Getting your small business financially fit is a continuous goal. Here are our favorite articles of the week to help you make the most of your small business’ money.

Money on the Mind: Small Biz Financial Stories of the Week

1. Headed to the bank for a small business loan? Here’s a list of 5 things banks look at when lending money, such as “Capital targets directly to the owner’s stake within the company. Similar to the underlying concept of collateral, the bank wants to know that the owner has a financial risk within the company that they would stand to lose if the company failed. This personal capital investment shows the banker, the owner is serious about maintaining their business.“

2. Warren Buffett is one of today’s most well-known businessmen, so it can be expected that small businesses can learn a thing or two from him. One lesson in particular: don’t accrue loads of debt. “This isn’t always practical or feasible when it comes to running a business. We all know that loans can help jump-start a business. If possible, look into bootstrapping. Growth may be slower, however the moment you begin to earn a profit, it’s yours.”

3. There is always much debate over whether a business should bootstrap or seek outside funding. The latter usually wins the argument, but there are actually quite a few reasons that no startup capital is good for your small business. In short, it makes you use your money more wisely. “Because you can’t afford to throw money around, you also become less susceptible to the sales pitches of all the so called ‘business gurus’ out there who are just itching to sell you their ‘money-making secrets’, seminars and ‘businesses-in-a-box’.”

4. Are you looking for some guaranteed investments for your small business? Consider these 4 investments that can help your small business grow. For example: “…many businesses invest in iPads or smartphones for their staff. This way, they can conduct business while on the go, process credit card payments, make phone calls, and answer emails anywhere. Face to face meetings can even be conducted via these devices through programs like Skype and Facetime.”

Have an article “on the mind” that you’d like to share with our readers? Email editor@fundinggates.com with any and all suggestions!

Are you a business owner who doesn’t mind getting in the face of every potential customer out there, no matter how nerve-wracking the experience might be? Or are you like many entrepreneurs out there who shrink from the idea of “self-promotion”?

If you’re in the latter camp, you’re not alone. For every stellar superstar social media/PR/marketing entrepreneur there are dozens of introverted folks who would like to do nothing more than sit in the office and just get customers without talking to anyone. Talking yourself up doesn’t come naturally to everyone, so finding yourself firmly in this camp is nothing to be ashamed of.

However, you have to get customers somehow. And once you make a plan for promoting your business, you might just find that it isn’t as nerve-wracking as you thought it would be.

The Shy Businessperson’s Guide to Self-Promotion Online

A Good Balance

No matter if you’re overzealous or super shy, promoting yourself is still all about finding a balance. Someone who is normally very gregarious in real life may have trouble talking about themselves online. On the other hand, you could be very shy in your daily life but overly amped all day on Twitter talking to people about your company.

In the end, you want to find a happy medium between dropping your business into every conversation about cereal or cats, and staying silent during golden opportunities for promotion. Customers need to know what services you offer and how much everything costs. If not, your bank account will have a big problem. At the same time constantly advertising will come off as annoying and can actually drive potential customers and colleagues away.

What’s important to remember is you want to have a real conversation with the public. The people you’re talking to (no matter where they are) are real folks who are just as busy as you are, potentially more so. They crave authentic interaction as much as you do. If you give it to them, they’ll respond by checking out your company.

A good rule of thumb is to have 9 genuine online interactions for every 1 time you promote your business. That way you’re still promoting, but you’re not coming across as a self-promotional bore.

Figuring Out the Best Option

There are a ton of ways for you to promote your business in today’s crazy busy world. For the shy businessperson, this is a blessing. If business was like the old days you had one, maybe two options: talk to people in person or call them on the phone. If you can’t stand confrontation or are a telephobe it was out of the question.

Now, though, you have many other options, no matter your budget. You can hop online and come up with an email marketing campaign. You can focus on social media or blogging. If you work better in crowds you can find a Twitter business conversation to hop into. You can even upload a video or podcast for a more “one way street” self-promotion.

The best thing to take into consideration is what makes you uncomfortable – what form of communication and promotion works best for your personality? For instance, if talking on the phone makes you nervous, limit that interaction to only necessary instances.

