Obtaining financing for a new venture is never easy, and finding funding for a home-based sole proprietorship business is even harder. But the Small Business Administration (SBA) has made it much easier for home-based businesses to find the financing they need. If your bank has turned down your business loan application, don’t despair. You may be able to find funding for your business through the SBA’s numerous funding options.

The SBA offers three distinct types of financing for small businesses. Study them carefully to make sure that you are applying for the loan that is best suited to your business.

The Microloan 7(m) Loan Program is the most popular loan for home-based businesses. You can apply for up to $35,000 for your business needs. You can use this money in a variety of different ways, such as purchasing needed inventory to run your business, buying necessary supplies or furniture, getting the computer equipment that you need, or for working capital. However, you will not be able to use this loan to pay off any existing debts or to purchase land or real estate for your home-based business.

Read Full Article Here

From Entrepreneur.com:

In just a few years, blogs have become a phenomenon. Every day, an estimated 175,000 new blogs and more than 1.6 million blog updates go online, according to Technorati, a blog tracking firm. As of late January 2007, Technorati was tracking 63.2 million blogs.

This explosive growth raises the question: Should your small business start a blog? I believe you should, if for no other reason than to take advantage of an effective marketing tool. In a recent survey of business technology marketing executives by research firm MarketingSherpa, blogs were voted the No. 4 tool for generating sales leads.

Like any other marketing tool, blogs are most effective when used properly. Here are some suggestions for successful blogging, plus some background for those who aren’t familiar with blogs….

Full Article Here

From The Conservative Voice:

Nobody wants to feel like a bum or a slacker. Even though people in their fifties and sixties have worked and prospered all of their adult lives, when it comes time to retire many people get feelings of misgivings.

They have earned their retirement and leisure years, but the thought of doing nothing constructive leaves them disoriented and unsure about how they should proceed with their lives. For some the void can be filled with charitable or volunteer work. For others a monetary incentive is necessary to make them feel complete.

That’s when the specter of starting a new career, building their own business, or doing something on the Internet begins to look like a viable substitute for spending their later years in retirement.

Read Full Article Here

The U.S. Small Business Administration (SBA) is the federal government agency whose sole responsibility is helping you succeed with your small business. Many entrepreneurs have heard about their loan packages, but are you taking advantage of the additional free information, resources, and even personal assistance they have to offer? These people are paid to provide assistance in every area of your business. They are knowledgeable, and they are glad to help. All you need to do is ask.

Every politician in the entire country wants the U.S. economy to thrive. What better way than to support the engine that drives this economy: small business?

Small businesses provide 75% of net new jobs added to our economy, and they represent 99.7% of all employers. To see just how important we small entrepreneurs are, just look at this page: http://www.sbaonline.sba.gov/aboutsba/sbastats.html.

The U.S. Small Business Administration (SBA), though always ready to help, used to be considered too complex for the average small business. For many years, only those businesses with legal and accounting advisors took advantage of most programs….

Full Article: Small Business Administration: A U.S. Entrepreneur’s Best Friend

From Entrepreneur Magazine:

They contact you by phone, fax and e-mail. They’re ready with invoices for you to pay, services for you to order and PO boxes to collect your money. Modern scammers have thought of everything: The only thing that stands between them and your money is keen awareness on your part.

What types of scams are most popular these days? From overpayments that need a refund to inquiries about selling your business, the following “smart” approaches are luring even cautious entrepreneurs.

A “Heavy” Pre-Pay Shipping Scam
“As soon as the TTY operator told me the call was coming from Nigeria, while the woman had me on hold, I knew something was up,” notes Bruce Webber of Webber Floor Covering in Maple Heights, Ohio. Webber had received calls from TTY operators before, working on behalf of the hearing impaired. In this case, it was a call from a woman who wanted to order tile for a church in Alaska. But when she put him on hold for a few moments to try to send him an e-mail, Webber commented to the operator on the lengthy wait.

