Tag: essential

Launch Your Startup: 7 Essential Steps, Tips, Strategies, & Ideas

Everyone has ideas. Some of them may be worth running with, while others are probably not so good.

However, even if your project looks awesome on paper, there’s a big difference between that and creating a successful startup company.

Do you have what it takes to be an entrepreneur?

If your answer is yes, then you need a detailed guide on how to start a startup.

For those of you who haven’t launched a business before, it can sound like an intimidating task.

Don’t get me wrong – I’m not saying that getting your startup off the ground is an easy mission.

It takes hard work, dedication, money, some sleepless nights, and, yes, some failures before you succeed.

Nearly 20 percent of businesses fail in the first year, and just because you make it beyond 12 months doesn’t mean your startup is going to continue to thrive.

According to government stats, 30.6 percent of businesses fail after their second year, 49.7 percent fail after five years, and 65.6 percent fail after their tenth year.

Once you get your company off the ground, it doesn’t get any easier: you need to work just as hard to keep it going each year.

With that said, it’s useful to have a guide and a set of instructions to follow to learn how to launch a startup.

When I write about launching a startup, I’m talking from personal experience. I’ve created several startup companies like Crazy Egg, Hello Bar, and NP Digital.

I’m happy to share my knowledge and experience to help make things a little easier and less stressful for you as you go through this process.

Realistically, it takes hundreds of stages to launch your company, but I’ve narrowed down the top 7 steps into a blueprint for you to follow if you want to learn how to start a startup and learn how to create and develop your own business.

In the following article, I outline and discuss each step in detail so you have a better understanding of what I’m talking about.

Let’s begin with the basics.

1. Create a Business Plan

Have you heard the saying ‘if you fail to plan, you plan to fail?’ That was the thinking of Founding Father Benjamin Franklin.

Well, research appears to back that up. Study after study shows that businesses with a plan are more likely to succeed. In addition, you can find many articles spelling out the importance of a business plan.

However, the Small Business Development Center at Duquesne University explains it most succinctly:

“A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.”

It’s pretty straightforward, really. Having an idea is one thing, but having a legitimate business plan is another story.

A proper business plan gives you a significant advantage, but what should you include in a business plan? It helps if you think of it as a written description of your company’s future. Basically, you outline what you want to do and how you plan to do it.

Typically, these plans outline the first three to five years of your business strategy and detail your business’s purpose and aims. Ideally, your document should outline your business goals, strategies, and your plans for achieving them.

Here are the key steps to writing a successful business plan:

  • Outline your business goals
  • Describe your target market
  • Explain your product or service
  • Detail your marketing and sales strategies
  • Write down your financial projections and detail the funding
  • Summarize your overall strategy

If you need some help with your plan, the Small Business Administration has an easy-to-follow guide, along with some templates.

2. Secure Appropriate Funding

Without adequate funding, your business won’t launch or stay afloat long-term. According to Statista, in 2021, there were nearly 840,000 businesses that had been in operation for less than a year. Many of these startups won’t survive because they underestimate the cost of doing business.

Perhaps you’re wondering what level of financing you need? When it comes to raising cash, there’s no magic number that applies to all businesses. The startup costs vary from industry to industry, so your company may require more or less funding depending on the situation.

Costs also vary depending on whether you’re a brick-and-mortar store, e-commerce enterprise, or service business. If you’re unsure how much you might need, try the SBA’S startup cost templates to get a better idea.

Once you’ve got a clearer picture of the costs, where do you get the funding? These days, most startups get their funding from:

  • Online startup loans, which you can apply for online and pay back over time, with interest.
  • SBA microloans, providing up to $50,000 in loans for start-up businesses. The main advantage is the lower interest rates.
  • Lines of credit, which is a type of loan available in both secured and unsecured formats.
  • Invoice factoring/financing, a process in which a business sells its invoices to a third party, at a discount.
  • Friends/family/personal loans, which are unsecured loans.
  • Business loans, which you pay back over an agreed period.
  • Angel investors, who have considerable wealth and give seed funding to start-up businesses.
  • Crowdfunding, where you raise money from a group of investors online.

Let’s circle back to our business plan for a minute.

All business plans contain a financial plan. This usually includes a:

  • Balance sheet, which displays your business’s assets, liabilities, and owner’s equity of the company.
  • Sales forecast, which predicts future sales.
  • Profit and loss statement, which details your earning and spending patterns. This figure helps calculate your net income.
  • Cash-flow statement, or financial statement detailing how much your business has spent and generated.

You use these financial statements to determine how much funding you need to launch successfully. Additionally, you may discover that the number is significantly higher than you originally anticipated.

For example, I’m sure you’ve heard someone say, “That would make a great app,” or “I should make an app for this.”

Do you know how much it costs to make an app? Depending on the complexity, you’re looking at anything between $40,000 – $300,000, and that’s just to make it.

It doesn’t include the cost of running it or customer acquisition costs.

This is the point I’m making: to secure the appropriate funding, you need to find out how much money you need.

To find this number, you must research and predict realistic financials in your business plan.

Let’s say you discover that your startup needs $100,000 to get off the ground.

What if you don’t have $100,000?

You’ve got some options, like bank loans and commercial lenders, and that’s the way many small businesses go. With this said, banks are less likely to give large amounts of money to new companies with no income or assets to default on, which may make it hard for your typical startup to get the funding they need.

Don’t worry, your dream isn’t dead yet. You can find investors. They could be:

  • Friends
  • Family
  • Angel investors
  • Venture capitalists
  • Crowdfunding

However, whichever method you use, proceed carefully because you don’t want to start giving away significant equity in your company before you launch.

Then, if you get lucky and find a potential investor, you need to know how to pitch your idea quickly and effectively. Here are some tips to help you do that:

  • Memorize your financial numbers; ensure you know them inside out.
  • Refer to your business plan and ensure your financial figures cover the costs.
  • Make sure your business plan is presentable so you can give potential investors a copy.
  • Practice and perfect your pitch.

One more thing: It’s imperative that your business plan has a proper executive summary to entice busy investors.

Once you secure the appropriate funding, you can proceed to the next step of how to start a startup business: finding the right people.

3. Surround Yourself With the Right People

No one makes it on their own. William Proctor might not have been a high-profile, successful businessman if he hadn’t met James Gamble.

Where would we go for advice if Larry Page hadn’t met Sergey Brin? Not Google, that’s for sure.

Then what if Ben Cohen never met Jerry Greenfield? We would’ve been denied one of the world’s most famous ice cream brands.

Even if you’ve already got a co-founder in place, you need some core staff.

Where do you start? According to Business News Daily, there are eight people your startup needs:

  1. CEO and COO. Between them, they develop a vision and put it into action.
  2. Product Manager, who is responsible for taking a product from its development stages and onto the market.
  3. Chief Technology Officer, who works with executive members to oversee the technical side of a business.
  4. Chief Marketing Officer, whose job involves creating a marketing strategy and executing it.
  5. Sales Manager, for managing customer relationships, selling products/service, and motivating the team.
  6. Chief Finance Officer, who manages the financial planning and decisions for a company.
  7. Business Development Officer. This is a varied role that involves drawing up a business plan, establishing funding, and building customer/relationship funding.
  8. Customer Service Officer, who assists customers with their questions, any complaints, and providing product information.

However, your business structure depends on the industry, so look at the above as definitive.

When you’re just starting up, hiring an entire team often isn’t realistic, and you find yourself wearing several business hats. That’s OK, to an extent. Just remember to play to your strengths and outsource if you can’t afford to recruit.

That said, there are some experts you should consider essential, including a:

  • Lawyer
  • Accountant
  • Financial advisor

Unless you’re an expert in law, finances, and accounting, these three people can help save your business some money in the long run.

They can explain the legal requirements and tax obligations based on how you structure your business. For example, it could be a:

  • Sole proprietorship
  • Partnership
  • Corporation
  • Limited liability company

While your lawyer, accountant, and financial advisors are not necessarily employees on your payroll, they are still important people to surround yourself with.

Finally, for this section, don’t forget the fundamentals for starting any company:

  • Register your business name.
  • Get a federal ID number from the IRS. The IRS lets you submit your business information online to get your employer identification number (EIN).
  • Get insured: Shop around and find an insurance agent who can get you plenty of coverage at an affordable rate.

Now that you’ve got staff, you need to start work on a website and find a place to base your business.

4. Find a Location and Build a Website

Now you’re ready for the next stage of your how-to start a startup plan: finding a physical location and setting up a website.

Whether it’s offices, retail space, or a manufacturing location, you need to buy or lease a property to operate your business.

Unless you’re working from a home office, your two main options are leasing or ownership. Leasing usually works as out more expensive long term; however, don’t just base your decision on costs. Leasing and ownership both have their pros and cons. Look at the whole picture before making a decision.

I appreciate that it may not be realistic for all entrepreneurs to tie up the majority of their capital in real estate.

Strategize for this in your business plan and try to secure enough funding so that you can afford to buy property. It’s worth the investment and can save you money in the long run.

Let’s move on to setting up a website.

Today, your company can’t survive without an online presence. Don’t wait until the day your business officially launches to get your website off the ground, either, and remember, it’s never too early to start promoting your business.

If customers are searching online for a service in your industry, you want them to know that you exist, even if you’re not quite open for business yet.

The beauty of an online presence is you can even start generating some income through your website before you find premises. If it’s applicable, start taking some pre-orders and scheduling appointments.

For those of you who aren’t convinced about the pre-orders business model, many startups are succeeding with it.

Here are some tips about how to launch and promote a successful website:

  • When designing a website, it is important to keep the user in mind. The layout of the website should be easy to navigate and use. The colors and fonts should be easy on the eyes.
  • Make your website visually appealing. Use eye-catching images and dynamic designs to make the website stand out from the competition.
  • Keep the content of the website fresh and up-to-date to keep users coming back to visit your site. Your website is an ideal place to keep your audience up-to-date with a glimpse inside your company, product launches, and, of course, the details of your business premises.
  • Another important thing to keep in mind is usability. Your site should be easy to use on all devices, from desktop computers to smartphones and tablets.

Finally, make sure that your website is fast.

I can’t stress this point enough.

I’ve got a video tutorial that explains how to speed up your website.

All of these items combined may sound tough, but it’s really not that difficult. Just focus on one task at a time, and you’ll get there.

Once your website is up and running, you need to expand your digital presence. To do this, use social media platforms like:

  • Facebook
  • Twitter
  • Instagram
  • TikTok
  • Linkedin
  • Snapchat

Your prospective customers are using these platforms, so you need to be on them, too. However, when choosing a platform, ensure you go where your core audience is. For instance, if you’re targeting a younger market, TikTok may be ideal.

5. Become a Marketing Expert

If you’re not a marketing expert, you need to become one.

You might have the best product or service in the world, but if nobody knows about it, then your startup can’t succeed.

To start spreading the word, you must learn how to use digital marketing techniques like:

  • Content marketing
  • Affiliate marketing
  • Email marketing
  • Search engine optimization (SEO)
  • Social media marketing (SMM)
  • Search engine marketing (SEM)
  • Pay-per-click advertising (PPC)

However, if you’re starting a small business in a local community, some of the traditional methods can still work well. Think:

  • Print advertising
  • Radio advertisements
  • Television
  • Billboards

While some would argue that outbound marketing efforts are not as effective these days, research shows that methods like cold emailing and calling still work well.

Statistics about the most effective outbound marketing tactic.

For those of you who aren’t efficient marketers, there is no shame in hiring a marketing director or even a marketing team, depending on the size of your company.

Your marketing efforts will be one of the most important, if not the most important, components of launching your startup business. To improve your chances of success:

  • Allocate a marketing budget.
  • Determine how you’re going to distribute this money across different channels.
  • Have a plan and try to maximize your return on investment for each campaign.

Take these numbers into consideration before you spend your entire budget on something like banner ads.

The bottom line is this: Marketing needs to be a top priority for your startup company.

6. Build a Customer Base

If you’re following this plan in order, the good news is that you’re already on the right track to building a customer base.

Starting a website, growing your digital presence, and becoming an effective marketer are all steps in the right direction. However, now it’s time to put these efforts to the test. That means:

  • Opening your doors (or website) for business.
  • Getting a customer to make a purchase is the first step.
  • Retaining customers.

There are three keys to customer retention:

  1. Customer service
  2. Customer service
  3. Customer service

It’s no secret. The customer needs to be your main priority. They are the lifelines of your business, and they need to be treated accordingly.

Once you establish a steady customer base, you can use it to your advantage.

You’ll get more money from your existing customers than from new ones.

Chart explaining the difference between selling to an existing customer vs a new prospect.

It’s a more effective method than cross-selling.

Less than 0.5% of customers respond to cross-selling.

Over 4% of your customers will buy an upsell.

These strategies both double back to having effective marketing campaigns.

Overall, establishing, building, and maintaining a customer base will help you get your startup company off the ground.

7. Prepare for Anything

Expect the unexpected.

Launching your startup company won’t be easy, and you need to plan for some hurdles along the way.

Don’t let these speed bumps become roadblocks.

You can’t get discouraged when something goes wrong.

Preserve and push through it.

The difficulties that you face while launching your startup company help prepare you for the tough road ahead.

Even after your business is up and running, it won’t necessarily be smooth sailing for the entire lifecycle of your company.

A graph depicting the business cycle of a typical business.

As illustrated above, you face peaks and valleys while your company operates.

Mistakes and setbacks happen.

Some of these things will be out of your control, like a natural disaster or a crisis with the nation’s economy.

Employees will come and go.

You’ll face tough decisions and crossroads.

Sometimes, you’ll even make the wrong decision.

That’s OK.

Part of being an entrepreneur is learning from your mistakes.

It’s important to recognize when you’ve done something wrong, move forward, and try your best to make sure it doesn’t happen again.

Pay your bills.

Pay your taxes.

Operate within the confines of the law.

As long as you’re doing these things, you’ll be able to fight through any obstacle your startup company faces in the future.

FAQs

How Do I Start a Startup?

Check if your idea is viable. Do some research and ask around. Are people looking for a business/service like yours? Then ask yourself: How are other businesses in your sector performing? Have you spotted a genuine gap in the market? 
Then you’re ready to start drawing up a business plan.

Where Can I Acquire Startup Funding?

There are several sources, including personal financing, banks, crowdfunding, friends, family, angel investors, and venture capitalists.

Do I Need a Website to Launch My Startup?

In the vast majority of cases, yes. You also need a social media presence that is applicable to your audience. After all, social media is a free, efficient way to reach a huge volume of people that you couldn’t otherwise target.

How Can I Use Marketing to Launch My Startup?

It depends on your budget. Begin with strategies like social media, free press release distribution, and content marketing. As your business grows, you can allocate a budget for affiliates, email marketing, SEO, online ads, and influencer campaigns.

Conclusion

Let’s recap.

Launching a startup company is not easy.

First, you need to determine if your idea is worth turning into a business, then you must determine if you have what it takes to become an entrepreneur.

The percentage of entrepreneurs in the United States is growing strong, and each one of them is going to face challenges along the way.

With that said, having a proper blueprint to follow helps simplify the process. You can get learn the basics of how to start a startup by following the seven steps, and adapting them to suit your individual needs.

With that said, most successful businesses start with validating an idea, creating a comprehensive business plan, and raising adequate funding. Without proper financial planning, your startup doesn’t stand a chance.

Then, surround yourself with the right people and play to your strengths.

For instance, if you’re great at organizing and motivating, focus on that; If marketing just isn’t you, outsource it to a professional who excels in that area.

Don’t forget about lawyers, insurance agents, and accountants to keep your business in order, and make sure you have essentials like an online presence.

Launching your startup is an imperfect journey, and you must prepare for unforeseen circumstances. However, proper planning and execution help limit these hurdles and get your business off to a flying start.

