6 tips for starting a business with little industry experience or business know-how Timothy Ericson can quickly sum up what he and his business partner knew about the bike-sharing industry before launching a business in the field two years ago.
"We started from nothing," says Ericson, CEO and co-founder of CityRyde, a bike-sharing consulting firm. "We basically spent our first two years becoming experts in an industry that was totally new to us."
Today, the business is expanding with services such as software that tracks everything from usage to cyclists' carbon offsets. Ericson, who had experience in business and information technology before founding CityRyde, is one of many entrepreneurs to start a business either with no "domain" experience--experience in the industry in which they're looking to start a business--or with strong domain experience but little entrepreneurial know-how.
Experts say entrepreneurs in both scenarios can find success by heeding the tips below.
Click "Here" to view the entire article.
Thursday, January 28, 2010
Monday, January 25, 2010
Find Your Ideal Business in 5 Simple Steps
Have you always dreamed of owning your own home business but never been able to figure out exactly what business it is? Does that innovative idea of yours often look so near--and yet so far? You're not alone. According to a survey by the Kauffman Center for Entrepreneurial Leadership in Kansas City, Mo., one in 12 Americans wants to start his or her own business, but only half succeed.
So how do those fortunate ones succeed in starting their own business? They have a plan and the determination to implement it.
Here are five simple steps to make that dream of yours come true:
Click "Here" to view entire article.
So how do those fortunate ones succeed in starting their own business? They have a plan and the determination to implement it.
Here are five simple steps to make that dream of yours come true:
Click "Here" to view entire article.
Thursday, January 21, 2010
Community Bankers Meet With Obama as Regulation Fight Heats Up .
Community bankers got their first exclusive meeting Tuesday with President Barack Obama amid an intensifying fight within the industry over legislation that would tighten federal financial regulation.
Mr. Obama used the White House parley with executives from smaller banks to reiterate his push for bankers to do more lending to small businesses. "The pendulum may have swung too far in the direction of not lending," Mr. Obama said, adding that the White House is working on ways to cut "red tape" that banks complain is making it harder to lend. He suggested the White House wouldn't intervene with federal regulators though, which many bankers complain are being too strict.
"We don't have direct influence over our independent regulators," Mr. Obama said. A top focus for the White House in the coming months will be to push for more lending, he said, and that can only be done with the cooperation of financial institutions.
But getting bankers to sing from the same hymnal won't be easy. Two bankers' groups, the American Bankers Association and the Independent Community Bankers of America, are challenging each other, and delivering competing messages on Capitol Hill as Congress weighs a wide-ranging overhaul of financial industry regulation. The ABA and ICBA both claim to speak for "community banks," but they took starkly different positions on a recent House bill. The ICBA supported it, while the ABA opposed it.
The spat among bankers promises to become nastier as the Senate takes up the bill.
Click "HERE" to view entire article.
Mr. Obama used the White House parley with executives from smaller banks to reiterate his push for bankers to do more lending to small businesses. "The pendulum may have swung too far in the direction of not lending," Mr. Obama said, adding that the White House is working on ways to cut "red tape" that banks complain is making it harder to lend. He suggested the White House wouldn't intervene with federal regulators though, which many bankers complain are being too strict.
"We don't have direct influence over our independent regulators," Mr. Obama said. A top focus for the White House in the coming months will be to push for more lending, he said, and that can only be done with the cooperation of financial institutions.
But getting bankers to sing from the same hymnal won't be easy. Two bankers' groups, the American Bankers Association and the Independent Community Bankers of America, are challenging each other, and delivering competing messages on Capitol Hill as Congress weighs a wide-ranging overhaul of financial industry regulation. The ABA and ICBA both claim to speak for "community banks," but they took starkly different positions on a recent House bill. The ICBA supported it, while the ABA opposed it.
The spat among bankers promises to become nastier as the Senate takes up the bill.
Click "HERE" to view entire article.
Tuesday, January 19, 2010
Start-Ups Will Keep Struggling in 2010
The economic downturn has dimmed many entrepreneurs' hopes of opening a small business, as sources of funding have dwindled or dried up completely. And while many hope 2010 will be better, the outlook continues to be bleak.
The majority of entrepreneurs use personal savings or contributions from family or friends to fund their ventures, but personal wealth, often connected to the value of stock portfolios or homes, hasn't bounced back.
Meanwhile, banks—under scrutiny by regulators—are continuing to strengthen capital reserves, making it difficult even for entrepreneurs with track records and years of experience to qualify for loans. And professional investors, stung by the financial meltdown, are meting out fewer capital infusions.
Kenneth MacKinnon moved to Los Angeles over two years ago with plans to start a tapas wine bar, but despite a high credit rating and collateral, including a home, the Scotland native says he has been unable to secure the $300,000 he needs from banks or private investors.
