Category Archives: Business

Answers to Common Questions About Business Bankruptcy

The world of corporate bankruptcy law can be complex and intimidating. Don’t let confusion get in the way of making the best decisions for your company: read on to get answers to the most commonly asked corporate bankruptcy questions.

Q. What is bankruptcy?
A. When a business has financial liabilities that exceed their assets or is unable to meet financial obligations, that company is insolvent-unable to pay their creditors, the company must come to an agreement with their creditors regarding payment or file for bankruptcy protection. This judicial solution gives the courts the power to settle the company’s debts. Bankruptcy proceedings can be initiated by the debtor or by the creditor (called an involuntary bankruptcy). Filing a bankruptcy petition affects all of your creditors including:

  • Secured creditors (those with a lien on your property)
  • Unsecured creditors (vendors, credit card companies and others without a security interest in your property
  • Judgment creditors (creditors who have sued and obtained a judgment against the debtor prior to the bankruptcy filing)
  • Creditors with super priority claims (those with priority over other creditors because of special rules within the bankruptcy)
  • Creditors with administrative claims (creditors such as accountants or lawyers with priority because of their assistance in the bankruptcy filing)

Q. What does filing for bankruptcy mean for my business?
A. Filing a bankruptcy petition simply starts a legal proceeding, with no guarantees regarding the outcome. That is to say, the debtor will present evidence of its insolvency, but there is no guarantee that the court will declare them bankrupt. This statutory process gives creditors and other parties the opportunity to challenge the debtor’s allegations and object to the relief being sought by the debtor.

Filing for bankruptcy does immediately put into effect an “automatic stay,” an injunction that stops creditors from trying to collect their debts until the bankruptcy court rules. This stay is issued against all creditors upon filing a bankruptcy petition. The automatic stay is designed to give debtors temporary relief from their financial obligations, giving them the breathing room to figure out how to deal with their debts. If the courts declare your company bankrupt, then a settlement will be worked out with your creditors to satisfy all or part of your debts. Depending on the bankruptcy chapter you filed under, different rules apply.

Q. What is a business workout?
A. A business workout is a non-judicial resolution of your company’s financial obligations. Business workouts are settlements between a company and its creditors that satisfy the businesses’ debts, enabling it to continue operation. Also known as bankruptcy prevention, these arrangements are made outside of the court system.

While it may be surprising that creditors are willing to participate in business workouts, they’re more likely to receive greater compensation for their debts if your company does not file for bankruptcy. Using an alternative to corporate bankruptcy proceedings benefits creditors as well as the debtor, because some, or even most, of the debt will not be repaid under a bankruptcy proceeding. Secured debt, unsecured debt, and tax debts can all be resolved as a part of a workout. For additional information about business bankruptcies and your company, contact your area bankruptcy lawyers.

Three Myths About Business

Planning your business is a key step to having successful business operation. Yet a majority of women in small business rarely stop to write how they intend to grow a successful business. The fact that 3 of 5 small businesses fail in the first three to five years should raise warning signals that planning is necessary to make operations a success.

So a question that lingers is, “Why is a business plan so difficult for some entrepreneurs to create?”

This is a question a professional business consultant must know how to answer. Here are three myths that are common among entrepreneurs and often give them the impression that writing their operations document is unnecessary.

1. Just for Start Ups

You can write your business plan at any stage in your operations. In fact, one of the factors that lead to failure is a lack of planning. Like anything else; “Fail to plan and plan to fail.” A simple document that you develop over a short period of time can be the key to doing business in a successful manner.

The beginning of a business is the most common time when a business plan is written. This is when a plan can help put a business on a solid foundation. However, a properly prepared business plan should function as a living document. That means it must grow and change with the business.

Therefore, a business plan can be changed, upgraded or developed at any stage of the business operation. In fact, many people do start without a written document in hand. They just get their business license and start working their business. Later, they stop to write a plan to analyze the business operations. The plan helps to determine future growth patterns, see what’s bringing in the most money and where adjustments should be made.

2. Must be Huge

The myth that writing a business plan means having to stop everything in your life for months keeps many entrepreneurs from even starting a business plan. It is true that a business plan can certainly be extensive. In fact, some can be hundreds of pages with multiple extensive and complex financial projections. But that is for specific purposes such as for investor financing or finding joint venture partners.

