

The better your business credit and fundability are, the more likely you will get approval for business financing. Consider your online presence.

Build Credit for Your Business with Your Professional Business Email and Website

There are some aspects of fundability where you should pay particular attention to what’s going on online. They include:

Business owners listed and listed ownership uniform
Business name and address uniform
Industry aligned
Company domain
Information uniform on all records

Build Credit for Your Business with Your Business Ownership Listings

Records consistency matters here, too. Your website should show who owns your business. And that information needs to be consistent. So if the owner is named Susan Johnson on your website’s About page, then she can’t be listed as Sue Johnson on your Contact page. If your business ownership changes, you need to show that here.

Business Name and Address Uniformity

Abbreviations can be your downfall here, as can punctuation like hyphens, commas, and colons. If your Contact page says your main office is on Main Street, then your About page can’t say it’s on Main St.

If your business moves, or you add subsidiaries and other locations, then you need to update that information everywhere. This even means whether you use your 5-digit ZIP code, or a ZIP plus 4 code (9 digits).

Industry Alignment

If your business is over the road trucking, then it needs to be listed that way. Pro tip: when your industry can be called several different names, like long distance trucking, mention those other phrases on your website.

Your Company Domain

When your company domain matches your business name, it helps with fundability. Pro tip: try to match what people will be searching for online, so if (for example) the word ‘brothers’ is in your company name, then determine if ‘brothers’ or ‘bros’ will be used by people searching for your company and its goods and services online.

Keep your business protected with our professional business credit monitoring.

Your Email Address

Given that so much more of lending decisions is going on online these days, then your email address is an opportunity for your business to puts its best foot forward. Don’t squander this easy and free opportunity! General email addresses like admin@yoursite.com tend to be best.

With a general email address, if someone leaves your employ, another employee can seamlessly take over that email address. A username like admin, webmaster, or even hello is far, far better than cutiepie or the like, even if you’re in a playful industry that caters to kids. After all, your bank and banker aren’t.

Build Credit for Your Business with Records Consistency

Keep your records consistent! This includes your online records. LexisNexis and the SBFE (Small Business Financial Exchange) are looking at everything, so it had better match.

Inconsistent records will lead to a denial due to fraud because that’s how lenders interpret inconsistencies. This is a cause of denials which is in the business owner’s hands. You have the ability to change and correct this.

This means your business name, address, phone number – everything! – must look the same in these places and more:

Every place your business has an online presence (your website, Yelp, SoTellUs, etc.)
IRS records
Your business’s records with Dun & Bradstreet, Experian, and Equifax
All licenses needed to run your business
Incorporation documents

Copy/paste this information; don’t chance it with retyping.

Starter Vendor Credit

First you ought to build tradelines that report. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can begin to get credit for numerous purposes, and from all sorts of places.

These types of accounts tend to be for things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But to start with, what is trade credit? These trade lines are credit issuers who give you starter credit when you have none now. Terms are generally Net 30, rather than revolving.

Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you must pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts must be paid in full within 30 days. 60 accounts need to be paid completely within 60 days. Compared to revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To kick off your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting agencies. When that’s done, you can then use the credit.

Then pay back what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit — It Helps

Not every vendor can help in the same way true starter credit can. These are merchants that grant approval with hardly any effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

As you get starter credit, you can also start to get credit from retailers. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

Fleet Credit

Fleet credit is from service providers where you can buy fuel, and fix and take care of vehicles. You must use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the business’s EIN.

Keep your business protected with our professional business credit monitoring.

More Universal Cash Credit

These are companies such as Visa and MasterCard. You must use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

These are commonly MasterCard credit cards.

Monitor Your Business Credit

Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of checking credit reports. Dig into the specifics, not just the scores.

