All posts by Mariela Merino

If you have a small business that is thriving, opening a business credit card in your business name that is used for business purposes is recommended. You can use a personal credit card in the beginning of your business but as you plan to grow then a business credit card is the best option because it has special perks and features. Below we will discuss the other several reasons you should get a small business credit card.

Whether you are trying to borrow money from a colleague or land the financial backing of a venture capitalist, there are some traits that can scare investors away. It can be hard to find startup funds so if you have an interested investor you should do everything you can to entice him or her to cut you a check.

If you have an idea for a startup, you will need cash to make it a reality. You can look for investors or borrow money from friends but getting a loan from a local bank is still a popular option.

At some point, your business will need some cash. Whether you need startup funds or had a rough quarter in sales, sometimes your bank account cannot take the hit. One option to get help is to turn to a friend. Many people hesitate to ask friends because they do not want to ruin the relationship, however, there are ways to make the process a smooth one.

Exit strategies related to startup funding are often misunderstood. The exit strategy is for the money not the startup founders or small business owners. The company brings in money and the investors get money out. Startups looking for angel investors or venture capital absolutely need an exit strategy because investors require it. The exit is what give them a return.

All businesses have their ups and downs, and many make it through, but others do not. Half of all new businesses that are started each year survive five years or more and one-third survive 10 years or more.

Businesses fail for many reasons including lack of money, changes in the economy, ineffective management, employee turnover, theft, illness, or death of the owner are just a few. However, the main reason seems to be ineffective management whether it is poor planning or not understanding how to run a successful business.

In recent years, entrepreneurs have been testing a new type of business entity called the L3C, or Low Profit Limited Liability Corporation. A low-profit limited liability company, or an L3C, is a legal structure that is relatively new to the United States. An L3C is a hybrid of a for-profit and nonprofit venture and attempts to tie the line between the two. New funding sources are opened for organizations that, while technically being for-profit, have a charitable focus. A motorcycle safety school and farmer’s markets are some current L3C examples.

Factoring your receivables enables you to get the cash you need immediately to operate your business, without waiting a month or even longer, for your customers and other creditors to pay down their invoices.

Finding natural ways to pitch your startup might seem daunting at first. Your elevator pitch can come off as rehearsed, too straightforward, or too short. Sometimes it does not always fit seamlessly into a conversation, but it is important that you learn how to communicate with potential investors in your everyday life because it will make your pitching more comfortable, which will earn your business the resources it needs to move forward.