Most of these documents can range from one to 20 pages. The point is to make it a document that makes sense for the business you are operating. If you can write what you want to do in one page, that’s all you need. You can whip that up in a few hours. The main thing is considering the various aspects of what you need to do so you know what direction to take in each area.

Write what fits your business, goals, needs, and marketing direction. It can start off small and grow as your business grows.

3. Essentially Useless

The purpose of the writing is to create an operational roadmap for your business. If it’s not usable, the plan hasn’t been well prepared. In fact, it should be pulled out on a daily basis to chart your business operations.

Some reasons why the document may not be usable could include using a template that doesn’t make sense for your business. Instead of being specifically for your operations a template made for another industry of business might be used that creates information or sections that are irrelevant to your business. Trying to fill these in can be so tedious that the writer just puts the plan away and moves on.

Another reason for rendering a plan useless are unrealistic financial projections. By giving false financial numbers it can be frustrating to see that the reality doesn’t produce the expected outcomes. As a result the plan is deemed useless.

The key to this is to work with conservative information in the business plan and be totally realistic about your business and its potential situation.

Facts About Business Loans

When starting a business all you think of in business financing and all possibilities should be taking into consideration upon planning for its productivity. Everything you want is to see an inclination in the diagram of your sales at the end of the months. These could be achieved if you have effective strategies that will make a good profit and the abilities in encouraging many to patronize your products. Financial sources are never been a problem as many banks offers services that even small business can avail of.

Start your business well and give your best effort in managing it and you will see how great your profit will be. Everything should be done in a systematic manner and strategic plans for all possible circumstances should be considered to be very much prepared and have the assurance that your business will be staying tough no matter what may happen. You can get the help of loans to make your business be more credible and well known as you can pay for it once you get your target number of customers.

Some people are afraid to have business loans because it can be a reason that your business will fail but the fact is the success of your business depends on how you handle it and not in the loans alone. Some was discouraged to get the help of loans because of what they have heard from others who have failed in making their business boom. If you have business loans you can expand your business and invest more to promote it in the whole wide world. Interests have been made low so that it will not be a burden especially to those with small business. Have loans and try to manage the business in systematic way and you can achieve the success.

President Obama of the United States is now on his way is making a convenient solution in the small business as he proposes a fund for business loans. This is a great answer as poverty and unemployment increases. It is also not difficult to start a new business as business experts’ share their thoughts about business in blogs like what are the effective business that booms at present. These are great help in making a new progressive business especially that economy is suffering from crisis.

All I Need to Know About Business

All I need to know about business… I learned from Chuck Blakeman! Or maybe that’s better phrased if I were to say, “All I need to know, I learned from taking the time and space to come up with my own answers, after I heard Chuck Blakeman speak at a recent workshop that we are apart of, OnTrak. I found the 3 hours I spent in this workshop to be an amazing investment of my time and I intend to spend the next 16 weeks giving the same amount of time investment to these classes because my business and my life depends on it. My intention during these next 16 weeks is to pay it forward by simply bulleting some of the complex, yet so very simple, business tactics and concepts that are transforming the way business owners are doing business.

I hope this turns your business model up-side-down and all around as it has mine. It’s the good to great theory… it’s the average to extraordinary way of living. Which kind of life and business are you after?

Questions to ask yourself:
-Are you using your business to build your Ideal Lifestyle?
-Do you even know what your Ideal Lifestyle is?
-Every business should have a maturity date (a date within 3-5 years of creating your business that enables you to go on vacation, make money, and not come back to find it’s in shambles)… do you have one?
-Are you building a business for yourself or creating just another job? (HINT: one makes you feel like you are on the treadmill, the other one graciously helps you get off the treadmill)

Points to ponder:
-You were made to be and to do something significant… and that includes more then just the idea of creating a business, making a good living, and buying toys for you and your family to enjoy.
-When you have the clarity to know where you’re going and why you’re going there, you will find that you will then have the hope to get you into crazy motion, and then you will have the stamina to take a few more risks. Nothing worth having is created by “playing it safe”, you’ve got to take risks and the only way you will take those risks is by having complete and total clarity.
-Your business should be giving you Time, Money, and Significance.

What You Need to Know About Business

Business factoring companies have quickly managed to carve a fairly credible and universal reputation for themselves and a major reason for their ultimate success has been due to the fact that they are willing and prepared to be flexible and take risks… where traditional lenders are unwilling to do so. As a direct consequence of this then, the business factoring companies have managed to establish a de facto monopoly of sorts on the business financing community, and so by making themselves indispensable to the entrepreneurs, they have secured their own fortune as well.

