myBiz Networks

Buzgate User Writes

Dear Captain BUZ:

Rising energy costs are killing my profit margin; my bank has stopped lending to small businesses, and I've had to cancel the company health insurance policy because it's too expensive. If this keeps up, I stand to lose everything I've worked for over the past decade?!?!

Help?

John, New York

Dear John:

There is no fast fix for what's going on in the economy right now, and it's still unclear what effect it will have on small business over the long haul.

However, there are a number of options available to you now that are listed below and may help. Click on the options that interest you and you will then choose what state your business is in to be taken to the page with more information on that topic.

• Don't spend unless you absolutely have to. Start by improving your Cash Flow Management to know how much you have for what and when.
• Cut operational costs through outsource responsibilities like payroll, human resources, and HR management. This can help to save money, time and reduce liability.
• Investigate creative funding sources such as credit card factoring, peer-to-peer lending, lines of credit, factoring, or debt restructuring.
• Cut overhead like rent, heating and electricity by having employees work from home. There are remote technologies, online collaborative workspace, online meeting software and virtual phone systems that all support this option at costs small businesses can afford.
• Use public programs at no or low-cost including specialized sources of financing, business counseling and business development.
• Increase business development through tools such as email marketing, accepting credit cards, reinforcing brand awareness, and using sales proposals to secure new business.
• Negotiate. In tough economic times, vendors are often willing to work with long term, loyal customers. If you can pay early, ask for a discount. If you can't pay on time, ask for an extension to stretch out cash flow. You have nothing to lose and everything to gain by asking.

Also critical is building your business support networks. SCORE represents a national network of volunteers who offer their time, expertise and access to other business people in your community who can provide assistance specific to your business needs.

We hope some of this information helps and welcome your feedback and questions. Good luck!

Tom from Ohio writes:

Dear Captain BUZ:

I have been on active duty in Iraq and am planning for separation in 6 months. I would like to start my own business, but don't know where to begin, or where to find resources, especially a loan that I will need to get started.

Dear Tom:

First, thank you for your time and sacrifice through your military service in protecting Americans at home and abroad.

There is some good news in these troubled economic times for you and your fellow veterans who are in business or who are thinking about going into business. There are a wide range of business development resources including loan programs - yes, even loan programs - targeted to support your business development activities.

Here are three valuable actions that you can take to help you build your business success:

First: Determine your "business readiness"

Use the 10 Step Venture eMentoring Program, a free, online, interactive learning system that provides a thorough, step-by-step framework for developing business skills, knowledge and a support network for successfully launching or growing your own business venture. Here you can work through a series of worksheets that will return a score to help you to understand your relative business readiness. These results can also be emailed to a pre-selected business counselor from SCORE Counselors to America's Small Business, where you will receive feedback from an experienced business professional without charge.

The program begins with a self-assessment of suitability for being in business, and concludes with a blueprint for implementing the venture. It is self-paced - you proceed to the next session when you are ready. It is important to devote sufficient time to each of the exercises. For once, there are no predetermined right or wrong answers - the right answers are the ones that work for you.

It is valuable to have someone to discuss the various worksheet results with. That is why using someone else such as a SCORE mentor as a sounding board can help determine whether it all really makes sense.

Click here to register for the program, and visit www.score.org/index.html to locate a SCORE counselor.

Second: Build Your Networks

There are thousands of business assistance agencies that our tax dollars pay for to help veterans and others to build the skills and find the information they need to start, grow and succeed in their own business. These organizations offer free and low-cost help in practically all areas of business management including business planning, marketing, import/export, site location, funding, international business, government contracting and other core management disciplines. Through these free and low-cost business support relationships, you may also obtain referrals to local private sector support organizations such as bankers, accountants and attorneys. Collectively, these resource providers will help you gain more insight and skills based on your own particular entrepreneurial needs and interests, and also help you to begin building your support network for the longer term.

Visit Buzgate.org, select your state, and click on "Free Help" to find the right person in your local area that can provide the specialized expertise that you need.

Third: Find the Financing You Need - The Patriot Express Loan Program

The US Small Business Administration (SBA), in partnership with selected banks across the country, has established the Patriot Express Loan as an important new lending program to support veterans who want to go into business or who are already in business.

The Patriot Express Loan is for veterans and members of the military community who want to establish or expand a small business. Eligible military community members include:

• Veterans
• Service-disabled veterans
• Active-duty service members eligible for the military's Transition Assistance Program
• Reservists and National Guard members
• Current spouses of any of the above
• The widowed spouse of a service member or veteran who died during service of a service-connected disability

The Patriot Express Loan is offered by SBA's network of participating lenders nationwide and features expedited turnaround for loan approvals. Loans are available up to $500,000 and qualify for SBA's maximum guaranty of up to 85% for loans of $150,000 or less and up to 75% for loans over $150,000 up to $500,000. The Patriot Express Loan can be used for most business purposes, including start-up, expansion, equipment purchases, working capital, inventory or business-occupied real-estate purchases. Patriot Express Loans feature SBA's lowest interest rates for business loans, generally 2.25% to 4.75% over prime, depending upon the size and maturity of the loan.

Visit www.sba.gov/patriotexpress/sba_patriot_expressloan.html to learn more or contact your local SBA office. Click here to learn about other SBA loan guaranty programs.