Why Placement of a Banner Is Important

Banners have proven to be a great signage to improve a business and their succession. But why are banners of so much importance? It’s because customers are able to see and get involved with what your business is about through them. Then you know that banners provide a great use for you, but where exactly do you place the banner so that customers are able to take an interest in it? Here are some ways to place them:

Place It on the Location of Your Business

If you place a banner on where your business runs, it will create a bigger customer base. This is very common when it comes to a placement of a banner. You can utilize the banner by providing important information to your customers that your business is currently advertising. This can be promotions or special offers. These things need proper recognition so that customers will know what your business is offering. Therefore, the use of a banner can be crucial and helpful to your business.

A Banner Should Be Clearly Visible To Your Customers

Visibility is key. Banners will only be able to be useful to your business if the people are able to see them. Since banners should usually also be read to contribute in attracting customers to your shop or store, the placement of the banner is important. The words on the banner are indeed important when it comes to how they will get a potential customer’s attention, but to get their attention itself will be a feat you will have to achieve. A banner is relatively large, which normally will be able to get a person’s attention, but size isn’t the only thing that matters. Placing a banner in a place where it will not be obstructed in view by other boards or objects is crucial. Also, a high place without any other advertisements around it would be even better.

Placing It outside the Location Your Business

This is more useful when it’s advertising your business to areas other than where your business is running. More areas of attention from customers lead to more coverage and potential customers to your shop or store. This also helps when it comes to your competition. If you are competing with other businesses to grab hold of more customers than they are, then banners are the best way to go. It can eliminate their business from the minds of your customers if they are focusing on only yours through your attractive banner. The design is also of importance for your banner. Competition will indeed be easier if you have a banner and the other business does not. However, if the other business also does have one, it depends on which banner will be more attractive to your customers and succeed in getting them into your shop or store. Discuss the design of the banner you would like to have with banners sunshine where they can properly follow your instructions and give you the banner that can win your customers.

Get a banner and properly place it for a better business with more customers and recognition.

Will Your Business Need Financing in the New Year?

As you plan and set goals for your small business in 2017, one area to look at is financing. Will you need additional funding at some point in the New Year? If the answer is yes, how will you raise the money? Take a closer look at the two primary means of raising capital — equity financing and debt financing — and what you need to know about each.

Equity Financing

In equity financing, you give up a piece of your business (equity) in return for an investment of capital. Equity investors may be private investors, venture capital companies or even your friends and family.

Angel investors are the most realistic source of investment capital for most small business owners. Angels are private investors; some invest individually, while others form angel groups to pool their money. Generally, angels are experienced business people, former business owners or professionals. In addition to the capital they can provide, they can also offer much needed business guidance and expertise.

If your small business has strong growth potential in an industry such as technology or healthcare, you may be able to get venture capital. Venture capital firms tend to focus on businesses with a track record of success and potential for rapid growth with a high return on investment. They make large investments, but in return, will want to have a strong say in your business and possibly even take over management.

If you plan to seek capital from investors, it’s important to make sure the business structure you chose will allow what you want to do. For example, if you operate as a sole proprietor, you won’t be able to take on equity investors, since there is no separate “company” to invest in.

A general partnership, C corporation or limited liability company (LLC) form of business all enable you to sell shares in your business. However, if you have an S corporation, the number of shareholders you can have is limited to 100, which could be a problem. In addition, the S corporation form limits what type of person or entity can be a shareholder or owner, which could cause problems either in raising capital or transferring ownership of shares down the line.

While taking on investors may seem like an easy solution to getting the money you need, you should think carefully before giving away equity in your business. Depending on the amount of equity they control, investors can make it more difficult for you to make decisions about your business without their input. Your relationships with investors, even those you are currently close to, may change in the future, leading to unforeseen difficulties. If you give up too large a stake in your business, you may eventually lose control of it altogether.

Debt Financing

As the name implies, debt financing means taking on debt that you need to repay at some point. Typically, this means a bank loan. However, debt financing can also take the form of loans from friends and family, credit unions, or alternative financing sources or even taking credit cards advances.

Business loans can be secured or unsecured. Secured loans require you to put up some collateral, such as business equipment or your house, to obtain the loan. Unsecured loans don’t require collateral, but are often more difficult to get and have higher interest rates and fees.

If you’re seeking a bank loan, the best place to start is with a bank that makes Small Business Administration (SBA) loans. SBA loans are partly guaranteed by the SBA, which makes banks more willing to lend to small businesses they otherwise might consider risky borrowers.

Other sources of debt financing include:

  • Equipment financing: If you are purchasing business equipment, the company that makes the equipment may have financing options available.
  • Invoice financing: Invoice financing companies advance you money based on the amount of your outstanding invoices.
  • Factoring companies: Similar to invoice financing, factors purchase your outstanding invoices for a percentage of their value, and then take over collecting on the unpaid invoices for you.
  • Merchant cash advances: If your business makes most of its sales via credit cards, such as an e-commerce business or retail business, you may be able to get a merchant advance based on the amount of your average credit sales.

The Right Choice

To make sure you’ve selected the right form of business for your financing needs, it’s best to discuss it with your attorney and accountant before making any decisions. If you need to make changes to your business structure before seeking financing, start now so you’ll be ready to go after the capital you want in 2017.