We can help you monitor business credit at Experian, Equifax, and D&B for a lot less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

Update Your Records

Update the relevant information if there are errors or the info is incomplete. At D&B, you can do this at: https://www.dnb.com/duns-number.html. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So, for Equifax, go here: www.equifax.com/business/small-business.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to challenge any problems in your records. Mistakes in your credit report(s) can be corrected. But the CRAs typically want you to dispute in a particular way.

Get your small business’s PAYDEX report at: www.dnb.com/about-us/our-data.html. Get your company’s Experian report at: www.businesscreditfacts.com/pdp.aspx?pg=SearchForm. And get your Equifax business credit report at: www.equifax.com/business/credit-information.

Disputes

Disputing credit report inaccuracies usually means you mail a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the original copies. Always send copies and retain the original copies.

Fixing credit report inaccuracies also means you precisely itemize any charges you challenge. Make your dispute letter as clear as possible. Be specific about the issues with your report. Use certified mail to have proof that you sent in your dispute.

A Word about Business Credit Building

Always use credit sensibly! Never borrow beyond what you can pay back. Track balances and deadlines for repayments. Paying on time and completely does more to increase business credit scores than just about anything else.

Establishing small business credit pays off. Great business credit scores help a business get loans. Your credit issuer knows the company can pay its debts. They understand the small business is bona fide.

The company’s EIN connects to high scores and loan providers won’t feel the need to ask for a personal guarantee.

Build Credit for Your Business: Takeaways

Business credit is an asset which can help your business for many years to come. Learn more here and get started toward establishing company credit.

The post It’s Time to Build Credit for Your Business appeared first on Credit Suite.

5 PPC Business Ethics Examples and Best Practices

It’s no secret that competition in online advertising has become super stiff. In a bid to beat the competition, it’s easy to cross the line and employ shady tactics; tactics that may be unethical.

However, unethical PPC practices will do more harm than good for your business. They can also get you in trouble with the law.

That’s why as a digital marketer, you must always prioritize business ethics in all you do, including in your PPC ads.

Business ethics play a huge role in the success of your business. That’s why today, I want to focus on the topic from a PPC ads perspective.

The Importance of Business Ethics in PPC Ads

Business ethics refers to the moral principles that serve as guidelines for the way you conduct business. This includes everything from how you attract customers (via advertising) to the way you transact with them and everything in-between.

Business ethics are based on values like honesty, fairness, transparency, and social responsibility. An ethical marketer builds their PPC campaigns based on both moral and business perspectives.

In short, your PPC campaigns must help your prospects, not trick them into making a purchase, and they should also benefit your business. For some, walking this fine line is the most challenging aspect of running effective PPC ads.

Now, what’s the importance of business ethics in PPC ads?

Business Ethics Help You Build Strong Relationships With Customers

One of the most important reasons to practice business ethics in your PPC ads is to help you build strong relationships with your customers. People trust ethical brands as they’re authentic and transparent. They know they’ll get exactly what the brand promises in its ads.

As a marketer, put people before clicks (and profits). It will help you build strong relationships with your customers, leading you to enjoy higher retention rates.

Business Ethics Help You Develop a Good Reputation

Your reputation is one of your most important assets as a business. Two good reasons you must prioritize having a good reputation include:

Create brand ambassadors: When a person clicks on your ad and gets a positive experience, they’re highly likely to recommend your brand to their family and friends.
Improve your ad performance: Your brand’s reputation has an impact on the performance of your ads. Many users perform their own brand research before deciding to make a purchase. In today’s highly connected age, a poor reputation easily shows in the form of negative reviews.

Every business needs a good reputation to thrive, especially in a competitive environment. And good reputation management starts with employing good business ethics in all your activities, PPC ads included.

Ignoring business ethics in your PPC ads can only lead to wasted ad spend and a ruined business. With that out of the way, let’s quickly dive into the top five ethics you should follow as you create and run your PPC ads.

