Common Spending Mistakes in Small Businesses

easy way

There is no denying that running a business is not always easy. There are plenty of challenges that reverse growth or halt progress. Precisely, if these challenges have a direct impact on business finances, it may cause several other risks that your business needs to face. In other words, managing finances is pivotal to stay on top. And if you’re a startup, finance management becomes as important as serving existing customers or finding new leads.

But, if you are like business owners who find managing money or bookkeeping a daunting task, you must know your common spending mistakes to stay ahead in the business domain. This is one way you can mitigate not only financial risks but also monitor the cash flow of your business. In other words, by controlling your spending and cash flows, you improve success chances and your profitability also.

We have enumerated a few common spending mistakes to help you steer clear of the financial management of your business.

Common Spending Mistakes in Small Business

1.     Failure in Keeping Personal and Business Expenses Separate

This might sound trivial to you, but many business owners when entering the business world make this mistake. Remember that you are in the early phases of your business, it is vital to keep the expenses separate. Although sometimes you need to rely on the personal finances to support business expenditures, you need to ensure that you h have a separate budget for your business.  Also, relying on the personal expense to fund business may cause problems in the long-term.

Once your business is operational and starts serving the customers, separate finances by making a separate business credit card. Make sure you have a separate bank account for your business. Doing so can be extremely helpful in managing tax problems and avoiding bookkeeping confusion subsequently.   It will also empower you to evaluate potential or existing cash flow issues and overall business finances before they turn into a major problem.

2.     Not Creating a Budget

You might find easy budgeting, but you cannot deny its long-term value that outweighs all initial stress and effort.

Creating a budget means analyzing how much have you earned and how much you can invest. An organized budget helps you make informed decisions about all business matters that include everything from supplies purchasing, staffing, and training to inventory. Conversely, when you work without a budget, all these tasks become challenging and may cause you significant cash flow problems. This particularly affects your business if it works with seasonal shifts, and you need this cash flow to maintain business operations during the slow months.

Fortunately, there is a wide variety of apps such as Scoro, Centage, and Adaptive insights that can help entrepreneurs not only create but also maintain a budget. Not to mention how these budgeting apps keep track of your business expenses and send you a handy report at the end of the month or year. This allows you to do preparations for tax seasons and review performance.

3.     Failure to do Financing at the Right Time

All business owners know that working capital is an essential thing to operate the business and increase its growth. If working capital runs low, your business might face a lot of issues that not easy to resolve it right away, and that may vary from unpaid bills, mounting fees to lower credit scores.  Not only that but making payrolls also become a challenge while tackling such issues. The situation may create problems when it comes to retaining your potential employees. The problems like staff shortage, inventory, and supply management lead to decreased revenues and unsatisfactory customer services.

Ultimately, the failure to meet your business financial obligations can impact different areas of business. That is why it is important not only to identify but also address the cash flow issues and to prevent poor working capital in a easy way. It is better if you seek assistance about taking control of financial matters before they become problematic for your business.

4.     Ignoring Poor Credit Scores

Recognizing the right time to consider alternative financing options like a line of credit or loan is important. However, your due diligence will not benefit you if you fail to qualify as a borrower. That means, it is essential to be vigilant about both your personal and business credit scores.

It is also important because your credit scores impact your ability to use financing solutions with suppliers or vendors. The arrangements often help business owners easy fill the gaps in their cash flow.  Moreover, with a good business score, you can reduce the insurance premium and interest rate on your loan.

Sometimes, your credit scores contribute to secure many affordable financing terms; particularly when you opt for loans, credit cards, and line of credit.  The phenomenon is confusing for many people since they are advised to keep their personal and business financing separate as an ideal practice.  

However, it is important to understand that when you sign a lending agreement as a primary applicant,  banks use your credits to determine your eligibility, repayment terms, and interest rates.  Customers are sent an annual credit report, and it is good to use it for your advantage.  Although the business credit report is hard to obtain, you can get them through various platforms.

5.     Overspending on Startup

When starting a startup, you are naturally optimistic that your business will produce good revenues if you invest a large amount in it. This optimism sometimes leads to overspending, which is another common spending mistake. To avoid overspending, research carefully about how much inventory or staff you need to take a good start.

