Title Back USA gained $15,000.00 in unsecured business cards. With this he was able to help his business succeed and help increase revenue. Congratulations to our client and thank you for allowing us to help be a part of your success! Click Here to see how much funding you can get for your business. The post … Continue reading Funded again… $15,000.00 in unsecured business cards
Author: Ina Davis
How to Set Up a New Business in West Virginia
Starting a Business in West Virginia
A new business in West Virginia is not out of reach. So have you been wondering: how do I start a business in West Virginia? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in West Virginia during a recession?
New Business in West Virginia: Advantages and Disadvantages
Business Insider pegs West Virginia as the ninth worst state to start a business in, per a 2016 article. This is for the whole country. The state has the lowest density of startup businesses. There are 51.1 startup firms per 1,000 firms. It also has the third lowest percentage of people starting companies in the country. Potential employee education levels are above average. So is the percent of employees available to work.
But more businesses close than open in West Virginia. Also, the state has a low per capita GDP.
West Virginia has a variety of tax programs designed to bolster growth in specific industries.
Recent Changes?
In 2018, Forbes ranks West Virginia at number 49. Also in 2018, Fit Small Business clocks in West Virginia at number 44.
Why the small discrepancies? Of course all three of these sites have different methodologies. Nonetheless, the findings are pretty similar.
Fit Small Business says West Virginia is decent for taxes and cost of living. Costs of starting a business are in the middle of the pack. But quality of life is sub-par. And everything else is in the bottom ten. This includes a 48 for labor market. That is a measure of the desirability of an area and the number of people with bachelor’s degrees.
Forbes says West Virginia only has a decent ranking for business costs. Otherwise, all other measurements are in the bottom ten. Labor supply is dead last. For Forbes, the only state worse is Alaska.
Signs point to starting a business in West Virginia as being expensive. Only you can decide whether it is worth it.
New Business in West Virginia: Initiatives
The state also offers manufacturing businesses access to credits for qualified investments made in productive property. These credits can be used to offset up to 60% of a business’s income and franchise tax liabilities.
West Virginia also provides a credit on raw materials and also goods held in inventory by manufacturers. In addition, there is a High-Tech Manufacturing Credit. It can be used to offset up to 100% of a company’s tax obligation. But this is only if the company can meet job creation benchmarks.
Start a New Business in West Virginia – West Virginia Top Industries
Per the West Virginia Department of Commerce, the biggest industries in West Virginia are aerospace, energy, and also manufacturing. More top industries in West Virginia are metals, building products, and also automotive.
Yet more West Virginia top industries are chemicals and polymers, and fulfillment distribution. Another group of top West Virginia industries are technology and also information services. As in most states, the health care and social assistance fields are also large employers.
West Virginia Business Ideas
Smart business owners can find new opportunities. Work with the bigger industries in the state. Offer goods or services such as the development and distribution of safety equipment. Another idea is trucking for any industry. More new business ideas are computer support in areas such as programming and also data. Yet another idea is developing chemicals and also pharmaceuticals.
Here is how to start a new business in West Virginia.
Start a New Business in West Virginia – West Virginia New Business Secretary of State Requirements
Register a Business Name
Check for business name availability on the West Virginia Secretary of State’s website.
Corporations
A West Virginia corporation must have a unique name. Search online records and other records and catalogs to see if a name is available. Start by searching the database of registered West Virginia corporations available at the West Virginia Secretary of State website.
Corporate Name Reservations
You do not need to reserve a corporate name before you file to incorporate your small business. However, if a business owner wants to reserve a certain name for a corporation before the time that they file to incorporate, they should submit a name reservation application to the office of the West Virginia Secretary of State.
Download a name reservation application form at Reserve a West Virginia Corporation Name on the West Virginia Secretary of State website. The name chosen will then be reserved for a period of 120 days. There is a filing fee of $15.00 to reserve a name.
Business Permits and Licenses
Check out pages 4 and 16 of the Secretary of State’s Guide to Starting a Business for the best lists of professions that need licenses and where to get them.
Local Permits and Licenses
The Secretary of State offers a comprehensive roundup of West Virginia County websites.
Start a New Business in West Virginia – Business Registration
The West Virginia Secretary of State keeps forms you can file online. There is also an online business portal to help.
Tax Registration
Be sure to register with the West Virginia State Tax Department.
