How to be an Attractive Borrower

Have you heard of The Five C's of Credit? It is a classic banking industry guideline that lenders use when assessing the merits of a loan application. The Five C’s of Credit are Character, Capacity, Conditions, Capital, and Collateral.

Market Research can give you insight into the needs and interests of your customer base, the market trends in your industry, and how your own business is perceived. It can even help you discover who your clients are and define your target market. For many business owners, market research provides vital information for decision-making. A well-informed decision can mean the difference between making decisions that benefit your business and making poor decisions that may hurt it. Because you need to stay up-to-date with an ever-changing business environment and the constantly evolving needs and interests of your customers, market research should be ongoing. 

As a small business owner, you know how critical it is to differentiate your business and stand out to your client; but who is your client? To have an effective marketing campaign, it is important to define who and where your target market is. You can figure this out by looking at who your customers are now and, also, by defining your ideal customer. With the internet connecting us all, it is also wise to consider your biggest market may be beyond your local area.

In a sea of businesses, you need to set yourself apart. Knowing your competition, their strategic choices, and the type of customer who chooses them can give you key insights into running your own business. This isn't so that you can copy your competition. It is to help you better understand what makes you unique. Businesses thrive when they develop distinct niches within competitive markets, which is why differentiation is so valuable. 

The point at which a small business’s sales exactly cover its expenses is called The Breakeven Point. Performing a calculation called a break-even analysis can help business owners determine the amount of product they must sell to generate a profit. Knowing your Breakeven Point is crucial for selecting product and service pricing and adjusting operating costs when necessary. To calculate your Breakeven Point, you must know your fixed costs, variable costs, and the selling price of your product or service.

Being a successful small business owner requires that you understand your company's financial statements. Fortunately, the three key financial statements you’ll be working with are more straightforward than you might think.

Capital assets, dividends, accounts payable, contribution margin, floating liabilities, and working capital; when it comes to owning and running a small business, there are many financial terms involved. It can be overwhelming! Like most small business owners, you probably find it more satisfying to create a great product or service and connect with customers than to worry about finances. You may be tempted to leave it all up to your accountant and bookkeeper. However, entrepreneurs need to know key financial terms.

Running a seasonal business is all about planning. This is especially true when it comes to finances. Businesses with seasonal operations, such as those in the tourism and agriculture industries, may have difficulty meeting financial obligations in slow times. Because fixed costs don't go away in the offseason, seasonal businesses need to pay special attention to how they manage their cash flow. 

There is a lot to consider when thinking of starting your own business. It can be overwhelming and you probably have a lot of questions. Our Business Start-up Guide will walk you through the steps and considerations of building your dream business.

Simple Steps to Marketing Your Small Business

Marketing is all about delivering the right messages to the right people at the right time. It’s about getting seen and having your voice heard.