Click "HERE" to view entire article.
The majority of entrepreneurs use personal savings or contributions from family or friends to fund their ventures, but personal wealth, often connected to the value of stock portfolios or homes, hasn't bounced back.
Meanwhile, banks—under scrutiny by regulators—are continuing to strengthen capital reserves, making it difficult even for entrepreneurs with track records and years of experience to qualify for loans. And professional investors, stung by the financial meltdown, are meting out fewer capital infusions.
Kenneth MacKinnon moved to Los Angeles over two years ago with plans to start a tapas wine bar, but despite a high credit rating and collateral, including a home, the Scotland native says he has been unable to secure the $300,000 he needs from banks or private investors.
Click "HERE" to view entire article.
Thursday, January 14, 2010
Another Chance for Small Business Loans?
When President Barack Obama met with banking CEOs earlier this week, he urged them to "take a third and fourth look" at small businesses that they had rejected for loans during the year. The question is, will the banks follow through?
The CEO of US Bancorp Richard Davis told meeting attendees that his bank would take a second look at every loan it rejects. Separately, JPMorgan Chase's CEO Jamie Dimon also agreed to take another look at small business credit applications that have been declined. James E. Rohr the chairman and CEO of Pittsburgh's PNC Banksaid he would evaluate existing procedures that offer a second look at small-business applications.
Other banks including Bank of America, Wells Fargo and even American Express say they have had second-look-style programs in place for a year or longer. However, in recent months, they've been "ramping up" these programs -- hiring new staff, widening their application inspection criteria and formalizing appeals programs, according to spokespeople with all three banks.
Further, the Financial Services Roundtable, a banking industry group in Washington, D.C., is attempting to corral other banks behind installing a program. "We're making the proposal and asking them to make it a policy," says Scott Talbott, a spokesman for the organization. Although the details on existing programs and how to take advantage of them are spotty, such policies will receive more structure in the coming months, says Talbott. At this point, he recommends small businesses to speak with their own bank to see if there's a second-look program.
Click "HERE" to view entire article.
The CEO of US Bancorp Richard Davis told meeting attendees that his bank would take a second look at every loan it rejects. Separately, JPMorgan Chase's CEO Jamie Dimon also agreed to take another look at small business credit applications that have been declined. James E. Rohr the chairman and CEO of Pittsburgh's PNC Banksaid he would evaluate existing procedures that offer a second look at small-business applications.
Other banks including Bank of America, Wells Fargo and even American Express say they have had second-look-style programs in place for a year or longer. However, in recent months, they've been "ramping up" these programs -- hiring new staff, widening their application inspection criteria and formalizing appeals programs, according to spokespeople with all three banks.
Further, the Financial Services Roundtable, a banking industry group in Washington, D.C., is attempting to corral other banks behind installing a program. "We're making the proposal and asking them to make it a policy," says Scott Talbott, a spokesman for the organization. Although the details on existing programs and how to take advantage of them are spotty, such policies will receive more structure in the coming months, says Talbott. At this point, he recommends small businesses to speak with their own bank to see if there's a second-look program.
Click "HERE" to view entire article.
Monday, January 11, 2010
How to Write an Operations Manual
Every business, no matter how small, needs to have standards, and developing your own set of policies and procedures (often called an operations manual) will help your business run more smoothly— especially when you can't be there.
It's important to have a written system in place when you begin to hire employees, as you'll want others to understand every detail of how you want the business run. For instance, how do you like customers greeted when they come in the door? Or what day of the month do you order supplies from a vendor? Where do you keep the extra set of keys to the storage room?
Every operations manual is different, so there's no exact formula to follow. You'll want to create one that essentially maps out exactly how things get done in your specific business. Start with your company's mission statement, the products and services it offers, and any goals or values about your business that you may wish to communicate to others. Include an organizational chart and job descriptions. After that, you may want to break instructions down into distinct areas, including:
■How-to procedures, such as how to open and close your office, store, warehouse or other physical locations
■Phone numbers, e-mail addresses and other ways to reach clients, vendors, suppliers, insurance companies, the security company and other important contacts
■Business-related policies, such as whether you issue refunds or accept payment by credit card
The operations manual, essentially, is a tool kit for replicating your knowledge of your business and what you do on any given day. As your business grows, you may wish to have separate manuals for different departments or divisions. You might also develop a basic version for entry-level employees and a more detailed version (with sensitive information on finances, for example) for senior managers.
Click "Here" to view entire article
It's important to have a written system in place when you begin to hire employees, as you'll want others to understand every detail of how you want the business run. For instance, how do you like customers greeted when they come in the door? Or what day of the month do you order supplies from a vendor? Where do you keep the extra set of keys to the storage room?