Start a New Business in West Virginia – Virtual Offices
Alliance and DaVinci do not offer West Virginia virtual business offices.
Regus offers West Virginia virtual business office space for Wheeling in Canonsburg, Pennsylvania, which is just over the border. For West Virginia virtual office space in Huntington, Morgantown, or Parkersburg, and in other parts of the state, ask local business owners. Also try computer user groups for leads in this area.
Other options may be virtual business office space in nearby states. These are Kentucky, Maryland, Ohio, Pennsylvania, and also Virginia.
Start a New Business in West Virginia – Build Business Credit
Small business credit is credit in a small business’s name. It doesn’t attach to an owner’s personal credit, not even when the owner is a sole proprietor and the solitary employee of the small business.
Consequently, a business owner’s business and personal credit scores can be very different.
The Advantages
Given that business credit is distinct from individual, it helps to safeguard a small business owner’s personal assets, in the event of litigation or business bankruptcy.
Also, with two distinct credit scores, a business owner can get two separate cards from the same vendor. This effectively doubles purchasing power.
Another benefit is that even startups can do this. Visiting a bank for a business loan can be a formula for disappointment. But building business credit, when done the right way, is a plan for success.
Personal credit scores depend on payments but also additional considerations like credit utilization percentages.
But for company credit, the scores actually merely hinge on whether a small business pays its debts punctually.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.
The Process
Building company credit is a process, and it does not occur without effort. A company must proactively work to develop company credit.
Nonetheless, it can be done readily and quickly, and it is much swifter than building personal credit scores.
Merchants are a big aspect of this process.
Undertaking the steps out of order will lead to repetitive rejections. No one can start at the top with business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a denial 100% of the time.
Start a New Business in West Virginia –Company Fundability
A small business must be fundable to loan providers and vendors.
For that reason, a business will need a professional-looking web site and e-mail address. And it needs to have website hosting from a company such as GoDaddy.
In addition, business telephone and fax numbers should have a listing on 411.com.
Also, the business telephone number should be toll-free (800 exchange or the equivalent).
A business will also need a bank account dedicated only to it, and it needs to have all of the licenses necessary for operation.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.
Dealing with the IRS
Visit the Internal Revenue Service web site and obtain an EIN for the small business. They’re free. Select a business entity such as corporation, LLC, etc.
A company can begin as a sole proprietor. But they will probably wish to switch to a type of corporation or an LLC.
This is in order to diminish risk. And it will take full advantage of tax benefits.
A business entity will matter when it concerns taxes and liability in the event of litigation. A sole proprietorship means the owner is it when it comes to liability and taxes. No one else is responsible.
Sole Proprietors Take Note
If you operate a business as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.
If you do not, then your personal name is the same as the company name. As a result, you can end up being directly accountable for all company financial obligations.
Additionally, per the IRS, using this structure there is a 1 in 7 possibility of an IRS audit. There is a 1 in 50 probability for corporations! Steer clear of confusion and considerably reduce the odds of an IRS audit simultaneously.
Setting off the Business Credit Reporting Process
Begin at the D&B web site and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a company in their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s sites for the small business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.
By doing this, Experian and Equifax will have activity to report on.
Vendor Credit Tier
First you need to build trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.
And with an established business credit profile and score you can start to get credit in the retail and cash credit tiers.
These types of accounts tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.
But to start with, what is trade credit? These trade lines are credit issuers who will give you initial credit when you have none now. Terms are often Net 30, instead of revolving.
Therefore, if you get an approval for $1,000 in vendor credit and use all of it, you need to pay that money back in a set term, such as within 30 days on a Net 30 account.
Details
Net 30 accounts must be paid in full within 30 days. 60 accounts have to be paid fully within 60 days. In comparison with revolving accounts, you have a set time when you must pay back what you borrowed or the credit you used.
To start your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting agencies. As soon as that’s done, you can then make use of the credit.
Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.
Vendor Credit Tier – It Makes Sense
Not every vendor can help like true starter credit can. These are merchants that will grant an approval with hardly any effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.
You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may need to apply more than once to these vendors. So, this is to demonstrate you are dependable and will pay on time.
Retail Credit Tier
Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then progress to the retail credit tier. These are service providers which include Office Depot and Staples.
Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.
One such example is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or higher.