5 Examples of Business Ethics Principles You Should Follow in Your PPC Ads

To ensure your PPC ads follow business ethics principles, here are five best practices to keep in mind:

1. Don’t Advertise Misleading Products

One of the most unethical practices you must avoid as you steer your business towards ethical practices is giving your customers misleading information. Sadly, this is a common practice in the advertising industry, and some brands still utilize misinformation in a desperate bid to drive clicks. The internet abounds with examples of misleading ads; yours shouldn’t be one of them.

business ethics - don't advertise misleading products

One of the most common examples of misinformation in PPC is advertising misleading products. This could be anything that includes:

advertising products you can’t supply
using a high-traffic keyword that’s not relevant
using hype to infer your product does what, in reality, it doesn’t

There are many more ways unethical advertisers use misleading information to drive clicks. However, no matter how desperate you are to get people to click on your ads, don’t mislead your customers.

While you may get the clicks you want, the long-term effects of such unethical business practices are not worth it. For one, you’ll lose your customers’ trust. Even if they click on your ads, they’ll be so disappointed they won’t purchase what you’re selling.

No matter what products or services you’re advertising, be honest about the features and benefits. There are always people looking for what you have to offer.

Exaggerating the benefits of your product or service is tantamount to making a false claim. Promising your prospects a level of quality you can’t deliver will only ruin your reputation.

2. Only Include Honest Links in Ads

Business ethics, especially in PPC, demands that the message in your ads and the link destination must match.

Anything else is dishonesty.

Unfortunately, many unscrupulous businesses send people who click on a link in their PPC ads to a different destination. They advertise one thing and send visitors to a different landing page. Pulling a bait and switch like this goes against good business ethics. More than that, it leads to you losing your integrity as a business.

Besides the loss of integrity, dishonest links can lead to you being penalized for unethical practices. When your link takes customers to a page unrelated to what you’re advertising, your ad is considered a fake ad, and Google will take it down.

Dishonest links are prevalent among marketers who get paid using the cost-per-impression (CPM/CPI) model. They try to rack up impressions on their ads by creating their ads around popular keywords that attract a lot of traffic. When users click on the link, they’re directed to a different product or business.

As an ethical marketer, such tactics should never even be mentioned in your strategy and planning sessions. No matter how competitive your space may be, stick to ethical business practices.

3. Sell Your Products at Fair Prices

While some business ethics are clear-cut, others are not. Ethical pricing is one of those that isn’t so obvious.

If you’re wondering, ethical pricing means charging an amount that’s fair for your products.

It’s pricing your products in a way that allows you to make a profit without defrauding your customers. Doing so is not always easy as there are many factors that you have to consider to price your products fairly. The most significant are:

market factors
your competitors’ pricing
availability

Besides fair pricing, you must also ensure to practice ethics in your PPC ad campaigns as a marketer. Make sure you’re fully transparent about all the costs your customers will incur when purchasing your product or services. There’s nothing as frustrating as thinking you’ve found the best deal on a product, only to click on the ad and discover the advertised price wasn’t genuine.

From shipping to discounts and everything in between, your ads must be clear about the final price your customers will pay for your product. Doing so is essential to building trust with your customers. It’s also critical to reducing cart abandonment as undisclosed shipping costs are one of the leading causes of cart abandonment.

business ethics - Sell your products at fair prices

The bottom line is, sell your products at a fair price and make sure you’re transparent about pricing in your PPC ads and landing pages.

4. Don’t Plagiarize

As a marketer, you probably look for inspiration from ads that have performed well, but that’s as far as competitor research should go.

Never plagiarize other brands’ ad copy.

For your brand to do well online, you must follow Google’s search evaluator guidelines, the most significant being the EAT guidelines. Google’s EAT guidelines have a huge bearing on how you ethically create your PPC ad copy. Here’s what the acronym stands for and what it means to your ad copy creation:

Expertise

Your ad copy must reflect your expertise in your niche or industry. Show your customers why you’re the best. However, make sure not to stretch the truth as that would be dishonest and unethical.

