Tag: Find

How to Find Your Target Audience

When I first started out in marketing, I thought traffic was everything.

I wanted to be as big as companies like HubSpot. Just look at the image above and you’ll see how many visitors they are getting.

They generate 29.61 million visitors a month from 11.74 million people. And those visitors produce roughly 10 billion dollars of market cap.

Now, let’s look at NeilPatel.com. Can you guess how many visitors I’m getting each month?

I’m generating roughly 8.717 million visitors a month from 3.616 million people.

When you look at it from a unique visitor perspective, HubSpot is getting 3.24 times more unique visitors than me.

So, in theory, I should be worth roughly 3 times less than them, right? Well, technically I’m not even worth 1/10th of them. Not even close.

Why is that? It’s because I didn’t go after the right target audience, while HubSpot did.

And today, I want you to avoid making this massive mistake that I made. Because marketing is tough, so why would you start off by going after the wrong people?

It will just cause you to waste years and tons of money like it did with me.

Defining your target audience is the first and most essential step towards success for any company or business, especially if you are just getting started.

So before we dive into things, let me first break down what you are about to learn in this article:

  • What is a Target Audience?
  • The Difference Between Target Audience and Persona
  • The Importance of Selecting Your Target Audience Correctly
  • How to Define your Target Audience: 6 Questions to Help You
  • Creating Customized Content for Your Audience

Let’s get started!

What is a target audience?

A target audience is a share of consumers that companies or businesses direct their marketing actions to drive awareness of their products or services.

I know that is a tongue twister, so let me simplify it a bit more…

The intention here is to target a market with whom you will communicate with. A group of people with the same level of education, goals, interests, problems, etc. that will need the product or service you are selling.

Basically, you want to target people who will buy your stuff.

If you target people who don’t want to buy your stuff, you might get more traffic to your site… but it won’t do much for you. And you’ll be pulling out your hair trying to figure out why none of your visitors are buying from you.

Now before we dive into the details on finding your target audience, let’s first go over “personas” because many people confuse them with a target audience and if you do, you’ll just end up wasting time.

The difference between a target audience and a persona

You already know the definition, so I won’t bore you with that again.

The most commonly used data to define the target audience of a company are:

  • Age
  • Gender
  • Education background
  • Purchasing power
  • Social class
  • Location
  • Consumption habits

Examples of a target audience: Women, 20-30 years old, living in Los Angeles, with a bachelor’s degree, monthly income of $4,000 – $6,000, and passionate about fashion and decor.

If you start a company without knowing your exact target audience, you could end up like me instead of HubSpot… we wouldn’t want that now. 😉

And here is another example. Let’s say you have a business that sells educational toys. So your target audience might be children, mothers, education specialists, or teachers.

Or you have a motorcycle business. Your audience will definitely not be people younger than 18, right?

There is no point in trying to reach everyone in order to increase your chances of sales and profit. It will actually cost you more and decrease your profit margins in the long run.

Now let’s go over “personas”…

Persona

In marketing, personas are profiles of buyers that would be your ideal customers.

Personas are fictional characters with characteristics of your real customers. They’re developed based on target audience research and may help you direct your marketing actions better.

A persona is a person that may be interested in what you have to offer since they’re very connected to your brand and you must make an effort to make them a client and retain them.

A persona involves much deeper and more detailed research than the target audience since it includes:

  • Personal characteristics
  • Purchasing power
  • Lifestyle
  • Interests
  • Engagement in social networks
  • Professional information

Persona example: Mariana, 22, blogger. Lives in Miami, Florida. Has a journalism degree. Has a blog and posts makeup tutorials and tips about fashion and decor. She always follows fashion events in the area and participates in meetings with other people in the fashion niche. As a digital influencer, she cares a lot about what people see on her social network profiles. Likes to practice indoor activities and go to the gym in her free time.

If I had to define the main difference between persona and target audience, I’d say that the target audience considers the whole, in a more general way, while the persona has a more specific form.

And if you want help creating personas for business, check out this article about creating the perfect persona. But for now, let’s focus on finding your right target audience.

The importance of choosing your target audience correctly

The big mistake I made was that I didn’t figure out my target audience when I first started. I just created content and started marketing to anyone who wanted traffic.

But that is a bit too vague because not everyone who wants more traffic is a good fit for my ad agency.

They could just want to be famous on Instagram or YouTube, which is a lot of people, but that doesn’t help me generate more income.

Funny enough, there are more people who are interested in getting Instagram followers than people who want to learn about SEO.

But once you know your target audience, it’s easier to find and perform keyword research. For example, I know that I shouldn’t waste too much time writing articles about Instagram or Twitch even though the search volume is high.

It will just cause me to get irrelevant traffic and waste my time/money.

And that’s the key… especially when it comes to things like SEO or paid ads. The moment you know your target audience, you can perform keyword research correctly and find opportunities that don’t just drive traffic, but more importantly, drive revenue.

Now let’s figure out your target audience.

How to define your target audience: 6 questions to help you

Figuring out your target audience isn’t rocket science. It just comes down to a few simple questions.

6 actually, to be exact.

Go through each of the questions below and you’ll know the exact audience you are targeting.

1. Who are they?

When thinking about who might be your target audience, you must consider who are the people who identify with your brand.

One way to find out is to monitor who follows, likes, shares, and comments on your posts on social sites like Facebook, LinkedIn, YouTube, and Instagram.

If someone is willing to engage with you, then chances are they are your target.

But in many cases, your ideal audience may not always be on the social web. They might be inactive on social media but buy from your company frequently or sign up for your services.

Even those who bought from you only once must be considered a part of your target audience, as someone who bought once might buy again.