How will you raise funding to get your startup company off the ground?

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Launch Your Startup: 7 Essential Steps, Tips, Strategies, & Ideas

Everyone has ideas. Some of them may be worth running with, while others are probably not so good.

However, even if your project looks awesome on paper, there’s a big difference between that and creating a successful startup company.

Do you have what it takes to be an entrepreneur?

If your answer is yes, then you need a detailed guide on how to start a startup.

For those of you who haven’t launched a business before, it can sound like an intimidating task.

Don’t get me wrong – I’m not saying that getting your startup off the ground is an easy mission.

It takes hard work, dedication, money, some sleepless nights, and, yes, some failures before you succeed.

Nearly 20 percent of businesses fail in the first year, and just because you make it beyond 12 months doesn’t mean your startup is going to continue to thrive.

According to government stats, 30.6 percent of businesses fail after their second year, 49.7 percent fail after five years, and 65.6 percent fail after their tenth year.

Statistics about business failure.

Once you get your company off the ground, it doesn’t get any easier: you need to work just as hard to keep it going each year.

With that said, it’s useful to have a guide and a set of instructions to follow to learn how to launch a startup.

When I write about launching a startup, I’m talking from personal experience. I’ve created several startup companies like Crazy Egg, Hello Bar, and NP Digital.

I’m happy to share my knowledge and experience to help make things a little easier and less stressful for you as you go through this process.

Realistically, it takes hundreds of stages to launch your company, but I’ve narrowed down the top 7 steps into a blueprint for you to follow if you want to learn how to start a startup and learn how to create and develop your own business.

In the following article, I outline and discuss each step in detail so you have a better understanding of what I’m talking about.

Let’s begin with the basics.

1. Create a Business Plan

Have you heard the saying ‘if you fail to plan, you plan to fail?’ That was the thinking of Founding Father Benjamin Franklin.

Well, research appears to back that up. Study after study shows that businesses with a plan are more likely to succeed. In addition, you can find many articles spelling out the importance of a business plan.

However, the Small Business Development Center at Duquesne University explains it most succinctly:

“A business plan is a very important and strategic tool for entrepreneurs. A good business plan not only helps entrepreneurs focus on the specific steps necessary for them to make business ideas succeed, but it also helps them to achieve short-term and long-term objectives.”

It’s pretty straightforward, really. Having an idea is one thing, but having a legitimate business plan is another story.

A proper business plan gives you a significant advantage, but what should you include in a business plan? It helps if you think of it as a written description of your company’s future. Basically, you outline what you want to do and how you plan to do it.

Typically, these plans outline the first three to five years of your business strategy and detail your business’s purpose and aims. Ideally, your document should outline your business goals, strategies, and your plans for achieving them.

Here are the key steps to writing a successful business plan:

  • Outline your business goals
  • Describe your target market
  • Explain your product or service
  • Detail your marketing and sales strategies
  • Write down your financial projections and detail the funding
  • Summarize your overall strategy

If you need some help with your plan, the Small Business Administration has an easy-to-follow guide, along with some templates.

2. Secure Appropriate Funding

Without adequate funding, your business won’t launch or stay afloat long-term. According to Statista, in 2021, there were nearly 840,000 businesses that had been in operation for less than a year. Many of these startups won’t survive because they underestimate the cost of doing business.

Perhaps you’re wondering what level of financing you need? When it comes to raising cash, there’s no magic number that applies to all businesses. The startup costs vary from industry to industry, so your company may require more or less funding depending on the situation.

Costs also vary depending on whether you’re a brick-and-mortar store, e-commerce enterprise, or service business. If you’re unsure how much you might need, try the SBA’S startup cost templates to get a better idea.

Once you’ve got a clearer picture of the costs, where do you get the funding? These days, most startups get their funding from:

  • Online startup loans, which you can apply for online and pay back over time, with interest.
  • SBA microloans, providing up to $50,000 in loans for start-up businesses. The main advantage is the lower interest rates.
  • Lines of credit, which is a type of loan available in both secured and unsecured formats.
  • Invoice factoring/financing, a process in which a business sells its invoices to a third party, at a discount.
  • Friends/family/personal loans, which are unsecured loans.
  • Business loans, which you pay back over an agreed period.
  • Angel investors, who have considerable wealth and give seed funding to start-up businesses.
  • Crowdfunding, where you raise money from a group of investors online.

Let’s circle back to our business plan for a minute.

All business plans contain a financial plan. This usually includes a:

  • Balance sheet, which displays your business’s assets, liabilities, and owner’s equity of the company.
  • Sales forecast, which predicts future sales.
  • Profit and loss statement, which details your earning and spending patterns. This figure helps calculate your net income.
  • Cash-flow statement, or financial statement detailing how much your business has spent and generated.

You use these financial statements to determine how much funding you need to launch successfully. Additionally, you may discover that the number is significantly higher than you originally anticipated.

For example, I’m sure you’ve heard someone say, “That would make a great app,” or “I should make an app for this.”

Do you know how much it costs to make an app? Depending on the complexity, you’re looking at anything between $40,000 – $300,000, and that’s just to make it.

It doesn’t include the cost of running it or customer acquisition costs.

This is the point I’m making: to secure the appropriate funding, you need to find out how much money you need.

To find this number, you must research and predict realistic financials in your business plan.

Let’s say you discover that your startup needs $100,000 to get off the ground.

What if you don’t have $100,000?

You’ve got some options, like bank loans and commercial lenders, and that’s the way many small businesses go. With this said, banks are less likely to give large amounts of money to new companies with no income or assets to default on, which may make it hard for your typical startup to get the funding they need.

Don’t worry, your dream isn’t dead yet. You can find investors. They could be:

  • Friends
  • Family
  • Angel investors
  • Venture capitalists
  • Crowdfunding
Graph of the top funding sources.

However, whichever method you use, proceed carefully because you don’t want to start giving away significant equity in your company before you launch.

Then, if you get lucky and find a potential investor, you need to know how to pitch your idea quickly and effectively. Here are some tips to help you do that:

  • Memorize your financial numbers; ensure you know them inside out.
  • Refer to your business plan and ensure your financial figures cover the costs.
  • Make sure your business plan is presentable so you can give potential investors a copy.
  • Practice and perfect your pitch.

One more thing: It’s imperative that your business plan has a proper executive summary to entice busy investors.

Once you secure the appropriate funding, you can proceed to the next step of how to start a startup business: finding the right people.

3. Surround Yourself With the Right People

No one makes it on their own. William Proctor might not have been a high-profile, successful businessman if he hadn’t met James Gamble.

Where would we go for advice if Larry Page hadn’t met Sergey Brin? Not Google, that’s for sure.

Then what if Ben Cohen never met Jerry Greenfield? We would’ve been denied one of the world’s most famous ice cream brands.

Even if you’ve already got a co-founder in place, you need some core staff.

Where do you start? According to Business News Daily, there are eight people your startup needs:

  1. CEO and COO. Between them, they develop a vision and put it into action.
  2. Product Manager, who is responsible for taking a product from its development stages and onto the market.
  3. Chief Technology Officer, who works with executive members to oversee the technical side of a business.
  4. Chief Marketing Officer, whose job involves creating a marketing strategy and executing it.
  5. Sales Manager, for managing customer relationships, selling products/service, and motivating the team.
  6. Chief Finance Officer, who manages the financial planning and decisions for a company.
  7. Business Development Officer. This is a varied role that involves drawing up a business plan, establishing funding, and building customer/relationship funding.
  8. Customer Service Officer, who assists customers with their questions, any complaints, and providing product information.

However, your business structure depends on the industry, so look at the above as definitive.

When you’re just starting up, hiring an entire team often isn’t realistic, and you find yourself wearing several business hats. That’s OK, to an extent. Just remember to play to your strengths and outsource if you can’t afford to recruit.

That said, there are some experts you should consider essential, including a:

  • Lawyer
  • Accountant
  • Financial advisor

Unless you’re an expert in law, finances, and accounting, these three people can help save your business some money in the long run.

They can explain the legal requirements and tax obligations based on how you structure your business. For example, it could be a:

  • Sole proprietorship
  • Partnership
  • Corporation
  • Limited liability company

While your lawyer, accountant, and financial advisors are not necessarily employees on your payroll, they are still important people to surround yourself with.

Finally, for this section, don’t forget the fundamentals for starting any company:

  • Register your business name.
  • Get a federal ID number from the IRS. The IRS lets you submit your business information online to get your employer identification number (EIN).
  • Get insured: Shop around and find an insurance agent who can get you plenty of coverage at an affordable rate.

Now that you’ve got staff, you need to start work on a website and find a place to base your business.

4. Find a Location and Build a Website

Now you’re ready for the next stage of your how-to start a startup plan: finding a physical location and setting up a website.

Whether it’s offices, retail space, or a manufacturing location, you need to buy or lease a property to operate your business.

Unless you’re working from a home office, your two main options are leasing or ownership. Leasing usually works as out more expensive long term; however, don’t just base your decision on costs. Leasing and ownership both have their pros and cons. Look at the whole picture before making a decision.

I appreciate that it may not be realistic for all entrepreneurs to tie up the majority of their capital in real estate.

Strategize for this in your business plan and try to secure enough funding so that you can afford to buy property. It’s worth the investment and can save you money in the long run.

Let’s move on to setting up a website.

Today, your company can’t survive without an online presence. Don’t wait until the day your business officially launches to get your website off the ground, either, and remember, it’s never too early to start promoting your business.

If customers are searching online for a service in your industry, you want them to know that you exist, even if you’re not quite open for business yet.

The beauty of an online presence is you can even start generating some income through your website before you find premises. If it’s applicable, start taking some pre-orders and scheduling appointments.

For those of you who aren’t convinced about the pre-orders business model, many startups are succeeding with it.

Here are some tips about how to launch and promote a successful website:

  • When designing a website, it is important to keep the user in mind. The layout of the website should be easy to navigate and use. The colors and fonts should be easy on the eyes.
  • Make your website visually appealing. Use eye-catching images and dynamic designs to make the website stand out from the competition.
  • Keep the content of the website fresh and up-to-date to keep users coming back to visit your site. Your website is an ideal place to keep your audience up-to-date with a glimpse inside your company, product launches, and, of course, the details of your business premises.
  • Another important thing to keep in mind is usability. Your site should be easy to use on all devices, from desktop computers to smartphones and tablets.

Finally, make sure that your website is fast.

I can’t stress this point enough.

I’ve got a video tutorial that explains how to speed up your website.

All of these items combined may sound tough, but it’s really not that difficult. Just focus on one task at a time, and you’ll get there.

Once your website is up and running, you need to expand your digital presence. To do this, use social media platforms like:

  • Facebook
  • Twitter
  • Instagram
  • TikTok
  • Linkedin
  • Snapchat

Your prospective customers are using these platforms, so you need to be on them, too. However, when choosing a platform, ensure you go where your core audience is. For instance, if you’re targeting a younger market, TikTok may be ideal.

5. Become a Marketing Expert

If you’re not a marketing expert, you need to become one.

You might have the best product or service in the world, but if nobody knows about it, then your startup can’t succeed.

To start spreading the word, you must learn how to use digital marketing techniques like:

  • Content marketing
  • Affiliate marketing
  • Email marketing
  • Search engine optimization (SEO)
  • Social media marketing (SMM)
  • Search engine marketing (SEM)
  • Pay-per-click advertising (PPC)

However, if you’re starting a small business in a local community, some of the traditional methods can still work well. Think:

  • Print advertising
  • Radio advertisements
  • Television
  • Billboards

While some would argue that outbound marketing efforts are not as effective these days, research shows that methods like cold emailing and calling still work well.

Statistics about the most effective outbound marketing tactic.

For those of you who aren’t efficient marketers, there is no shame in hiring a marketing director or even a marketing team, depending on the size of your company.

Your marketing efforts will be one of the most important, if not the most important, components of launching your startup business. To improve your chances of success:

  • Allocate a marketing budget.
  • Determine how you’re going to distribute this money across different channels.
  • Have a plan and try to maximize your return on investment for each campaign.

Take these numbers into consideration before you spend your entire budget on something like banner ads.

The bottom line is this: Marketing needs to be a top priority for your startup company.

6. Build a Customer Base

If you’re following this plan in order, the good news is that you’re already on the right track to building a customer base.

Starting a website, growing your digital presence, and becoming an effective marketer are all steps in the right direction. However, now it’s time to put these efforts to the test. That means:

  • Opening your doors (or website) for business.
  • Getting a customer to make a purchase is the first step.
  • Retaining customers.

There are three keys to customer retention:

  1. Customer service
  2. Customer service
  3. Customer service

It’s no secret. The customer needs to be your main priority. They are the lifelines of your business, and they need to be treated accordingly.

Once you establish a steady customer base, you can use it to your advantage.

You’ll get more money from your existing customers than from new ones.

Chart explaining the difference between selling to an existing customer vs a new prospect.

It’s a more effective method than cross-selling.

Less than 0.5% of customers respond to cross-selling.

Over 4% of your customers will buy an upsell.

These strategies both double back to having effective marketing campaigns.

Overall, establishing, building, and maintaining a customer base will help you get your startup company off the ground.

7. Prepare for Anything

Expect the unexpected.

Launching your startup company won’t be easy, and you need to plan for some hurdles along the way.

Don’t let these speed bumps become roadblocks.

You can’t get discouraged when something goes wrong.

Preserve and push through it.

The difficulties that you face while launching your startup company help prepare you for the tough road ahead.

Even after your business is up and running, it won’t necessarily be smooth sailing for the entire lifecycle of your company.

A graph depicting the business cycle of a typical business.

As illustrated above, you face peaks and valleys while your company operates.

Mistakes and setbacks happen.

Some of these things will be out of your control, like a natural disaster or a crisis with the nation’s economy.

Employees will come and go.

You’ll face tough decisions and crossroads.

Sometimes, you’ll even make the wrong decision.

That’s OK.

Part of being an entrepreneur is learning from your mistakes.

It’s important to recognize when you’ve done something wrong, move forward, and try your best to make sure it doesn’t happen again.

Pay your bills.

Pay your taxes.

Operate within the confines of the law.

As long as you’re doing these things, you’ll be able to fight through any obstacle your startup company faces in the future.

FAQs

How Do I Start a Startup?

Check if your idea is viable. Do some research and ask around. Are people looking for a business/service like yours? Then ask yourself: How are other businesses in your sector performing? Have you spotted a genuine gap in the market? 
Then you’re ready to start drawing up a business plan.

Where Can I Acquire Startup Funding?

There are several sources, including personal financing, banks, crowdfunding, friends, family, angel investors, and venture capitalists.

Do I Need a Website to Launch My Startup?

In the vast majority of cases, yes. You also need a social media presence that is applicable to your audience. After all, social media is a free, efficient way to reach a huge volume of people that you couldn’t otherwise target.

How Can I Use Marketing to Launch My Startup?

It depends on your budget. Begin with strategies like social media, free press release distribution, and content marketing. As your business grows, you can allocate a budget for affiliates, email marketing, SEO, online ads, and influencer campaigns.

Conclusion

Let’s recap.

Launching a startup company is not easy.

First, you need to determine if your idea is worth turning into a business, then you must determine if you have what it takes to become an entrepreneur.

The percentage of entrepreneurs in the United States is growing strong, and each one of them is going to face challenges along the way.

With that said, having a proper blueprint to follow helps simplify the process. You can get learn the basics of how to start a startup by following the seven steps, and adapting them to suit your individual needs.

With that said, most successful businesses start with validating an idea, creating a comprehensive business plan, and raising adequate funding. Without proper financial planning, your startup doesn’t stand a chance.

Then, surround yourself with the right people and play to your strengths.