Authoritativeness

People want to buy from brands that have built a reputation for themselves. A good reputation is born out of practicing good business ethics. Let your authority shine through every piece of content in your sales funnel—especially your ad and landing page copy.

Trustworthiness

Trust is one of the most significant factors that drive clicks to your ads. To build trust with your audience, you must be authentic. Avoid plagiarizing other brands’ ads or any other assets that have had a positive impact on their ads.

With so many brands vying for the same customers, authenticity and originality are essential to helping you stand out from the crowd. Following Google’s search evaluator guidelines will help you ensure your content does just that.

Your ad copy will have your unique personality and highlight your particular area of authority, thereby allowing you to attract your ideal buyer persona. More than that, it will help you rank well and drive clicks to your offer.

5. Don’t Use Click Fraud

One of PPC’s strengths has become a loophole that devious marketers now exploit. Yes, I’m talking about the cost-per-click (CPC) model and how some marketers commit click fraud.

What is click fraud?

Click fraud is when an individual exploits PPC ads by repeatedly clicking on them to generate fraudulent charges. As a result, the advertiser’s ad spend shoots through the roof while their conversion rates tank. Not to mention that crucial data said advertiser uses to create better iterations of their campaign gets skewed.

The main reason unscrupulous marketers leverage click fraud as part of their business strategy is to exhaust their competitor’s ad budget. Once their budget is spent, their ads will decrease, giving the unethical marketer a better shot at driving traffic to their ads.

Marketers also sometimes use click fraud on their own ads to “game” paid search advertising. By generating more clicks on their ads, they boost their quality score on Google Ads.

Your quality score depends on many factors, with the main two being ad relevance and the click-through rate (CTR) the ad generates. Both are factors that can be manipulated through click fraud.

Why would a publisher commit click fraud on their ads?

Simple. A good quality score is critical to marketers as it results in:

lower CPC
lower acquisition costs
better rankings for ads

While the advantages of having a good quality score are massive, you shouldn’t stoop to click fraud to get them. Improve your score as best you can, but make sure it’s within the confines of good business ethics.

Business Ethics in PPC FAQs

Can I Use Hype in My Headlines?

Using hype in your ad headlines is unethical. It’s the same as clickbait and should never be used to move people to click on your ads. Using hype in headlines goes against business ethics
Instead, use benefit-driven headlines as they’re more truthful. They also address your target audience’s pain points, resulting in better conversions.

Is It Wrong for a New Business to Gain Traction by Manipulating Ad Clicks?

The type of foundation you lay for your business determines its outcome. Once you start using unethical business practices, you’ll use them every time you need a “quick fix.” So, yes. It’s wrong to manipulate clicks at any stage of your business, even for the sake of just gaining traction.

Business Ethics Conclusion

Despite the economic atmosphere being cutthroat, you must ensure you conduct your business ethically.

That’s especially true for your advertising tactics.

People don’t like being scammed, and unethical PPC ads fall on the dark side of false, misleading, and spammy advertising. While you may initially get some traction using deceptive advertising, you won’t succeed in the long run.

To build a sustainable business, you can only do so based on implementing good business ethics. Be ethical on social media, in your content, your PPC ads, and everything else you do to boost your business. This way, you’ll be able to build a good reputation and grow your loyal repeat customers.

What other business ethics examples and best practices do you think PPC advertisers should follow?

Fund Your Business Today

Can You Fund Your Business Easily?

When you want to fund your business, what are the first ideas you have?

You would be hard-pressed to find a business owner that doesn’t know that they need money. What many do NOT know is that there are many more ways to fund your business. They go beyond the traditional banks loans everyone knows about.

There are a Lot of Ways to Fund Your Business

There are a number of ways to fund your business. Your business – and you – have assets. You can tap these assets as collateral. You can use: a 401(k) or IRA, accounts receivable, or stocks or bonds. The 401(k), stocks, or bonds don’t have to be yours. You can work with a partner with these kinds of assets.