There is no point in making a great effort to sell if you don’t make a similar effort to keep the customers you have already gained.

Customers like to feel special, and that is why the post-sales process is so important. Your relationship with the customer must remain even after the purchase is completed.

2. What are their greatest difficulties, problems, or desires?

What is cool, interesting, and good for you might not be for the customer.

You can’t think only of yourself when it’s time to define the difficulties, problems, and desires of your target audience. You must put yourself in their shoes.

Don’t make offers based on what you think. Make them according to research grounded in data, previous experiences, and analysis of your potential customers’ behavior.

Understand the greatest difficulties your audience faces to try to help solve them.

3. Where do they find the information they need daily?

Everyone needs information.

Every day you are surrounded by tons of information on the channels that you follow, but when you need it the most, where do you go to find that information?

Identify the communication channels most appropriate to your target audience and try to talk to them using a specific language from their universe.

For example, I know my target audience will either read marketing blogs or spend a lot of time on social sites like YouTube and LinkedIn consuming information.

4. What is the benefit of your product?

Everyone wants solutions for their problems and to make their lives easier. This is a collective desire and it’s no different for your target audience.

Think a little about your product and the problem of your target audience. What benefits does your product or service offer? What can it do to solve those problems? What is the main value offer?

With so much competition, you must try to find your competitive advantage in your niche and always try to improve your product, offering something extra that others do not.

5. What draws their attention negatively?

Being optimistic helps a lot, but thinking about the negatives can also help, especially when we talk about target audiences.

Better than considering what your audience wants, you can consider what it definitely doesn’t want, what it considers negative, and what it avoids.

With this powerful information in hand, you may have more chances to captivate your potential customers.

Avoiding what they consider negative is the first step to gain their approval. After that, you only need to apply other strategies to do efficient marketing.

6. Who do they trust?

Trust is everything to your target audience. No one purchases a product or service from a company they don’t know or trust.

This is why reviews on Amazon are read and so important for sellers. They know it builds trust… it’s also helped Amazon become a trillion-dollar company.

Even though this is the last question to define target audiences, it is one of the most important ones.

This is why the reputation of your company is so important. Taking care of the relationship with your customers is essential as they will spread information about your brand on the internet and to their friends and family.

If you get good reviews, have positive comments, and garner a great reputation, this will be the base for potential customers to feel motivated to buy from you.

Creating customized content for your audience

Now that you know your audience, let’s get to the fun stuff. Let’s create content for them.

Everyone creates content, right? Just look at Google if you don’t believe me.

You just have to put a keyword on Google and you will see thousands if not millions of results for each keyword.

When you research “best earbuds” on Google, this is what you see:

Content Customized for your Audience 1

First, there are options of products from Google Shopping, with ads and prices for different earphones for various audiences, needs, and tastes.

Next, there is a list of sites and blogs with information about different types of earphones and comparisons:

Content Customized for your Audience 2

There is no shortage of content about this subject or any other that you can search for. Anyone can create and publish text with no barriers.

The question is how you can make this content more personalized and attractive for your consumer.

Everyone produces content. Millions of publications are posted every day.

The secret though is to create content that targets your ideal customer and no one else. Generic content may produce more traffic, but it will also produce fewer sales.

To find what your target audience is searching for, you can use Ubersuggest. Just type in a keyword related to your audience.

target audience ubersuggest 1

From there, on the left-hand navigation, click on “keyword ideas.” You’ll then be taken to a report that looks like the one below.

Content Customized for your Audience 2

You now have topics to choose from. Not all of them will be a good fit but some will.

I recommend that you go after the long-tail terms, such as “best earbuds for running” (assuming your target audience is active). The more generic terms like “best earbuds” will drive traffic and a few sales, but it won’t convert as well as more specific terms.

The same goes if you are doing keyword research for the service industry or even the B2B space.

Types of content to create

Once you have a list of keywords you want to target, you might be confused as to what type of content you should be creating.

You’ll want to create content based on your funnel. In essence, you want to cover each step of the funnel.

target audience sales funnel

The top of the funnel involves content created for visitors and leads, that is, people that might access your site, blog, or social networks by chance.

When thinking about the top of the funnel, the idea is to create materials with more general subjects, with clear and easily accessible language.

It could be educational content, including clarifications or curiosities about your product or service or something somehow related to your industry.

The middle of the funnel is when the conversions happen. In other words, in this stage, the person who has a problem and the intention to solve it considers the purchase of your product or service.

It’s the middle of the road, but it is not the sale itself, because it’s still only about ideas. It’s in the middle of the funnel that you get closer to your target audience and generate more identification.

Next: bottom of the funnel content. This content focuses more on your product or service.

Here you can introduce details about functions, benefits, and other direct information about your product or service.

It is far more likely to convert here as this particular audience has practically decided to buy already and you are only going to give them a final push.

Conclusion

I’m hoping this article saves you from making the big mistake I made.

But knowing your target audience isn’t enough, though. It doesn’t guarantee success. You still need to create and market your content. That’s why I covered keyword research in this article as well.

Once you create content, you may also want to check out these guides as they will help you attract the right people to your site:

So have you figured out your target audience yet?

The post How to Find Your Target Audience appeared first on Neil Patel.

Find Business Start Up Loans and Watch Your New Business Explode

You know when it’s nearing the 4th of July and you go shopping for fireworks?  As a kid, you look for the biggest one, assuming it will have the most impact.  You want it to not only look pretty, but also have a powerful boom.  Finding business startup loans can be similar to finding the perfect fireworks for your summer celebration. 