For instance, if you’re great at organizing and motivating, focus on that; If marketing just isn’t you, outsource it to a professional who excels in that area.

Don’t forget about lawyers, insurance agents, and accountants to keep your business in order, and make sure you have essentials like an online presence.

Launching your startup is an imperfect journey, and you must prepare for unforeseen circumstances. However, proper planning and execution help limit these hurdles and get your business off to a flying start.

How will you raise funding to get your startup company off the ground?

12 Essential Open Graph Meta Tags for Facebook and Twitter

Every marketer knows the phrase ‘content is king’, but that content is nothing without readers and followers.

These days, there’s one sure-fire way to get your content out to a broader audience and share your awesome new blog post: social media.

With a ready audience of millions, sites like Facebook and Twitter are some of the best ways of getting the word out. However, if you want to optimize that outreach potential, there’s a super-easy way to do it: open graph tags (OPGs).

Not heard of the open graph protocol behind OPGs? Then let me explain what are they, why do they matter, and — most importantly — how do you use them?

What Is Open Graph and Why Was It Created?

Facebook introduced Open Graph in 2010 to promote integration between Facebook and other websites by allowing posts to become rich objects with the same functionality as other Facebook objects.

Put simply, it helps optimize Facebook posts by providing more control over how information travels from a third-party website to Facebook when a page is shared (or liked, etc.).

To make this possible, information is sent via Open Graph tags in the <head> part of the website’s code.

Other social media sites are also taking advantage of social meta tags. For instance, Twitter and Linkedin recognize Open Graph tags; Twitter has its own meta tags for Twitter Cards, but if Twitter robots cannot find any, it uses OGP tags instead.

Neil Patel looking at the camera.

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Why Marketers Should Care About OGP Tags

OGP tags are vital for marketers because they help ensure that when a user shares a link to your content on social media, the correct information is automatically populated. This can help increase engagement and help potential customers learn more about your brand or product.

Additionally, marketers should care about OPG tags because social media sites are the primary drivers of most web traffic. Consequently, the ability to harness the power of social meta tags is a vital skill for today’s marketers.

Also, using OGP tags can help you track how your content is performing on social media, enabling you to adapt your sharing strategy.

However, most notably: open graph tags can have a massive impact on conversions and click-through rates by solving common issues.

For instance, have you ever shared a link on Facebook only to find the thumbnail was missing, or there was a different picture than you expected?

Knowing just a little about OGP tags can help you tackle these problems and improve your social media marketing.

There’s one thing they won’t do, though, and that’s influence your on-page SEO. However, the boost you can get from the extra reach on social media means it’s worth looking into.

Now, let’s look at the most essential OGP tags for Facebook and how to optimize them for better sharing.

Understanding Facebook OGP Tags

As explained in the intro, OGP tags are crucial because they allow you to control how your content appears when it’s shared on sites like Facebook. The open graph tags let you control the title, description, and image in the post; it’s a great way to ensure your content looks amazing when you share it.

In addition:

  • Adding OGP tags ensures that you use the correct image and description, which can help improve click-through rate, while enabling you to add specific details such as whether it’s a movie, book, or product.
  • Using OGP tags allows you to track how your content is performing on Facebook. When someone shares one of your articles on the site, the OG tags send traffic data back to Facebook. This data then lets you see which articles are getting the most engagement, and which need improvement.
  • Including OGP tags ensures you use the correct image and description when sharing your links on Facebook, which can help improve click-through rates.
  • Adding OGP tags is easy, and most content management systems have plugins or extensions to simplify the process.

Facebook has several open graph tag types. You can use OGP tags to specify things like the site’s name, the image used as the thumbnail on Facebook, and the description that will appear when someone shares your page.

In this section, I cover the different types, and then explain how to use them.

An image of the inside of a car with arrows pointing to different types of ogp tags.
An example of various OGP tags being used in a post from VentureBeat.

og:title

The og: title is how you define your content’s title. It serves a similar purpose as the traditional meta title tag in your code. In fact, if Facebook doesn’t find the og:title tag on your page, it uses the open graph tag title instead.

As Facebook explains, most content is shared as a URL. If you want control over the way your content looks on its site, you must add OGP tags.

In Facebook’s own words,

“Without these Open Graph tags, the Facebook Crawler uses internal heuristics to make a best guess about the title, description, and preview image for your content. Designate this info explicitly with Open Graph tags to ensure the highest quality posts on Facebook.”

To get the best from OGP, you also want to think about the way your text appears and its length.

Keep in mind that the text shown on a Facebook feed is bold and extremely eye-catching. It must be compelling, just like a good post title.

There is no limit on the number of characters, but it’s best to stay between 60 and 90. If your title is longer than 100 characters, Facebook will truncate it to only 88!

Example:

<meta property=”og:title” content=”Your eye-catching title here” />

og:url

When you share a link on Facebook, you can add Open Graph tags. These tags help Facebook display rich information about the link, such as an image, title, and description.

This is how you set the canonical URL for the page you are sharing. This means that you define one page to which all your shares go. It’s helpful if you have more than one URL for the same content (for example, using parameters). Important note: URL provided is not shown on the Facebook newsfeed, only the domain is visible.

Example:

<meta property=”og:url” content=”http://www.yourdomain.com” />

og:type

This is how you describe the kind of object you share: blog post, video, picture, or whatever. The list to choose from is long. Here are some examples:

Web-based:

  • website
  • article
  • blog

Entertainment:

  • book
  • game
  • movie
  • food

Place:

  • city
  • country

People:

  • actor
  • author
  • politician

Business:

  • company
  • hotel
  • restaurant

You can see the complete list of types here.

This tag is important if your page has a “Like” button and represents a real-life object (like a book or a movie). It determines if your content appears in a user’s interest section of her profile in the event they “Like” it.

In most cases, you will use the “website” value since what you are sharing is a link to a website. In fact, if you don’t define a type, Facebook will read it as “website” by default.

Example:

<meta property=”og:type” content=”website” />

og:description

This metadata descriptor is very similar to the meta description tag in HTML. This is where you describe your content, but instead of it showing on a search engine results page, it shows below the link title on Facebook.

However, unlike a regular meta description tag, it won’t affect your SEO, but it’s still a good idea to make it compelling to get people to click on it.

Og: description tags don’t limit you to a character count, but it’s best to use around 200 letters. In some cases, depending on a link/title/domain, Facebook can display up to 300 characters, but I suggest treating anything above 200 as something extra.

Example:

<meta property=” og:description” content=” Your entertaining and descriptive copy here, if your meta description is good, use it.”/>

og:image

This is the most interesting OGP tag for many marketers because a picture always helps content stand out. This is how you ensure that Facebook shows a particular thumbnail when you share your page, and it can be beneficial for your conversion rates.

Make sure you set the og:image you choose, otherwise, Facebook shows something stupid like an unwanted ad banner scraped from the page or nothing. You definitely don’t want that!

Here’s a few more pointers:

  • It’s important to remember that if your page is static and you don’t use any sort of content management system (CMS) (like WordPress), you need to change the og:image manually for each of your pages.
  • If you control your website with a CMS and you install the relevant plugin, the og:image tags are assigned automatically for each page. Look for the list of plugins further down.
  • The most frequently recommended resolution for an OG image is 1200 pixels x 627 pixels (1.91/1 ratio). At this size, your thumbnail will be big and stand out from the crowd. Just don’t exceed the 5MB size limit.
An example Facebook post used to represent og:image tags.
An example of the og:image OGP tag with the image rendered at full size.

If you use an image that is smaller than 400 pixels x 209 pixels, it will render as a much smaller thumbnail. It’s nowhere nearly as eye-catching.

An example facebook post showcasing a smaller thumbnail image as an example of thumbnail size.
An example of the og:image OGP tag with the image rendered at a smaller size.

Keep in mind that the picture you use as an Open Graph image can be different from what you have on your page.

Why wouldn’t you leverage that opportunity to stand out even more?

For example, if your title is good, but the picture you are using is not very exciting (not an infographic or a good-looking person, etc.), consider using an image with a good line or two of copy instead (see example below).

One thing you need to remember if you do this: place your text, or the most significant part of it, in the middle of the image. This matters because Facebook trims the sides of thumbnails.

An example facebook post showing where to use text in thumbnails.
An example of putting text in the most effective part of a thumbnail.

Example:

<meta property=”og:image” content=”http://www.yourdomain.com/image-name.jpg” />

For an easy way to add OPGs, there’s an online generator.

Advanced Facebook Open Graph Tags

The Open Graph tags above are the ones you need to know. However, you can use other, more advanced tags to provide even more in-depth specifications.

For example

  • og:locale – defines the language; American English is the default
  • og:site_name – if the page (object) you are sharing is part of a larger network
  • og:audio or og:video – to add additional audio or video files to your object
  • fb:app_id – for linking to a Facebook application (e.g., FB Comments) with the object

Check Your OGP Tags

Once you’ve set up your open graph tags, you need to check they’re working okay. To do this, you can use the Sharing Debugger to see how the information displays when you share your website content on Facebook, Messenger, and other places. Also, the Batch Invalidator will let you refresh this information for multiple URLs at the same time.

To use it, simply enter the URL of the page you’re having problems with and click Debug.

Facebook’s debugging tool has two beneficial functionalities.

First, when you type in the link you want to check, it returns any errors and suggestions for OG tags, if there are any. You can also check what the og:image looks like, your description, and so on.

Second, it clears the Facebook cache. Imagine this: you post a link to Facebook, but then you see a mistake in the thumbnail, so you go back to your site and adjust the OGP tags, and you post it again on Facebook.

Probably, nothing will happen. The thumbnail will stay the same. This is because of the cache. The Facebook Sharing Debugger will refresh the cache on your links after any adjustments, so remember to use it each time.

A screenshot of the backend of facebook's debugging tool.
The Facebook Debugging Tool.

Open Graph Tags for Twitter: Twitter Cards

If you’re not familiar with Twitter’s cards, they allow you to attach media files and add extra information to your tweets. This can be useful for increasing the visibility of your tweets and providing additional context for users who click through.

Although they’re not the same thing, Twitter’s cards use the same open graph protocol and it looks similar to OGP tags. Implementing these tags makes it much easier to create Twitter cards without duplication issues.

Like Facebook’s Open Graph tags, Twitter Cards let you stand out from the crowd of tweets. In short, they allow you to generate some additional content from your 140-character tweet.

This doesn’t show up on people’s feeds automatically, but it adds a little “View summary” button below the tweet.

You can use open graph tags to specify your content’s title, description, and image, and to determine your page’s content type and the audience you want to reach.

A screenshot of a tweet with the "view summary" button highlighted.
An example of open graph tags for Twitter.

When you click it:

In example of the different tpyes of open graph tags for twitter and what they look like.
An example of how title, description, and image tags are used on Twitter.

The Twitter card is tempting to click and provides a handy summary of the shared page. However, surprisingly, not many sites take advantage of these tags, giving you a great opportunity to make your tweets stand out from other feeds.

Installing these cards isn’t difficult, and there’s a quick workaround, even if you’re not tech-savvy. Just install a WordPress plugin.

WordPress SEO by Yoast does the job perfectly well.

To activate Twitter cards in Yoast:

A screenshot of WordPress SEO by Yoast.
Showcasing how to activate Twitter cards in Yoast.
  • Log into WordPress
  • Go to your dashboard,
  • Choose the ‘SEO’ option from the list.
  • Click on SEO and choose social. Click.
  • Go to accounts and click on your Twitter username
  • Select the ‘Twitter’ tab by clicking
  • Scroll down to ‘Add Twitter Card Meta Data’
  • Click ‘enabled’
  • Finally, save any changes.

If the above method isn’t an option, ask your web developer and give them the ready-to-implement Twitter Card tags. Here’s how you’ll make them.

twitter: card

This required tag works in a similar way to og:type. It describes the type of content you are sharing. There are seven options: summary, photo, video, product, app, gallery, and “large version” summary.

Depending on the type of content you choose, the link at the bottom of your tweet changes. You can get “View summary” for summaries, “View photo” for photos, etc. If this tag is not set, Twitter reads your link as a “Summary” by default.

Example:

<meta name=”twitter:card” content=”summary” />

twitter:title

This basically does the same thing as its OG counterpart. You specify the title for your article that will show up in bold. It’s smart to avoid repeating the same text you have in your tweet. Make the most of the space provided and let the two pieces of copy play on each other to reinforce the message. Use up to 70 characters.

Example:

<meta name=”twitter:title” content=”Your title here” />

twitter:description

Use this tag to write a descriptive lead to the page you are sharing. As with Open Graph tags, don’t focus on keywords because they won’t matter for your SEO. Create compelling copy that nicely complements your tweet and the title. Twitter limits this part to 200 characters.

Example:

<meta name=”twitter:description” content=”Your 200-character description here” />

twitter:url

This sets the canonical URL for the content you are sharing. (For more information, review the description for the equivalent Facebook Open Graph tag above.)

Example:

<meta name=”twitter:url” content=”http://www.yourdomain.com” />

twitter:image

Yes, you guessed it. This is how you set the picture to go with your tweet. Twitter allows two options, a card with a smaller or a larger image.

You decide which one you want in the type tag. If you go for the large option, make sure it has a resolution of at least 280x150px and that the file size is not more than 1MB. You can consider using the same trick as the Facebook thumbnail: add some text to the image to boost the message.

Example:

<meta name=”twitter:image” content=”http://www.yourdomain.com /image-name.jpg” />

Request Approval from Twitter

Adding cards to your tweets is easy – all you need to do is include some extra code to the end of your tweet. The code tells Twitter which card type you want to use and how you wish the content to look.

There are several types of Twitter Cards, so you can choose the one that best suits your needs.

However, keep in mind that, before you can fully benefit from Twitter Cards, you need to request approval for your page from Twitter.

Fortunately, this only takes about 15 minutes and can be done easily using their Card Validator.

To get started,

  • Select the type of card you wish to use.
  • Add your meta tags
  • Check the URL with Twitter’s validator tool.
  • Test in the validator or get approval for your card, then tweet the URL to see your card displayed. https://developer.twitter.com/en/docs/twitter-for-websites/cards/overview/abouts-cards

Once you get approval, Card Validator serves the same purpose as the Facebook Sharing Debugger, allowing you to check your links before committing.

Twitter Card Plugins

Like with Facebook, plenty of plugins are available for implementing Twitter Cards. Here are a few:

How to Implement Open Graph Tags?

How do you implement OGP tags? Basically, they belong to the <head> part of your page’s HTML. If you don’t manage the code, you’ll need to ask your web developer for help. You can prepare the whole package yourself using the tips above to save their valuable time.

If you are using WordPress, just install one of the plugins that neatly implements the code for you. As I’ve explained, I like to use WordPress SEO by Yoast, but there are some other free tools you can use, including:

A screenshot of Yoast's social tab.
How to implement open graph tags through Yoast.

Here are other OG plugins/extensions/add-ons for:

Like Facebook. Twitter offers a tool to validate your OGP tags, Twitter Card Validator is a tool that allows you to test and preview how your tweets will appear when they are shared on other websites. To use the validator, enter the URL of the website on which you want to share your tweet and click “validate.”

The validator will show you a preview of how your tweet will appear on the website, and display the title, description, and image.

FAQs

What Is Open Graph, and why was it created?

Open Graph Protocol (OGP) is a set of tags used on websites to define the structure of a web page so that it can be more easily shared on social media platforms. OGP tags allow web admins to control how their content appears when it is shared on social media sites like Facebook and LinkedIn.

How do you find Open Graph tags?

You find open graph in the webpage’s <Head> section.

What is SEO OGP?