We’re often told as entrepreneurs that we need to be “well-rounded,” but I disagree when it comes to self-promotion. If you’re a great writer but turn into a sweaty mess when meeting in person, then write all of your proposals and pitches. When it comes to self-promotion, play up your strengths instead of fighting an uphill battle against your weaknesses. It will increase your confidence…and your bottom line.

What self-promotion tactics have worked best for you and your business? Is there a form of promotion that you just can’t bring yourself to try?

This guest post is brought to you by WePay – the easiest way to accept credit cards online.

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After joining the ranks of the well-respected Quickbooks Pro Advisors community, the Funding Gates team has enjoyed quickly making new friends who have been a tremendous help to us on our mission to help small businesses better manage their receivables. Our fellow Pro Advisors have helped us shape our content and provide our own Funding Gates users with top of the line Quickbooks advice, which is one of the keys to maximizing the power of the FG Receivables Manager.

Funding Gates Attending Scaling New Heights 2013

As recommended to us by our Pro Advisor community, we are happy to announce that this year, the Funding Gates team will be attending the Scaling New Heights conference in Orlando, Florida. The conference will take place on June 23-26, 2013 at the Walt Disney World Resort. Led by industry expert Joe Woodard, Scaling New Heights is focused on providing training and networking opportunities for Quickbooks consultants. Known as the best national conference for professionals who support clients on Quickbooks, we are excited to attend for the very first time.

If you are already attending Scaling New Heights, be sure to stop by our booth on the exhibition floor, as we are looking to increase our partnerships with Quickbooks Pro Advisors. We enjoy having a strong referral system for when our users need expert Quickbooks advice! You can find more information on our partnership program here. If you’d like to set up some one-on-one time with the Funding Gates’ founders, you can email editor@fundinggates.com.

If you are not attending Scaling New Heights and are a Quickbooks Pro Advisor, be sure to consider joining us down in sunny Florida. Nearly 100% of the conference attendees are Quickbooks Pro Advisors, meaning excellent networking opportunities for you. The training and certification opportunities offered during the conference are top-notch and can help you expand and grow both your skills and business. Many of the conference sponsors can be found in the Intuit App Center (just like Funding Gates), so it’s also a great opportunity to become acquainted with Quickbooks’ integrations that can really help your clients. Be sure to check out more information on the Scaling New Heights conference.

We will be posting more news about the conference as we get closer and closer to the start date. If you’d like to let our readers know about any presentations or sessions you will be giving during Scaling New Heights, please email editor@fundinggates.com. Hope to see you in Florida!

photo credit: Express Monorail via photopin cc

No matter how many times I listen to the song “Chasing Pavements” by the songstress Adele, I swear it says, “Should I give up or should I just keep chasing payments, even if it leads nowhere?” She’s really saying “pavements”, but listen to the song here and tell me that “payments” is not what you hear? Or maybe it’s just those of us who think about chasing payments a little too much. Either way, every time I hear the songs it leaves me with a question: when should someone give up on chasing payments? An odd inspiration, I know, but it’s a great question, left greatly unanswered. The worst part is that no generic answer can be given on when you should give up on chasing payments, as every situation is unique. However, there are certainly some industry best practices you can consider, depending on how long you have been chasing that payment. See where your late payments fall below.

Should I Give Up or Should I Just Keep Chasing Payments?

1 – 30 days past due

When you have an invoice that is under 30 days past due, it’s time to start taking immediate action. Send your customer a payment reminder letter ASAP and follow that up with a phone call. Try to keep your language friendly, as many times this age of invoice is due to customers simply forgetting their payment date or accidentally pushing the invoice to the side. Give them at least one chance. However, enforce your deadlines by including a late fee. As soon as an invoice becomes past due, you need to add the fee. Then in the payment reminders you make to customers during this time, let them know of the added late fee. In some situations, you may be able to waive the late fee to get them to pay immediately. However, if you are going to add a late fee, be sure to include that in your contract with the customer upfront.

30 – 60 days past due

Once an invoice becomes older than 30 days, you need to up the anty. Continue with the reminder letters, but be sure to alter the language you use to be more serious. If you need an example, you can compare our Friendly and Serious Reminder Letters with our Severe and Final Letters. See what a difference language can make? If you are able to get the customer on the phone, let them know you’ll be in the area this week (considering they are local) and you’ll drop by to pick up the check. This puts them on the spot, and lets them possibly confess to the real reason why they haven’t paid. This is your last opportunity to collect on your invoice before getting outside help.