Fleet Credit Tier
Are there 8 to 10 accounts reporting? Then progress to the fleet credit tier. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to repair, and take care of vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the business’s EIN.
One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or higher and a 411 small business phone listing.
Shell may say they want a certain amount of time in business or revenue. But if you already have enough vendor accounts, that won’t be necessary. And you can still get an approval.
Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.
Cash Credit Tier
Have you been responsibly handling the credit you’ve up to this point? Then move onto the cash credit tier. These are service providers like Visa and MasterCard. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.
One such example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.
Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).
In addition, they want you to have an established small business.
These are businesses such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are typically MasterCard credit cards. If you have 14 trade accounts reporting, then these are feasible.
Start a New Business in West Virginia – Monitor Your Business Credit
Know what is happening with your credit. Make sure it is being reported and fix any mistakes ASAP. Get in the practice of taking a look at credit reports and digging into the specifics, and not just the scores.
We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.
Update Your Record
Update the data if there are inaccuracies or the data is incomplete.
Fix Your Business Credit
So, what’s all this monitoring for? It’s to challenge any mistakes in your records. Mistakes in your credit report(s) can be fixed. But the CRAs normally want you to dispute in a particular way.
Disputes
Disputing credit report inaccuracies commonly means you send a paper letter with copies of any proof of payment with it. These are documents like receipts and cancelled checks. Never send the original copies. Always mail copies and retain the original copies.
Fixing credit report errors also means you specifically detail any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.
A Word about Building Business Credit
Always use credit smartly! Don’t borrow beyond what you can pay back. Keep track of balances and deadlines for payments. Paying off punctually and completely will do more to elevate business credit scores than nearly anything else.
Establishing business credit pays. Excellent business credit scores help a company get loans. Your lending institution knows the business can pay its financial obligations. They recognize the company is bona fide.
The business’s EIN links to high scores and lenders won’t feel the need to call for a personal guarantee.
Business credit is an asset which can help your small business in years to come.
Learn more here and get started toward opening a new business in West Virginia.
Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.
The post How to Set Up a New Business in West Virginia appeared first on Credit Suite.
How Business Venture Capital Sparks Innovation, And How Google and Facebook are Throwing Water on the Fire When it Comes to Online Ad Firms
Top Ways to Get Business Venture Capital and Keep Innovation Alive
Innovation is what keeps things moving. It keeps industries from growing stagnant and encourages our economy to continue thriving. In hard economic times, innovation is what pulls us out. Consequently, we need innovation to keep moving along. Finding new and better ways to get things done is essential to our economy and our livelihood. It cannot happen without business venture capital however.
If innovation is the fire that raises the hot air balloon of the economy, then business venture capital is the spark that lights the fire. Of course you can always get corporate credit, and that is important. However, there must be people with funds that are willing to support the innovation for it to do what it needs to do. Name most any industry, and if innovation stops the industry will stall. As a result, growth will cease.
Consequently, online ad firms are starting to see this in their industry. It seems strange that, with the internet not going anywhere and continuing to grow, anything online should be in danger of stalling. In the face of Goliath’s like Facebook and Google however, it appears that is exactly what is happening.
What is Venture Capital Funding?
It isn’t really hard to define venture capital. At its core, it is an investment. Generally, these investment funds come from venture capital firms. These venture capital funds are used by the business owner to get the business up and running, and then the venture capital firm earns a percentage of the profit.
How Does Business Venture Capital Spark Innovation?
What does business venture capital have to do with innovation, or what does a lack business venture capital have to do with a lack of innovation? Consider the previously mentioned ad tech firm example. For a few years there was a ton of venture capital flowing into this particular industry, but there has been a steep decline in more recent years. What is happening with venture capital firms?
Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet.
For example, there were 260 deals between ad tech companies and venture capital firms in 2014. In 2017 there were only 122. The decline is ongoing. Many of the smaller ad techs were not profitable, so they are consolidating or disappearing all together. Without the business venture capital helping them out, there will not be many more making a go at it either.
The problem is, those smaller companies are needed when it comes to innovation. If there is no one trying to beat Google and Facebook, or at least compete, then there is no one trying to find a better way to do things. With no venture capital flowing into the industry, the smaller companies aren’t going to be able to innovate, meaning they can’t compete.
What’s the Solution?