Securities-Based Financing

Use existing stocks as leverage to get business financing. Borrow as much as 90% of their value. You continue to earn interest on the stocks pledged as collateral. Closing and funding takes less than 3 weeks.

Rates can be as low as 1.6%. This is a working capital line of credit. You will have challenged personal credit.

401(k) Financing

Use your existing 401(k), or IRA as collateral to fund your business. This program uses IRS proven strategies. You will pay no tax penalties.

You still earn interest on your 401(k). pay low rates, often less than 5%. Close and fund in less than 3 weeks. You can usually get up to 100% of what’s “rollable” within your 401(k).

Follow these steps. A new corporation is formed; a retirement plan is created to allow for investment into the corporation; funds are rolled over into the new plan. Then the new plan purchases stock in corporation and holds it. The corporation becomes debt free and cash rich.

Accounts Receivable Financing

Use your outstanding account receivables to fund your business. Get as much as 80% of receivables advanced ongoing in less than 24 hours. The remainder of the accounts receivable are released once the invoice is paid in full. Closing takes 2 weeks or less. Factor rates as low as 1.33%. Accounts receivable credit line with rates of less than 1% with no consumer credit requirement

Receivables should be with the government or another business. If you also have purchase orders, you can get financing to have those filled. You won’t need to use your cash flow to do so.

Kickfurther to Finance the Purchase of Inventory

You can finance your next inventory purchase with financing from customers and brand supporters and fundraise directly to them. The way it works is, customers buy through what’s called a Consignment Opportunity. Customers own the products they helped fund until they are sold by the brand. As soon as the products sell, the customer earns payments. Kickfurther also offers an online store for businesses to market and sell their products.

Demolish your funding problems with 27 killer ways to get cash for your business.

SBA Loans

These are guaranteed by the federal government. Participating lenders issue these, usually banks. They offer a lot of the perks of traditional loans, such as lower interest rates and favorable terms. Due to government guarantee, lenders are able to offer them to those with a lower credit score than would typically be required.

Eligibility for SBA Loans

Lenders and loan programs have unique eligibility requirements. In general, eligibility is based on what a business does to receive its income, the character of its ownership, and where the business operates. Hence even those with bad credit may qualify for startup funding.

Normally, businesses must meet size standards, be able to repay, and have a sound business purpose. The lender will provide you with a full list of eligibility requirements for your loan. See www.sba.gov/document/support–table-size-standards.

More About Eligibility for SBA Loans

General eligibility also includes:

Being a for-profit business – the business must be officially registered and operating legally
Doing business in the US – the business must be physically located and operating in the US or its territories
Having vested equity – the owner must have invested their own time or money in the business
Exhausting other funding options – the business must not be able to get funds from any other financial lender

Ideal credit scores for an SBA loan are 680 or above. There are a number of SBA loan programs, each one designed to work for different needs and situations. Some of the most common SBA loan programs include:

7(a) loans
504 loans
Microloans
Disaster loans
Express loans

These are just a few the of the options available. Find out more at SBA.gov.

Which SBA Loan is Best?

SBA loans each have a specific purpose. For example, if your business has suffered due to a natural disaster, you need a disaster loan. If you need $50,000 or less, a microloan may be the best option. But the 7(a) loan program is the most versatile.

SBA 7 (a) Loan Program Details

A standard 7(a) loan can be for up to $5 million. The maximum SBA guarantee is 85% for loans up to $150,000 and 75% for loans greater than $150,000. The interest rate varies but cannot exceed the SBA maximum. The turnaround is 5 – 10 business days. These funds can be used for a number of things, and the minimum credit score is 640. But of course the higher the better.

Who Do SBA Loans Work Best For?

These loans work well for those that are not in a hurry to get funding

The approval and funding process can take a while, especially with the government red tape required for the government guarantee. If you can wait, meet all the requirements, and want a more traditional type of loan, SBA loans are an option.