60 – 90 days past due

When an invoice becomes 60 days past due, it’s time to look at getting some help. Hearing from another source really can motivate customers. There are two options you can choose from: getting a collections lawyer to draft a letter or getting a third party service to do so. Third party services tend to be more cost-efficient than lawyers and simply having the name of another company on the letter speaks a lot to customers. It shows you are taking serious action on their account. If the invoice is large enough, a lawyer could be excellent option. Not only will they use language that is strong and proven effective, but the legal presence is a great way to entice action from your customers.

90 – 120 days past due

Once an invoice becomes 90 days past due, it’s time to consider no longer doing business with this customer and looking at other ways to get your money. One option is to take your customer to small claims court. However, this is only an option for some, as there are monetary limits (it is small claims court, after all). You will need to consider any legal fees you will incur and also evaluate your own time. How much is an hour of your time worth? Add up the hours you’ll lose in court and put a dollar value to that lost time. Your other option in this situation is to send this account to a collection agency. Working with a collection agency can be daunting for some, but there are many collection agencies out there who have amazing recovery rates and are known for treating their clients’ customers with the utmost respect. The key is doing your due diligence when finding an agency. Be prepared, when you send an account to collections, you will have pay, but only if the agency is successful in collecting. Their fees can be hefty (upwards of 30% of the collected amount) so only choose this option if you know its the difference between you seeing some money vs. none at all.

120 days past due

If you chose not to pursue any of the avenues above, or if you have and have yet to see your money, it might be time to “give up”. Obviously, this situation is unique to everyone. If you still feel there is hope, keep chasing. However, if you feel the debt is not collectable, then you should write it off. Writing off bad debt should always be the last resort. Keep in mind, with your receivables, you are required to use the direct write-off method. But, when I say writing off debt should be the last resort (although sometimes an easier course), I mean it. It is extremely difficult to compensate for bad debt. Just how difficult?

If you had $18,000 dollars in write-offs last year, and a 4% profit margin, you would need $450,000 in additional sales to compensate for these.

Yikes! If you would like to see how many additional sales you would need to make to compensate for you write-offs, you can do so with this write-offs monitor.

The true goal is to work so hard at chasing payments that you never have to get to a point where you give up. Follow this timeline as it best fits your business, explore every option you have to help chase that payment, and only until you realize the debt is not collectable should you give up.

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Are you stressed? I don’t know many small business owners who are immune from the stresses of starting, managing and growing their businesses. It’s all part of the process, and it’s how you handle the stress that often makes the difference between it being positive, action-oriented stress and negative, progress-stopping stress.

Here are four commonsense ways to get a handle on small business stress that may be preventing you from operating at peak performance.

Four Simple Ways to Reduce Small Business Stress

1. Control the Flow of Information - 

Information overload is one of the most common sources of stress for small business owners. Once you embrace technology (necessary for successful small business owners!) and open yourself up to information flowing in from different paths (email, phone, social media, instant messaging, RSS feeds, etc.), you may face information overload if you don’t have some gate-keeping tactics in place to protect your time and keep stress levels down.

Here are some of the ways I do this in my own business to control the flow of information:

• - I shut off email notifications (I check it manually, when I’m ready to focus on it).
• - I don’t keep instant messaging tools on all of the time (only for pre-scheduled meetings).
• - I subscribe to email lists sparingly (only messages that are relevant and interesting to me).
• - I use social media tools for scheduling and tracking (HootSuite and Social Report are among my favorites).

2. Delegate - 

A common thread for many successful small business owners is having a vision and being able to execute it. This kind of vision and follow through allows for amazing and inspiring things to happen. The problem is, unless the entrepreneur is able to delegate from the beginning of the process, it ties the entrepreneur directly to the success (or failure) of the business. He or she BECOMES the business.

There are a lot of benefits to building a brand based on you, but it also makes it immensely difficult to step back and let the wheels keep moving without you. Learning how to delegate can not only allow you to grow your business to new levels, but it can also put you in a position to be able to take a break and know that things are still progressing in your absence.