One of the most appealing things about business factoring companies is irrespective of the size of your business, irrespective of the amount of capital your business has to its name, any business owner will be able to take full advantage of the services provided by these companies. The reason that these factoring companies can afford to be generous and open with who they do business with is due to the fact that they are providing money against the value of an account that is lawfully owed.

Therefore, rather than Company A collecting the money owed to them from their customers, Company A will provide the invoices/accounts to the factoring agency which will then oversee the collection process. This means that they become the legal owners of that debt which in turn, provides them with the opportunity to actually pursue legal action to achieve effective remedies if and when so required.

Because of this then, this means that a business will be able to use all of their invoices as leverage to raise capital, and plenty of it, in a short space of time indeed.

Unlike conventional financial providers such as banks, who will require that the business secures assets of the company as collateral in the unfortunate event of default, this means that by using factoring agencies the company can have an infinite amount of credit.

One of the reasons that relying on banks is such a fruitless and ultimately risky venture for the business is due to the fact that the business will be required to secure its assets as collateral, and if they do not have enough assets to hand, then the bank will simply refuse to help. Promises of future profits and long term expansion plans will typically fail to impress the bank to a sufficient degree that they will then deem the company worthy of acquiring additional loans.

On the other hand, by virtue of the fact that factoring companies, and more specifically, the amount of money that they provide the business that hires them, will be determined by the volume of sales that the business enjoys this means that the business will not force themselves into a point of no return.

All About Business Credit

If you are into business and own a small or big business you perhaps already have an idea about business credit. However if you are a novice and are yet to be acquainted with this term here you go. The description of business credit is actually very simple. It refers to the capability of obtaining services and goods for your organization to meet its requirements.

Now you will know that this ability is nothing more than your credit standing in the market. The promises you make to pay for the services or goods you purchase is not the only guarantee the seller has though. So the better you’re standing in the market the better your ability to get your job done. There of course business folks who do not clear their debts on time and hence earn a bad business credit score. This goes against them the next time they set out to avail services.

Small business loans are usually granted against company assets but then again your credit score is very important here. It is very essential that you stay clear on all the declarations you make before taking any goods or services from any organization on credit. The evolution of business credit cards these days has made getting credit much easier than it once used to be. If used judiciously these cards can prove to be huge assets to your business. However you will need to maintain a very good credit score right from the beginning to get hold of one of these.

Different banks today offer various types of credit cards for small and big business. Get hold of one of these and you are sure to derive immense benefit from it. Except for the private financial firms which offer cards and loans there are also a few government firms which give you small loans on decent interest rates. Credit score again plays a very important role again though. You cannot get one of these loans if your credit score is not up to the specified limit.

Getting a business line of credit is again very essential to be successful in any business today. So get ready with a business plan for your company and explain to all the potential investors and stakeholders how your company can benefit from this business plan.

Business credit no personal guarantee is again a boon of the financial industry today. This ensures that you do not lose your personal property even if you fail to clear your dues. This is indeed bliss for the upcoming businessmen who have just started from scratch. This scheme requires the highest credit scores as t treats the credit score as your guarantee rather than your property.

Everything You Need To Know About Business

Business loans are important for businesses in multiple aspects. Whether it is for funding a company, boosting the company or using it as funding for an acquisition, these loans can be described as the bread and butter for businesses. With the 2008 Banking Crisis and the immediate aftermath slowly fading into memory, a variety of companies are now looking to business loans in numbers once again.

What do you need to know about business loans? Here are a few things which are important for business owners to be aware off.

-Business Loans are widely available. Banks are generally the first calling point for business owners when he/she applies for the said loan. But, banks are not the only body that can offer this support. In fact, it is more likely that company owners will have a far greater chance of securing a loan with a non-governing body instead of a bank.

-There are different types of loans. Different lenders have different products available and different criteria. If an organisation fits within the criteria then they can move to the next stage of credit assessment.

-Some loans are secured and some unsecured. Most lenders will seek security if available to make their loan rates more competitive and reduce their risk.

-If the company have specific funding needs: buying a business, buying a building, stock purchase etc -and then this will often determine the best source of finance.

Business loans are valuable for companies and should be considered in any funding proposition. Much has been made of the economy at the beginning of 2014. Some negativity remains as the world prolongs its exit from the 2008 banking crisis.