Demolish your funding problems with 27 killer ways to get cash for your business.

Merchant Cash Advances

Businesses that accept credit cards as a form of payment may qualify for a merchant cash advance. This means your business must have a merchant account in order to be able to accept credit card payments. Your business must bring in $100,000 or more per year in credit card sales. Typical approval is equal to one month’s credit processing volume. The minimum credit score is 500.

Qualifying for a Merchant Cash Advance

MCAs do not ask for a lot of documents. This is not like what most conventional lenders will want. You won’t need financials, business plans, or resumes. You don’t even need collateral.

Your business’s credit card receipts and business bank statements tell lenders all they need to know. These loans work well for businesses that qualify and need funds fast, and those with credit that is less than perfect. It’s a great way to get money for your business fast with few requirements.

Equipment Financing

Businesses looking to buy or lease equipment can use equipment financing. Rates vary widely depending on risk factors. Usually can get approval with a 650 or better credit score. This is for major equipment only, not a combination of a lot of small equipment. These loans work well for those that have good credit and just need to financing equipment. The equipment is the collateral, so that helps out some with rates.

A Traditional Line of Credit

This is similar to a traditional term loan in terms of where you get it, and approval requirements. However, it is revolving financing more like a credit card. Typically have better interest rates that credit cards. They work well for those who qualify for traditional term loans but want revolving credit rather than a term loan.

Get to Know Our Hybrid Credit Line Program to Fund Your Business

Check out this form of unsecured funding. Unsecured funding does not require collateral, but the lender’s risk is mitigated by higher interest rates. Our credit line hybrid has an even better interest rate than a secured loan. Yet you can get the money faster and easier than any type of traditional funding. Get business funding without having to supply bank statements or credit stubs. You can get funding in a few days rather than weeks without supplying any collateral or documents.

You can get some of the highest loan amounts and credit lines for businesses. Get 0% business credit cards with stated income. No financials required. These report to business CRAs. You can build business credit at the same time. This will get you access to even more cash with no personal guarantee.

You can often get a loan of 5 times the amount of current highest revolving credit limit account. This is up to $150,000. Easily five times what you could get on your own when applying for cards. Get cash out on this program as well.

Advantages

There will be NO impact on your personal credit with this type of financing. You need a good credit score or a guarantor with good credit to get an approval. With good personal credit, get unsecured credit cards with a personal guarantee. And with good business credit, get unsecured credit cards without a personal guarantee.

Check out business credit. It should be your goal to build business credit, even if you can get funding elsewhere. Business credit will help your company for years to come. Business credit is credit linked to your EIN and not your SSN.

This credit is available without a personal guarantee. It is available regardless of personal credit. You can get business credit immediately. Business credit is the only way to get money for a business when you don’t have collateral, cash flow, good personal credit, or a guarantor.

Demolish your funding problems with 27 killer ways to get cash for your business.

What is the Best Way to Fund Your Business?

If you know what types of business financing is available to your business, you can make a more educated decision about what will work best for you. Knowing what’s out there is only half the battle. You also have to understand your own eligibility and funding needs.

Takeaways

All businesses need funding. Traditional term loans are not the only option. Other options exist to help you money faster. Or funding despite bad credit. And you can better rates and terms than you would get with a traditional term loan. Contact us today to learn more.

The post Fund Your Business Today appeared first on Credit Suite.

5 Unwise Ways to Use a Business Line of Credit

Are you on the brink of taking your business to the next level but need an injection of cash? A business line of credit may be the right solution. Once approved, you’ll have access to funds that you can withdraw on an as-needed basis (up to your credit limit). Of course, you’ll eventually have to pay back everything you borrowed plus fees and interest. So how can you best use a business credit line and avoid getting in over your head? Sometimes it helps to know what NOT to do. Here are five unwise ways to use a business lines of credit that you should definitely avoid.