Final Thoughts

When running a business, you may face many financial issues, and to plan for all potential scenarios is not easy. However, when it comes to cash flow, various things can be done to avoid cash flow issues. The most important thing is to be proactive in whatever approach you use to manage your business finance.  Besides this, budgeting and healthy credit scores play an important role in keeping business finance issues at bay.

Thus, the given spending mistakes are very common when a business is in establishing phase. However, you can avoid them by planning and evaluating everything in advance.

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7 Tech Trends To Add To Your Small Business Startup To Attract An Angel Investor

Angel Investor

Angel investment is on the rise,and your small business startup needs to capitalize on all the opportunities at hand. Venture capitalists are on the hunt for business startups to invest in that are currently at the cutting edge of technology and taking risks with these advancements’ trends. You find that investors are eager to sink their investment dollars in these technologies so that they can reap the future returns. While the payoff might be big for an angel investor, these tech trends will also help your business startup to attract those funding dollars.

Artificial Intelligence

AI is not new to the scene, but for 2018, it is making a significant headway. By allowing companies to do more with less, AI will turn out to be a fundamental change in the way a company does business today and tomorrow. Startups that integrate AI into the fold will experience a shift in how they are able to perform routine tasks, freeing them up to focus on their customers. Angel investors see this as a win-win as they are able to invest in an advancing technology as well as a startup that is leading the way with its use. Your business startup will do well by having AI as a part of your repertoire and see more funding interest come your way in 2018.

Social Media

The uses of social media to enhance your consumer game is a boon for investors looking to find business startups that are succeeding in their customer engagement. While social media isn’t a newcomer technology, those that have a strong endgame will win big in terms of revenue sales. Social media is proving to be the technology platform that links us all together and gives business startups the recognition they need early on. Venture capitalists are enamored with its use by business startup as they see the power it offers and the benefits a business startup can take advantage of. Using social media to boost your business in 2018 will be key to gaining funding from an investor as they recognize the strengths it offers to your consumers.

Blockchain

Blockchain is another technology on the fringe waiting to bust on to the scene in a fury in 2018. It’s ability to provide a real-time ledger of transactions can give your business startup the transparency it needs to garner the nod of a venture capitalist waiting in the wings. Your business startup will benefit from Blockchain’s ability provide stable and error-free operations while angel investors gain by investing in a technology that has proven its worth. You’ll see funding offers from a series of investors if your business startup utilizes Blockchain to its full advantage within your organization.

Internet of Things

The Internet of Things is advancing at a steady clip for the New Year,and you’ll see IoT virtually everywhere you look. With consumers becoming more connected than ever, IoT offers an opportunity for new products and services that enhance IoT’s capabilities in the home, business,and community. Angel investors are savvy to the draw of IoT and how it is changing the way consumers interact and live their lives. They want to get in with business startups that are using this technology to move their business forward, engage with consumers, and improve their business operations. Count on IoT as a way to entice venture capitalists and secure funding in 2018.

Big Data

Data is everywhere these days,and it will only get bigger this coming year. Business startups such as yours will be able to use big data to understand every aspect, detail,and nuance of your customers, so you can create products and services they desire. With big data changing the way that business startups engage with their clients and provide unique customer experiences, it means plenty of evolution is on the horizon. Angel investors are keen on the possibilities all this available data can provide and know that companies that take advantage of the information can lead their industry in leaps and bounds. Use big data to enhance your business startup operations and stay tuned for venture capitalists to come calling with much interest and fanfare about your company this year.

Cyber-Security

While 2017 was a year that many will remember for its security breaches, this year provides a turn of events as business startup integrate or offer cybersecurity services to better protect their customer data. This cybersecurity will change how companies in all sectors operate and provide the level of security that is needed to protect that confidential information from getting into the wrong hands. Business startups that use cyber-security to protect their company or create products and services for others that help them secure their information will do well in the following year. Angel investors will show interest in these endeavors as the need for secure data protocol is growing without hesitation.