But confidence is renewed and has increased for the economy. Towards the end of 2013, these companies have expressed sincere confidence with the economy in 2014 and also confidence in securing the necessary support. Banks have come under fire for not doing enough to help banks secure the funding in which would help them progress in tough economic times.

But the availability of business loans -through companies and non-Governing bodies means that business owners can get help outside of the banks in securing funding for their business.

The Top Ten Myths And Realities About Business

I think it is safe to say that there are many preconceived notions about business coaching. Furthermore, some of these notions really are myths rather than reality. In an attempt to provide some insight into what are the major myths about business coaching, I have developed a list of the top ten myths and respective realities that are counter to each myth.

Myth # 1. I really don’t have any problems. I am doing well and don’t need a business coach.
Reality: Maybe this is true, but it is important to understand that business coaching is not about fixing problems. Business coaching is about creating new possibilities and improving yourself.

Myth #2. Business coaching is nothing more than a cleverly disguised way of telling people what to do.
Reality: Effective business coaching focuses on results and uses various approaches to pull solutions from within those being coached rather than the coach telling them what to do.

Myth #3. You have the questions and your business coach has the answers.
Reality: From my perspective as a strategic thinking business coach, this is very far from the truth and reality. As an effective business coach it is just the opposite. Your business coach has the questions and you have the answers within you and your business coach will help you discover them.

Myth #4. Business coaching is only for troubles or poor performers.
Reality: The best business coaching clients are those with potential that is not being realized or people who have hit a hurdle or stumbling block in their development and need coaching to guide them through the impediment.

Myth # 5. Business coaching is just sitting around and listening to people.
Reality: Effective business coaching comes from asking the right questions at the right time. A well thought-out question may be worth hours of listening. However, listening is only useful if it yields enough information to formulate the right questions.

Myth #6. Business coaching is time consuming.
Reality: Reality is just the opposite. Some of the best business coaching happens in brief and sharply focused doses. And remember the old saying about there is never enough time to do it right but there is always enough time to do it over? Effective business coaching will increase the probability of getting it right the first time and therefore save time in the future.

Myth #7. Business coaching is too expensive and only wealthy people can afford their own business coach.
Reality: Maybe this could be true with some business coaches, but certainly not for all business coaches. When speaking with prospective business coaching clients we focus on the value of the business coaching to their own growth and development and their business and personal goals. After that we develop a mutually satisfactory and beneficial financial arrangement.

Myth #8. I can coach myself for free or I can simply talk to my best friend.
Reality: No matter how hard your best friend tries, he or she cannot be unbiased and impartial with you. And you and your best friend will not ask the tough questions that need to be asked and will not bring the benefit of a true outsider’s perspective.

Myth # 9. Men cannot coach women and women cannot coach men.
Reality: Effective business coaching is gender neutral. In fact, sometimes business coaches of the opposite sex can facilitate people seeing issues from the other’s perspective.

Myth #10. A business coach must have a similar personality to yours.
Reality: Business coaching is about growth and development and having a business coach with a different personality will offer fresh perspectives.

The Top Ten Myths And Realities About Business Coaching, According To Your Strategic Thinking Coach
By: J. Glenn Ebersole, Jr., Chief Executive of J. G. Ebersole Associates and The Renaissance Group (TM)

Glenn Ebersole, Jr. is a multi-faceted professional, who is recognized as a visionary, guide and facilitator in the fields of business coaching, marketing, public relations, management, strategic planning and engineering. Glenn is the Founder and Chief Executive of two Lancaster, PA based consulting practices: The Renaissance Group, a creative marketing, public relations, strategic planning and business development consulting firm and J. G. Ebersole Associates, an independent professional engineering, marketing, and management consulting firm. He is a Certified Facilitator and serves as a business coach and a strategic planning facilitator and consultant to a diverse list of clients. Glenn is also the author of a monthly newsletter, “Glenn’s Guiding Lines – Thoughts From Your Strategic Thinking Business Coach” and has published more than 250 articles on business.

Myth About Business

Entrepreneur! It seems like the life of an entrepreneur is so interesting. Indeed it is filled with never ending excitement. Just like anyone, the life of an entrepreneur has its ups and downs. But then who is to say what is ups and what is downs? Most entrepreneurs see the downs as ups. It is just a matter of perspective. Entrepreneurs are able to see the downs as an opportunity or a learning experience, thus, the downs become the ups.