Business Startup Loans Could Be Just the Spark Your New Business Needs

How can you possibly compare business startup loans to fireworks?  It’s really easy when you consider the sheer number of options available when it comes to start up loans, just as there are an overwhelming number of options when you are choosing fireworks.

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

Traditional and SBA Loans 

biz startup loans Credit SuiteThese are like the sparklers of business startup loans.  They seem easy at first, but if you grab the wrong end, they are not fun at all!  Why are SBA loans lumped with traditional loans?  Basically, SBA loans are traditional loans with a government guarantee. Generally, applications are processed and funds are dispersed through traditional lenders. 

However, not everyone is eligible for a traditional loan.  For those that do not meet the requirements of traditional loans, SBA loans are a viable option.  However, the requirements and government red tape still trip a lot of borrowers up.  Here are the best SBA options for business startup loans. 

7(a) Loans

This loan program features federally funded term loans in amounts up to $5 million. In addition to functioning as business startup loans, these funds can be used to expand an existing business, purchase equipment, or to fund working capital, among other things. Banks, credit unions, and other specialized institutions partner with the SBA to process and disburse the cash.  

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, but for start ups, business experience equal to two years meets this requirement. 

504 Loans

These loans are also available up to $5 million. Terms range from 10 to 20 years, and funding can take from 30 to 90 days. They require a minimum credit score of 680, and collateral is the asset it is financing. There is also a down payment requirement of 10%, which can increase to 15% for a new business.  

Like 7(a) loans, there is a 2-years in business requirement, but for startups, if management has equivalent experience that fits the bill.

Online Lenders 

Online lenders are like the roman candles of business startup loans.  They carry more punch than sparklers, meaning they are easier to get your hands on than traditional or SBA loans.  However, if you mishandle them you can be in for a rude awakening.  Here are a couple to help you start your search. 

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.  Instead, they use a combination of artificial intelligence (AI) and machine learning to gather alternative data.  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. 

OnDeck 

Obtaining financing from OnDeck is quick and easy. First, you apply online and receive your decision once application processing is complete. If you receive approval, your loan funds will go directly to your bank account. The minimum loan amount is $5,000 and the maximum is $500,000. 

Just like any other online lender, they do have certain requirements to qualify for a loan.  For example, a personal credit score of 600 or more.  Also, you must be in business for at least one year. Annual revenue must be at or exceed $100,000. In addition, there can be no bankruptcy on file in the past 2 years and no unresolved liens or judgements. 

The Big Finish

Now, for that one diamond in the rough.  The one you spot across the tent that promises awe and wonder.  You aren’t sure if it will pay off because you’ve never actually seen one like it in action before.  You wait in anticipation to use it as the big finish at the end of the show and, this time, you are not disappointed.  That’s the credit line hybrid. 

Credit Line Hybrid: The Business Startup Loans Option You Didn’t Even Know Existed

What if there were an option that allowed you to have an even better interest rate than a secured loan, and yet get the money faster and easier than any type of traditional funding.  Imagine being able to get business funding without having to supply bank statements or credit stubs? Now, consider that you could get funding in a few days rather than weeks without supplying any collateral or documents? This is exactly what the credit line hybrid allows you to do. 

Basically, it allows you to fund your business without putting up collateral, and you only pay back what you use.  It’s like revolving credit, without the need for collateral, but with lower interest rates than most credit cards. 

Qualifications? 

It’s not as hard as you may think to qualify.   Of course, good personal credit is key, but your score doesn’t have to be as high as with traditional loans.   Your credit score should be at least 685.  Also, you can’t have any liens, judgments, bankruptcies or late payments.  Furthermore, in the past 6 months you should have less than 5 credit inquiries.  Lastly, you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

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

If you do not meet all of the requirements, it’s okay. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business.  If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding. 

Credit Line Hybrid Benefits

There are many benefits to using a credit line hybrid.  For example, it is unsecured, meaning you do not have to have any collateral to put up.  Also, the funding is “no-doc.”  This means you don’t have to provide any bank statements or financials.  

Going further, typical approval is up to 5x that of the highest credit limit on the personal credit report. Sometimes you can even get interest rates as low as 0% for the first few months, allowing you to put that savings back into your business. 

The process is pretty fast, especially with a qualified expert to walk you through it.  One other benefit is this.  With the approval for multiple credit cards, competition is created.  This makes it likely, if you handle the credit responsibly, that you can get interest rates lowered and limits raised every few months. 

The Right Platform

Of course, location and platform are key elements to any good fireworks show.  You want to have a great, safe place to shoot from.  Beyond that, you want to make sure there is nothing to obstruct vision.  Fundability is the platform from which you shoot off your business startup loans for all to see the beautiful results. 

What’s fundability?  It’s the ability of your business to get funding.  It embraces a number of far reaching factors, but it all starts with the foundation. 

The foundation of fundability is in how your business is set up.  It has to be recognizable to lenders as a fundable entity separate from you, the owner.  How do you make that happen?  Well, like any foundation, it is best to start at the beginning.  If you start with a fundable foundation from the inception of the business, everything will run more smoothly.  However, if your business is already up and running, then you may not have that option.  That’s okay, it’s never too late to start, but start now.  The longer you wait the harder it will be. 

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.   What may be surprising is, that doesn’t mean you have to get a separate phone line, or even a separate location.  You can still run your business from your home or on your computer.  You don’t even have to have a fax machine.  

In fact, you can get a business phone number and fax number pretty easily that will work over the internet instead of phone lines.  In addition, the phone number will forward to any phone you want it too so you can simply use your personal cell phone or landline if you want.  Whenever someone calls your business number it will ring straight to you. 