Virtual Reality

Also, on the fringe in 2018 is VR. This technology gives you the ability to engage with your customers in a new and exciting way. Through a more desirable customer experience, VR can help your business startupto increase its customer numbers as well as its revenue as VR improves workflow and access to customers all over your niche. Angel investors want in on AR as an investment opportunity, and your business startup will attract their attention now and into future with this technology at your helm.

Integrating any of these technologies in your business startup shows a strong sense of understanding and initiative to increase your customer base and profits this year and the coming year. Angel investors want to be able to get their hands wet with these new technologies so that they can be where the growth is with these trends. Think about how these technologies can help your business startup succeed in 2018 and secure the funding you need to get off the ground. You’ll be surprised at how much attention you receive by taking the first step with any of these technology trends and reap the rewards of investment into your company by an investor.

 

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Why It Is Not Advisable to Not Have a Business Plan

Plan

When you start a business, different people will advise you differently on how to turn your venture into a success. While it looks natural to have a business plan beforehand, do not be surprised if you find some people telling you to not have one. According to some, having a business plan limits you in your exploration and prevents you from taking risks. That might hold true in some cases, but that’s not how it is for everyone. Having a business plan is a sensible step, but if you are on the fence about whether to have one or not, here are some disadvantages of not having a business plan to help you make a well-informed decision.

Why Not Having a Business Plan Is Not Advisable

1.      There Is Nothing to Achieve

Milestones have to be an integral part of any venture. When you don’t have any milestones and targets, there is nothing for you to achieve. Having no business plan is the first sign of your non-seriousness with your business. If you could not take out time to create a detailed plan, how can one expect you to manage your business – an activity that could require even up to 16 hours of continuous working at times? The problem with having nothing to achieve means you will have no strategies for your expenses, profits, revenues, etc.

How would you ever know how much you should spend or not spend? Why would you invest in marketing when you don’t have any goals?

2.      There Is Nothing to Interest Investors

There might be some proponents of the idea that a business does not require a business plan, but there are still more people who believe in having a business plan. Investors always need indicators from entrepreneurs to judge their personalities and potentials. Business plan is one of the strongest indicators of a person’s potential of doing a business. When you ask investors for a certain amount of money, the first question they ask is why you need that money or what you need that money for. Your answer to this question can make it or break it for you.

In fact, that is not the only question. They will follow up this first question with a lineup of crucial follow-up questions. For example, if you tell them you will invest the money in marketing, they will ask you about the type of marketing you are aiming for, the return you expect and the costs of customer acquisition. How can you answer all those questions if you do not have a business plan?

3.      Your Marketing Will Go Awry

One of the damages of not having a business plan is your marketing plans going awry. Entrepreneurs have more power to them today than they ever had before. These days, startup owners have internet where they can collect information about their customers in the startup stages. Collecting customer information helps them create buyer personas and target their audience with appropriate marketing. Here are some pieces of information you will have to collect.

  • What age group and gender my product appeals best to?
  • What interests my target age group and gender?
  • What platforms is my target audience most active on?
  • What is the average buying power of my target audience?
  • What type of content best attracts my target audience?
  • What expectations do my potential customers have with my product?
  • How can I personalize my marketing to my audience?

That’s just few of the many questions that you have to get the answers for to make your marketing endeavors profitable. However, all of this homework is a part of your business plan.

4.      Your Team Won’t Share Your Vision

It is crucial for a business’ success to have a team that shares the same vision and endeavors to achieve it. Several studies and researches have proven that employees do not perform at their best when they don’t understand the vision well. You must define clear and vivid targets to your employees for them to know exactly what they have to do to be of value for the company. What you have to realize is that telling your team the vision of the business is not enough. It is a broad concept and does not define the action plan to your employees.

What you have to do is break the process of achieving your vision into small parts. These small parts are the milestones and within each milestone the role of your team is clearly defined. In short, break the entire pursuit of vision into small missions, and explain the role of every team member to achieve a milestone.

5.      You Won’t Know When to Exit

One of the biggest mistakes most startup owners and entrepreneurs make is that they don’t know when to exit. If you can close down your business before it starts hurting you financially, that’s a form of success. The true failure is when you cannot realize that your business is hurting you and you keep burning dollars for its success. An integral part of a business plan is defining favorable and unfavorable conditions for the business to exist.

