| |
|||||||||||
|
|
Online small business loan |
||||
|
Running an online small business loan is a challenge. Online small business is internet based and the mysteries of internet marketing have to be mastered. Search engines in the internet have to be successfully optimized for concrete results. Right resources have to be tapped to succeed in internet business. Excellent advertising support becomes inevitable and essential for the online business to take off. Professional help for news, resources, tips and techniques have to be sought. An online small business loan involves several factors like » running a home based business, » designing the website, » promoting the website, » outsourcing professional help, » building traffic in the site and » Selling products and services online » Links from other websites are the life and blood to ones online business. Starting and managing online small business loan takes motivation and talent. It needs research and planning. More than this, it needs finance. Right kind of funding through the right source becomes necessary. Inadequate and ill-timed financing will be the end of business. Many people all over the world especially in the developed countries like US opt for online small business on their own. This urge to start small business online stems from the desire to be independent. Small business of ones own provides the much wanted freedom to do what one feel is right. This is all the more so with online small business loan. Present day younger generation believes that one way to break free of the shackles of the rat race and become ones own boss right away is through an online business, however small it may be, of ones own. Many aspiring individuals feel that online small business loan is the beginning of a rainbow. They go into it with numerous misconceptions. Many aspiring online small business entrepreneurs think funding sources for their business is just a phone call away. A person may be smart, have a knack for business acumen and be well informed about funding resources. Yet it takes more than all these traits to shine in a growing frontier like online small businesses. However, thousands of entrepreneurs have successfully worked through the challenges and created thriving business online of their own. Online small business is no myth. There are certain popular misconceptions which need to be cleared before embarking into an online small business. A detailed examination of the possible funding sources available for businesses is discussed below and they help present an accurate insight of the present funding and loan scenario for online small business. » Many are of the firm belief that the federal government in the US has programs that lend money directly to do any small business. This is not so. There is no such program in the federal government and any special funding programs need certain basic requirements that have to be met and in order to be eligible for consideration. » There may be several funding information one comes across when surfing the web. One has to be extremely cautious about any such information. Many companies promise online loans for small businesses. Without knowing background information on these funding agencies and companies it will be unwise to get involved with them. » Again agencies like the SBA do not lend any money to businesses. This is again a wrong notion. SBA may have flexible lending programs but none for any small business online. » Finance through venture funding capitalists is not easy to get through. The business, however small it is, has to show track record of performance credibility. Venture capitalists are more over interested only in strong business houses with growth potential and management teams delivering products and services. Not in online small businesses without track records. » Accurate maintenance of accounts and audits of the finances of the company and the person who is heading it has to be maintained. This will be demanded and examined by the funding agencies. Many are of the opinion that they will able to write off everything. A real business expense can easily be identified. It is essential to learn the rudimentary rules behind what can and what cannot be written off in small business. » New online small business owners do not understand how much they need to plough back into the business if the company has to grow. They would like to spend whatever money coming in and this way they will have nothing left to manage the company and its finances. This inturn will have telling repercussions on their loan availing and repayment capacities. » Online business, especially creating web traffic for ones online small business is based on a number of factors. It is not quite simple to place in order the various search engines and attract the kind of customers who will cater business. It is essential to solicit the help of professionals who are experienced with the latest developments in the web trade. Without adequate web traffic, no funding agency will be willing to sponsor ones business. » To attract business online, one needs to present an attractive content of ones company displayed in the site. Flowery language should be avoided while content writing for ones website online. People who browse the web do not have time to go through things in great detail. Therefore it is better to get to the point fast. » Language normally used by the customer should be employed for selling products and services. For successful online business in website these success tip in content writing has to be followed. » Normally new online small business owners do not see any profit for two to three years on an average. At this time if one is tempted to go for a loan, repayment methods have to be thought of in detail. Realistically speaking, it may take many years and lot of reinvestments in to the company before this new business steadily picks up and grows. » Marketing is an investment in your business says Stephanie Chandler, the Californian based entrepreneur and author of several business guides. One has to really set aside a certain portion exclusively for marketing needs. How much is this practically possible is a billion dollar question. » A business plan is the basic thing to get cracking in online small business or for that matter any business. The tread with the new generation is that since funding help is not easy to get at once, there is no need for a business plan. For them, the business plan should be drawn only for funding purposes and not for real business purposes. Before inquiring and availing loans, it would be better for an online small business entrepreneur to go into the following: » Do I need finance or can I manage with the existing cash flow » What is the quantum of finance I need » How soon do I need the finance » What are the risks in my business Can the degree of risk affect my repayment capacity » Is the lender/financier reliable Will they be able to understand my requirements adequately » What is the present state of my online business Will there be any seasonal changes or market forces that will affect my business » What is my companys debt equity ratio Will I be eligible for equity financing rather than debt financing Statistics on small business indicates that there are approximately about 22.9 million small businesses in US in 2002. This small business provides about 75 percent of the net new jobs added to the economy. There is indication that online small business is likely to increase in the future. With scope being so tremendous, it is not surprising that first timers want to experiment in this trade without adequate experience and inadequate funds. But they fail to understand that getting loans for such small business online is indeed a big business that needs credibility, authenticity, business track record and a genuine desire and need perform and repay well. Other Articles |