“I’m not sure if she did it on purpose or just let it slip…typically they don’t tell you where the caller is calling from, but she did” says Webber, who had read in a floor covering industry magazine that such scams were going on. The idea of using a TTY operator is to make the call untraceable and possibly to play on the sympathy of the victim, who believes he or she is helping someone with a hearing disability. When Webber told the operator he didn’t realize the call was from overseas, the caller overheard him and quickly got off the line. She never rang back.

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From PowerHomeBiz.com:

“Determined in helping small business owners successfully advertise online, AdsThatBounce.com has created an Internet first by building a site that puts online ads in full motion. Ads travel along and bounce within the website to maximize ad exposure.”

In trying to help small business owners succeed, AdsThatBounce.com has created an Internet first of putting online ads in full motion by bouncing them along the full length of their website.

The idea behind AdsThatBounce.com was to develop a website that would help small business owners successfully advertise their ads online. The goal was to have the ads receive continuous exposure for a simple one-time fee based on the size of the ad.

Read Full Article

Excerpt from Rockford Register Start:

Question: I would like to start my own small business from home. What’s a good idea for such a business?

Answer: As you have stated your question, that can be a tough question and in any case we really need more information. Such as, first we should establish the “Why” of your purpose in wanting that business. It might be a part-time business, and those part-timers can be the “hobby” type or maybe just a supplemental income type. Maybe you are unhappy with your job and think this will be a good way out of that situation. Or maybe it’s full-time and for all the marbles, that’s is, to make your living expenses. So what’s your purpose? Why do you want to own a business? Is there timing a factor? And such initial questions can go on and on.

The most important things to consider include your experiences, any special education or specializing courses, all your business experiences, maybe your hobby (s), your interests, perhaps available mentors, and maybe last but not least your passion. Sometimes in business, all that carries you through to the next plateau is persistence and passion.

Some people have personalities that are more suited to a particular home business. For instance, some people fail at the selling part because of the difficulty in handling and accepting rejection. Some fail at the ability to cope with the variety and moods of their customers. Financial controls are difficult for others. So how does your personality fit with the foils of business? Not how would you like to have them fit but how will they fit?

News from YahooFinance:

StagedHomes.com, creators of “home staging”, the most important new marketing practice for the residential housing market, reveals the next cutting edge opportunity for home based business owners. Introducing, Senior Stages, the new division of StagedHomes.com dedicated to serving the 55+ housing market.

Consistent with their ability to recognize career opportunity through trends in Real Estate, StagedHomes has partnered with experts in senior relocation and home modification to create the national “CRTS” training program, Certified Relocation and Transition Specialist.

Beginning with 3-day classroom setting instruction, the CRTS program is designed to educate home based business owners in the basics of how to identify and communicate with their 55+ clients and how to manage and coordinate a home transition. Whether learning to relocate a couple from their family home to retirement living or move an elder to a community setting or help a widow age-in-place, the CRTS program provides fundamental tools required to get started in the industry.

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From Forbes.com:

“There’s been a lot of talk about firsts in Washington: the first Democratic-controlled Congress in 13 years, the “first 100 hours” and the first female Speaker of the House, Nancy Pelosi (D-Calif). But what do these firsts mean for small businesses–and specifically the women who work for and run them?

No major “workplace flexibility” legislation has been signed since 1993, when President Bill Clinton passed the Family Medical Leave Act (FMLA), allowing up to 12 weeks of unpaid leave in the event of a pregnancy, medical emergency or a sick family member. And with all the trouble in Iraq, it is little surprise that such issues have taken a backseat.

That may change on the Democrats’ watch. For instance, House Small Business Committee Chairwoman Nydia Velasquez (D-N.Y.) said she’ll push to enforce the mandated percentage of federal contracts for women-owned businesses, currently set at 5%. (Critics say the actual numbers fall short.) And while the FMLA does not affect firms with less than 50 employees, there have been some recent discussions about lowering the exemption bar to 25…..”