3. Create and Follow a Plan - 

Small business stress can also come from not having a plan or having a loose plan but not knowing how to put it into action. This is why it’s so important to have a plan for different aspects of your business that is more than “fluff.” Your plans need to actually outline where you are right now, where you want to go, and specifically what you will do to get there.

This is exactly what I covered in the business start-up workshop I did at the recent Type-A Parent Conference. Two of the most important plans for small business owners at all stages of business are a business plan and a marketing plan.

The links below will help you get started creating simple, useable and relevant plans that aren’t overwhelming and will help you outline specific steps you need to take in your business:

• - How to Write a Simple Business Plan
• - Simple Marketing Plan Template

4. Schedule Downtime -

If you are a scheduled, organized entrepreneur, you may have a calendar so packed with tasks, meetings and projects that it can be a challenge to find time to relax. The best solution to this problem is actually scheduling in downtime. If it’s on the schedule, you’re less likely to book something else during that time, and more likely to stick to it and make it a priority.

Here are some relaxation resources that will help you explore ideas for stress relief, websites to unwind with, CDs for relaxation and more tips for hitting the reset button.

Stress relief and management is an ongoing process for most of us. How do you manage stress in your small business? Share your tips in the comments.

This post was originally published on the Small Business Bonfire. The Small Business Bonfire is a social, educational and collaborative community for entrepreneurs. Join their online business community and read their small business blog to get immediate access to small business help, tools, advice and resources.

About the Author:

Alyssa Gregory is a small business owner, speaker, writer and collaboration-addict. She’s a team player, a team builder and not a bad leader, either. You can often find her on various social networks looking for remarkable people to collaborate with. Read more.

Img Src: asmallbusiness.org

Like it or not, it’s important to protect yourself and your business with the right kinds of insurance. But what’s available? What coverage do you absolutely need and what’s optional? Here’s a rundown of six common types of business insurance and what they help you protect.

6 Types of Insurance Your Small Business Needs

1. Property Insurance - As you might expect, property insurance protects the building(s) you own as well as your business property. So it covers items like office furniture, computers, inventory, and other equipment you have on site. This is the kind of policy that insures you against things like theft, fire, vandalism or disaster. All policies vary, but some property insurance policies also offer optional coverage should you be unable to operate or maintain sufficient income for a period of time.

2. General Liability Insurance - No matter what you do or where you operate, general liability insurance is important for small business owners. General liability policies cover your defense and any damages should you, an employee, or one of your products or services cause injury or property damage to someone. And while it’s generally safe to assume that you and your employees would never wittingly harm someone or their property, accidents do happen.

3. Commercial Auto Insurance - This coverage is important for businesses with company cars and fleet vehicles. It insures you in the event of property damage or a collision in one of your company vehicles. If your employees use their own vehicles for company business, you need different coverage for non-owned vehicles.

4. Data Breach Insurance - Data breach insurance covers you in the event you suffer a loss due to private or sensitive information being leaked. If your company deals with personal information, you’re responsible for protecting it. So, whether the information is retrieved through electronic means or paper files are obtained by the wrong people, this type of coverage protects you against the financial losses associated with those breaches.

5. Worker’s Compensation Insurance - Worker’s compensation offers insurance to your employees who are injured on the job. It helps out by covering wage replacement and health benefits to someone who is injured while on the clock. Employees who receive these benefits from their employer agree to give up their rights to sue for a job-related accident. If you have non-contract employees (employees who receive a W2) then worker’s compensation insurance is an absolute must. It’s required by law, and you may face some pretty stiff penalties if you don’t comply.

6. Business Owner’s Insurance Policy - Insurance packages for business owners include all the required coverage that business owners need. They often include property, business interruption, vehicle, data breach, liability and crime insurance coverage. These can be tailored to your business’s specific needs, and usually help you save money through bundling services. In most cases it would cost you much more to purchase each product individually.

As I mentioned earlier, you may be required by law to possess certain kinds of insurance. Talk with an insurance professional to determine needs in your state and make sure your small business complies with local regulations.

This post was originally published on the Small Business Bonfire. The Small Business Bonfire is a social, educational and collaborative community for entrepreneurs. Join their online business community and read their small business blog to get immediate access to small business help, tools, advice and resources.