Faxes can be sent to an online fax service, if anyone ever happens to actually fax you.  It may seem outdated, but it does help your business appear legitimate to lenders. 

You can use a virtual office for a business address. How do you get a virtual office?  What is that?  It’s not what you may think.  This is a business that offers a physical address for a fee, and sometimes they even offer mail service and live receptionist services.  In addition, there are some that offer meeting spaces for those times you may need to meet a client or customer in person. 

EIN

The next thing you need to do is get an EIN for your business.  This is an identifying number for your business that works in a way similar to how your SSN works for you personally.  You can get one for free from the IRS.

Incorporate

Incorporating your business as an LLC, S-corp, or corporation is necessary to fundability.  Lenders are more likely to believe you are a legitimate business if your business is incorporated. Incorporation also offers some protection from liability. 

Which option you choose does not matter as much for fundability as it does for your budget and needs for liability protection.  The best thing to do is talk to your attorney or a tax professional.  When you incorporate, you become a new entity.  That means you start over with credit history and time in business.

This is why you have to incorporate as soon as possible.  In itself it is necessary for fundability, but time in business affects fundability also.  The longer you have been in business the more fundable you appear to be.  That starts on the date of incorporation, regardless of when you actually began doing business. 

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. 

There’s more to it however.  There are several types of funding you cannot get without a business bank account, and some lenders and credit cards want to see a business account  with a minimum average balance.  In addition, you cannot get a merchant account without a business account at a bank. Without that, you can’t take credit card payments.  Studies show consumers tend to spend more when they can use a credit card.

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

Licenses

For a business to be legitimate it has to have all of the necessary licenses it needs to run.  If it doesn’t, red flags are going to fly up all over the place.  Do the research to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels. 

Make Your Business the Brightest

Let’s be real.  There’s a lot more at stake when you are choosing business startup loans than when you are choosing fireworks.  In the end however, the goal is the same.  You want the one that gives you the most bang for your buck.

The post Find Business Start Up Loans and Watch Your New Business Explode appeared first on Credit Suite.

Top 10 Brilliant Ways to Find Recession Startup Funding

The COVID-19 pandemic caught the world by surprise and turned the economy on its head.  If you are a business trying to stay afloat during this time, we can help.  The Federal government has approved funding through  The CARES Act, including the Paycheck Protection Plan.  In addition, many states and local organizations are offering their own unique funding options.  If you are thinking of starting a business during this time, keep reading for recession startup funding options.

It is Possible to Find Recession Startup Funding, but You Have to Get Creative

During a recession, prices go up, employment goes down, and lenders tend to hold on to funds much tighter. This can make funding a startup very difficult.  The truth is, startup funding during a recession is not easy to come by.  In fact, many of the traditional option will not work for the majority.  Recession startup funding takes a little more creativity.

You may even wonder why anyone would start a new business during a recession.  It’s all in your perspective.  The fact is, a recession could be the perfect opportunity to start your own business.

For example, if you are one of the many who find themselves unemployed during a recession, you are no longer tied down.  You have nothing to lose, and you can use that freedom to start brainstorming ways to find startup funding. The recession can actually be a catalyst! 

Despite the fact that there are many, many ways to get startup funding, it is still one of the greatest roadblocks to business ownership. It the first stumbling block most come across, and a recession makes it even bigger.  Recession startup funding can even seem like a mirage to some, but it is a real thing.  It just takes a little creativity to bring it out of hiding.

Some sources of funding for your startup will not work during a recession.  You need to know what your options are, what works for startup funding, and what will work best in your situation.  Then you can start looking.

Why Small Business Loans Do Not Always Work, Especially for Recession Startup Funding

With this startup funding source, recession is a huge issue.  It can work for some, but the traditional lenders tend to really hold on to their funds tighter during an economic downturn.  Since this is the source that most people immediately look to when they want to start a business, you can see why they get discouraged early on. They get turned down for traditional financing and just give up.  It can look like that is the end of the line.

Note as well: business lending tends to reduce if not dry up altogether during economic downturns.

There is more than one place to get a business loan however, and some people do not realize that.

SBA loans

These loans are still offered through traditional lenders such as banks and credit unions, but the federal government guarantees them. Since they are not completely reliant on the credit score of the borrower to reduce risk, the required credit score is slightly lower to qualify.

There is a lot of red tape related to applying for SBA loans however, and it does take a significant amount of time. If you do not qualify for traditional loans and do qualify for SBA loans however, it is definitely worth the time it takes.

If you are looking to traditional lenders for small business loans as recession startup funding, you will most likely need to consider SBA Loans. 

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Alternative Lenders: The Super Heroes of Recession Startup Funding

These are lenders that, as a general rule, operate online. Most of the time borrowers can apply online or over the phone and know about approval within minutes. Funds usually only take 24 to 48 hours to hit their account. Though this timeline does vary among lenders, the point is the process is fast and easy.

They also will sometimes take other factors into consideration if the credit score isn’t fabulous. Length of time in business and annual revenue can play a role as well. This makes it a more accessible source of funding for startups than traditional lenders for many. In addition, repayment terms are often more flexible and manageable.

These types of lenders are easier to work with even during a recession, though an economic downturn may slow them down some, recession startup funds from these lenders will still be more accessible to most than those from traditional banks and credit unions.

Downfall of Small Business Loans for Small Business Funding

Any small business loan is going to require strict repayment and interest.  This is harder to manage for anyone during a recession, so keep that in mind when forming your plan of action.

Credit Line Hybrid

A credit line hybrid is basically revolving, unsecured financing.  It allows you to fund your business without putting up collateral, and you only pay back what you use.

What are the Qualifications?