In a business, you have to define a deadline before which you must see positive results. You have to define a time frame within which you can continue to invest in your business. However, you have to draw a line to make it clear when you cannot continue anymore. If you have been running your business for six months and the money has been going out of your pocket, it might be an indicator that it won’t work for you.

Conclusion

A business plan should be considered a part and parcel of a venture. It is not an optional component because your success rests on it. If you are looking forward to starting your business, it is advisable that you sit down and take time to write and review your business plan. If that is too much for you, hire a professional to write it for you.

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The Growing Cyber Security Risks for Small Businesses and How to Counter Them

CyberInteractivity and interdependence of devices are increasing with time as the concept of IoT (internet of things) strengthens with time. While IoT pursues maximum convenience for individuals and businesses, it has its associated challenges too. The more intertwined the modern devices become, the higher the risk of cyber security threats will be. Small, medium or large, your exposure to serious internet threats does not depend on the size of your business. If you are a small business, you are exposed to just as many dangers as large enterprises. In fact, the downside for small businesses is that they are not as prepared as large businesses against cyber threats.

So, how are cybersecurity risks are increasing with time and what kind of risks facing small businesses today? Take a look at the many ways cyber threats pose a danger to small businesses.

The Ever-increasing Count of Cyber Security Risks

The BYOD Issue

BYOD (bring your device) is an attribute of IT consumerization. To stay productive and efficient at the same time, more and more companies are allowing their employees to use their own devices to access and use corporate data. An example of this would be a worker using his tablet to open company’s employee-related document repository or an employee accessing work emails from his smartphone. Unless you have strict policies and standards set for your BYOD implementation, your business could be at risk of being infected by malware coming from users’ devices.

Software Update Delays

Do you ever wonder why companies are so adamant at making their users update to the newest software version? This is because of the older versions of the same software, application, plugin, etc. are open to risks of cyber attacks. With small businesses relying on various applications, web applications and plugins for smooth website operations, database works, on-premise security, etc. they have to be extra careful at updating them all. Any non-updated software or application is an open window for internet thieves to jump into your system.

Internal Threats

You have to be extra careful when authorizing access to any of your employees to your network and database. Many of the attacks on big companies in the past have been allegedly perpetrated by “inside men.” Sometimes the threats from your employees are not intentional but rather innocent. The authorized person might have access their account and forgot to log out while leaving the station. Some third person can then take advantage of the situation and cause damage to the system.

Sophisticated Phishing Scams

This is a common issue with small businesses as they don’t have strict protocols for employees to follow before opening emails or social media links. While phishing scam has been around for a time, the new form of this scam is called spear phishing. In this type of attack, the scammer sends email from an address that appears to the receiver as known and acquainted. This fools the person into clicking on the link and letting a dangerous malware (a ransomware at worst) enter the system.

Lack of Cyber Security Knowledge

Sometimes, the problem is not being prepared to face a problem. This is a common case with many small businesses where owners and caretakers are under the impressions that cybercriminals won’t attack them—why would they? They don’t realize the top aspect of cybercriminals, i.e., they don’t believe in discrimination. One of the common indicators of lack of cybersecurity knowledge at a workplace is when employees choose common, easy and predictable passwords for their entry points to the company’s system.

What Small Businesses Have to Do to Counter These Threats

Set Policies with a BYOD Approach

If you want to follow a BYOD approach at your workplace, you better document policies and regulations about it. Make your employees read these manuals carefully, so they know what standards and requirements they have to meet before they bring their own devices into the office. For employees that have to access your system from remote locations, set up a secure VPN.

Gives Employees Cyber Security Training

They won’t know unless you tell them, so make cybersecurity-related training a part of your hiring process. In fact, make internet security related questions a part of your interviews. Tell your employees to log out of their accounts and computers while leaving stations. Ask them to have strong passwords. Facilitate them with applications to not only remember those passwords but also generate random and difficult passwords. Explain to them why such measures matter and what the consequences of not complying with the regulations can be.