This is a type of metadata which Facebook introduced back in 2010. It allows semantic integration into Facebook’s HTML, allowing website owners to show Facebook how they would like Facebook to index their sites. https://www.oreilly.com/library/view/facebook-application-development/9780470768730/ch006-sec012.html

How do you check OGP tags?

There are free tools available to check your OGP Tags. Sites like Facebook also offer a validator so that you can check your tags for errors.

Conclusion

The final code for both Facebook and Twitter should look more-or-less like this:

A line of code showing what optimized Twitter and Facebook posts should look like.
Optimized code for both Facebook and Twitter posts.

It might seem a bit confusing, but luckily several tools make the process easier — you don’t need to know how to code.

There are three main types of Open Graph meta tags: og:title, og:image, and og:description, and taking the effort to implement them has distinct advantages, including better click-throughs and engagement, which can all lead to added conversions. The additional measures of adding Open graph also increase visibility.

However, despite these advantages, it’s surprising how few people optimize these tags. It’s worth doing because it helps you stand out and draw more clicks and views, and it can even help improve your SEO —all things that lead to more profit.

Have you implemented open graph meta tags? How has it impacted your site?

Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession

It may seem that trying to establish business credit in a recession is too little too late. It is definitely better to have strong business credit before a recession hits.  However, if you are in the middle of hard economic times and trying to figure out how to survive and even thrive, all is not necessarily lost.  

Also, business credit is a huge part of fundability.  Strong fundability will benefit your business not only now, but long after the recession is over.  

Establish Business Credit in a Recession: Survival Skills and Tips to Ensure You are Make it Off of Recession Island Alive

Becoming a business owner during a recession can feel much like being dropped into an episode of a survival reality show.  Add in the COVID-19 pandemic and the illusion becomes even closer to reality. Everyone is struggling to hang on. The competition is fierce.  You can only hope you will not be voted off. If you do not already have strong business credit in place, you may think the situation is hopeless.  Yet, it is possible to establish business credit in a recession. It just may take a little more patience and creativity. Truly, nothing breeds creativity like hard times.

Whether you need it immediately or not, it is vitally important to have separate credit for your business.  This is regardless of your current situation. The need is even more pressing during a recession. 

The first step to establishing business credit in a recession is to set up your business as a separate entity from yourself.  Even if you have stellar personal credit, you do not want it tied up with your business. The reverse is true as well. 

If your personal credit goes south due to recession issues, you do not want your business to suffer.  On the flip side, if your business struggles, you want your personal credit protected as much as possible.  

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Why Establish Business Credit in a Recession?

If you have found yourself on recession island without business credit, you may wonder how it could possibly help to establish it now.  Here’s the thing. No business credit is the same as bad business credit. There is no time like the present. If you do it right, establishing and building business credit during a recession can only help you.  

Business credit can help you access funding to get you through the hard times.  If you need to cover a cash gap brought on by slow-paying customers, business credit can open up options for that.  If you want to purchase inventory in bulk to take advantage of special pricing, business credit can help with that as well.  

These are just two examples of how having strong business credit during a recession can help your business survive.  It’s best to have a strong credit score in place before a recession hits. However, if you do not, you can establish business credit in a recession with these tips.

Separate from the Pack: Get Incorporated

While alliances are often formed on survival reality shows, the truth remains that you cannot trust anyone but yourself.  This is especially true in the beginning. Your business needs to stand on its own. 

The first step to separating your business from yourself and your personal credit is to incorporate.   While easiest done on the front end when you first start your business, it is never too late.

 You have a few options.

  • C Corp– This is the most definitive separation, but it is also the most complicated and expensive.  Before choosing this option, be certain there are reasons other than establishing business credit that it needs to be done.  If it isn’t necessary for some other reason, there are other, less complicated, and less costly options. 
  • S Corp– This option basically offers the same separation as the C Corp, but taxes are paid at the personal level, rather than requiring the business to be taxed as well, resulting in double taxation.  It is also cheaper than incorporating as a C Corp. If you aren’t required to file as a C corp, this is a good alternative. 
  • LLC– forming a Limited Liability Corporation results in less liability, thus the name, and offers enough separation to serve the purpose of establishing business credit.  If you are not required to be a C Corp or S Corp, this is the easiest and most cost-effective way to create the separation of business and personal credit needed. 

Throw off Your Old Self: Get Rid of the SSN

Apply for an EIN and stop using your Social Security Number as the identifying number for your business.  Your SSN is tied to you, personally. It is virtually guaranteed that anything connected to it credit-wise will end up on your personal credit reports.  

In fact, if you follow the other steps for establishing business credit and skip this one, it could end up on both reports.  You don’t want that. 

The process for applying for an EIN is easy.  The IRS has an online form. As soon as all the information is verified you receive your number.  Typically, this happens almost immediately. 

Separate but Equal: Do Not Mingle Personal and Business Finances

Do not buy into the falsehood that you can run your business expenses through the same bank account as your personal expenses.  When you want to establish business credit in a recession or at any other time, your business needs its own account. Separate finances are vital to separate credit.  

You have to separate expenses for tax purposes anyway.  Having a separate business banking account will only make it easier. 

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

Know Who You Report To: Get a Free DUNS Number

Dun and Bradstreet is the most widely used business credit reporting agency.  They issue each business on file a 9-digit D-U-N-S number.  The application is easy and free.  Once you have that number, you will be even closer to establishing credit for your business separate from your own. 

Be Easily Accessible: Set Up Separate Business Contact Information

Your business needs its own phone number.  It should be an 800 number or from some other toll-free exchange.  This way, when you apply for credit, you can enter contact information that is separate from your personal information.  When information is reported to agencies, sometimes the phone number is an identifying factor. If you and your business share a number, that just decreases the level of separation. 

The same is true for a separate business address, email address, and website.  Your business address should not be the same as your home address.  The business email address should contain the website URL. Do not use a free service such as Yahoo or Gmail. 

Make sure your website is professionally presented and put together.  A poorly put together website or broken links can do more damage than you may imagine.

Be sure you get your business phone number and address listed in the directories under the business name. 

Form Preliminary Alliances: Start with the Vendor Credit 

After you separate your business from yourself, it is time for the next step to establish business credit in a recession.  Do business with starter vendors that will extend invoices with net30 terms. Then, when you pay, they will report the payment to the business credit reporting agencies.  As a bonus, if you are finding yourself short on necessities due to the COVID-19 outbreak, these vendors may have what you need. Toilet paper, paper towels, and cleaning products are all available through some starter vendors. 

Typically, these vendors issue net terms without regard to either your personal or business credit score.  This makes them the perfect way to begin building your business credit score. While there are a lot of these types of vendors out there, some are better to start with than others.  

You want to start with those that offer products you will use in the daily course of business.  They also need to have minimal requirements for net30 terms. Though they do not check credit, some do have minimum time in business or annual revenue requirements.  Others only require that you make a few initial purchases before they will extend net terms.

Three of the most common starter vendors that work great at the beginning of the process include: 

  • Quill– offers office and cleaning supplies
  • Uline– sells packing supplies
  • Grainger– supplies for working outside including tools

Keep Building: Apply for Business Credit Cards 

Continuing to build business credit is the next step after you establish business credit in a recession.  Once you have your name, EIN, separate contact information, and 5 to 7 starter vendors reporting to the credit agencies, you can apply for credit from certain retailers. This step includes specific stores that issue credit to be used only in their stores or on their website.

Shoot for the highest limit, lowest interest, and most rewards options possible.  Perks like cash back and travel points can pay off. 

If you only qualify for a $200 limit and a higher-end interest rate, in the beginning, that is fine.  You may not be able to get the best rate with a business that has a shorter credit history. This is especially true during a recession. However,  if you pay consistently and on time, things should change quickly. 

After you have several store accounts reporting, you can apply for fleet cards.  These include cards from companies such as Shell and Fuelman that you can only use to pay for gasoline and automobile repairs. 

Once you have several accounts reporting from all three of these types of cards, you can apply for credit that isn’t restricted by retailer or purchase type.  These include well-known credit cards such as Visa and Mastercard that offer higher limits, lower rates, and better rewards. 

Look for Friends in Unlikely Places: Open Talks with Your Utility ProvidersEstablish Business Credit in a Recession Credit Suite

Sometimes utility companies are willing to report payments to credit agencies.  However, you almost always have to ask. The worst they can do is refuse. If they do, no harm no foul.  If they agree, you will only establish your business credit faster. 

Remember, if you are having trouble making utility payments right now due to reduced income related to coronavirus, you should probably wait to do this.  Instead, talk to the utilities about what options they are offering in these circumstances. Some are not counting missed payments against customers for a couple of months.  You have to discuss this with them however, do not assume anything. 

Talk to them all, including telephone, electric, gas, and even internet.  Before you do this, be certain that all of these utilities are in your company name under your separate business contact information. 

Handle Your Business: Make Payments on Time

Of course, the most important part of establishing business credit is making on-time payments.  If this doesn’t happen, then you will not like the credit you establish. It’s equally important whether you are trying to establish business credit in a recession or in a strong economic climate.  Admittedly, it can be much harder during a recession, especially one induced by a global pandemic. Be sure you take advantage of all the resources available to help you stay current. 

Planning is an important part of this.  Do not overspend, and try not to use credit that you cannot pay back in a timely manner. It doesn’t have to be paid off all at once.  You need to make payments to build credit, but be sure you can actually make the payments.

Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.

You Can Establish Business Credit in a Recession

If you follow these steps, it is possible to establish business credit in a recession.  For new businesses, it can fall into place easily in the normal course of creating a business.  If you have been around a while, it may require some backtracking. A recession may mean it takes longer, but it is more than doable if you follow the steps and trust the process. 

The post Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession appeared first on Credit Suite.

Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession

It may seem that trying to establish business credit in a recession is too little too late. It is definitely better to have strong business credit before a recession hits.  However, if you are in the middle of hard economic times and trying to figure out how to survive and even thrive, all is not … Continue reading Survival of the Fittest: The Essential Guide to Establish Business Credit in a Recession

5 Essential Hiring Practices

5 Essential Hiring Practices

Hiring and also hiring are typically carried out in rush, leaving the business to repent in the future. Today, there’s a factor to be worried regarding irresponsible hiring. Irresponsible hiring suggests you and also your business can be taken legal action against if among your hires harms various other staff members, specifically if you can have visualized a trouble however did refrain a comprehensive check of the brand-new worker prior to working with.
The adhering to checklist of 5 important working with methods develops the minimum you ought to comply with:
Expert screening companies can carry out legitimate mental examinations for knowledge, security, also resolutions of unethical or addicting individualities, as well as abilities examinations of vital technological capabilities in your labor force. I locate screening typically verifies an uncertainty I currently had however had not been yet prepared to come to terms with.
2. Conduct an extensive individual meeting. This consists of asking basic mindset concerns, exactly how you would certainly handle your manager inquiries, just how you would certainly handle your personnel concerns, concerns connecting to the candidate’s understanding of the economic functions of an organisation as well as your division’s duty in business’s general success, inquiries associating with the candidate’s capacity to establish objectives and also his/her assumptions regarding attaining objectives, concerns connecting to particular abilities needed for the work, and also basic interactions needed by the task.
This component of the procedure motivates candidates to talk even more openly and also aids figure out exactly how comfy they will certainly be in functioning with their peers. Adhere to up with a conference of everybody included in the working with choice to establish if there is a team agreement concerning the candidate’s viability for job at your firm.
Do not overlook this, also if it is a staff member’s relative or your rival’s finest sales representative. It’s really simple to establish up an account with an investigatory company online as well as to reasonably swiftly and also reasonably locate out if the candidate has a criminal document or a background of DMV issues, claims entailing previous companies, employees’ settlement insurance claims, and also so forth.
You can carry out these over the phone, yet they might include a demand in creating. Referral monitoring is much less reliable than it made use of to be, although you might still locate a couple of individuals that are ready to chat.
Paper that you took every one of these actions as well as you’ve gone a lengthy method towards safeguarding on your own versus a fee or irresponsible hiring. And also a lot more notably, you’ve taken the initial steps towards discovering a worker that can rely on as well as with whom you can develop an effective work connection.

Hiring as well as hiring are commonly done in rush, leaving the firm to repent in the lengthy run. Irresponsible hiring indicates you as well as your firm can be filed a claim against if one of your hires wounds various other staff members, particularly if you might have anticipated an issue yet did not do a complete check of the brand-new worker prior to employing.
This consists of asking basic perspective inquiries, exactly how you would certainly handle your employer inquiries, exactly how you would certainly handle your personnel concerns, concerns connecting to the candidate’s understanding of the economic operations of a company and also your division’s function in the company’s general success, inquiries associating to the candidate’s capacity to establish objectives and also his or her assumptions concerning accomplishing objectives, inquiries associating to details abilities needed for the task, as well as basic interactions needed by the work.
Adhere to up with a conference of every person included in the working with choice to identify if there is a team agreement concerning the candidate’s viability for job at your business.
It’s extremely simple to establish up an account with an investigatory company online and also to reasonably promptly as well as reasonably discover out if the candidate has a criminal document or a background of DMV issues, suits entailing previous companies, employees’ payment insurance claims, as well as so forth.

The post 5 Essential Hiring Practices appeared first on ROI Credit Builders.

The post 5 Essential Hiring Practices appeared first on Buy It At A Bargain – Deals And Reviews.

5 Essential Hiring Practices

5 Essential Hiring Practices

Hiring and also hiring are typically carried out in rush, leaving the business to repent in the future. Today, there’s a factor to be worried regarding irresponsible hiring. Irresponsible hiring suggests you and also your business can be taken legal action against if among your hires harms various other staff members, specifically if you can have visualized a trouble however did refrain a comprehensive check of the brand-new worker prior to working with.
The adhering to checklist of 5 important working with methods develops the minimum you ought to comply with:
Expert screening companies can carry out legitimate mental examinations for knowledge, security, also resolutions of unethical or addicting individualities, as well as abilities examinations of vital technological capabilities in your labor force. I locate screening typically verifies an uncertainty I currently had however had not been yet prepared to come to terms with.
2. Conduct an extensive individual meeting. This consists of asking basic mindset concerns, exactly how you would certainly handle your manager inquiries, just how you would certainly handle your personnel concerns, concerns connecting to the candidate’s understanding of the economic functions of an organisation as well as your division’s duty in business’s general success, inquiries associating with the candidate’s capacity to establish objectives and also his/her assumptions regarding attaining objectives, concerns connecting to particular abilities needed for the work, and also basic interactions needed by the task.
This component of the procedure motivates candidates to talk even more openly and also aids figure out exactly how comfy they will certainly be in functioning with their peers. Adhere to up with a conference of everybody included in the working with choice to establish if there is a team agreement concerning the candidate’s viability for job at your firm.
Do not overlook this, also if it is a staff member’s relative or your rival’s finest sales representative. It’s really simple to establish up an account with an investigatory company online as well as to reasonably swiftly and also reasonably locate out if the candidate has a criminal document or a background of DMV issues, claims entailing previous companies, employees’ settlement insurance claims, and also so forth.
You can carry out these over the phone, yet they might include a demand in creating. Referral monitoring is much less reliable than it made use of to be, although you might still locate a couple of individuals that are ready to chat.
Paper that you took every one of these actions as well as you’ve gone a lengthy method towards safeguarding on your own versus a fee or irresponsible hiring. And also a lot more notably, you’ve taken the initial steps towards discovering a worker that can rely on as well as with whom you can develop an effective work connection.