How hard is it to qualify?  Not as hard as you may think.  You do need good personal credit.  That is, your personal credit score should be at least 685.  In addition, you can’t have any liens, judgments, bankruptcies or late payments.  Also, in the past 6 months, you should have less than 5 credit inquiries, and you should have less than a 45% balance on all business and personal credit cards.  It’s also preferred that you have established business credit as well as personal credit.

If you do not meet all of the requirements, all is not lost. You can take on a credit partner that meets each of these requirements.  Many business owners work with a friend or relative to fund their business. If a relative or a friend meets all of these requirements, they can partner with you to allow you to tap into their credit to access funding.

The Downside?

If you don’t have a decent personal credit score, you’ll need to take on a credit partner.

Bootstrapping: The Ultimate in Recession Startup Funding

You know what bootstrapping is right? Pulling yourself up by your bootstraps and all of that. Basically, it’s when you figure out how to use what you already have as startup funding. This could include a number of options:

  • · Savings
  • · Retirement
  • · Credit cards
  • · Additional mortgage on a home
  • · Home equity line of credit

If you use retirement or savings, then you can rest easy knowing you don’t have to pay anyone back but yourself.  

The Downside to Using Your Own Funds for Recession Startup Funding

The downside to this option is either the loss of retirement or savings, or significant personal debt. If your business is successful, it is not a problem.  However, if your business does not do well, you could find yourself with some pretty major financial issues.

If you happen to have access to the amount of personal funds it would take to fund a startup during a recession, you are likely going to struggle with letting go of those funds.  It is a definite risk, especially in economically tough times.  However, it may be less of a risk than extensive debt.  It could also be the only option available.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Crowdfunding

Crowdfunding is a much more viable option during economically stable times.  People that do not normally have disposable income may find that they have a little, and would like to help support a startup in return for a piece of the action.

This is still a possible source of recession startup funding, but much less likely.  There is simply less “extra” money in the pockets of consumers.  It is still worth a shot however.  

Popular Crowdfunding Platforms

There are a lot of crowdfunding platforms, but the two most popular are Kickstarter and Indiegogo. While they are very similar in most ways, they do differ in one major way.

For each, you have to set a funding goal. Kickstarter requires the campaign to reach the goal before you can access any of the funds. Indiegogo allows you to choose whether you want to receive funds as they come in, or wait until you reach the goal.

Indiegogo also offers an option to keep accepting funds on the same campaign even after you reach the original goal, rather than having to launch a new campaign to raise more funds.

The Downside of Crowdfunding

A very small percentage of crowdfunding campaigns are successful during the best of times. This shouldn’t deter anyone from trying, but there needs to be a realistic realization that a backup plan may be necessary, especially during a recession.

Small Business Grants

There are small business grants available if you qualify. Most often these are available to certain demographics including:

  • · Women
  • · Minorities
  • · Veterans
  • · Businesses in low-income areas

If you fall into one of these categories, a quick search could be very fruitful. There are grants available to those that do not fall into these categories, but they are not as common.

There are some grants offered by the government, but most often they are not awarded directly to businesses. Rather local governments and nonprofits disburse the funds. This may involve nothing more than accepting applications and awarding funds based on eligibility until money is gone.

Corporations and professional organizations also sometimes offer private grants as well based on their own application criteria and eligibility requirements.

During a recession there may actually be more options like this available, as the government is looking to help shore up the economy and increase circulation.

The Downside

Grants are an awesome source of recession startup funding if you can get one. However, they are highly competitive and therefore not guaranteed.

Do the Hustle: A Side Hustle Could Be the Answer to Recession Startup Funding

This one is a personal favorite. It could fall under bootstrapping, but in my opinion, it deserves its own category. While you are technically self-funding, this option requires you to work to raise funds rather than using funds you already have available or taking on more debt.

It also, in most cases, requires keeping your day job. When you use a side-hustle to create your own recession startup funding, the process is pretty slow. This is why most do not care to use this option. There are many benefits however.

Benefits of the Side Hustle

The first is that you can gauge the market a little. If you use your business idea as your side hustle, you can get a feel for what kind of demand might be out there. For example, if you want to open a bakery, you could bake breads, cookies, cupcakes, or whatever your specialty may be on the side and sell it. As you do so, you can save any funds you earn to go toward growing your business, and in the meantime, you are gaining a following and making a name for yourself and your product.

Your side hustle does not have to be your business idea at all. It can be as simple as cleaning or babysitting around your day job hours. The point is that you put every penny you earn back for funding your startup.

The Downside

This is a slower option, and some people do not want to wait that long. In addition, with unemployment down during a recession, it may be hard to find one job, let alone a second to use as a side hustle. Even simply things like cleaning houses and cutting grass may be hard, because a lot of people will be trying to save money by doing these things themselves.

Investors: One of the Oldest Forms of Startup Funding

One of the most obvious options, other than small business loans, is to find investors. This would be significant investment from one or a few different people, rather than small investments from a large number of people like in crowdfunding. In addition, investors most definitely invest in exchange for profit sharing, usually in proportion to their investment or a percentage they agree upon from the beginning.

The Downside

You give up some of your earnings. That’s not fun, but it could be worth it for the right investor.  Also, during a recession, investors tend to hold on to funds similar to the way lenders do.  It is a much greater risk to invest during a recession because of the economic uncertainty that exists.

Learn business loan secrets with our free, sure-fire guide. We can help you get money, even during a recession.

Partner Up: Two Heads are Better Than One 

You could also take on a partner. Sometimes the power of two is way stronger when it comes to startup funding. Where your credit score lacks, your partner’s may be strong. In most cases in life in general, two are better than one.