Every operations manual is different, so there's no exact formula to follow. You'll want to create one that essentially maps out exactly how things get done in your specific business. Start with your company's mission statement, the products and services it offers, and any goals or values about your business that you may wish to communicate to others. Include an organizational chart and job descriptions. After that, you may want to break instructions down into distinct areas, including:
■How-to procedures, such as how to open and close your office, store, warehouse or other physical locations
■Phone numbers, e-mail addresses and other ways to reach clients, vendors, suppliers, insurance companies, the security company and other important contacts
■Business-related policies, such as whether you issue refunds or accept payment by credit card
The operations manual, essentially, is a tool kit for replicating your knowledge of your business and what you do on any given day. As your business grows, you may wish to have separate manuals for different departments or divisions. You might also develop a basic version for entry-level employees and a more detailed version (with sensitive information on finances, for example) for senior managers.
Click "Here" to view entire article
Friday, January 8, 2010
Stimulus Relief Extended for SBA Loans
The Senate voted this weekend to temporarily extend funding for two popular stimulus provisions that reduced fees and boosted guarantees on Small Business Administration-guaranteed loans.
The provisions, which helped bolster small-business lending over the past year, had run out of funding in late November. With the new extension, included in the Defense Appropriations bill, the government's maximum guarantee on SBA loans is restored to 90%, compared to pre-stimulus levels of 75%. Fees that the agency normally changes banks are also waived.
"Small businesses have been left in limbo since the funding ran out," said Mary Landrieu (D-La.), one of the senators who requested the extension, in a statement. "[The legislation] will provide a lifeline to small businesses in need of credit."
The provisions, however, are only extended through February. Lenders and small-business advocacy groups will have to wait on another piece of legislation – the House's Jobs for Main Street Act, which passed in the chamber last week – for the provisions to be extended through next September.
Access to credit, with or without the stimulus provisions, has remained a problem for Main Street businesses. "The conventional credit market will not near normal until sometime in 2011 because the typical small business will walk in with negative trends on his financial statement," said Tony Wilkinson, president of the National Association of Government Guaranteed Lenders in Stillwater, Okla. "But that's why the SBA programs are important, because lenders can say, 'Hey, this is a survivor who will probably make it.'"
The provisions were originally enacted as part of the Recovery Act in February 2009, and have been widely credited with drawing banks back to the small-business lending arena. SBA Administrator Karen Mills called the increased guarantee and reduced fees on SBA loans "a powerful combination" that has already directed $16.5 billion to small-business owners and brought more than 1,200 lenders back to SBA loan programs.
Click "HERE" to view entire article.
The provisions, which helped bolster small-business lending over the past year, had run out of funding in late November. With the new extension, included in the Defense Appropriations bill, the government's maximum guarantee on SBA loans is restored to 90%, compared to pre-stimulus levels of 75%. Fees that the agency normally changes banks are also waived.
"Small businesses have been left in limbo since the funding ran out," said Mary Landrieu (D-La.), one of the senators who requested the extension, in a statement. "[The legislation] will provide a lifeline to small businesses in need of credit."
The provisions, however, are only extended through February. Lenders and small-business advocacy groups will have to wait on another piece of legislation – the House's Jobs for Main Street Act, which passed in the chamber last week – for the provisions to be extended through next September.
Access to credit, with or without the stimulus provisions, has remained a problem for Main Street businesses. "The conventional credit market will not near normal until sometime in 2011 because the typical small business will walk in with negative trends on his financial statement," said Tony Wilkinson, president of the National Association of Government Guaranteed Lenders in Stillwater, Okla. "But that's why the SBA programs are important, because lenders can say, 'Hey, this is a survivor who will probably make it.'"
The provisions were originally enacted as part of the Recovery Act in February 2009, and have been widely credited with drawing banks back to the small-business lending arena. SBA Administrator Karen Mills called the increased guarantee and reduced fees on SBA loans "a powerful combination" that has already directed $16.5 billion to small-business owners and brought more than 1,200 lenders back to SBA loan programs.
Click "HERE" to view entire article.
Wednesday, January 6, 2010
5 Ways to Grow in Any Economy
Even in tough economic times, small businesses need to find new ideas, develop original products, and engineer fresh market approaches. These are the pillars of good business, and each is made from a mixture of creativity and expertise. While it may seem counterintuitive, it's entirely possible to implement strategies that drive not only employee engagement, but also innovation and, ultimately, sales--all without enormous investment in systems or people.
What can your company do to remain fresh, vibrant and alive--all without breaking the bank? Here are five ways: Click "HERE" to view entire article.
What can your company do to remain fresh, vibrant and alive--all without breaking the bank? Here are five ways: Click "HERE" to view entire article.
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