Read Full Article from Forbes

From Forbes.com:

“In his State of the Union address, President George W. Bush pledged to help put affordable health care within reach of all Americans. Rising health care costs have hammered small businesses for years, so any help on this front is big news for entrepreneurs. Of the nearly 47 million people uninsured in the U.S., 63% work for small businesses, according to a report by the Employee Benefits Research Institute, a nonprofit research firm.

But exactly how much help can small fries hope to get? Work through the numbers on Bush’s proposal and the benefits look modest–at best.

No one argues that, when it comes to health care, small businesses bear a proportionately greater burden than the Wal-Marts of the world. That’s why so many entrepreneurs don’t offer health insurance–to their detriment. Talented employees want to work for companies that offer health plans: Buying health insurance on their own in the open market is usually far more expensive because UnitedHealth Group (nyse: UNH - news - people ), Aetna (nyse: AET - news - people ) and other big insurers prefer to spread their risks underwriting large groups…..

Read Full Article from Forbes

Many small business opportunities are nothing more than get-rich-quick schemes that tend to not pay off in the long run. While it’s possible to start a small business with a relatively little financial investment, the time you invest is more precious … and you’ll never get it back. Be prepared to devote a lot of time to a new small business, and be wary of opportunities that gloss over this.

Ultimately, the best small business for you is one that incorporates your strengths and interests. Screaming banner ads may claim to know what the best opportunity for you is, but that’s just advertising. You will succeed in an investment that connects to your abilities and backgrounds; starting a business in a field you know nothing about (except that the ads looked good) is naive.

A little research goes a long way; so does consulting a business broker. Gathering as much information from trusted sources is the best preparation a prospective business owner can get. Opportunities that require large investments–of time or money–shouldn’t be jumped into hastily; take your time, inform yourself, and go in smartly.

Excerpt from Entrepreneur.com:

“More than anything else, what most prospective franchisees want to be sure of is that the franchise you are considering is a good all-around business opportunity. We can use other words like “great” or “solid” or “reputable” to illustrate what you’re looking for in a franchise, but the bottom line is you want to know that everything needed for success exists and that there are no major flaws with the franchise.

The following checklist for determining whether a franchise is solid is subjective, but it’s based on many years of experience. If you want to know that you’re looking at a solid franchise opportunity, make sure to check the following factors carefully:

1. Responsiveness during the investigation process….
2. Direct operational training….
3. Other training….
4. Marketing programs….
5. Real estate and construction assistance….
6. Financing assistance….
7. Litigation history….
8. Financial strength of the franchise company….
9. Financial strength of the unit operations….
10. The attitude of the existing franchisees….

Read Full Article Here

(FSB Magazine) — When a new product from Microsoft debuts, it doesn’t arrive quietly. Instead it gets tracked through the R&D pipeline by trade magazines, bloggers and carefully controlled announcements from the marketing department.

Small-business innovations don’t work that way. They tiptoe into the market, heralded by minimal PR (if any) and propelled instead by the inventor’s enthusiasm.

What makes that more ironic is that small businesses these days come up with better ideas more consistently than their corporate competitors. “Rates of R&D growth among small firms tend to have been higher than among large R&D-performing firms,” says John Jankowski, director of the R&D Statistics Program at the National Science Foundation.

To find these innovative companies you need a field guide, and that’s were FSB comes in. Exploring everything from ocean-generated electricity to six-foot roses to an ATM for books, the stories on the following pages offer a preview of the companies, products, people, trends and ideas likely to make news in 2007 - all from the world of small business.

Read 10 big ideas for 2007 from Fortune Small Business

Falling fuel prices may seem like good news for entrepreneurs. But a properly designed gas tax could be even better.

(FSB Magazine) — Like many entrepreneurs, Tedd Saunders finds most taxes annoying. He co-owns seven East Coast hotels, including the Lenox in Boston, and would love to see the estate tax gutted. He also rankles at a hotel room tax levied by lawmakers in his home state, dubbed “Taxachusetts.”

Yet Saunders supports a higher tax on gasoline - even though it would raise costs for his employees who commute to work by car and might boost prices charged by his suppliers.