The Downside

Depending on how the partnership is structured, you may give up some of the managerial control.  Just like with investors, you will definitely give up a portion of the profits.

Contests: The Longest Shot Option for Recession Startup Funding

There are contests out there that offer startup funding as a prize. Think “Shark Tank.” You could try to get in on that specific contest, but there are smaller scale contests out there also. Similar to crowdfunding and grants, they are not guaranteed. They are certainly worth a shot however.

Some of them simply award prize money, while others, like “Shark Tank,” award investment funds. Either way, it is money you can use for startup funding that you do not have to pay back.

The Downside

Like grants and crowdfunding, winning a contest is not guaranteed.  It could end up being a lot of work for little to no payoff. During a recession, it is likely even fewer contests are available.  If you find one however, definitely take advantage.

Bartering

 It is difficult to fund a whole business by bartering, but in conjunction with one or more other sources of startup funding, it could be just the burst of energy you need to get you over the hurdle. Basically, it can make the funds you already have from other sources go further.  

What does this look like? Maybe you are great at keeping books, and you have a friend that is great at social media. You may offer to do his books in exchange for his creating and managing your online presence.

Maybe your buddy is adept at designing websites, or has a space that will work as a location for your business. You could offer equity in the business in exchange for a website or use of the space.

This is one source of recession startup funding that may actually help be more of a possibility during a recession than in a booming economy.  With people holding to funds tightly, they may be more likely to help you out for something in return other than money, as it will help them keep more money in their own pockets as well.

The Downside

There isn’t really a downside to this.  It may not fully fund a business, but it could definitely reduce the financial need and help you stretch the funds you do have further.  If you can find someone willing, this is a great option.

You Might Have to Get Creative, but You Can Find Recession Startup Funding

Sometimes the traditional ways work, and sometimes they do not. In a recession, the traditional ideas are sometimes even less useful. Creativity can be your best friend. You may have to use a few different sources of startup funding, recession or not. It can take longer than you originally anticipated, but slow and steady wins the race as they say.

If you work on winning grants or running a side hustle, it may feel like you will never finish the race, let alone win. Maybe you applied for loans but could not get approval. Now you are shaking yourself off and wondering if it is worth it. It is. Just keep trying. Consider the recession, though a challenge, to be an opportunity to do something not only different, but bigger and better in the long term.  The rain doesn’t last forever, and neither does a recession.  By starting your business now, you can be positioned for ultimate growth when the clouds finally roll away.

The post Top 10 Brilliant Ways to Find Recession Startup Funding appeared first on Credit Suite.

How to Find Small Business Loans for Women

Female business owners can find small business loans for women to help fund their business.  That’s not their only option though. The key, I think, lies with the terminology. The truth is, there are some funding options that are geared specifically toward women.  However, they are few and far between, and they aren’t really loans. While some female geared organizations offer funding options for women only, they are typically in the form of grants.  

During the COVID-19 situation, there are still loans out there which are specifically for women. But women entrepreneurs should also be looking into SBA Paycheck Protection Program funding.

Is There a Secret Sauce to Finding Small Business Loans for Women?

It isn’t a bad idea to pursue these options.  Yet, that can’t be where it ends. Honestly, you cannot rely solely on specific small business loans for women.  In fact, what you are really looking for are loans available to everyone that may work better for women than others.  Regardless, you need to position your business to be fundable no matter the gender of the owner. If there is a secret sauce, fundability is it.

Get our business credit building checklist and build business credit the fast and easy way.

Small Business Loans for Women: The Small Business Administrationsmall bus loans for women Credit Suite

When it comes to small business loans for women, the Small Business Administration is the cornerstone. Basically, since the loans are guaranteed by the government, they are easier for almost anyone to qualify for than regular traditional loans. Here’s a sample of the loan programs the SBA offers. 

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. These funds are distributed through traditional lenders. 

504 Loans 

These loans are also available up to $5 million and can buy machinery, facilities, or land. They are generally used for expansion.  Similarly, private sector lenders or nonprofits process and disburse these funds. Furthermore, they work especially well for commercial real estate purchases.  

Microloans 

Microloans are available in amounts up to $50,000. They work for starting a business, purchasing equipment, buying inventory, or for working capital. For these, community based nonprofits handle funds as intermediaries. 

SBA Express Loans 

These loans max out at $350,000 and have a much faster turnaround. In fact, the SBA takes 36 hours or less to make a decision. Also, there is not as much application paperwork.  As a result, they are a great option for working capital if you qualify. 

Other SBA Resources for Women

Remember, take a minute to check out the other resources the SBA offers for female entrepreneurs. For example, the Office of Women’s Business Ownership.  Their goal is to enable and empower business owners that are women via advocacy, outreach, and education as well as assistance.

Small Business Loans for Women: Private Lenders

Next, if the SBA doesn’t work out, or if you still need more funding, there are some private lenders for small business that tend to work well when it comes to loans for women in business. 

Lending Club

LendingClub functions as a peer-to-peer lender.  It offers mostly fixed-term small business loans. Borrowers that get loans from LendingClub generally use loans funds to buy equipment, finance growth or expansion projects, consolidate other debt, or even hire new people.

Lendio

Lendio offers a loan-connection service that dramatically cuts the time it takes for small business owners to find the perfect loan.  The key is, they do the legwork by vetting a network of competing small business lenders. With Lendio, funding is fast.  It sometimes takes as little as 24 hours.  

Blue Vine

BlueVine offers two options for small business financing.  They include lines of credit and invoice factoring.  Also, they offer the ability to talk with a financing advisor. Their application process takes place exclusively online.  The minimum loan amount is $5,000 and the maximum is $100,000.  To be eligible for financing from BlueVine,  you must be in business for at least 6 months, have revenue of $120,000 per year or more, and have a credit score of at least 600.  