Being an entrepreneur for 5 years, not a long time though; I may be able to share my experiences with you. I believe I earn the right to crash some of the myth about business. There are too many “fact” about business that are taught by non-business people. Some of these “fact” are simply not true.

Myth – You need capital to start a business

Total crap. I want to tell you, you don’t need capital to start a business. You do need creative juices to start a business. Think about all the successful entrepreneur you can think of, how many of them start their business with a lot of money?

I started my business with only $20. I didn’t even pay for the registration of the business. I also imported products from China without coming up with any upfront fee. This makes me believe strongly that you do not need any money to start a business. Whenever someone told me he can’t start his business because he didn’t have enough money, I always asked, “why do you need money to start a business?” In my belief system, start a business with money doesn’t make sense to me anymore.

Not only me, many of my friends are able to start their business with very little money – as little as $100. Why are my friends and me are able to start our business with so little money?

Very simple, we do exactly opposite what the professors are teaching. What most business books teach is to buy then sell. We did the opposite, we sell then buy. When I decide to sell a new product, I will not but first. I will go around selling it first, taking order from prospective customers. Once I got all the orders, then I will buy the products. This way I minimize my risk and I do not need any upfront cash to buy the products. I collect the money first upon order, then use the money to buy the product.

When a person says he needs money to start his business, actually the big chuck of money is not used in buying products. Most of the money is used in renting office space, buying fixed assets like computers, printers, furniture etc. After renting the office, they spend huge amount to renovate the office, wanting to make it look like a big company. In their mind they are thinking, “the company must looks good, should have the necessary equipment before you can start a business.” Did they get this mindset from school?

I started my business without an office, still I am able to close deal with my corporate clients. A friend rented an office without paying rental and he got all his furniture for free. You bet he saved a huge chuck of cash. I met a gentleman last month, he just couldn’t believe that I can start a business with only $20. He kept saying he need to rent an office, buy this equipment and that furniture. He figured he needs about $30,000 to start his business.

I ever rented a booth for free to sell my product. In fact before I started selling my products, I already make money. It’s all about thinking and doing differently. I must clarify, everything that I did was legal, ethical and moral.

Another of my friend started selling her service before she registered the business, get an office and open a bank account. Her clients issued cheques to her before she opened the corporate bank account. Then she took the money to rent office, buy furniture etc. She started with basically $0.

But I must emphasize this – deliver what you promise. When you take other people’s money, you must deliver the product or service to them. Integrity is so important in building a successful business. You would want to deliver what you promise so that your clients will come back to you.

The point is you do not need money to start a business, instead you need creativity to start a business. As a matter of fact, I believe everyone can do what I did. It’s just that you may be so into their pre-fixed perception of needing lots of money to start a business, therefore, you are stuck in your current situation. As long as you are willing to break away from the old mindset, you will be on your way to starting a successful business.

How To Learn About Business If You Don’t Have A Business Background

If you do not have a background in business, you may find it difficult to start your own online business easily. There are many ways to overcome this lack of education and knowledge so that you can build a prosperous business anyway. These include reading books on your topic, attending live events where you will be able to spend time with business leaders, and having a coach or mentor to help you gain the skills and confidence you need in order to be successful online.

When I came online in 2006 I made the conscious decision to stop reading fiction and start reading business books exclusively. At first this was an uncomfortable process, as many of the books were dry and covered concepts I was not familiar with before this time. I read for about thirty minutes each day until I actually looked forward to what was learning from these experienced and talented authors. I continue to learn more and more about business each month.

Attending live events will give you access to some of the brightest names in business. Look for events near the city where you live to begin with. Also, make it a goal to attend events where there will be fewer than a hundred attendees. This will give you the best opportunity for networking and spending time with the people you want to connect with and learn from to help grow your business. Arrive the evening before the event begins to see who you can meet, and stay until noon the day after the event ends. Before and after the event are the very best times to network.

Once I started working with a mentor my business really took off. He was able to fill in the gaps for me in the areas of business where I lacked knowledge and experience. Finding the right coach or mentor for you is crucial to the process. Choose someone who has the skills you need. I have found that having a business degree is not nearly as important as having years of experience in the field.

You can see that it is possible to build a successful business even if you do not have a business background. Make a plan and then see it through for best results. Once you make the effort to learn from others, read everything you can, and attend some live events, you will feel like you have a degree in business. But this will be better because it will be based on your hard work and perseverance.