Hiring as well as hiring are commonly done in rush, leaving the firm to repent in the lengthy run. Irresponsible hiring indicates you as well as your firm can be filed a claim against if one of your hires wounds various other staff members, particularly if you might have anticipated an issue yet did not do a complete check of the brand-new worker prior to employing.
This consists of asking basic perspective inquiries, exactly how you would certainly handle your employer inquiries, exactly how you would certainly handle your personnel concerns, concerns connecting to the candidate’s understanding of the economic operations of a company and also your division’s function in the company’s general success, inquiries associating to the candidate’s capacity to establish objectives and also his or her assumptions concerning accomplishing objectives, inquiries associating to details abilities needed for the task, as well as basic interactions needed by the work.
Adhere to up with a conference of every person included in the working with choice to identify if there is a team agreement concerning the candidate’s viability for job at your business.
It’s extremely simple to establish up an account with an investigatory company online and also to reasonably promptly as well as reasonably discover out if the candidate has a criminal document or a background of DMV issues, suits entailing previous companies, employees’ payment insurance claims, as well as so forth.

The post 5 Essential Hiring Practices appeared first on ROI Credit Builders.

Essential 2020 Business Tax Tips Amid the Coronavirus Pandemic

As we near the time most of us dread, when taxes are due, there is a major spin on things this year.  The Covid-19 virus has put the world completely on its head, and even the IRS isn’t immune. What does coronavirus mean for taxes, and how can you make sure you keep as much of your money in your pocket as possible? Make sure you take full advantage of all the coronavirus relief options with these 2020 tax tips.

These 2020 Tax Tips Can Help You File Faster and Pay Less In These Uncertain Times

Truly, the coronavirus has affected everything.  Currently, the economy is in a constant spiral. There are no signs of letting up any time soon.  Before any other 2020 business tax tips, you need to know how Covid-19 affects your tax return this year at the federal level.

Get funding to help your business through uncertain times.

Coronavirus Business Tax Impact

2020 biz tax tips Credit SuiteFirst, both individuals and corporations have an extra 90-days to file and pay their taxes this year.  Meaning, instead of having to turn in your tax return and pay by April 15, you have until July 15 to do both without interest or penalties.  As of right now, interest and penalties will start to accrue on July 16. 

As a result,individuals can defer up to $1 million, including self-employment tax.  However, corporations can defer federal income tax payments of up to $10 million. Yet, the government is reminding people and businesses to file as soon as possible in case they are getting a refund.  Having the cash-on-hand is more necessary now than ever than ever before. 

Remember, this is for federal income taxes.  Forty-two states and the District of Columbia have state income tax that currently must still be paid by their original deadline. This could change however, so watch for updates. 

Now that you know this, here are our top 2020 Business Tax Tips. 

2020 Business Tax Tips: Credit Card Rewards

It may be too late for 2019 taxes, but be sure you pay attention to credit card rewards if you use business credit cards.  You could owe taxes on those. For this year, look at the rewards you have earned and determine if you need to include them on your tax return. Making sure your taxes are accurate is the best way to avoid a lot of unnecessary time in an audit later on.

2020 Business Tax Tips: Use Your Software Wisely

Few businesses keep their books with paper and pencil these days. Most use some form of accounting software.  Many of these will print out tax forms automatically using the data already in the accounting system. Then, all you have to do is review the forms and supply any supporting documentation. 

Be sure you know what your system is capable of and use it.  Entering accurate information throughout the year and keeping it up to date will go a long way toward ensuring your tax time goes smoothly.  

Here are some great options to consider for next year if you find your software is not what you need.

Zoho

Zoho is a great option if automation is your jam. They offer a 14-day free trial.  The software compiles IRS compliant audit reports making tax filing much easier. Package prices range from $9 to $29 per month. 

Wave

 Wave has many advantages. The smart dashboard is one of the best.  It organizes your income, expenses, payments, and invoices in a way that makes preparing a tax return as quick and painless as possible.  In addition, accounting, invoicing, and receipt services are free! Fees for payroll and payment services vary.

Intuit Quickbooks

Arguably, Intuit Quickbooks is the most widely used small business accounting software on the market. The system is comprehensive and affordable for many, making it a great choice.  There is a 30-day free trial and packages range from $12 to $75 per month. Payroll add on options are available. 

2020 Business Tax Tips: File Online

There are many ways to file your tax return.  Still, the fastest, easiest, and cheapest way to do so is online.  As mentioned, this goes much faster and is a much smoother process if you have the best bookkeeping software for your business.

Get funding to help your business through uncertain times.

2020 Tax Tips: Scan Backup Documentation

Start now scanning backup documentation for next year.  Once you are caught up, a few minutes a day can save hours next year.  While you are at it, depending on the number of transactions your business does, you could go ahead and scan backup documents for 2019 since you have extra time.  It may come in handy in the case of an audit. At the very least, take the extra time to organize all the receipts in your shoebox. 

2020 Business Tax Tips: Hire a Professional 

When it comes to 2020 business tax tips, this is the one I would like to stress the most.  If you can at all afford it, hire a professional to do your taxes. This is the best way to ensure you keep the most money in your pocket, which is hugely important amidst this coronavirus epidemic. 

2020 Business Tax Tips: Going Forward

Looking forward to next year, what can you do to ensure your tax preparation goes as smoothly as possible?  There are actually a number of things. They will not help you when it comes to taxes, but they will help you build fundability and business credit as well.  

Get an EIN

Use an EIN to file your income taxes if you do not already.  This is important for a number of reasons, including increasing fundability and helping build business credit. It’s easy and free to get one on the IRS website.

Consider Your Organization

If you are operating as a sole proprietorship or partnership, consider incorporating.  Tax wise you can see how functioning as a corporation is going to allow businesses to defer up to $10 million in taxes for 90-days due to the Covid-19 pandemic.  There are a number of other benefits as well, including some liability protection. Now more than ever you do not want to be held personally liable for business debts. 

Business Bank Account

You have to open a separate, dedicated business bank account.  There are a few reasons for this.  First, it will help you keep track of business finances.  It will also help you keep them separate from personal finances for tax purposes. Furthermore, it aids in separating your business from yourself for fundability and business credit building.

Beyond taxes, there are several types of funding you cannot get without a business bank account.  Many lenders and credit cards want to see one with a minimum average balance.  In addition, you cannot get a merchant account without a business account at a bank. That means, you cannot take credit cards payments.  Studies show consumers usually spend more when paying by credit card is an option.

What Else Affects Fundability That Is Not Related to Taxes? 

While not technically under the category of 2020 business tax tips, it still bears mentioning.  Without fundability your business cannot access the funding it needs to run. How the IRS views your business can have an effect on fundability as well.  Your business has to be an entity separate from you as the owner in the eyes of the IRS and lenders. Organizing as a corporation and getting an EIN are major for this.  What else helps? 

Contact Information

The first step in setting up a foundation of fundability is to ensure your business has its own phone number, fax number, and address.   You do not have to get a separate phone line, or even a separate location.  In fact, you can still run your business from your home or on your computer. You do not even have to have a fax machine.  Be certain to use this separate business contact information on your business tax return.

Business Credit Reports

The main distributors of business credit reports are Dun & Bradstreet, Experian, Equifax, and FICO SBSS.  Honestly, you have no way of knowing which one a lender will choose.  Consequently, you need to make sure all of these reports are up to date and accurate. This is just as important in hard economic times as any other time. 

 If you have business credit, keep an eye on it right now.  Times are tough, and monitoring your business credit is essential to staying on top of any problems that may pop up so you can adjust and correct. 

Other Business Data Agencies 

In addition to the business credit reporting agencies that directly calculate and issue credit reports, there are other business data agencies that affect those reports indirectly.  Two examples of this are LexisNexis and The Small Business Finance Exchange. These two agencies gather data from different sources, including public records.  This means they could even have access to information relating to automobile accidents and liens. While you may not be able to access or change the data these agencies have on your business, you can ensure that any new information they receive is positive.  Enough positive information can help distract attention from negative information. 

Identification Numbers 

Dun & Bradstreet is the largest and most commonly used business credit reporting agency.  Every credit file in their database has a D-U-N-S number.  To get a D-U-N-S number, you have to apply for one through the D&B website. You have to have this number to have a file with D&B, and you have to have a file with D&B to build business credit.

Business Information

On the surface, it seems obvious that all of your business information should be the same across the board.  However, when you start changing things up, like adding a business phone number and address or incorporating, you may find that some things slip through the cracks. 

This is a problem because of those fraud concerns lenders have.  When business information doesn’t match up, it sets off alarms.  Maybe your business licenses have your personal address but now you have a business address.  You have to change it.  Perhaps some of your credit accounts have a slightly different name or a different phone number listed than what is on your loan application. Do your insurances all have the same information?  

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about.  For example, many business owners do not realize that their ChexSystems report can affect fundability.  Basically, this details any bad check activity.  It makes a difference when it comes to your bank score.  In fact, if you have too many bad checks, you will not be able to open a bank account.  That will seriously affect fundability. 

Keep in mind, everything can come back to bite you.  Have you ever been convicted of a crime? Do you have a bankruptcy or short sell on your record?  How about liens or UCC filings? All of this can and will affect the fundability of your business.

Get funding to help your business through uncertain times.

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion all matter.  You have to have your personal credit in order because it will definitely affect the fundability of your business.  If it isn’t great right now, get to work on it.  Don’t forget, the number one way to get a strong personal credit score or improve a weak one is to make payments on time, consistently. 

Also, make sure you monitor your personal credit regularly to ensure mistakes are corrected and that there are no fraudulent accounts being reported. 

2020 Business Tax Tips: Get Past This Year and Look Forward to the Next

For now, the best of the 2020 business tax tips is to take advantage of the extra time you have to dig through and find every advantage you can.  First, if you can at all afford a professional, it’s worth it. They know what they are looking for and are the best at reducing what you pay in and increasing what you get back.  

Next, If that is just simply not possible, take advantage of everything your software has to offer.  Make sure you are fully aware of all that it can do, and that all the information entered is accurate and complete.  This will help ensure your tax bill is reduced as much as possible, but also that in the case of an audit, you are prepared.

The post Essential 2020 Business Tax Tips Amid the Coronavirus Pandemic appeared first on Credit Suite.

Ride the Rapids: Your Essential Guide to Accessing Unique Recession Business Funding Opportunities Related to Coronavirus 

Here is what we all know. COVID-19 is having a huge impact on the economy. It’s no secret.  The market is scary right now.  In fact, you are probably thinking now is not the time to make any big financial decisions about your business.  But the truth might surprise you. In contrast, it could actually be a really good time to borrow.  This is because of federal and state initiatives to help businesses during this time.  There are some unique recession business funding opportunities available.

Beyond that, more are becoming available each day.  In addition, some oldies but goodies are better options now than they were even a few days ago. There are federal government loans for small business.

You probably know how to prepare for a recession. But you probably weren’t expecting to see the effects of recession on business in less than a month. The impact of recession on businesses is already being felt. But there are recession resistant businesses out there. Let’s make sure yours is a recession proof small business.

The Ultimate Directory for Everything you Need to Know about Recession Business Funding Opportunities During the Coronavirus Pandemic

The federal government does not want to see a collapse of the economy any more than we do.  They want to do what they can to help small businesses. As a result, they are taking steps to do just that.

States are doing the same. What steps are being taken? What do they mean for your fundability? It means you need to protect it like never before.  To do this, you will need to know what help is available to you and your business.

The key is going to be figuring out how to strategically use the funding available right now to not only save your business, but to help it thrive.

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Recession Business Funding Opportunities: The Bad Newsrecession biz funding opportunities Credit Suite

Then there’s the bad news.  Businesses are closing. People aren’t going out.  Spending is vastly curtailed. Unfortunately, without a steady flow of income, eventually businesses will not be able to make payments on existing expenses & debt.

While some businesses may be able to make current payments for a few months, access to new credit will likely not be around for long, at least when it comes to traditional banks.

But There’s Good News, Too

The good news in light of all of this darkness is that no one wants this to happen.  Measures are being taken to try and stop the spiral. The most notable is the rate cut by the Federal Reserve.  In fact, the most recent cut brought the rate down to 0%. Interest rates during recessions should be cut, and we are already there.

As a result, some states are even initiating their own programs to offer relief to businesses during this time.  Not only that, but corporations and charities are jumping in with relief for workers. Truly, the key to surviving is to take advantage of the recession business funding opportunities available right now.  Then, use them to protect your fundability, and your business. Turn yours into a recession resistant business.

Recession Business Funding Opportunities: Federal Initiatives 

As you might imagine, the federal government is working on several options to help businesses during this time.  One idea is a cut in the payroll tax. Another is to provide cash to each American to increase spending. Currently, SBA loans are getting an increase from the relief fund for COVID-19. So far $50 billion is going into the SBA as relief in March of 2020. Also, the SBA is waiving upfront costs on business loans for veterans, up to $1 million, in the SBA Express program.

Recession business funding opportunities via the feds will be in the trillions. There may be federal grant money. This situation is fluid, so there could be rural development grants. And they don’t have to be for businesses that make money during a recession.

SBA Disaster Relief

Currently, the SBA is permitted to exercise readily available authority. They will supply funding to businesses affected by the coronavirus to help overcome disruptions. The President is asking Congress to raise financing for this program. For now, the goal is to make 30 million small businesses better able to survive the coronavirus impact. The idea is to turn many into businesses that do well in a recession.

The Details

Here is what you need to know about the process for accessing these funds according to SBA.gov. 

  • This will make loans available to small businesses to help relieve the financial troubles caused by Coronavirus.
  • The Office of Disaster Assistance will work with the Governor to submit the request for assistance.

Allowable uses of these funds include:

    • Pay current debts
    • Payroll
    • Accounts payable
    • Pay other bills that the business will not be able to pay due to the coronavirus impact
  • The credit rate is 3.75%, or 2.75% for non-profits
  • Businesses with credit available elsewhere are not eligible.
  • In order to keep payments affordable, terms go up to 30 years.  Determination on individual loan terms will be made on a case-by-case basis.  The borrower’s ability to repay will play a role in this decision
  • The Economic Injury Disaster Loans are just a part of the big picture of the federal government’s plan for relief.

More Information on These Federal Small Business Loans

Small Business Administration loans and grants may expand. We could end up with all kinds of government small business grants. But we don’t yet clearly know the details on grants and loans for small businesses. That is, for any from a federal grant department.

Federal Housing Relief

Likewise, the federal government is offering relief to families in the form of relief to homeowners.  Last week, the President directed HUD to suspend evictions and foreclosures. This applied to single-family home mortgages that are backed by Fanny Mae and Freddie Mac for at least 60 days. It’s a creative form of financial aid for small business.

This week, it was announced that both mortgage insurers will give multifamily landlords a break on their loans.  That is, if they do not evict anyone that has suffered coronavirus impact.  FHFA Director Mark Calabria said in a press release

“Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building, due to the coronavirus.  The multifamily forbearance and eviction suspension offered by the Enterprises should bring peace of mind to millions of families during this uncertain and difficult time.”

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Recession Business Funding Opportunities by State

How to Find Recession Business Funding Opportunities in Your State

These posts also contain information on how to start a business in each state. Now is the time to try your recession proof business idea.

Alabama Alaska Arizona Arkansas California
Colorado Connecticut Delaware Florida Georgia

 

Hawaii Idaho Illinois Indiana Iowa
Kansas Kentucky Louisiana Maine Maryland

 

Massachusetts Michigan Minnesota Mississippi Missouri
Montana Nebraska Nevada New Hampshire New Jersey

So make sure to check if your state has recession business funding opportunities for your recession proof business ideas!

New Mexico New York North Carolina North Dakota Ohio
Oklahoma Oregon Pennsylvania Rhode Island South Carolina

 

South Dakota Tennessee Texas Utah Vermont
Virginia Washington State West Virginia Wisconsin Wyoming

 

District of Columbia (Washington, DC)

State by State Responses to the Novel Coronavirus: Recession Business Funding Opportunities

First, let’s look at what each state is offering as coronavirus relief.   They are stepping up their game. In fact, most are offering either funds or tax relief. Yet, some are even offering extensions on debts. Still, the details are continually changing. As a result, states’ plans are in flux. Check with state government websites for details and updates on government business loans. State by state, here’s what’s happening as of today. There are a lot of recession business funding opportunities out there. Many states are stepping up with government funding for business.