#1 Cover personal expenses

This is a big one, hence, the number one ranking. If you take out a business line of credit, you may be tempted to use some of the proceeds for personal reasons. Maybe you need a little bit to make ends meet or have been waiting for an opportunity to book a getaway? That’s usually not a good idea.

Most lenders of business credit lines prohibit borrowers from using the money for personal expenses. If your lender finds out that you broke the terms and conditions agreement and used the money for personal reasons, you could face undesirable consequences — such as the entire balance becoming due early.

Further, the purpose of the business credit line is to enable you to invest in your business so it grows, is more profitable, and is able to pay back the money you borrow. When you use the money for personal reasons, it’s not helping those causes. So when it comes to a business line of credit, be sure to keep it strictly business.

Demolish your funding problems with 27 killer ways to get cash for your business.

#2 Pay for routine expenses

The best use of a business line of credit is to invest it into your business so it can grow. How? Buying inventory, launching a marketing campaign, and buying equipment are all great examples.

In all of these scenarios, the money you spend should have a good chance of increasing the amount of revenue you earn. In theory, this approach can help you get off the hamster wheel of not having surplus money which causes you to need loans in the first place.

On the other hand, if you are spending borrowed money (which comes with interest charges and fees) to pay routine expenses like rent or utility bills, they are costing you more without offering returns. This can be a slippery slope you want to avoid.

#3 Borrow more than you can repay

When taking out a business credit line, it’s important to consider how much you can reasonably afford to repay. It can be tempting to take as much as you can get and hope for the best. However, a better route is to look at your historical income alongside your projections to figure out what repayment amount you can comfortably afford. If you are expecting a revenue increase, it’s often best to base the amount you can repay on conservative ROI estimations to be sure you can afford the payments.

#4 Withdraw the funds before you need them

One of the biggest benefits of a business credit line over a loan is that you only pay interest once you withdraw money from the credit line. When you don’t need a lump sum all at once, you can save by withdrawing the funds as you need them.

For example, say that you need $10,000 to buy inventory but want to buy it in four stages that cost $2,500 each. You could potentially save by getting a credit line and withdrawing the funds as you need them versus getting the whole $10,000 upfront and paying interest from day one. However, you will have to compare the overall cost of the credit offerings available to you to see which is a better deal.

The bottom line? If you don’t need all the money upfront, don’t withdraw it until you need it!

Demolish your funding problems with 27 killer ways to get cash for your business.

#5 Charge unneeded business expenses

When money becomes available to you, it can get the wheels of your imagination turning. You may start thinking about office upgrades, fancy dinners out with the team, or a new tailored suit. While all of these expenses are for the business, they are not necessary to grow and don’t provide a meaningful ROI. When the line of credit is fully withdrawn, you don’t want to be left regretful, wondering where it all went. Be sure to create a plan for how you will spend the money for strategic purposes that tie directly to growth.

Frequently asked questions about business lines of credit

Now, here are answers to frequently asked questions about business lines of credit.

What is the difference between a secured and an unsecured business line of credit?

Business lines of credit can be secured or unsecured. When secured, it means that you have to offer up some collateral in exchange for the loan. For example, you could provide assets such as inventory, equipment, or buildings. If you default when making repayments on the credit line, your lender can then seize your assets and sell them to pay off the loan.

With an unsecured business credit line, you are approved based on your credit and financial profiles. They trust that you will repay the loan. If you don’t, they can’t directly seize any of your property. However, defaulting on a loan will hurt your credit and can result in a lawsuit where they sue you to recover their losses.

Should I get a revolving line of credit?

A revolving line of credit enables you to borrow money from your credit line, pay it back, and then borrow it again (similar to a credit card). However, credit lines often have higher credit limits and lower interest rates than credit cards. If you need a larger amount of working capital on an ongoing basis, a revolving business line of credit can be a helpful solution.

Explore other small business loan options.

Demolish your funding problems with 27 killer ways to get cash for your business.