About the Author:

Emily Suess is a freelance writer in Indianapolis. She also blogs at Suess’s Pieces, home of Writers’ Week and the 2012 Brave Little Blogger Contest. Read more about Emily.

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The National Federation of Independent Business (NFIB) recently released its’ monthly optimism index for the month of March. The Index reported that after three straight months of slow growth, small business owners are becoming wary again. They are nervous about the economy, the 2014 budget, taxes, and access to capital. There were declines in the number of small business owners who planned to expand, hire, and increase inventories.

Just How Optimistic Should Small Business Owners Be?

Given the fact that small business employs over half of the private sector and contributes to half of the private GDP, a pessimistic small business community is not good for our economy.

However, another survey claims that not everyone is pessimistic. According to the findings of the SMB Wellness Index released by Manta, small business owners said that the first quarter of 2013 was a good one. Nearly 80% of the 1,200 small business owners they surveyed claimed that they were optimistic about business growth over the next three months.

With all of the contradicting information floating around, uncertainty is understandable. But I, for one, am cheering for optimism. I believe that the flow of capital will continue to entrepreneurs.

The March 2013 Biz2Credit Small Business Lending Index, my company’s monthly analysis of 1,000 small business loan applications, points to an easing credit market. Big banks (defined as having assets of $10B+) are now approving 15% of small business loan requests. That’s a 44% improvement in approvals over this time last year. Small banks are now approving over half of all loan requests they receive. A year ago, that number was hovering around 45%.

Many smaller lenders are taking advantage of the SBA’s Small Loan Advantage Program (SLA), which can grant up to $350,000 in funding under an accelerated turnaround time of 36 hours. Small business owners have recently been able to access working capital in record time to meet payroll and take on new projects – all at near historic low interest rates.

We’re also seeing increased competition in the small business loans marketplace as more banks express a desire to lend to small business. Competition benefits small business owners, who enjoy more lending choices and a lower cost of capital.

While uncertainty is understandable – especially with the ongoing budget discussions in Washington – I believe that small business has a lot to be optimistic about.

About the Author:

Mariah Courtney is the Online Community Manager at Biz2Credit. She is an entrepreneurial and social media evangelist with a passion for writing and travelling. Former experience includes running the social media program at The Receivables Exchange and copywriting for WPromote, Inc.

Founded in 2007, Biz2Credit Business Loans is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complementary business tools. Having arranged $800 million in funding throughout the U.S., Biz2Credit is the #1 online credit resources for small business loans, lines of credit, working capital and other funding options. Follow us on Twitter for small business news and updates.

photo credit: h.koppdelaney via photopin cc

Spring is in the air! Time to go outside and romp around in the grass as you enjoy the sunshine and fresh air. Now that you’re no longer cooped up indoors, it makes it all that more distressing when you come inside and see how “winterized” your house or office is. Face it: it’s time to do some spring cleaning!

Spring cleaning isn’t just sweeping up dust bunnies and reshelving books, though. It’s also making sure you’re organized in other parts of your life, including your business life. And if you had trouble with your 2013 taxes due to disorganization, it’s definitely time to think about changing the way you do things.

Don’t know where to start? Here are three big areas you can improve to make your taxes in 2014 that much easier.

Spring Clean Your Small Business Finances for a Less Taxing Tax Time in 2014 

Auto Track Income & Expenses

Very few business owners like to track their finances. Day in and day out you’re forced to manually enter every single cent of money that comes into your business and write down every expense lest you forget later. After a while it seems like tracking money is all you do instead of actually working on expanding your business.

Forget all that and start automatically tracking your business finances with a service like Outright. Now when you buy something for your business or receive a hefty check the amount will automatically upload to your account. Instead of dealing with numbers all day you can get back to what you actually love doing: running your company.

Manage Receipts

Receipts are a huge pain and an enormous waste. You’ve tried the “shove them in the back of the drawer” method but they spill out everywhere. Plus, when you handed a giant mound of paper to your tax professional, he just started crying. Clearly you need a better solution.

No two solutions work for everybody. One business owner could actually make a back stack of papers in a box work for them – come tax time they instantly figure it all out and turn all their paperwork in on time. Your solution may not work for anyone else.