Alabama’s Response to COVID-19

Alabama has taken the following steps. On March 13, Governor Kay Ivey declared a state of emergency. The Governor has submitted a request to the SBA for Economic Injury Disaster Loans.

Alaska’s Response to COVID-19

Here’s how Alaska is handling the COVID-19 situation. On March 17, Governor Mike Dunleavy announced the creation of an Alaska Economic Stabilization Team. A bipartisan group of leaders will work with the Dunleavy administration.  The goal is a plan to protect the state’s economy from the impact of COVID-19.

Leading the group will be former Governor Sean Parnell.  Former US Senator Mark Begich will join. The remaining seats will be filled by a cross section of Alaska’s economic leaders and former elected officials.

Arizona’s Response to COVID-19

Arizona has the following response to the novel coronavirus. On March 11, Governor Doug Ducey declared a state of emergency. The Arizona Department of Health Services can now waive licensing requirements to provide healthcare officials with assistance in delivering services. The Governor has communicated with the SBA, seeking an Economic Injury Disaster Loan declaration. This will make it possible to get government backed small business loans.

Arkansas’s Response to COVID-19

Here is Arkansas’s response. On March 11, Governor Asa Hutchinson declared a state of emergency. The Governor put in a request to the SBA for Emergency Disaster Loans.  They are also using state funds and grants to provide relief.

California’s Response to COVID-19 (with Recession Business Funding Opportunities)

This is how California is handling the COVID-19 situation. The city of San Francisco has started the COVID-19 Small Business Resiliency Fund.

To be eligible for the COVID-19 Small Businesses Resiliency Fund, small businesses must have at least 1 employee. Also,they can have no more than 5 employees. Plus, they must demonstrate a loss of revenue of 25% or more. They must have less than $2,500,000 in gross receipts as well. In addition, they must be engaged in activities regulated by the City and County of San Francisco. Of course, they need to have a license or permit associated to that regulation.

In California, employers experiencing a hardship as a result of COVID-19 may request up to a 60-day extension from the EDD to file their state payroll reports and deposit state payroll taxes. This is without penalty or interest. A written request for extension must be received within 60 days from the original delinquent date of the payment or return.

Colorado’s Response

Colorado is working toward COVID-19 as well. For example, the Pikes Peak SBDC is the lead for statewide disaster preparedness efforts in response to COVID-19.  Also, the Colorado government offers work sharing as an alternative to laying off employees.

Requirements and qualifications for employers include reduced normal weekly work hours by at least 10%. But the reduction can be by no more than 40%. The reduction must affect at least two out of all employees in the business. Or a minimum of two employees in a certain unit. You must have paid as much in premiums as Colorado paid your former employees in unemployment insurance benefits.

Connecticut’s Response

Connecticut has this plan for handling COVID-19. On March 16, the SBA approved Governor Ned Lamont’s request to begin offering disaster-relief loans to Connecticut small businesses and nonprofits. Companies in the state can now apply for small business financial help of up to $2 million.  There is a special page for this on the SBA website.

Delaware’s Response to COVID-19

Delaware is not falling short on doing something about COVID-19. On March 17, Governor John Carney submitted an application for the SBA to provide Delaware an Economic Injury Declaration. This makes loans available to small businesses and nonprofit organizations in New Castle, Kent and Sussex counties.

Florida’s Response to COVID-19 (with Recession Business Funding Opportunities)

Florida is taking the following steps to offer relief from the impact of the novel coronavirus. The Florida Small Business Emergency Bridge Loan Program is available to small business owners in all Florida counties.  This is statewide to all those that experienced economic damage as a result of COVID-19.

Short-term, interest-free working capital loans are intended to bridge the gap between the time a crisis hits and when a business has longer term recovery resources available[AF1] . Loans under this small business financing program are short-term debt loans made by the state of Florida using public funds. They are not government grants.

Georgia’s Response to COVID-19

This is what Georgia is doing about COVID-19. On March 16, Governor Brian Kemp declared a public health state of emergency. Georgia has qualified for SBA Economic Injury Disaster Loans.

Hawaii’s Response to COVID-19 (with Recession Business Funding Opportunities)

Hawaii is taking these steps in response to the novel coronavirus. Hawaii’s House Resolution No. 54 established the House Select Committee on COVID-19 Economic and Financial Preparedness. The committee will work with representatives from local and state government.  They will include private industry and nonprofits to inform the House of Representatives on the State’s economic and financial preparedness.

The Select Committee is tasked with examining economic and financial issues.  That includes identifying the potential economic and financial impact to the state. So it also includes developing short-term and long-term mitigation plans.  In addition, they will be monitoring COVID-19 conditions and outcomes.

Due to Hawaii’s unique position in reliance on tourism, you should expect for this committee’s mandate to broaden.

Idaho’s Response to COVID-19 (with Recession Business Funding Opportunities)

How is Idaho is handling COVID-19? On March 13, Governor Brad Little declared a state of emergency. The Governor also created a Coronavirus Working Group. So this group meets at least weekly to support the work of Idaho’s public health agencies. And they will increase coordination and communication around the many aspects of the issue.

The Joint Finance-Appropriations Committee approved Governor Brad Little’s request to transfer $2 million to the Governor’s Emergency Fund to help in Idaho’s response. But it does not appear that they have earmarked these funds at all for small businesses. This may change in time.

Illinois’s Response to COVID-19

What is Illinois doing about the COVID-19 situation? On March 9, Governor JB Pritzker issued a disaster proclamation giving the state access to federal and state resources to combat the spread of the virus. The state of Illinois is also releasing recommendations for an infectious disease outbreak response plan.

Indiana’s Response to COVID-19

This is what Indiana is doing to address COVID-19. On March 16, Governor Eric Holcomb announced restaurants, bars, and nightclubs would have to close. Unemployment claimants can do everything online and are not required to be there in person.

The SBA issued a disaster declaration for Indiana, offering financial assistance for Hoosier small businesses impacted by COVID-19. Small businesses, small agricultural cooperatives, and nonprofits across the state are eligible. So they can apply for low-interest loans up to $2 million. This is to help overcome the temporary loss of revenue due to COVID-19.

Business owners can use these loans to pay fixed debts, payroll, accounts payable and other bills. Loan interest rates for small businesses and nonprofits are 3.75% and 2.75%, respectively, with terms up to 30 years.

Iowa’s Response to COVID-19

Here’s how Iowa is handling COVID-19. Iowa is encouraging employers to participate in a voluntary work-sharing arrangement. This is as an alternative to layoffs. Employer accounts will not be charged for benefits paid under the VSW program directly or indirectly related to COVID-19.

In addition, eligible small business grants in amounts ranging from $5,000 to $25,000 are now available.  The new program also includes a deferral of sale and use or withholding taxes due. And it has a penalty and interest waiver.

Eligibility requires:

  • Business disruption due to the coronavirus pandemic
  • Employment of 2-25 people before March 17, 2020

These Small Business Relief Grants will help businesses that are eligible maintain operations or reopen for business when this is all over.  The funds cannot be used to pay debts acquired before March 17,2020.

Grant applications will go through a review process by the Iowa Economic Development Authority.  They will determine the grant amount by the level of impact. This will include loss of sales revenue and workers.

Tax assistance applications will go through review by the Iowa Department of Revenue.  They will determine if deferral and waiver is appropriate.

Kansas’s Response to COVID-19

This is what Kansas is doing about the coronavirus. On March 12, Governor Laura Kelly declared a state of emergency. The Governor has also temporarily prohibited utility and internet disconnects.

Kentucky’s Response to COVID-19

This is what Kentucky is doing about COVID-19. On March 6, Governor Andy Beshear declared a state of emergency. Public-facing facilities can only stay open if six-foot minimum social distancing is possible. The Commonwealth also provided guidelines for correctional facilities.

On March 16, Kentucky filed an application for an economic injury disaster loan declaration to get access to small business disaster assistance loans from the SBA. These loans will be for up to $2 million to small businesses affected by COVID-19.

Louisiana’s Response to COVID-19

Here is how Louisiana is dealing with COVID-19. From March 13 – 16 there was a declaration. And then there were two additions to it. Governor Mark Bel Edwards declared a state of emergency. Legal deadlines were postponed until at least April 13. Driver’s license expiration dates are postponed until May 20.

Maine’s Response to COVID-19 (with some Recession Business Funding Opportunities)

Maine is taking action as well. On March 17, Governor Janet Mills and the Maine Department of Health and Human Services (DHHS) took immediate steps to ensure access to critical services and benefits for Maine people, while protecting the health of employees and the public in response to COVID-19.

First, MaineCare will waive all copays for prescriptions, office visits, emergency department visits, radiology and lab services. Also, all Bureau of Motor Vehicles offices are closed until further notice.

In addition, the SBA has approved Maine’s March 16 application for SBA Economic Injury Disaster Loans to help Maine businesses overcome any temporary loss of revenue due to COVID-19.

Maryland’s Response to COVID-19

On March 5, Governor Larry Hogan declared a state of emergency and a catastrophic health emergency. On March 17, the Governor announced significant reductions in local and commuter bus, and light rail services to slow the spread of the virus.

If an employee receives unemployment benefits as a result of a coronavirus-related business shutdown, the employer’s unemployment taxes could increase. Unemployment benefits are proportionately charged to each employer based on weeks worked and wages earned in each individual’s base period.

Contributory employers could see an increase in their tax rate, which would result in higher taxes.But reimbursing employers will not be charged dollar for dollar for benefits paid.  This should help avoid higher than expected unemployment costs.

There has been a March 23, 2020 update.

Massachusetts’s Response to COVID-19 (with Recession Business Funding Opportunities)

On March 16, Governor Charlie Baker announced a $10 million small business recovery loan fund to help companies struggling because of efforts to slow the coronavirus.

The fund will provide emergency capital up to $75,000 to Massachusetts-based businesses with under 50 full- and part-time employees.  This includes nonprofit groups. Loans are immediately available to eligible businesses. No payments are due for the first six months.

Michigan’s Response to COVID-19

On March 16, Governor Gretchen Whitmer temporarily expanded eligibility for unemployment benefits.

Benefits are extended to workers with an unanticipated family care responsibility.  This includes those who have childcare responsibilities due to school closures. Or who are forced to care for loved ones who become ill. It also covers workers who are sick, quarantined, or immunocompromised. This is if they are with no access to paid family and medical leave or are laid off. It also covers first responders in the public health community who become ill or are quarantined due to exposure to COVID-19.

Load restrictions are suspended for deliveries that meet immediate needs for medical supplies and equipment. This is for supplies related to the testing, diagnosis, and treatment of COVID-19.

They are also suspended for supplies and equipment necessary for community safety, sanitation, and the prevention of community transmission of COVID-19. These are items such as masks, gloves, hand sanitizer, soap, and disinfectants.

Other suspensions include those related to food for the emergency restocking of stores.  Also, those related to equipment, supplies, and persons necessary to establish and manage temporary housing, quarantine, and isolation facilities related to the COVID-19 emergency.

These changes also cover persons designated by federal, state, or local authorities for medical, isolation, or quarantine purposes and persons necessary to provide other medical or emergency services, the supply of which may be affected by the COVID-19 emergency.

Michigan and the SBA

On March 17, the Governor applied for disaster relief for small businesses from the SBA. The Small Business Association of Michigan is encouraging the state to use the Business Interruption Insurance system to help those affected.

Under the proposal, businesses could apply for reimbursement from the state or the Michigan Strategic Fund. It would be processed through the existing Business Interruption Insurance system or the Michigan Department of Insurance and Financial Services.

Minnesota’s Response to COVID-19

Similarly, here is how Minnesota is handling the coronavirus situation. On March 13, Governor Tim Walz declared a peacetime emergency. Several places of public accommodation are closed. Beyond taverns and restaurants this also includes: hookah bars and vaping lounges, amusement parks, and country clubs.

For businesses which must lay off workers, the Governor ordered that the Minnesota Unemployment Insurance Program not use unemployment benefits paid as a result of the COVID-19 pandemic in computing the future unemployment tax rate of a taxpaying employer. This should keep tax rates down for employers.

Mississippi’s Response to COVID-19

On March 14, Governor Tate Reeves declared a state of emergency. As of March 17, Mississippi courts are restricting the size of gatherings in the state’s courtrooms for eight weeks to help slow the spread of the virus. Utility shutoffs are prohibited for the next 60 days.

Missouri’s Response to COVID-19

Along the same lines, here’s how Missouri is handling COVID-19. On March 13, Governor Michael Parson declared a state of emergency. The Governor also directed the Missouri State Emergency Management Agency and the Missouri Department of Economic Development to seek assistance for Missouri businesses through the SBA’s Economic Injury Disaster Loan program.

Montana’s Response to COVID-19

This is what Montana is doing about COVID-19. On March 10, Governor Steve Bullock declared a state of emergency. Uninsured Montana residents will be covered for COVID-19 testing and treatment. Employees laid off as a result of shutdowns due to COVID-19 are eligible for unemployment benefits. On March 17, the state became eligible for disaster relief loans from the SBA for small businesses.

Nebraska’s Response to COVID-19

On March 13, Governor Pete Ricketts issued a state of emergency. On March 17, the Governor issued an executive order to loosen unemployment eligibility restrictions. Nebraska has a COVID-19 hotline for information on the virus and government response.

In addition, Nebraska small businesses are eligible for disaster loans from the SBA.

Nevada’s Response to COVID-19

On March 17, Governor Steve Sisolak ordered a shutdown of nonessential businesses, including casinos and retail stores, for 30 days. The Gaming Control Board offered procedures for closing casinos.  Also, low-interest loans will be available from the SBA for businesses to address debt, payroll or other bills.

New Hampshire’s Response to COVID-19

New Hampshire has taken measures as well. On March 17, Governor Chris Sununu banned all landlords from starting eviction proceedings and prohibited all foreclosures during the state of emergency initiated in response to COVID-19.

He also barred utility providers, such as electric, gas, water, telephone, cable, fuel and internet, from disconnecting service for nonpayment.

New Hampshire small businesses are eligible for disaster loans from the SBA. The state is switching to single-use bags for now. That means businesses may not be allowing reusable bags in stores.

New Jersey’s Response to COVID-19

The New Jersey Economic Development Authority , or NJEDA, has a portfolio of loan, financing, and technical assistance programs available to support small and medium-sized businesses.

Currently, several State agencies are engaging with local business leaders, local financial institutions, and business advocacy groups as well. Basically, this is to better understand what supports would have the most impact to ensure business and employment continuity.

New Mexico’s Response to COVID-19

On March 11, Governor Michelle Lujon Grisham declared a state of emergency. Then, on March 23rd the governor ordered a Shelter In Place for the entire state. New Mexico has qualified for the SBA Disaster Loan Assistance program to assist businesses negatively impacted by the COVID-19 public health emergency.

This includes low-interest federal disaster loans up to $2 million.  The funds are to provide working capital to small businesses and non-profit organizations suffering substantial economic injury as a result of COVID-19.

New York’s Response to COVID-19

On March 8, New York City Mayor Bill DeBlasio announced the City will provide relief for small businesses across the City seeing a reduction in revenue because of COVID-19. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero interest loans of up to $75,000 to help mitigate losses in profit.

The city is currently on a lockdown. Since New York is now a major site for the novel coronavirus, expect more changes soon.