Take Professional IT Help

Go for outsourced managed services or hire your own IT professionals to take care of the security-related issues. An outsourced service or the internal IT team will set up a complete system consisting of policies, hardware and software technologies to not only protect your database from cyber threats but also respond in time if you get attacked nonetheless.

Give Authorized Accesses Wisely and Monitor Them

You can give access to sensitive company information and the system to only a select few employees. When you give them access to the system, grant them only the permissions according to their roles. Secondly, have a monitoring system to keep an eye on the activities of these employees. Furthermore, delete the accounts or change the passwords of accounts that are no longer in use because the employees they were created for have left the company.

Choose Third Party Services Wisely

Have proper meetings and consultations before you subscribe to any third party services. To run a business in today’s digital age, you have to subscribe to many platforms or applications as services, e.g., cloud CRM. You want to be sure that you are picking an industry-recognized and reliable partner. They must have the right security measures taken to protect not only their system but every bit of information that goes on their cloud platform from your databases.

Do not forget the security of your website among all this. In addition to your databases, internal software, applications used by employees, etc. you want to update your website plugins and applications in time too.

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Making a Good First Pitch Impression

Good Pitch

It can be difficult path sometimes once you decide to set up a good pitch on a site platform. Whether it be crowdfunding or raising capital from accredited investors. You will find many of the same attributes that are similar to finding the right pitch to attract views to your posting or profile.

Posting

Your posting “tile” is the image that show the image  and the description in a rectangular box that is aligned with many other posting tiles. The top image can be from 1”-3” squared and the title is usually under or above the image. The describer or the short content that is directly below the image and title and is describer content box. Also on the posting tile will show what you are trying to raise, your industry, you location or other items of that might be specialized be each platform. Once the posting tile is clicked by user it will take you inside page(s) depending on the platform. It is important you use quality images and very catchy title with a description that is very to-the-point. Your capital raise price must make sense to how you have arrived at your capital asking level.

Your Inside Page

This is where your main image and other images of what you need to include. This has to also be very good images that shows your story, product or methodology. It can be actual photos of a process, or if the business is a fresh startup with no images, you can find advertised free images and art online, or purchase images from paid third-party websites to avoid any copyright infringements. Your content must be very clear and if lots of content to title each section and outline. Your inside page may have a section for a team bio. If it’s just you, it’s okay as lots of startups can be a one-man-show to start. If it allows you to post a photo of you, do so.

Support Documents

If you have a business plan, and the platform lets you include, do so. If you do not have a plan, then upload a cover letter about you and your company. It is always good if you are competing against other pitches and your pitch tile gets opened then next step is to show you have an attachment and have taken the time to put something together that the funder can take away or download.

Summary

It is always good when putting your best foot forward to have everything prepared to make the first impression by getting more traffic and interest to your posting and pitch. Making a good first pitch impression is really key and to rush to get initial interest would not be swapped out if it meant you lack on your Posting, Inside Page and Support Document material. Get a second opinion on how it looks and don’t be afraid to make changes earlier than later.

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How to Create Future Business through Bitcoin

Bitcoin

Why choose cryptographic techniques?

The most well-known cryptocurrency is called Bitcoin, and it was made for it that created blockchain technology. A bitcoin is a form of money like the U.S. dollar, but it is digital and employs encryption to control the creation of new currency units and to verify the transfer of funds.

Cryptography is used all the time in our everyday lives. For example, we use it to safely send passcodes for shopping online placed above a white complex system. The cryptosystem is also used to store your username and password on bank servers and in email clients. In our Internet – of – things world, cryptography protects all information sent, verifies people and devices, and connects devices.

Security flaws in critical infrastructure can be caused by weak or unrecognized cryptography. In addition, brand equity is eroded because of the public’s interest in publicly disclosed data. Therefore, keeping an eye on how cryptography is deployed and handled in the modern workplace is necessary.

Cryptocurrency types

1. Ethereum (ETH)

2. Tether (USDT)

3. USD Coin (USDC)

4. Binance Coin (BNB)

5. Binance USD (BUSD)

1. Ethereum (ETH) – Ethereum is a decentralized blockchain-based platform that safely sets up a peer-to-peer network that runs and verifies application code, called smart contracts. Intelligent contracts let people do business without a centralized authority they can trust. Utilizing the Ethereum Virtual Machine and the native Solidity scripting language, developers may create decentralized applications on Ethereum. Competent contract developers who used Ethereum benefit from a vast ecosystem of developer tools and recognized best practices that have developed over time as the protocol has matured.