In the ad tech world, the best solution is likely a third large competitor. A third player in the big game could up the competition just enough to inspire the big three to start looking for ways to beat each other at their own game. Competition is where innovation thrives.
What about other industries? It’s kind of a two-way street. Venture capitalists like to see innovation, and startups need to find innovative ways to do what they do so that they can compete. To do that, they need funding. In this way, innovation attracts business venture capital, and the more venture capital a business can get its hands on, the more innovative it can be.
How Does this Affect You and Your Business?
You know you have to play hard or go home. If you aren’t innovating, then you aren’t going to get the funds. If you aren’t getting the funds, your innovation will never become a reality. So, first thing’s first. Get those creative juices flowing and find a better way to do what you do than your competitors.
How to Get Venture Capital
Now that you understand how venture capital and innovation are related through the ad tech vs. Google and Facebook example, you need to know how to get venture capital for your own business. Keeping with the theme of sparks and fire, you will need to spark your own fire, a campfire of sorts, to attract potential investors. Here is how to get the fire started, and what to do once you have them sitting around said fire.
Gather Your Firewood: Research
Don’t just pick a random firm to approach about investing in your business. You have to do a little research first. Venture capitalists do not make a habit of investing in companies that haven’t proven themselves. Most want to see some proof of profitability.
Look for those that have historically offered funding to companies in the same industry as you that were in a similar stage. If they typically go for businesses in health care and you are a tech company, they are probably not the right fit for you.
Similarly, if they generally lend to those that have been in business for a minimum of 2 years and profit of at least $50,000 a year, and you fit that description, they may be worth talking to. Be intentional with the firms you approach to cut down on wasted time and effort.
Keep the Fire Contained
Do not blast every venture capitalist you can find on line with a cookie cutter email. That is a huge no no. Not only will it not work, but they likely will never even read your email. Back in the 80s there was an idea that venture capitalists would read unsolicited proposals, and they pretended that they did. There is no pretending now. It doesn’t happen, and there is no reason to think it does. Email blasting is not a way to find investors. Keep your search concentrated and contained to those that are interested in your industry and companies in the same stage as yours.
Kindling: Work Through Your Network for the First Spark
How do you find someone then? In addition to concentrated research, work through your network. Talk to friends, families, and associates. Pick their brains to see who they know that may be a good fit for your business. Ask them to introduce you.
Don’t have a network? Better get to work! Starting from scratch to build a business network is hard, but it isn’t impossible. Start by joining the local chamber of commerce. Next, take a look at any other professional organizations that may be a good fit for your business.
Then, attend events. Take business cards, go mingle, and make connections. Events may include business after hours, lunch and learns, conferences, and workshops. All of these offer excellent opportunities for network building, and you may even learn something along the way.
Make it Inviting
If you are building a campfire, a few well-placed chairs or benches can make others want to join. In the same way, a quick video or memo that will catch the attention of investors. This is what you use when you get that introduction from friends, family, or someone else in your network. It needs to be quick and to the point, just enough to make them want to know more.
Snacks: The One Liner
A spectacular one-liner never hurts. This can be on your business cards, all over your social media, and anywhere else it may be appropriate to include it. It should get across what you do in one look. Use familiarity and popularity to help with this. For example, one toy company touts itself as “The Netflix of Toys.” There is no doubt what the business does, due to the fact that everyone knows what Netflix is, and of course, what toys are.
Sing Campfire Songs: Develop a Relationship
If your one liner and memo or video work, you will be in further contact. Spend some time developing a relationship. Don’t rush them. Let them get to know you and your business. Business venture capital is not a form of quick funding. It takes time to build trust.
What Does This Look Like Practically?
Okay, so say you are at an event and someone you already know introduces you to a potential investor. You visit a little and hand them your business card. Maybe there is a one-liner on it that really catches their eye. They may ask you a few questions and you answer, then as you part ways he or she says “Very interesting. I’d love to know more sometime.”
The next business day, when you get to work, send a quick email. It should say something like “It was a pleasure to meet you at (insert event here.) You mentioned you would like to know more about our company. I have attached some information.” Then attach your memo or video.
If they reply, you can work from there building the relationship.
When to Pitch
This is a big question. They may ask for a pitch as soon as they see your one liner. They may ask for it after they are wowed by your memo or video. It is more than a little likely they will want to develop some kind of a relationship before they decide they want to hear a whole pitch deck.