New York State (Outside New York City)

On March 17, Senator Pam Helming and Assemblyman Colin J. Schmitt called for the establishment of a $890 million Small Business Emergency Assistance Fund for the State of New York. The $890 million would come from state settlement funds that are currently earmarked for use during economic uncertainty.

North Carolina’s Response to COVID-19

On March 17, Governor Roy Cooper ordered bars and restaurants closed to sit-down service. The Governor’s order also lifted some restrictions on unemployment benefits to help workers unemployed due to Covid-19 and those who are employed but will not receive a paycheck. Additionally, it adds benefit eligibility for those out of work because they have the virus or must care for someone who is sick.

North Carolina businesses are eligible for disaster loans from the SBA.

North Dakota’s Response to COVID-19

This is what North Dakota is doing about COVID-19. On March 13, Governor Doug Burgum declared a state of emergency.

North Dakota is seeking eligibility for emergency disaster loans for small businesses from the SBA. Small businesses will need to fill out an economic injury worksheet which will help the state qualify.

Ohio’s Response to COVID-19

On March 9, Governor Mike DeWine declared a state of emergency. As a result, the Ohio Department of Health prohibits mass gatherings of 100 or more persons.

Ohio is eligible for emergency disaster loans from the SBA. It is estimated that about 1,400 small businesses in Ohio will qualify for funding.

Oklahoma’s Response to COVID-19

On March 17, Governor Kevin Stitt urged Oklahomans to avoid eating in restaurants.  He also discouraged discretionary travel and shopping trips. And he discouraged gatherings of more than ten people. But he initially did not declare any closings.

The Governor received a great deal of backlash for a tweet of him eating in a crowded restaurant with his family. After that, the Governor walked that back and declared a state of emergency.

As a result, Oklahoma small businesses are eligible to apply for emergency disaster loans from the SBA.

Oregon’s Response to COVID-19

Oregon encourages participation in its work share program.  The goal is to minimize layoffs. The City of Portland provides support via Portland Community SOS.

Pennsylvania’s Response to COVID-19

What is Pennsylvania doing about COVID-19? On March 16, 2020, Governor Tom Wolf strongly urged non-essential businesses across the state to close for at least 14 days to help mitigate the spread of COVID-19.

The Keystone State’s main economic response is to direct businesses to the Pennsylvania Industrial Development Authority to get low-interest loans. Another suggestion was the Department of Community and Economic Development and their working capital loans could be of assistance to businesses impacted by COVID-19.

Rhode Island’s Response to COVID-19

The SBA announced it is offering low-interest federal disaster loans for working capital to Rhode Island small businesses suffering substantial economic injury as a result of COVID-19.

For businesses, municipalities, K-12 and other entities, Microsoft is providing six months of Office 365 tools for free to enable remote collaboration, file sharing and video conferencing. They’re also offering free assistance to set up these tools.

South Carolina’s Response to COVID-19

On March 13, Governor Henry McMaster declared a state of emergency. For restaurants, the Department of Health and Environmental Control will not be conducting routine inspections. But they will come and provide a non-graded evaluation and consultation upon request.

South Carolina small businesses are eligible for emergency disaster loans from the SBA.

South Dakota’s Response to COVID-19

Here’s what South Dakota is doing about COVID-19. On March 13, Governor Kristi Noem declared a state of emergency. The Governor is working with the SBA to obtain Economic Injury Disaster Loans for South Dakota businesses.

Tennessee’s Response to COVID-19

Here is what Tennessee is doing about COVID-19. On March 12, Governor Bill Lee declared a state of emergency. One part of the declaration is that it allows the construction of temporary health care structures in response to COVID-19. It also permits the waiver of certain regulations on childcare centers.

The Governor has applied for Tennessee to be eligible for emergency disaster loans from the SBA for small businesses.

Texas’s Response to COVID-19

On March 13, Governor Greg Abbott declared a state of emergency. Certain trucking regulations are being suspended to allow for the easier delivery of supplies.

The Governor has requested eligibility for emergency disaster loans for small businesses from the SBA.

Utah’s Response to COVID-19

This is how Utah is handling COVID-19. On March 6, Governor Gary Herbert declared a state of emergency. The Governor included the Salt Lake Chamber on the Utah Coronavirus Task Force to ensure the business community is considered throughout the current situation. Utah ski slopes closed due to COVID-19.

Utah small businesses are eligible for SBA emergency disaster loans. The city of Ogden has 0% loans of up to $10,000 available for small businesses. Furthermore, terms are 10 years with up to a 12 month deferral on payment.

Vermont’s Response to COVID-19

On or about March 11, Governor Phil Scott declared a state of emergency. The SBA will be able to provide Economic Injury Disaster Loans under a Governor’s Certification Disaster Declaration.

Also, the Agency of Commerce and Community Development is looking for data on impacts in the following areas:

  • Economic Injury
  • Supply Chain
  • Workforce (Including that caused by lack of childcare)
  • Business Travel
  • Visitor Travel and Tourism Activities; and
  • Remote Work Capabilities.

Contact a Vermont State Business Development Center for a disaster recovery guide.

Virginia’s Response to COVID-19

On March 12, Governor Ralph Northam declared a state of emergency. Regional workforce teams will be activated to support employers that slow or cease operations. Employers who do slow or cease operations will not be financially penalized for an increase in workers requesting unemployment benefits.

The Governor is authorizing rapid response funding, through the Workforce Innovation and Opportunity Act.  This is for employers eligible to remain open during this emergency. Funds may be used to clean facilities and support emergency needs.

Washington DC’s Response to COVID-19

On March 17, Mayor Muriel Bowser announced that the SBA has accepted the District of Columbia’s declaration for assistance in the form of economic injury disaster loans following the advent of COVID-19. Furthermore, DC businesses can start applying now.

While the SBA directly administers this loan program, the Department of Small and Local Business Development, led by Director Kristi Whitfield, will work with the SBA on behalf of the District of Columbia.

Washington State’s Response to COVID-19 (with Recession Business Funding Opportunities)

By March 18, Governor Jay Inslee’s office had compiled a partial list of resources to support economic retention and recovery related to COVID-19 coronavirus.

The Washington State Department of Commerce’s Export Assistance Team division can help companies identify alternative markets.  They can also provide firms with STEP Vouchers. These vouchers defray certain costs. These costs include those of trade show or trade mission fees, airfare, interpreter and translation services, business matchmaking, export training programs and more.

West Virginia’s Response to COVID-19

In West Virginia, Secretary of State offices throughout the state will not serve walk-in business and licensing customers. All these services can be completed online or by paper. For paper submission, packets and paperwork may be submitted in-person at a drop-off location or via the U.S. mail.

Per an application by Governor Jim Justice, West Virginia small businesses can apply for emergency disaster loans from the SBA.

Wisconsin’s Response to COVID-19

On March 12, Governor Tony Evers declared a state of emergency. The Governor worked with U.S. Sen. Tammy Baldwin to help secure federal funding to support efforts in responding to COVID-19 in Wisconsin.

On March 11, the Centers for Disease Control and Prevention announced that Wisconsin will be receiving more than $10.2 million to support response and prevention efforts.

Wyoming’s Response to COVID-19

What’s happening with Wyoming? On March 13, Governor Mark Gordon declared a state of emergency. Wyoming suggests small business owners apply with the SBA for low interest loans. They also suggest talking to bankers and other lenders for small business to see if short-term financial arrangements can be made. Entrepreneurs can talk to a Wyoming Small Business Development Center Network staff members. They can provide nontechnical advice and answer questions.

Other Relief and Recession Business Funding Opportunities

Some corporations and national charities are jumping in to offer relief to displaced workers, businesses, and other individuals.  While some do not directly help businesses themselves, the argument can be made that helping employees definitely helps businesses. This type of help can also help employers keep their employees during these times.

Plus, more government financial aid to industries could be forthcoming. There will likely be even more help for small business owners in financial trouble.

USBG National Charity Foundation

For workers, some charities are jumping in.  The USBG National Charity Foundation now offers a bartender emergency assistance program to help those who experiencing financial hardship in the industry.  Those eligible can get help to pay bills and other expenses due to loss or decrease in income related to the coronavirus pandemic in the form of a grant.

To qualify for the grant, you must be a bartender, a child of a bartender, or be married to a bartender.  You also have to show tangible proof of emergency.

Facebook Small Business Grants

Facebook recently announced their coronavirus relief effort for small businesses. $100,000,000 in cash grants and ad credits will be awarded to up to 30,000 small businesses that are eligible in over 30 countries Facebook operates. They promise share more details as they become available.

GrantWatch.com

GrantWatch has a page dedicated to government grant money available for coronavirus relief.

Recession Business Funding Opportunities: Other SBA Loans and Programs

While the emergency measures being taken by the Federal government to ensure access to SBA disaster loans are helpful, the other SBA programs and resources are still open and available.  Don’t discount or discredit their helpfulness.

7(a) Loans

This is the Small Business Administration’s flagship loan program. It offers federally funded term loans up to $5 million. The funds can be used for expansion, purchasing equipment, working capital and more. Banks, credit unions, and other specialized institutions in partnership with the SBA process these loans and disburse the funds. It’s a great form of lending for small businesses.

The minimum credit score to qualify is 680.  There is also a required down payment of at least 10% for the purchase of a business, commercial real estate, or equipment. The minimum time in business is 2 years. In the case of startups, business experience equivalent to two years will suffice.

This is by far the most popular loan program the SBA offers.  Funds are available for a broad range of projects, from working capital to refinancing debt. And it even includes buying a new business or real estate.

504 Loans

These SBA business loans are also available up to $5 million.  Funds can pay for machinery, facilities, or land. Generally, they are for expansion.  Private sector lenders or nonprofits process and disburse the funds. They work especially well for commercial real estate purchases.

Terms for 504 Loans range from 10 to 20 years.  Funding can take from 30 to 90 days. They require a minimum credit score of 680.  The asset that is being financed must be used as collateral. Furthermore, there is a down payment requirement of 10%.  This can increase to 15% for a new business.

Also, to qualify, you be in business at least 2 years, or management must have equivalent experience if the business is a startup. Still, it’s a good form of lending for small business.

Microloans

Microloans of up to $50,000 are available through this program. Basically, they work for starting a business, purchasing equipment, buying inventory, or for working capital. Community based non-profits administer microloan programs as intermediaries.  Unlike other SBA programs, financing for these loans is directly from the Small Business Administration.

Interest rates on these loans are 7.75% to 8% above the lender’s cost to fund. In addition, terms go up to 6 years.[AF2]  Microloans can take upwards of 90 days to fund. The minimum credit score is 640.  In addition, collateral and down payment requirements vary by the small business lending source.

SBA CAPLine

There are 4 distinct CAPLine programs that differ mostly in the expenses they can fund. Each of them carries a maximum amount of $5 million and an interest rate that ranges from 7% to 10%. Funding can take 45 to 90 days.

CAPLine American Business Lending Programs

The four different programs are:

  • Seasonal CAPLines -Financing for businesses preparing for a seasonal increase in sales.
  • Contract CAPLines -Financing for businesses that need funding to fill a contract.
  • Builder’s CAPLines -Financing for businesses taking on a real estate or construction project.
  • Working capital CAPLines -Financing for businesses that are struggling with a short-term slump in sales.

Credit score must be at least 680 to qualify.  There is no minimum time in business requirement.  That is, unless you are getting a seasonal CAPLine. That one carries a one-year business requirement.

SBA Community Advantage Loans

This program is a pilot set to either expire or extend in 2020. Its purpose is to promote economic growth in underserved areas and markets. Credit decision makers overlook factors such as poor credit or low revenue if the business has the potential to stimulate the economy or create jobs in underserved areas.

Loan amounts range from $50,000 to $250,000 with a maximum interest rate of 11%.  Terms range up to 25 years. It’s a great form of USA business lending for underserved areas.

 Other Programs

In addition to these loan programs, the SBA offers additional programs and resources for certain groups. Examples include:

  • Veterans Advantage- General-use business loans with no guarantee fee for majority veteran-owned small businesses.
  • International Trade- General-use financing for businesses actively involved in international trade or hurt by competition from imports.
  • Export Working Capital Program- Short-term working capital for exporters backed by invoices or other business assets.

Recession Business Funding Opportunities: Non-Traditional Lenders

If you are a traditional type person, now may be the time to start thinking outside of the box.  Private, non-traditional lenders are going to keep lending for a bit after the traditional lenders tighten up the spigot. The nature of their business allows them to keep the funds flowing a little longer and a little more freely.

Usually, the interest rates with these lenders are higher than those of banks and credit unions.  But their approval requirements are easier to meet. And due to the rate cut by the Fed, interest rates should still be lower than they were before the crisis. Here are a few of our favorites.

OnDeck

Apply online with OnDeck and get a decision as soon as processing is over. Loan funds will go to the bank account you select. Financing can be fast. Entrepreneurs can use such a loan to establish their company’s credit history by making prompt payments. Thankfully, they offer fixed rates. Amounts from $5,000- $500,000 are available.

With OnDeck, you will need to have a 600 or better personal credit score for a minimum of one owner. There is also a 3 or more years in business requirement.  In addition, $250,000 or better gross yearly earnings is necessary. You cannot have a bankruptcy in the last 2 years. Unresolved liens and judgements are also deal breakers.

StreetShares

StreetShares is a loan provider offering term loans, credit lines, and specialized veteran company bonds.  Also, small business loans and investing alternatives are available. Most recently, they offer contract financing.  This is similar to invoice factoring. Pre-Approval takes just a few minutes. It does not hurt individual credit. Loans are available ranging from $2,000- 100,000.

You need to have one year or more in business and $25,000 or better in yearly income. Often, StreetShares will make exceptions for high-earning businesses at least 6 months old. Still, you need to have a 620 or better individual credit rating, be a United States citizen, and have reasonable credit. If you do not have reasonable credit, you will need a guarantor that does.

LoanBuilder

LoanBuilder is a service of PayPal.  It concentrates on short-term lending to midsize businesses. They provide term loans. You might have the ability to get a loan by the next business day. They have customizable loans without an origination fee.

Loans range from $ 5,000- $500,000. Requirements include a 550 or better personal credit score, $42,000 or more in annual profits, and 9 months or more in business.

 BlueVine

Get quick money with BlueVine. They offer invoice factoring as well as lines of credit. BlueVine can process financing in just a day. Loan amounts from $5,000 to 100,000 are available. Lines of credit are not available in all states. Like others, requirements are 6 or more months in business as well as $100,000 or more in yearly income. Plus, you need to have a 600 or better personal credit rating.

Credibly

Credibly is a direct loan provider that specializes in unsecured business funding. It can take just a day or two from application approval to financing. Funding can be used for overhead or day-to-day operations. Loans are available from $5,000- $250,000. Your personal credit does not need to be super-high.

Credibly requires a 500 or better individual credit score.   In addition, 6 or more months in service and $15,000 or higher in average monthly deposits are required. Furthermore, you must have at least $10,000 in monthly deposits.

Fundbox

If you start with a search for an online lender, Fundbox is going to be one of the first to pop up.  It is a line of credit rather than a loan, but it is a great funding option because there is no minimum credit score requirement.

They offer an automated process that is super-fast. Repayments are automatic, meaning they draft them electronically.  They occur on a weekly basis. Remember, you could have a repayment as high as 5 to 7% of the amount you have drawn currently.  That is because the repayment period is comparatively short. This means you need to be sure you have enough funds in whatever account you connect them to so that it can cover your payment each week.

Loan amounts come as low as $100 and as high as up to $100,000.  The max initial draw is $50,000. Though there is no minimum credit score requirement, they do require at least 3 months in business, $50,000 or more in annual revenue, and a business checking account with a minimum balance of $500.