Kiva

Kiva has a different lending model. In fact, their platform is vastly different.  They are a kind of  cross between crowdfunding and lending.  Surprisingly, their  loans have a 0% interest rate. That means, even though you have to pay it back, it is actually free money. In addition, there is no credit check. The only requirement is that you have to get at least 5 family members or friends to donate money for your business.  Furthermore, you yourself have to give at least a $25 loan to another business on the platform. 

Grameen

In contrast to most,  Grameen actually does offer microloans specifically for women.  The loan amounts range from $2,000 to $15,000.  They also offer financial training and support.  

As a bonus, they report payments to Equifax and Experian.  Consequently, these loans help borrowers build credit.

Small Business Loans for Women: Other Resources that Can Help

It can be a good thing to work with these organizations when you are trying to find small business loans for women. Truly, each exists to support and aid women business owners in their small business endeavors.  The tips, tricks, and support they offer can make all the difference in finding loans for women in business.   

Association of Women’s Business Centers

The AWBC runs a network of business centers geared toward women.  These centers work hard to help women succeed.  They offer training, business development, financing, and mentoring opportunities. 

National Association for Female Executives

Also known as NAFE, this organization does a lot as well.  For example, they sponsor events, provide training, and extend other resources to help female business owners achieve success.  

National Association of Women Business Owners

In the same way, the NAWBO works nationwide to offer training, events, and other resources to female owned businesses across the country. 

SCORE

 SCORE is the country’s largest network of expert business mentors that volunteer their time with more than 300 chapters and 10,000 volunteers.  They connect female business owners with mentors.  Alternatively, they can participate in a workshop to help them learn what they need to know to be successful.

Get our business credit building checklist and build business credit the fast and easy way.

Small Business Loans for Women: A Better Option

The thing is, your gender should not define the funding you are eligible to get.  While the nature of our society dictates this somewhat, there are things you can do to ensure your business if fundable despite your gender.  Any business, woman owned or not, should be fundable to ensure the availability of funding whenever needed. So, while you are looking for small business loans for women, make sure your fundability is in order.  

Start with the Foundation

Your business cannot be fundable if it is not set up properly.  That includes the following. 

  • Don’t Use Personal Contact Information for Your Business

This includes a business phone number and fax number,  business address, and email address. Not just any email address though.  It needs to have the same URL as your website. More on that in a bit. 

  • Dump the SSN for an EIN

An EIN is an identifying number for your business that works in a way similar to how your SSN works for you personally.  You can get one for free from the IRS.

  • Get Incorporated

Incorporating your business as an LLC, S-corp, or corporation is non-negotiable when it comes to building fundability for your business. .  

  • Open a Business Bank Account

Open a separate, dedicated business bank account.

  • Licenses

Do the research you need to do to ensure you have all of the licenses necessary to legitimately run your business at the federal, state, and local levels. 

  • Website

Spend the time and money necessary to ensure your website is professionally designed and works well.  Also, pay for hosting. Don’t use a free hosting service

Small Business Loans for Women: What Else Makes a Business Fundable?

The set up is not the end of the story however.  It simply sets the business up to build fundability. After that is done, the actual building begins.  Unfortunately, it may be more of a matter of damage control than building in the beginning, depending on history. 

Business Credit Reports, Business Credit History, and Credit Score

These detail the credit history of your business.  They are a tool to help lenders determine how credit worthy your business is.  

The most common places for lenders to pull a business credit report from  are Dun & Bradstreet, Experian, Equifax, and FICO SBSS.  Since you have no way of knowing which one your lender will choose, you need to make sure all of these reports are up to date and accurate. 

Lenders will be looking not only at your credit score, but your detailed credit history including: 

  • How many accounts are reporting payments?
  • How long have you had each account? 
  • What type of accounts are they?
  • How much credit are you using on each account versus how much is available?
  • Are you making your payments on these accounts consistently on-time?

Other Business Data Agencies 

There are other business data agencies that affect those reports indirectly.  Two examples of this are LexisNexis and The Small Business Finance Exchange. They gather data from different sources, including public records.  This means they could even have access to information relating to automobile accidents and liens. 

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

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?

Get our business credit building checklist and build business credit the fast and easy way.

Financial Statements

Both your personal and business tax returns need to be in order.  Not only that, but you need to be paying your taxes, both business and personal.  

Bureaus

There are several other agencies that hold information related to your personal finances that you need to know about.  For example, ChexSystems issues reports with information on bad checks. These reports can affect your bank score.  If you have too many bad checks, you will not be able to open a bank account.  That will seriously affect fundability. 

Anything can come back to haunt 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. 

Personal Credit History

Your personal credit score from Experian, Equifax, and Transunion affect the fundability of your business.  The number one way to get a strong personal credit score or improve a weak one is to make payments consistently on time. 

The Application Process

Everything about this affects whether or not you can get funding for your business.  Is your application complete and accurate? Are you applying for a loan product that fits your needs?  Is the timing right? Did you find a good lender match?

There is More to Funding than Finding Small Business Loans for Women

There is certainly nothing wrong with female business owners seeking small business loans for women.  They are a great first stop. In fact, now is a great time to borrow with the Fed cutting rates due to the coronavirus economic downturn.   Still, no one should let their funding hinge on their gender. If you work to build fundability for your business, whether you can get funding for your business will never be a question again. 

In fact, when you need funding and you have strong fundability, lenders will be competing to give you money.  With a deep understanding of what makes your business fundable, you will find you can get more funds with lower interest rates.  Gender has nothing to do with fundability, so don’t let it dictate the future of your business. Use gender specific financing to get started if you need to, but focus on total fundability to ensure ongoing business growth.