Says the hotelier: “We need to make tough choices to reduce our dependence on foreign oil and to recognize this looming crisis of climate change and what it will do to our lives and our businesses.”

As FSB went to press, the cost of gas had plummeted 26 percent since July, to a national average of $2.21 a gallon. In the past that would have been considered good news, but the reaction today is decidedly mixed. In a recent New York Times/CBS News poll, 59 percent of respondents nationwide said they would support a gas tax if it would result in less fuel consumption and less global warming.

Read Full Article from Fortune Small Business

Entrepreneur

Top Tax Write-Offs for Your Home Business That Could Get You in Trouble With the IRS

From guard dogs to Las Vegas-style showgirl costumes, there’s no limit to what people will try to write off at tax time for the sake of their business. But where do you draw the line? Which write-offs you’re trying to write off go too far?

We assembled a team of three leading tax attorneys to get their advice on how far is too far in the land of tax write-offs. Our team of experts include Cliff Ennico, a Connecticut-based business attorney who specializes in advising small businesses and entrepreneurs; Donna LeValley, a tax attorney and contributing editor to the J.K. Lasser annual tax guide; and Alvin S. Brown, a tax attorney who formerly worked with the office of the chief counsel of the IRS for more than 25 years.

Tax Write-Off:Travel Expenses
Here’s a write-off that’s sometimes difficult deciding just where to draw the line. Can you deduct the cost of going to see a Cirque du Soleil show in Las Vegas if you’re treating your client? The answer is yes, as long as you can justify it as a business expense. And what if your spouse goes along on the trip? As long as they’re a partner or employee of your business and attended conventions or meetings on the trip you took together, then his or her travel and 50 percent of his or her meals are also deductible…. [Read the Rest from Entrepreneur]

BusinessWeek

The taxmen have stepped up their audits on small businesses, and that has many entrepreneurs crying foul
by Jeffrey Gangemi

The tax gap in the U.S., which the IRS defines as the missing amount from taxpayers who don’t file their tax returns and pay the correct tax on time, currently stands at around $345 billion. Mark Everson, the IRS commissioner, has been working to reduce the gap since he took office in March, 2003.

“To make sure that there’s an impression of fairness…,” Everson says he first focused on high-income individuals and larger corporations, but now the IRS is stepping up its audits of small businesses.

In fact, the IRS enforcement increase has already begun in earnest. In 2005, audits of the roughly 5.7 million small businesses the IRS recognizes to be organized as corporations increased significantly, with 17,867 audits, up from 7,294 a year earlier.

Unfair Targeting?
Audits of corporations with assets over $10 million also increased in 2005, but by a much smaller percentage: up 14% from the previous year, to 10,878. Everson says he expects 2006 to reach an even greater rate of small-business enforcement.

Both the IRS and business taxpayers agree that some fraud exists for small businesses and individuals reporting their taxable income. But in response to the IRS crackdown, small-business owners and advocacy groups are crying foul, claiming smaller firms are being targeted with unfair audits that could penalize them for small or unintentional transgressions…..”

Read Full Article from BusinessWeek.com

The National Small Business Association is seeking nominations for its 2007 Small Business Advocate of the Year.

Applicants must demonstrate a commitment to small business advocacy, a proven history of voluntary efforts and endeavors to advance small business and improve the conditions for small business owners, success and growth as a small business owner and any other accomplishments demonstrating merit as an effective advocate for small business interests.

Applicants also must be a small business owner and are permitted to nominate themselves. An application form is available at nsba.biz/ award.

The deadline to apply is Nov. 17.

Learn More Here

Small business groups anticipate few substantive changes in government policy toward the nation’s smaller companies despite the power shift in Congress brought about by the midterm election.

“The issues haven’t changed — a lot of the new people elected certainly campaigned on and understand the issues important to small business,” said Dan Danner, senior vice president for public policy with the National Federation of Independent Business, a Washington, D.C.-based advocacy group.