Upstart

Upstart is an online lender that uses a completely innovative platform for loans.  The company itself questions the ability of financial information and FICO on their own to truly determine the risk of lending to a specific borrower.  They choose to use a combination of artificial intelligence (AI) and machine learning to gather alternative data instead. They then use this data to help them make credit decisions.

This alternative data can include such things as mobile phone bills, rent, deposits, withdrawals, and even other information less directly tied to finances.  The software they use learns and improves on its own. You can use their online quote tool to play with different amounts and terms to see the various interest rate possibilities.  Typically, business loans are available ranging from $1,000 to $50,000. Interest rates vary greatly, ranging from 7.5% to 35.99%. Repayment terms can be either 3 -year or 5-year.

To be eligible for a loan with Upstart, you must meet the following qualifications:

  • Credit score of 620+
  • No bankruptcies or negative public records
  • No delinquent accounts
  • Meet debt to income standards (they only note they will check this ratio, not what their standards are.)
  • Have fewer than 6 inquiries in the past 6 months on your credit report, not including those related to student loans, vehicle loans, or mortgages

These are the requirements they list on their website.  One independent review said that the requirement for the debt to income ratio is a maximum of 45%. It also says that the minimum annual income has to be at least $12,000.  For more information visit our Upstart review.

Fora Financial

Founded in 2008 by college roommates, online lender Fora Financial now funds more than $1.3 million in working capital around the United States. There is no minimum credit score, and there is an early repayment discount if you qualify.

The minimum loan amount is $5,000 and the maximum is $500,000. The business must be at least 6 months in operation and the monthly revenue has to be $12,000 or more. There can be no open bankruptcies.

Bond Street

Offering term loans of $10,000 to $1 million, Bond Street terms are for up to 1 to 3 years. Bond Street will ask for both EIN and SSN.

The offer arrives within 3 days. Bond Street will only do a soft credit pull, and 640 or better credit score is likely to get you a loan.  But Bond Street will look at other factors too. For example, they require 2 years in business and annual revenue of at least $200,000.

Like others, rates start at 6% and go up to 22%. APR works out to be 8 to 25%.  Also, there is a 3 to 5 % origination fee.

Advantages are the soft credit pull and the fact that they will look at factors other than your personal credit if your FICO score is low. Another benefit is that Bond Street can offer very large loans if you qualify. Disadvantages are the longer time in business requirement and high APR.

Lending Club

Popular online lender Lending Club offers term loans. Similarly, business loans from $5,000 to $300,000 with from 1 to 5 years are available.

Quotes are ready in 5 minutes are less. Thankfully, funds are available in as little as 48 hours if approved. Furthermore, there are no prepayment penalties.

For these loans, annual Revenue must be $75,000 or more. In addition, you must be in business for 2 years or more. Personal FICO score of 620 or better is required.  Interest Rates are regularly 5.99% to 29.99%. Total annualized rates starting at 8%.

Fortunately, annual revenue requirements are not too high. Another good thing is funds are available quickly. Unfortunately, rates can get high, but the Fed rate cut helps with that some.

Quarter Spot

Quarter Spot is an online lender that offers short term loans. Amounts ranging from $5,000 to $150,000 are available. The terms are 9 to 18 months. Like others, Quarter Spot will only do a soft credit check when you apply. To qualify, your company must have annual revenue of $200,000 or more. Also, you have to have a personal FICO Score of 550 or better. There is no fee to apply.

The minimum time in business is 12 months. Surprising to some, you must have a minimum average bank balance of $20,000. In addition, they require a minimum of $16,000 in monthly sales.

The borrower must own at least 50% of the business. Their rates are 25% to 40%.

Advantages are that the personal FICO score requirement is relatively low. Minimum average bank balance requirement is also fairly low. Disadvantages are that maximum rates are rather high.

Rapid Advance

Rapid Advance offers standard, select, and preferred loans. For standard loans, $5,000 to $1 million is available. Their terms are 4 to 12 months.  Your company must have annual revenue of $120,000 or more. Also, you must have a personal FICO Score of 580 or better. The minimum time in business is 2 years.

For select loans, $15,000 to $1 million is available. Their terms are 6 to 15 months. You must have annual revenue of $240,000 or more and a personal FICO Score of 620 or better. The minimum time in business is 3 years. 1.12 to 1.31 factor rate.

For preferred loans with Rapid Advance, $15,000 to $200,000 is available. Their terms are 9 to 18 months. You must have annual revenue of $240,000 or more. For these, you must have a personal FICO Score of 660 or better.

The minimum time in business is 6 years. A minimum bank balance of $10,000 or more is also required. Consequently, borrowers must have at least 10 deposits from 5 different sources every month. There is a 1.11 to 1.25 factor rate.

The advantages with these loans are many.  First, there are a few choices for loan types. Also, the maximum available amounts are high. In contrast, disadvantages include high minimum bank balance requirements and high annual revenue requirements.

Kiva

Kiva is an online lender that is a little different. For example, the interest rate is 0%.  This means, even though you must pay it back it is absolutely free money. They don’t even check your credit. But there is one catch.  You must get at least 5 family members or friends to throw some money in the pot as well. In addition, you have to pitch in a $25 loan to another business on the platform.

Accion

If your personal credit is okay, Accion may be a good fit. This is a microlender.  They are a nonprofit, that offers installment loans to both startups and already existing businesses. The minimum credit score is 575. Sometimes, they will go as low as 500. You don’t have to already be in business.  But if you are not, you must have less than $500 in past due debt. In addition, your business needs to be home or incubator based. This makes it perfect for those looking to start a new business from home while social distancing.  It is also a great option for adapting an existing business to a home format.

Loans are from 6 to 60 months and interest rates range from 7% to 34%. A personal guarantee, and sometimes specific collateral, is necessary in most circumstances.

Why Choose a Private Lender During this time?

It is very possible you are reading this thinking to yourself, why would I choose over one of the already mentioned recession business funding opportunities?  The truth is, in our current situation, you wouldn’t. Exhaust every available option for coronavirus relief first. SBA loans, rural small business grants, and anything else you can find, apply for it now.  But what if that isn’t enough? Honestly, it is often easier to get funding from an online lender. This is especially true if your personal credit score is not up to par.

Most term loans and many lines of credit require a personal credit check. That is even if you have great business credit.  With the U.S. and even the world economy spiraling into a crash for the ages, credit scores are bound to follow. Some lenders may take your business credit into account.  Still, if your personal credit stinks, it won’t help you much. Private lenders tend to have lower minimum personal credit score requirements than traditional lenders.

Next, an online lender will typically send you the funds faster.  That is a huge asset right now. Sometimes you can have the money in as little as a few days, with approval coming in as little as 24 hours.  For sure, time is of the essence right now.

An Online Lender Could be the Answer for Recession Business Funding Opportunities

If you can go with a traditional lender, great.  They often have better rates and terms. But like many business owners, you may not have that option.  In that case, an online or private lender may be the perfect solution. They will have recession business funding opportunities. Approval requirements allow many more borrowers to get their funds quickly and easily. This is especially important in times of crisis like this.  Even beyond COVID-19, the recession is sure to continue for a while. You need a plan, and private, online lenders could be a big part of that plan. Business to business lending could even be a good choice.

Understandably, the process of finding the best online lender for your business can be overwhelming.  There is no need to stress more than you probably already are.  We can help you find the right lender, and even walk you through the entire application process.  We want to make it as easy as possible for you to get recession funding.

Consider Online Business Lending

You need to find the right one for you though.  Consider the following factors:

  • How much do you need?
  • What do you need the funds for?
  • What is your credit score?
  • How much of a payment can your budget handle?

It’s also important to note, there are a lot of predatory lenders online.  You must be careful. The list above is a great starting point, but don’t stop there.  There are a lot of options, so take the time necessary to do your research. If a type of small business lending seems too good to be true, then it probably is.

Recession Business Funding Opportunities: Be Fundable Despite What Changes May Come

Of course, nothing is the same today as it was even a couple of days ago.  Requirements necessary to gain access to funds will likely change and continue changing.  Not only will federal requirements to access SBA loans change, but states are adding relief programs daily. Be sure to check back as our list of state programs will be updated.

For now, the basic elements of fundability will not change.  Ensuring your business is as fundable as possible, and protecting your fundability even now, will only increase the ability of your business to get the USA loans funding it needs to survive during hard economic times.

Make Sure Your Business Is Set Up to Access Recession Business Funding Opportunities

Now is a good time to review how your business is set up.  It needs a foundation of fundability. Basically, that is setting your business up in a way that it appears to be a fundable entity separate from you as the owner.  It may seem that now is the worst time to be doing this. But if your business is currently shut down due to the coronavirus, you not only need to focus not only on how to stay in business. You also need to know how to get the most funding you possibly can when things start to go back to normal. Building fundability helps even for a guaranteed business loan.

While keeping credit in order is vital, the truth is it may be hard to do right now.  Access what small business funding you can. But research options for funding for small business that will work even if your credit isn’t great.  In addition, beyond credit, you can control other things that affect your ability to get funding, to a point. This will offset some of the potential reduction in credit score.

You Need Dedicated Contact Information

For example, you cannot share a phone number and address with your business.  A business must have a dedicated business phone number and address.

How do you do that? First, you can get a separate phone line and have a separate business location.  This is pretty standard. But it can cause issues if you run your business online out of your home.

Virtual Offices for Recession Businesses

In this case, you can get a virtual office address and a VoIP (Voice over Internet Protocol) business phone number.  Basically, it allows you to speak on the phone via the internet instead of phone lines. A virtual address service will often offer other services as well.  These may include live receptionists and meeting space. VoIP phone numbers can typically be forwarded to any number you want. As a result, you do not have to get a dedicated line to have a dedicated number.

Why does your business contact information need to be separate from your own?  There are a number of reasons. But for fundability, there are only two. First, it makes your business seem more professional.  In a lender’s eyes, this lends itself to appearing more fundable.

Next, it creates the separation needed between business and owner. This can ensure the business can build credit separate from the owner’s personal credit. While this isn’t the only step necessary for separation, it is a necessary step.

You Need an EIN for Many Recession Business Funding Opportunities

Another thing to consider is whether your business has an EIN.  A lot of business owners, especially those running their business as a sole proprietorship have an issue. They tend to use their social security number on business documents.  But an EIN is a much better option.

It not only further separates the business from the owner and appears more professional.  In addition, it helps ensure that business credit accounts stay off your personal credit report.

You can get an EIN for free from the IRS.  The process is fast and easy. It will make it easier to get government small business loans.

You have to Incorporate

There are several reasons for this.  First, incorporating creates separation from the owner.  This is necessary for building business credit and appearing fundable to lenders. It also helps protect your personal assets should the business struggle. There are tax benefits as well.  Your options for incorporation include an S-corp, an LLC, or a corporation.

The one that you choose doesn’t matter much for fundability.  Make that choice based on the level of liability protection you need and you budget.  It’s best to talk to a tax professional or attorney when making the decision.

A Separate Business Bank Account is Essential for Traditional and Recession Business Funding Opportunities

You need a separate, dedicated business bank account.  It helps create the separation necessary to build business credit, which is a huge piece of being fundable.  But some of the recession business funding opportunities available during this time may also require a separate business bank account.

Be Consistent

This part of fundability can get complicated because it has so many interconnecting pieces.  In fact, the consistency part can be especially daunting. This is because it goes all the way back to the start of your business.  If it has been in operation for a while, you can see how that could be an issue.

The thing is, most business financing applications are denied due to fraud concerns.  In truth, this can be an issue for you if you have different information across various records.  All names, contact information, etc. needs to be consistent. This is when it comes to public records, accounts, websites, social media, and licenses.

Website

This is a great time to leverage your company website.  First, you must have one. Yet, it can’t just be something you throw together.  It needs to be professionally designed. In addition, you need to pay for hosting.  With consumers trying to stay in due to social distancing, online trading is exploding. If your website isn’t up to par, you are going to miss out big time.

Also, your business email address needs to have the same URL as your website also.  Truly, you shouldn’t use a free email service such as Yahoo or Gmail.

Do You Have Business Credit? If So, What’s It’s Like?

If you don’t have business credit, consider beginning to work on it if possible.  You do have business credit? Now is not the time to let it slip. Now, take advantage of the recession business funding opportunities available to help you.

Do You Have a D-U-N-S Number?

Dun & Bradstreet is the largest and most commonly used business credit reporting agency.  Likewise, each business in their database has a D-U-N-S number.  If you do not have one, they will not recognize you.  As a result, any accounts reporting will be discarded.  You must have this number.

Other Agencies

Other agencies can affect your fundability as well.  For example, there are two other main business credit reporting agencies.  They are Experian and Equifax. Honestly, your record with these and other agencies can affect your ability to get funding also.

Other credit agencies exist, and some lenders do use them.  CreditSafe and FICO SBSS are just a couple of examples. In addition, your file with LexisNexis and The Small Business Finance Exchange can  affect your business credit score.  Of course, that affects fundability too.

Monitor Your Business Credit

Monitoring is especially important during hard economic times. First, you need to stay on top of which accounts are being reported and what they are reporting.  You don’t want anything to slip. Next, if it does start to slip, you need to know so you can take action.

If you find mistakes, you can contact the reporting agency in writing and have them corrected.  Remember, send copies of backup documentation, not originals.

Keep Up with Financials

Honestly, this is more important now than ever before. Currently, some banks are even reviewing weekly financial information instead of monthly or quarterly. This way, they can see if income is starting to slide due to the COVID- 19 pandemic.  It makes sense for small business lenders to work this way.

If you are a very small business, you may not give much thought to your financial statements.  But it’s essential to do so, even now. You want to give yourself every opportunity to get US business lending.

Pay Your Bills, Both Business and Personal

Try hard to stay on top of bills during this time.  Take advantage of all of the programs and resources, both state and federal, to help you do so. This is essential to maintaining healthy business and personal credit. Also, both of these are vital to fundability.

The Application Process

For this period of time, the main thing to remember here is to only apply for the loan for small business from government programs you qualify to take advantage of.  Also, be prepared. You have to act fast. Yet, if you enter the federal small business loan process without everything you need, it will only slow things down. Take the time to read the requirements and gather what you need to first.

Want to review your options with one of our consultants? Give us a call at 877-600-2487.

Starting a Business?

Now could be the perfect time to start recession proof small businesses. There are businesses that do well in recession, so do your homework. But remember, the best recession proof businesses are the ones which help people. If you want us to show you the best way to start and run a business even during a recession then check out our Startup Accelerator Course.

Check Out Recession Business Funding Opportunities During the COVID-19 Pandemic and Help You Protect Your Fundability

Of course, you’re thinking now is not the time to be building anything.  You need to stay afloat. If you are not already fundable you can’t worry about that right now.  Here’s the thing though…you can. First, get what United States government small business loans are available quickly.  Then, take a second, breath, and consider the fundability of your business.

Honestly, there is no time like the present to get an EIN, separate your contact information, and even incorporate.  While you do these things, you will be setting yourself up to building fundability and business credit. And you will be ready even during these hard times.  That in turn, can only increase your access to funds over the long-term.

Basically, it is a matter of protecting what you have and growing what you can right now.  Truly, it is a great time to borrow. The Fed’s rate cut should lead to lower interest rates than we have seen in years.  In addition, many state and federal governments are working to make borrowing more accessible to businesses. This is to both help them stay afloat and to shore up the impending economic decline.

Start here to find what’s available to you both federally and in your state.  And we’ll update often. So, if your state isn’t doing anything right now, come back every day to see if things have changed.  The key to surviving is to take advantage of the recession business funding opportunities available to your business today. Time is short. Funds are limited. You must act now. Don’t wait.

The post Ride the Rapids: Your Essential Guide to Accessing Unique Recession Business Funding Opportunities Related to Coronavirus  appeared first on Credit Suite.