Borrow for your business with confidence!

If a business credit line sounds like the right move for your business, the next step is to get approved. What are the common business line of credit requirements? In most cases, you will need at least six months to a year in business and $25,000 in annual revenue. Additionally, you’ll likely need to have a “fair” personal credit score of 580 or higher. Some lenders will want to check your business credit, and if you don’t have any history, will require a higher personal credit score. Keep in mind that requirements and terms can vary from one lender to the next so it’s smart to shop around and compare offers!

Author bio: Jessica Walrack is a professional writer who specializes in business and personal finance. You can find her work featured on MSN Money, The Simple Dollar, Bankrate, and more.

The post 5 Unwise Ways to Use a Business Line of Credit appeared first on Credit Suite.

PocketSuite Is hiring Lead Engineers, Product Designers to enrich small business

Article URL: https://www.ycombinator.com/companies/pocketsuite

Comments URL: https://news.ycombinator.com/item?id=27414470

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You Cannot Ignore Technology When Looking at How to Open a Successful Business

Things to Know About How to Open a Successful Business Before You Start

Getting Funding

Bootstrapping

Venture capitalists

Crowdfunding

Have Financial Discipline

Research Your Market

Identify Your Target Audience

Conduct Competitor Analysis

Have a Business Plan

Embrace Technology

Final words

If You Have Unpredictable Business Income, Business Revenue Financing Could be the Solution You’ve Been Searching For

Is Your Business Income Unpredictable?

What is Business Revenue Financing?

What About Equity Financing?

Which Companies is Business Revenue Financing Best For?

Did You Know that Credit Suite Offers Business Revenue Financing?

How Do You Qualify for Business Revenue Financing?

Can You Qualify for Business Revenue Financing If You Have Credit Issues Now?

Get Fast Funding with Business Revenue Financing

What are the Benefits of Business Revenue Financing Through Credit Suite?

Business Revenue Financing: Takeaways

What Is the Purpose of a Business Slogan?

Why Should Your Business Have a Slogan?

How to Create a Business Slogan

Consider What Makes Your Brand Special

Determine Your Goals

Start Writing

Dare to Be Original

Make It Timeless

Appeal to Your Audience

Pare Down Your Ideas

A/B Test Your Top Ideas

Best Business Slogan Examples

McDonald’s Slogan

Burger King

In-N-Out Slogan

FAQs About Slogans

Creating a Catchy Slogan Conclusion

How Can 401k Financing Help a Business?

It’s Even More Important Now

Keep on Top of Things

What is 401k Business Financing?

How does 401k Business Financing Work and How Does It Solve a Business’ Lack of Capital?

Your New Plan

Why Do It This Way?

The Benefits of 401k Business Financing

Flexibility and control over investments

Terminate or reduce debt

Collateral free

No credit check

Deposit via ROBS

Final Thoughts on Using Your 401k for Business Funding

We Can Help!

Dos and Don’ts When Trying to Help Your Children Build Business Credit with EIN

Don’t Pay for Tradelines

Don’t Try Piggybacking Your Own Credit

Do Consider Signing as a Guarantor

Do Consider the Credit Line Hybrid

Do Consider Helping Pay for a Business Credit Expert

Learn How to Establish Business Credit for the First Time

Learn How to Earn Business Credit With EIN Number

Helping Your Child Build Credit for Their Business is Likely a Different Process Than You Expect

Did You Know You Can Build Credit for Your Business?

Business Credit

Business Credit Benefits

Business Credit Details

Fundability is the Start of How to Build Credit for Your Business

Licenses

Build Credit for Your Business and Work With the IRS

Starting to Build Credit for Your Business

Business Credit, Fundability, and Business Funding Applications

Build Credit for Your Business with Your Professional Business Email and Website

Build Credit for Your Business with Your Business Ownership Listings

Business Name and Address Uniformity

Industry Alignment

Your Company Domain

Your Email Address