Start and Finance a Business
From Rosemary Peavler, former About.com Guide
- How to Open up Your Business
- Starting a Small Business in a Recession
- Choosing a Credit Card Processor for your Business
- Setting up your Accounting and Bookkeeping Systems
- Find Start-up Money for Your Business
- Business Loans
- Other Types of Debt Financing
- Interest Rates on Business Loans and Debt Financing
- Financial and Business Ethics
- Equity (Investor) Financing for your Business
How to Open up Your Business
Many people have the dream of opening up their own business. When they actually start to think about it in real terms, particularly the money part, it seems overwhelming. That's why I and bizfinance.about.com are here. We want to make the business of opening a business less overwhelming by providing you with a framework for doing it. You will find articles and resources on almost every facet of business finance that is relevant to opening your business. We hope this helps you on your journey to becoming a successful business owner!
- Top Business Finance Trends for 2012
- Step-by-Step Guide to Start a Business
- How to Incorporate your Business and Choose your Business Entity
- How to go Into Business for Yourself
- Characteristics of Successful Entrepreneurs
- Forms of Business Organizations
- Limited Liability Company
- Get Your Employer Tax ID Number When You Start Your Business
- Keep Your Business and Personal Funds Separate
- Small Business Start-Up Tips VIDEO
Starting a Small Business in a Recession
It may seem contradictory to say that a recession may be a good time to start a small business. However, it's true. There are opportunities available in a recession for small businesses if you take them. There are also businesses that are counter-cyclical that actually flourish in a recessionary environment.
- Most Profitable Businesses to Start in 2012
- 5 Financial Resolutions for 2012 for Small Business Owners
- Recession may be a Good Time to Start a Business
- Best Small Businesses to Start in a Recession
- Take Advantage of Other Companies' Outsourcing Needs
Choosing a Credit Card Processor for your Business
Choosing a credit card processing firm for your business is one of the most important decisions you will make when starting a small business. You may try to go with the bank that you use, but if you are a new startup or a home business, the bank may refuse you. You may have to use an independent sales operator instead. Watch the myriad of fees and transactions costs you will be levied. Offering your customers more payment options is a good thing.
Setting up your Accounting and Bookkeeping Systems
When you open up a small business, one of the first things you have to do is set up your bookkeeping and accounting systems. You cannot go forward until your books are ready to keep track of your financial transactions from both a tax and legal standpoint. It is also important for you to be able to calculate your profit or loss and keep track of your assets, liabilities, and net worth.
- The Accounting Cycle for your Business
- The Difference Between Bookkeeping and Accounting
- Should you use Single or Double-Entry Bookkeeping?
- Cash or Accrual Accounting Systems?
- Pick the Tax Year for your Business
- Setting up your Chart of Accounts
- The Accounting Equation
- Source Documents for Accounting Transactions
- Accounting Journal Entries
- Construct the General Ledger for your Small Business
- How to Prepare a Trial Balance
- Adjusting Entries in Your Accounting Journals
- Prepare the Financial Statements
- Closing Entries as Part of the Accounting Cycle
Find Start-up Money for Your Business
When you start a business, you can either use debt or equity financing. Debt financing involves loans from family and friends or banks and other financial institutions. Equity financing means taking on investors. Family and friends may want to invest in your business. You can also search out angel investors or use venture capital.
- Financing Your Business With Your Own Funds and the Help of Family and Friends
- Bootstrapping Your Startup or New Business
- Debt and Equity Financing
- Credit Cards as a Source of Financing for Your Startup Business
- Start-Up Business Financing Tips VIDEO
Business Loans
There are many sources from which you can get business loans. The first source you usually think of is commercial banks. That is probably the source most businesses use. There is also the Small Business Administration, other financial institutions like credit unions, and a wide variety of non-traditional sources.
- Small Business Administration Loan Programs
- Readers Respond: Have you had Trouble Getting an ARC Loan?
- How to Choose the Best Bank for Your Business
- What is a Commercial Bank Term Loan?
- How to Prepare to Apply for a Small Business Loan
- How to Apply for a Small Business Loan
- How to get a Loan for a Start-Up Business
- Four Reasons to Take out a Business Loan
- Demonstrating Your Creditworthiness to a Bank
- How to Read a Credit Report VIDEO
- Bank Loan Application Sample
- Review of Bank Loan Application - Sample
- A Collection of Articles on Bank Lending to Small Businesses
Other Types of Debt Financing
There are many alternative types of debt financing that you can use for your small business. You aren't as limited as you may think. You can use asset-based financing which involves using accounts receivables and inventory to finance your operations. If your business is very small, microfinancing might be for you.
- Finance Your Business Using Accounts Receivable
- Example: How a Bank Calculates the Loan Amount When you Pledge Receivables
- Finance Your Small Business Using Your Inventory
- Using Credit Card Financing to Start a Small Business
- New Credit Card Legislation Protects Consumers
- Merchant Cash Advances as a Source of Small Business Financing
- Peer to Peer Lending - a Source of Small Business Financing
- Purchase Order Financing
Interest Rates on Business Loans and Debt Financing
Small business owners want to be able to understand how banks and other financial institutions calculate interest rates on their loans. There are terms that are important such as effective interest rates, the prime interest rate, the stated interest rate, and others.
- Before you Take out a Bank Loan, Learn to Calculate Your Interest Rate
- How Banks Establish Interest Rates on Business Loans
- The Difference Between the Stated Interest Rate and the Annual Percentage Rate
- Amortization of a Bank Installment Loan
- Example: How to do a Loan Amortization Schedule
Financial and Business Ethics
The business world, espeically the world of capitalism, cannot operate without a system of financial and business ethics and the absence of fraud. In the decade of the 2000's, in the U.S., there have been too many instances of fraud in the corporate and banking worlds. In the last big scandal, fraud almost brought down both Wall Street and Main Street and caused a recession the likes of which had not been seen since the Great Depression.
- Financial Ethics will Improve the Profitability of your Small Business
- Large Banks Taking Risks Again Instead of Serving Small Business
- Toxic Assets: What They are and how They Brought Down the U.S. Economy
- Bernard Madoff: The Biggest Ponzi Scheme in History
- What is a Ponzi scheme?
- The History of the Ponzi scheme
Equity (Investor) Financing for your Business
Particularly if your firm is a start-up, you may need to turn to investors to help fund your firm rather than debt financing. In fact, to even start operating, all firms need some form of equity capital, even if it is your own or that of family and friends. Your firm will only be attractive to other investors if you have enough confidence in it to invest in it yourself. There are various types of equity financing you can attempt to use.