One useful idea is to go digital, which appears to be the trend anyway. Send all your boxes of receipts to a company like Shoeboxed so they can turn them into files easily stored on your computer. If you have a scanner and the time you can do it all by yourself.

Update Your Calendar

Remember earlier this year when you looked at the calendar and freaked out because taxes were due soon? It’s not like you weren’t warned – you just let it slip from your mind and it snuck up on you.

The real trouble with this is once you get behind on any taxes you could potentially stay behind on them for quite a while. As a business owner or freelancer you have lots of tax days to worry about, including quarterly estimated tax due dates and sales tax due dates. Getting ahead of the game by marking everything on a calendar ahead of time can do wonders in keeping your head straight.

Want more tips to help you stay ahead of taxes and other aspects of your finances? Sign up for our Spring Cleaning Your Small Business Finances email series and take just six steps to a sparklingly organized tax time in 2014!

This guest post is brought to you by Outright.com. Sign up today and get a handle on your business finances for a less taxing tax time!

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Here at Funding Gates, we love small businesses. So many of the small businesses we love just happen to be local, and we’ve found there are many fantastic reasons to buy local. The team at CustomMade believes so too, and even made this excellent infographic to explain just how valuable buying local can be.

Why Buying Local Is Worth Every Cent

Imagine that it’s rush hour at your business. The time of day when, often for reasons not entirely clear, the best customers flock to your location to spend their money freely on your awesome products and services. It’s a time that every business owner looks forward to, especially when there’s a need to make up for downtime.

Now, imagine that just as the first of many customers crosses the threshold of your most holy grounds, the most important tool for success crashes. That tool is none other than your point-of-sale (POS) system.

For many business owners, this isn’t a nightmare; it’s a reality that they have experienced at least once, if not several times. Aside from being unreliable, traditional POS systems are infamous for their cluttered interfaces and sluggish speeds, making them frustrating to use even when they are functioning as they should. Among many others, these are some of the problems that have spawned a surge in the development of cloud-based, online POS systems. And the benefits of using online POS systems are numerous.

The Online Point-of-Sale Revolution

Cloud-Based Data Security

For those of you who have not yet heard of these systems, cloud-based POS systems take all of the best functions of traditional POS systems and bring them into the 21st century. Online POS systems store all data on remote servers in the cloud. This element alone provides a huge advantage over traditional POS systems, which usually store data on a local hard drive, rendering them susceptible to the same type of data loss and crashes as any ordinary home computer.

Compatible With All of Your Devices

In addition to security of data, because cloud-based POS systems run online, they are usually compatible with any Internet-enabled device with a browser, including desktop and laptop computers, iPads and other tablet PCs, and even most smartphone models. As long as the app supports your device’s Internet browser, it should function in its full capacity. This is a godsend for most business owners, who often shell out more for the POS hardware or terminal than they do for the actual POS software itself.

Access Anywhere, Anytime

Business owners on the go should especially find online POS systems advantageous to the old, clunky terminals they are so used to. Like any web based application, online POS systems allow users to access data anytime, anywhere, putting them directly in touch with the day to day operations of their businesses 24/7.

The same way many businesses are switching to cloud-based office services like Google Docs, Zoho Office Suite, or Office 365, business owners should consider moving their core sales software to a more secure, reliable, and simple place, where access to this software is limited by little more than an Internet connection (and if you can’t find one of those, you might have bigger problems than accessing your POS…).

Freedom Included

More than anything, cloud-based POS systems provide business owners with more freedom. The freedom to choose their own hardware, the freedom to sleep at night knowing their data is secure, and the freedom to access this data on the go from whatever device is handy.

Among the many cloud-based POS apps that continue to pop up, there is one thing that unites them: the goal of eliminating technical difficulties from daily business operations, so that business owners can get back to doing what they should have been doing in the first place — running a business.

This post was originally published on the Small Business Bonfire. The Small Business Bonfire is a social, educational and collaborative community for entrepreneurs. Join their online business community and read their small business blog to get immediate access to small business help, tools, advice and resources.

About the Author:

Ben Taylor is the head of marketing for ConnectBusiness, one of the newest players in the online POS game. To learn more about ConnectBusiness or sign up for free, visit their website or shoot them an email.

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