Here’s the thing. Regardless of when they want it, you need to have it ready before they ask.
What Should Be in a Pitch Deck for Business Venture Capital?
A pitch deck is a power point presentation that serves up detailed information about your venture on a series of slides. Following are some tips as to what slides you should include and what should be on them, as well as a few dress-ups that will really fan the flames.
-
Company Overview
This can be just a quick, four or five bullet point slide that gives a summary of the rest of the pitch. Consider it a sample designed to make them want to know more.
Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet.
-
Vision or Mission Statement
Create a clear vision and purpose for your company and sum it up in one statement.
-
Your People
Introduce your team. Use pictures. They need to put a face with the people they are investing in.
-
The Need for a Business Like Yours
Present the “problem” that your business will solve. Show the need your product or service will fill.
-
How Your Business Will Solve the Problem
Make the case for why your business is the ultimate “solution” to the problem previously mentioned. Spend some time explaining how it will work and what makes your business different from other solutions, if there are others.
-
Introduce Your Product or Service
Introduce the product or service you will be selling. Bring a prototype or drawings of the product, or if it is a service bring testimonies from those who have used it.
-
Is There a Market for It?
This is where you define your market. Who is going to use your product or service, how they will benefit from it, and what they can and will pay. This is also where you explain exactly how you will reach your market.
-
Who is Already Buying?
If you already have a customer base, like people already buying what you are selling, let potential investors know that in this section. Try using logos investors may recognize where possible. They make a more lasting impression.
-
Technology
If you have some proprietary technology, be sure to include that. Include any patents or copyrights.
-
Do Not Ignore Competition
You can’t write a pitch deck and ignore the competition. Acknowledge them and lay out your plans for beating them. Note who they are, how you are different, and what gives you the advantage over them.
Also, make sure you research the competition. You will need to be able to answer questions knowledgeably.
-
Traction
This many include things such as web traffic, downloads of any apps you already have available, early sales, partnerships, and testimonials.
-
Tell Them Your Business Model
Tell them how the business will make money, how a customer will retain value long-term, or not, and what you pricing plan looks like.
-
How Will You Get the Word Out?
Explain your marketing plan. Those considering providing you with business venture capital will want to know which marketing platforms and channels you intend to use and what the marketing campaign will look like.
-
Financial Statements
It boils down to more than just an income statement and a balance sheet. They need to know what you have, how much you are making, and how you intend to use what they give you.
-
The Ask
Tell them exactly what you want from them. Lay out the amount along with what they will get in return.
A Few More Tips to Ensure you Land the Business Venture Capital You Need
There is more to a pitch deck than content. That’s the important part, but if they fall asleep it won’t do you any good. They cannot absorb what you are telling them if they are bored to tears. You need to make it pop.
Make it Look Good.
A mixture of crisp, clean design and eye-catching fonts won’t win it for you. Certainly a lack thereof probably means they won’t make it far enough to even see the important stuff. In fact, while content is crucial, design is just as necessary for the content to ever get through. It should be interesting, but not cluttered.
Don’t Make It Hard.
Don’t use DropBox or something similar. Stay away from crazy file formats. Rather, attach the pitch deck directly to an email. Just make it easy.
Don’t Get Long Winded.
A good pitch deck shouldn’t be more than 15 or 20 slides. It seems like after that, most start to lose interest.
Keep Acronyms to a Minimum
It’s too easy to misunderstand what you are talking about. As a result, it is better to just say it the long way.
Discover our business credit and finance guide, jam-packed with new ways to finance your business without emptying your wallet.
What Can We Learn from Facebook, Google, and the Ad Tech Industry? We Need Innovation, and we Need Business Venture Capital to Start the Fire
It is no secret venture capital in the ad tech industry is declining. It is because giants like Facebook and Google are snuffing the fire. The verdict is still out on how this will affect the industry in the long-term, but it isn’t hard to envision how it is likely to play out if something doesn’t change.
Business venture capital sparks innovation, and a lack of it can for sure stifle it. Understanding that through the phenomenon that is happening in the ad tech world right now is vital. Above all, keep innovation alive in your industry by going after the venture capital you need to start and grow your business to its full potential.
The post How Business Venture Capital Sparks Innovation, And How Google and Facebook are Throwing Water on the Fire When it Comes to Online Ad Firms appeared first on Credit Suite.