2. Tether (USDT) According to the market cap, Tether is the third-largest cryptocurrency. Some economists, including a member of the U.S. Federal Reserve, are concerned about this.

Stablecoins, like Tether, is a relatively new concept. To avoid the high volatility associated with most cryptocurrencies, these digital currencies are linked to tangible assets like the U.S. dollar to maintain a stable value. For sample, Bitcoin beat an all-time high of about $65,000 in April before its value tripled over the following two months.

Tether was made so that it would always be worth one dollar. As a result, although the value of many other cryptocurrencies often changes, the price of Tether is usually equal to $1.

3. USD Coin (USDC)USD Coin (USDC) is a stable digital currency tied to the U.S. dollar.

USD Coin is a regulated stablecoin that runs on blockchain technology. It was released in 2018 by Centre, a group started by Circle and Coinbase.

Stablecoins are a type of cryptocurrency whose value is tied to another asset, like a fiat currency, a commodity, or even another crypto coin. For example, USD Coin wants to stay at the same value as the U.S. dollar.

Stablecoins like USDC are used differently than cryptos whose prices change, like Bitcoin (BTC) or Ethereum (ETH). The only reason for this cryptocurrency is to be a stable store of value, not an asset that, in theory, gets more valuable over time.

4. Binance Coin (BNB)BNB is a cryptocurrency (token) issued in 2017 by Binance. Between the 26th of June and the 3rd of July, it was published and released for the first time via an Initial Coin Offering (ICO) crowdfunding campaign.

The native coin of the BNB Beacon Chain and BNB Smart Chain, BNB fuels the BNB Chain ecosystem. One of the world’s most widely used utility tokens, BNB may be used in various applications and use cases and traded like any other cryptocurrency.

BNB reduces its entire supply to 100,000,000 BNB via an Auto-Burn method.

5. Binance USD (BUSD)Binance created the 1/1 USD-backed Binance USD (BUSD) stablecoin in collaboration with Paxos, as well as the New York State Department of Financial Services has authorized and controlled it (NYDFS)

Although USDT has enormous trade volumes, it is not fully supported by cash reserves and has run into reputational problems. BUSD, in contrast, has undergone more thorough auditing procedures and operates on numerous blockchains. As a result, both two currencies offer quick transaction speeds and affordable fees.

Positive or negative? The potential benefits of using cryptocurrencies

Cryptocurrency’s many benefits

Some firms could benefit from using cryptocurrency. Among the benefits:

1. Many cryptocurrency transactions are rapid and straightforward. Bitcoins can be transferred from one digital wallet to another using a smartphone or computer.

2. For cryptocurrencies to exist, a public ledger known as the blockchain must record every cryptocurrency transaction. There is a way to keep someone from spending coins they don’t possess, manufacturing clones, or canceling transactions. This means there are no transaction costs because there are no intermediaries to deal with. Payments in cryptocurrencies are becoming increasingly popular, especially among large corporations and industries such as fashion and healthcare.

Risks of using cryptocurrencies

There are some downsides to adopting cryptocurrencies for a company:

It is possible to remove your crypto money or lose your virtual wallet. Additionally, websites that allow you to store your cryptocurrency remotely have had thefts.

Some people don’t believe converting “actual” money into Bitcoins is safe because the value of cryptocurrencies like Bitcoins might fluctuate greatly.

The Financial Conduct Authority (FCA) does not supervise the bitcoin market; thus, there are no regulations to safeguard your company.

It may lose value and turn worthless if businesses or customers switch to another cryptocurrency instead of yours or stop utilizing digital currencies altogether.

Exchanges for cryptocurrencies are susceptible to cyberattacks, which might result in a permanent loss of your money. In addition, Bitcoin is vulnerable to fraud. People are frequently duped into making such transactions by scammers using websites like Facebook, Instagram, and Twitter.

