9 things you must do to maximize your chances of obtaining a small business loan

Saturday, March 7, 2009

9 things you must do to maximize your chances of obtaining a small business loan

by: Neil Best
To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria.

To vastly increase your chances of a successful funding application, you will need to present the following information:

1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each.

2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly).

3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It”

4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they?

5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc.

6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor.

7. Latest Set of Management accounts. Again produced from your accounting software.

8. Accounts receivables (debtors) and payables (creditors) ageing reports.

9. Principals financial statements. – Particularly required if some form of security is necessary.

If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan.

You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!)

Good luck!

Google's own AdSense Tips

Google's own AdSense Tips

by: Richard Keir
Google is at least as interested as you are in having your ads perform well on your site. And they've gone to some work to provide the information you need to optimize your AdSense.

What's fascinating to me is that apparently not everyone bothers to read their tips. And even some that do, fail to apply it.

That said, you need to be aware that simply using their tips doesn't guarantee successful ads and decent CTR (Click Through Rate). How many times have you heard this? You have to test. You have to try alternatives and see what really works best for you, on your pages, with your content and your visitors. Test, test, test some more. Track your results, analyze them, try variations. Too many of us don't test. We hear the mantra, but we don't do the work.

First, let's see if we can get an idea about location. (The graphic is included in the article on my site or you can take a look at it at the Google link included below) Generally, above the fold, at the top center of your content, below top navigation is the hottest location. Not immediately below which is good but not quite as hot. In a left sidebar, to the immediate left of primary content or below the primary content are also good. Most other locations are generally cooler.

Again, you need to test and you need to consider your users behavior - and their behavior may vary on different pages with different kinds of content. Google suggests that in some cases, such as articles, the best location can be at the end of the article. To quote Google, "It's almost as if users finish reading and ask themselves, What can I do next?" Well targeted relevant ads right there can provide the answer.

Don't blindly assume that sticking a nice big rectangle in the center above the fold will do it. It may, but depending on your content, it may annoy or inconvenience your users.

Users tend to focus on content, navigation and to a lesser extent graphics. Positioning your ads near these elements will often work well -- if those ads are targeted to your visitors needs.

The top three performers among the Google ad formats are the 336X280 large rectangle, the 300X250 inline rectangle and the 160X600 wide skyscraper. Google reports that the wider formats tend to do better than the taller ones. One reason may be that these are, perhaps, easier to read since they have fewer line breaks and require less eye movement. But, you need to use formats that fit your pages well. Once again, you need to test, but redoing your pages to suit a particular ad format may not be a reasonable alternative and you may discover that a different format actually gets better results.

Now we come to color. Conventional wisdom says that colors which tend to blend into your content do better. Some go so far as to suggest that colors which make the ads look like part of the content are best. Personally, I think anybody really believes those ads are anything but ads, but who knows. Google suggests that you may find that colors that standout from your content do better - or maybe the opposite. This is absolutely an area where you need to test alternative color schemes. Going with the conventional wisdom usually works fairly well, but without testing you could be leaving a lot of money on the table.

Google allows you to have up to three ad units and one link unit on your pages. If you have long pages with lots of text, can only use small ad units or are in a niche with a large ad inventory, multiple units can pay off. Keep in mind that the way ad serving works is that the higher value ads are delivered to the first ad unit block encountered in your code. Always make sure that this first ad unit is displayed in the best location (yeah - test). You want the higher paying ads to be in the prime hot location on your page. Weaker locations can get the lower priced ads. And if none are available, then nothing will display unless you've included an alternate ad URL in your Google code. To maximize monetization you should be including alternate ad URLs, especially if you are putting multiple units on a page. The use of an alternate ad URL also eliminates the possibility of being served PSAs (Public Service Announcements). It's your real estate, maximize your returns.

Nothing here is secret. Except for using the alternate ad URL, all of this information is available from Google's Optimization Tips page - http://www.google.com/support/adsense/bin/static.py?page=tips.html . You can buy books and courses, visit a dozen forums and, in the end it comes down to what your visitors do on your site. The best you can get is general guidance. This means averaged outcomes over many sites, many types of content. If you are serious about doing whatever you can to really optimize your AdSense returns, there is only one thing to do - test. Whether it's AdSense, opt-ins, copy, headlines - anything with a measurable outcome that you can track - then the way to improve is to test and keep on testing.

You May Have A Successful Small Business Idea

Tuesday, March 3, 2009

You May Have A Successful Small Business Idea

by: Sintilia Miecevole
You surely know that a small idea can lead to a great business success. The first movement is to think of an idea that would be suitable for the business market. After coming up with the idea, the next step is to put that idea into action. Of course, this is a very difficult step and having the idea is only the start of the journey. After that you will have to face many obstacles before being able to carry on with your business project. This is just the beginning of this process and there is a lot of questions you will have to answer before even start.

Some of the main aspects you have to concentrate on when you have business ideas are the abilities and gifts you can pour into the business. It is very important for you to be identified with your business project. Those ideas should be based on activities and actions you take pleasure in doing. For example, if we suppose that you dislike working in the open, landscaping business would not suit you. On the other hand, if you like working with children, setting up baby-sitting or tutoring business would be an excellent idea. In this case, without any doubt you business will be more successful because you will have put your mind, effort and also your heart on it.

Another vital step is to analyze the needs of a specific product or service in your region before setting up your business. Do people of your area need your product? Are there other business like the one you are planning to start? You should ask yourself whether or not you are the only one offering that service or product. If you are not, you will have to analyze the competence you will have to face. You have to think whether the service you are offering is one that customer would repeat, or if it is a one-time specialized service. Obviously, the former are more likely to succeed than the latter.

There are other aspects you have to take into account. These aspects are described below:

- One of them is that if the idea is unique, you will reign the market. But if there is much competition, it will be difficult to enter into the market.

- A second point would be if you can offer quality from the very beginning, otherwise, you won't succeed.

- Finally, you have to think about your capital to start your own business. There are many business ideas that require little investment and bring great profit. Some demand research, such as daycare service, and others need a large amount of money to begin the business. So take this recommendation into account before investing all your money in a small business idea.