“Fortunately, the issues that affect small business don’t have party labels, so we’re very hopeful that the new Congress will care about the things that our small business owners do — available and affordable health care, less lawsuits and fewer burdensome regulations,” he said.

Although the outcome of one Senate race is still to be determined, small business expects gridlock between a mostly Democratic Congress and a Republican White House to help maintain the status quo — something business owners want.

Read Full Article from MSNBC

BusinessWeek.com

Google or Yahoo for small-biz advertising? Who prepares better business plans: men or women? Plus, an organizational approach with competitive advantages, and more

Google (GOOG) wins hands down, says Fred Thacher, president of uSalus, a seller of specialized wool bedding. The first time he specified Google keywords for ads, within hours of posting he received a call from a Google rep, who advised him that he likely wasn’t making the best choices. Over a period of several days, says Thacher, the rep spent four to five hours guiding him through a realignment of his ads.

In contrast, he says, simply composing ads for Yahoo! (YHOO) is an adventure. “The difficulty arises when there are several keywords and the customer has to write copy and insert the correct landing page for each ad. Yahoo cuts the customer off after only 20 minutes and all your work is lost. How bad is that!”

Moreover, all keyword ads need to be approved by Yahoo, which is fine by Thacher, to reduce clutter and spam. “The problem arises when the keyword buyer composes an ad for use and the ad is submitted for review and is rejected,” he says. Trying to correct the situation “is tough to do even by a skilled user. I know because I have finally, out of desperation, asked my paid Web designer to do some of it for me. He reports back the same problems.”

What are your experiences with the two kingpins of online advertising and searches? Post your comments with this column.

Read More…

Starting and managing a business takes motivation, desire and talent. It also takes research and planning.

Like a chess game, success in small business starts with decisive and correct opening moves. And, although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage.

To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well­thought­out business plan that will help you reach these goals.

The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success.

Before starting out, list your reasons for wanting to go into business. Some of the most common reasons for starting a business are:

* You want to be your own boss.

* You want financial independence.

* You want creative freedom.

* You want to fully use your skills and knowledge.

Next you need to determine what home business is “right for you.” Ask yourself these questions: [Go to SBA.gov]

Objects moving by themselves, disembodied voices, ghostly apparitions — who you gonna call? Forget the ‘Ghostbusters.’ We called a paranormal investigator and a marketing expert to find out how these haunted small businesses can put their ghosts to work.

Just one look at new network TV shows of the past few years, and it should come as no surprise that all things paranormal are haunting our collective unconscious. From cable reality shows that follow real life ghost-hunters to the fictional mediums, night stalkers, and ghost whisperers that haunt the big three broadcast networks, all things otherworldly have seen their stock rise.

Ghosts? Give Me a Break!
While there are no easily obtainable statistics on the number of “authentically” haunted businesses out there, a quick online search will put you in touch with hundreds of businesses – mostly “destination businesses” like hotels and bed & breakfasts — that claim to have a haunted history, and use this fact front-and-center in their marketing. One well known example is the RMS Queen Mary, the fabled Art Deco era liner permanently docked as a hotel in Long Beach, CA. Her several on-board ghost tours are a year-round draw.

Read Full Article from AOL Small Business

Experts urge small business owners to “brand” their businesses with a logo and a set of consistent marketing materials. But they rarely explain the reasons behind this advice. Below are some of some of the benefits of having a professionally designed logo and identity system.

1. To look “bigger.”

2. To increase your chance of getting venture capital or selling a business.

3. To attract more clients. Some clients look for a well-defined company, and “look and feel” may be one of their criteria in making a purchasing decision.

4. To brand yourself.

5. To convey that you are established.

6. To give clients a sense of stability.

7. To be more memorable.

8. To explain your company name.

9. To endear your company name to your clients.

10. To explain an unusual line of business.

11. To show what practices differentiate you from your competition.

12. To stand out in your field.

13. To comply with expectations.

14. To show your commitment and for the sense of personal pride it will add to your practice. In other words, do it for yourself.