Start & Run Your Business Right: Join Our Facebook Group and Partner Program

The process of starting a business is both thrilling and intimidating. There’s the exhilaration that comes from working through the details and making the dream a reality. And then, there are the business formation options and ongoing compliance requirements that often raise questions and sometimes cause confusion.

That’s why I’m hosting the “Business Formations & Compliance” Facebook group.

The group is a place where business owners and aspiring entrepreneurs can get insight on anything related to forming a business and complying with the rules to keep it in good standing. You can join for free, so there’s no reason not to take advantage of the expertise you’ll find there!

What Can You Expect?

We’ll cover a breadth of topics related to starting and maintaining a business that complies with federal and state requirements.

A few examples include:

  • Filing a DBA
  • Forming an LLC with an S Corp election
  • Incorporating as a C Corporation
  • Annual report obligations
  • Corporate minutes
  • Business name searches
  • Trademark filings

And that’s just the tip of the iceberg. No matter what filing requirements you need more information about, I’ll be there to answer the questions you and other group members post.

You can also meet up with me on Facebook Live Fridays when I’m available in real time to offer tips and insight.

Also New: The CorpNet Partner Program

CorpNet has launched a Partner Program for accountants, bookkeepers, attorneys, business advisors, and other service professionals that wish to give their clients additional value. As our Partner, you can offer formation and compliance services to your customers—with all fulfillment and liability handled by CorpNet. Sign up for free today! Besides strengthening your client relationships, you’ll also get 50 percent of the profits from any formation and compliance services that you sell.*

Seize The Possibilities!

Join the Business Formations & Compliance Facebook group and check out our CorpNet Partner Program. Bringing insight, education, and the potential for additional income, these platforms offer opportunities for empowerment and growth.

7 Small Business Expenses to Account for in Your Monthly Budget

Little boy in black hat and tie at the table counts money, isolated on white

Budgets are essential to manage your costs and keep your small business profitable throughout the year. Due to the dynamic nature of any small business, you can’t just set a budget in January and let it sit unchanged until the end of the year. Every month, take stock of your business’ performance and expenses and use that data from the prior month to update your budget.

Your monthly budget needs to provide you with enough detail so that you can identify potential cash crunches in the near future as well as opportunities to make the most out of extra cash. To get that level of detail, let’s review seven key small business expenses to account for in your monthly budget.

1. Vehicle Expenses

With the tax deadline rapidly approaching, you may now know that you’ll be able to deduct vehicle expenses for business purposes. Go beyond just the number of dollars spent for gas and include applicable vehicle registration fees, repairs, and insurance payments. Also, keep track of business miles driven because you can deduct 53.5 cents per mile in 2017. For more details, consult Topic 510 from the IRS.

2. Advertising Expenses

Depending on your marketing budget and number of promotion projects that you have going on, you could be eating up your ad budget too fast (or even, too slow). Reconciling your monthly payments to advertisers allows you to fine tune your promotion efforts so that you have enough left for those peak periods, such as the summer or December holidays.

3. Tax Payments

Dude, where’s the budget for April? Your tax liability might have taken a big bite out of it, hurting your available cash on hand to pay suppliers and (gasp!) employees that month. Including all outgoing cash flows is a key part of building a budget for your small business, and tax payments are no exception.

4. Wages

As your small business grows, you’ll find yourself wishing that you could hire an extra help of hands to handle the extra work. But is it worth to have full-time staff throughout the entire year? By keeping track of wages every month, you’ll be able to determine if you could be better served by part-time, seasonal, or contract workers on specific months. Plus, it helps you to be ready for Form 941 every quarter and its equivalent at the state level, if applicable.

5. Expenses Related to Accounts Receivable

Your budget may have a category tracking one-time (or unusual) expenses. From that list, single out any charges for collecting money for sales made on credit, or write-offs from money that’s never recovered. Such charges will tell you the whole story about your sales numbers and whether or not you need to make changes to your policies for sales made on credit.

6. Cash Outflows from Operating Activities

When doing a cash flow analysis, you want to break down cash inflows and outflows into operating, financing, and investment activities. Get in the habit of reconciling your cash flow balance by adding and subtracting applicable inflows, such as depreciation and decrease in inventory, and outflows from operating activities, such as increase in accounts receivable and decrease in accounts payable, and you’ll have an indicator of potential cash crunches or opportunities for investment.

A number that’s too low for many months would indicate that you should start looking into forms of business financing and one that’s too high for many months would point out that your small business could afford to invest in a new piece of equipment, hire a new employee, or spend a bit more in promotion.

7. Loan Advances

If you have an existing term loan or line of working capital, write down how much you have used on the previous month. This allows you to evaluate your existing form of financing: Are you tapping into your line of credit only during certain months? Do you have adequate reserves for an emergency? Do you need to increase your limit?
As you can see, monitoring your business expenses is a great financial habit that allows you to make more informed decisions and reach your business goals. Depending on the size of your small business, hiring a bookkeeper to maintain your monthly budget and other financial documents, such as income statement and balance sheet, will free up your time and enable you to focus on the core activities of your operation.