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Exactly how To Find A Good Mortgage Lender

Just how To Find A Good Mortgage Lender

A home is just one of the largest financial investments as well as acquisitions you will certainly make in your life time. With that said stated, it’s extremely essential that you pick a loan provider with a solid track record and also one that you really feel comfy with.

To aid establish your mind at simplicity a little bit, recognize that home loan providers have an unique passion in your finance. An excellent lending institution will certainly place with each other a high quality lending that functions ideal for you.

Look for reputable lending institutions that are acquainted with your market as well as make certain to ask inquiries. When talking with the lending institution, make certain that they can provide the finance within your schedule.

A couple of pointers and also points to take into consideration when searching for an excellent lending institution are:

– Get a couple of references– Ask your relative, close friends and also Real Estate representative that they suggest as well as could have handled in the past.

– When you satisfy the car loan police officer, do they show up expert, arranged and also well-informed?

– Find out which, if any kind of, subscriptions the lending institution holds, i.e., Better Business Bureau, Chamber of Commerce, Mortgage Lender’s Association, and so on

– Is the loan provider offering you choices to aid you with the deposit and also/ or shutting expenses?

– Ask the lending institution what their techniques of interaction will certainly be with you throughout the car loan procedure.

– Did the lending institution offer you with a Good Faith Estimate as well as Truth-In-Lending Disclosure? Lawfully, you need to be given with this documentation within 3 days after sending your application.

– What are the prices connected with the agreement, i.e., shutting expenses, and so on?

– Has the loan provider given you with duplicates of whatever you’ve authorized?

– Did the loan provider provide you a full checklist of every little thing you require to bring with you when you prepare to authorize the financing application?

– Does the loan provider call for that you authorize a Borrower/ Broker Contract? RUN if they do. You do not wish to associate with a broker that makes that need.

You intend to deal with loan provider that you trust fund. Ask for referrals and also speak to those people on your own if you still have inquiries when your meetings are completed. This is a large choice you’re making and also you deserve to obtain every one of the info you desire and also require.

Talk with them regarding the ideal method for you to structure your home mortgage as soon as you’re comfy with a home mortgage lending institution. When supplies for numerous financing kinds have actually been given, you must speak with various other home loan business and also contrast their prices to what you got. As well as constantly make certain to obtain your quotes in composing!

Bear in mind that the home loan that is ideal fit for you depends upon a number of points. Your present economic circumstance, exactly how and also if you anticipate your funds to transform, how much time you intend on maintaining your residence as well as exactly how comfy you are with the opportunity of your home mortgage repayment altering are all variables that require to be taken into consideration prior to authorizing any type of agreements.

Bear in mind additionally that info is encouraging and also the even more research study as well as expedition you do, the far better off you will certainly remain in the years ahead. See to it you are totally pleased with the lending institution you select since you desire somebody that will certainly exist if you have concerns, also after you close on your finance.

To aid establish your mind at simplicity a little bit, understand that home mortgage loan providers have an unique rate of interest in your car loan. An excellent loan provider will certainly place with each other a high quality finance that functions ideal for you.

When talking with the lending institution, make certain that they can provide the car loan within your schedule. – Does the loan provider need that you authorize a Borrower/ Broker Contract? When you’re comfy with a home mortgage lending institution, talk with them concerning the finest method for you to structure your home loan.

The post Exactly how To Find A Good Mortgage Lender appeared first on ROI Credit Builders.

Just how To Find The Top Home Owner Insurance Company

Exactly how To Find The Top Home Owner Insurance Company

Make certain you’re obtaining your cash’s worth by acquiring from the leading residence proprietor insurance coverage business when you make an acquisition as vital as residence proprietor insurance coverage.

There are several variables that enter into figuring out the leading homeowner insurer; ultimately, it comes down to your individual choice. You require standard standards to comply with.

Make certain the resident insurer is certified to do company in your state. You might have bought a property owner insurance plan with the leading resident insurer in the country; nevertheless, if the firm isn’t accredited to do company in your state you’ll more than likely face difficulty in the future. If the resident insurer isn’t accredited to do service in your state, your state’s division of insurance policy will certainly have the ability to do really little to assist you need to troubles in between you and also the property owner insurance provider occur.

To assist guarantee you’re picking the leading residence proprietor insurance coverage business, inspect the monetary toughness of the firm. Selecting an economically safe residence proprietor insurance coverage business is selecting a leading residence proprietor insurance policy firm.

Research study consumer problems. Discover what type of client issues are made versus the property owner insurance provider; try to find patterns amongst those grievances. Locate out in what way and also exactly how rapid the house proprietor insurance policy business dealt with the grievances.

Talk with your next-door neighbors. Referral is frequently the sincerest type of ad, so chat with your next-door neighbors concerning what resident insurer they utilize. Because your house is near their houses, outdoors elements such as weather and also criminal offense prices will certainly be comparable so you might have the ability to obtain a concept of the sort of property owner insurance coverage prices to anticipate.

You might have bought a residence proprietor insurance coverage plan with the leading house proprietor insurance coverage firm in the country; nevertheless, if the firm isn’t certified to do organisation in your state you’ll most likely face difficulty down the roadway. If the residence proprietor insurance policy firm isn’t certified to do service in your state, your state’s division of insurance policy will certainly be able to do really little to aid you ought to issues in between you and also the residence proprietor insurance policy business develop.

Selecting a monetarily safe and secure house proprietor insurance policy business is selecting a leading residence proprietor insurance policy firm.

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