These benefits will boost your business and your confidence, so start thinking about developing a logo and identity as soon as possible. [Read Details of each benefit from BusinessWeek]

Yes, many home businesses do follow the stereotypical evolution from corner of the living room to the corner office.

But there are many small businesses that, in fact, are better suited to the cozy confines of the home front. In this column, I’ll specifically discuss seven businesses that I consider perfect for the work-at-home crowd.

Before I do that, however, you need to understand that are three specific criteria you need to evaluate before you decide to set up shop at home:

1. Client contact. This is perhaps the first issue to tackle in determining whether a business can reasonably remain and prosper at home, or whether it’s better to move it elsewhere. Think carefully how much, if any, sort of client contact your home based business may bring about and, in turn, whether that contact may be suitable for a home office. Gauge how much “professionalism” — at least in the conventional sense of the term — your clients and customers demand. If that can be achieved adequately at home, perhaps through a separate entrance and special meeting room, fine. But for many businesses, the better solution is a separate office.

2. Branding. This is not to suggest that a professional persona can only be achieved outside of the house. Far from it. Rather, it depends more on how the people with whom you work have come to see you and your abilities. If, by chance, you’re an attorney who does a first-class job of representing large companies but does so from the loft of a New England farmhouse, that reputation actually depends, in part, on keeping your office down on the farm. “It really all matters on the brand that you’ve built up,” says Julian Lang, a professor of entrepreneurship at Babson College in Wellesley, Mass. “No matter what you do for a living, staying at home can mean you’ve disdained all the trappings. It can be seen as quaint and neat.”……

Read the Rest

Inc.com

Five years ago, Jim Poss, a 28-year-old environmental studies grad from Duke University, was determined to make a living in renewable energy — he had the science and the passion, and a vague idea about selling geothermal energy. What he didn’t have was the slightest clue about starting a business. So, he enrolled in Boston’s Babson College, taking a 12-month intensive program that puts students through the rigors of launching a new business venture.

This year, Seahorse Power Co., a business Poss started at Babson which manufactures and sells solar-powered trash compactors, is poised to break $1 million in sales with customers from New York to Sydney, Australia.

“My home business plan today really hasn’t changed from when I wrote it at Babson,” Poss said. “I totally owe it to that program for getting my feet solidly on the ground.”

That kind of success — on top of a surge in the number and size of endowments from wealthy entrepreneurs — is sparking a boom in entrepreneurial education at business schools from coast to coast. In the early 1980s, only 300 universities in the U.S. offered courses in small business and entrepreneurships, according to a survey released in June by the Indiana University’s Johnson Center for Entrepreneurship and Innovation. Today, there are over 2,200 courses available at over 1,600 schools nationwide, complete with 277 endowed faculty positions, 44 academic journals, and nearly 150 research centers, the survey found.

Read More…

Business success isn’t just about getting new customers–it’s about holding onto the ones you’ve got. Technology can help.
“Entrepreneur.com”

Many entrepreneurs spend a lot of time and money trying to land new customers, an extremely important goal if you’re trying to grow your work at home business. But what are you doing to keep the customers you already have?

Customer retention is vital to a company of any size, for several reasons. First, it’s generally more expensive to land a new customer than to keep an existing one. That’s because wooing new customers often entails a higher level of costly marketing and advertising efforts and sales promotions to create awareness of–and desire for–a product or service. In contrast, existing customers already know who you are and what you offer (unless you’re introducing a new product or service, of course).

Second, existing customers who are satisfied with your product or service are likely to become repeat customers. And they’re apt to recommend your home business to friends and colleagues. In our global, extremely competitive business environment, holding onto your customers has never been more critical.

So how do you inspire customer loyalty? One way is through customer relationship management technology, or CRM. Technology may not be the first thing that comes to mind when you consider ways to ingratiate your business to your customers, but in fact, CRM technology provides small businesses with a wealth of innovative, effective tools that can help you build better relationships with your customers.

Read More…