How to Implement Bitcoin into Your Business

Around the world, businesses and diverse brands are beginning to use cryptocurrencies, notably Bitcoin, for transactional and operational needs. Even if its value is unstable, more and more individuals are becoming aware of its benefits. The methods listed here can help you incorporate bitcoin into your operations and start reaping its benefits if you own a business and wish to start accepting it.

What You’ll Need to Get Started

If you want to accept and move any cryptocurrency, you must have the following:

Wallet for Cryptocurrencies

Because cryptocurrency is a form of electronic cash, you’ll also need a digital wallet to store it. There are a variety of cryptocurrencies that you can use to pay for your services. Use a digital currency wallet that can keep many currencies. Banks that accept Bitcoin and other cryptocurrencies can also be linked to your cryptocurrency wallet.

The Bitcoin Address

As with all bitcoin wallets, your wallet has a unique built-in address. Numbers and letters make up the code. Wallets for digital currency have a function that allows users to generate Q.R. codes from their digital money. Payouts can be made to this address or Q.R. code by sharing it with others. A transaction can’t be canceled or reversed once it’s been sent because of the technology. Refunds cannot be requested either.

The Secret Code

The digital access to your bitcoin wallet is coded into your private key. Your bitcoin wallet’s private key is also unique; if you lose it, you won’t be able to access it. It is possible to set up an optional password for some wallets. If this is the case, you should keep your private key on a USB flash drive or similar storage device.

The Most Suitable Ways To Use Cryptocurrency in Your Company

1. Paying Your Employees with Cryptocurrency Is One Way to Use Cryptocurrency in Your Business – Paying your employees with cryptocurrencies and then converting them into fiat cash can be done at any time by the business owner. The rate might be frozen depending on an employee’s salary. When converting digital currencies, you can utilize the current market value. Payroll payments to employees might begin on a specific date.

Business owners can help employees decide how much of their earnings they’d like to accept in fiat cash and how much would be in cryptocurrency. Because everyone’s financial situation is unique, it’s preferable if employees have some input on how much they receive. Employees will likely take up to 20% of their wages in bitcoin.

As a business owner, you may also talk to your employees about what kind of cryptocurrency they prefer. Employees’ risks should be considered while considering cryptocurrency. To introduce students to digital money, they can use numerous methods and tools to convert digital currency to fiat currency.

2. Create your Bitcoin Company – Incorporating digital money into your company website is possible because of the variety of alternatives available. If you own a retail shop and accept payments online, you may introduce your clients to a new type of cashless payment by offering bitcoin as a payment option. Such considerations will aid in your search for the best solution for your business.

Pay Manually

Clients can use your public address or Q.R. code to make payments. As a result, the digital currency you purchase will be delivered immediately to your online wallet. Numerous wallets have detailed instructions for those who don’t know how to do this.

Summarize

Investors are reaping the benefits of adopting cryptocurrency since it is money. In addition, businesses are beginning to accept it as an alternative to fiat cash because it has lower transaction fees. In the modern world, there are more options than ever to encourage customers and employees to pay with cryptocurrencies. The gradual transition from cash to digital money will benefit everyone.

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Debt Is Not the Death of Your Business

Business Debt

“Debt” and “business” are two words you don’t want to see in the same sentence. Unfortunately, it is not always a smooth ride for every business owner. High hopes can often make business owners get carried away. That’s why experts want you to be realistic with your expectations as a business owner. It does not matter how unique your product is or how differently you have planned to serve your target audience. You cannot expect too much unless you have tested the waters beforehand. Perhaps, you set your hopes too high at some point and dug your way into the debt trap.

Good news is that debt is not the death of your business – at least not always. Some proper planning, persevere attitude, and calculated strategies can help you dig your way out of debt too.

Free up the Money That belongs to You

The first thing you ever want to do is free up the money that belongs to you. Perhaps, you are in a business where credit transactions are common. The problem with this format is that customers can delay your payments more than the specified period quite often. They have received the product, and they have consumed it too. Not clearing your invoices does not really hurt them as much as it hurts you. Consequently, you will have to get in touch with these customers and remind them of the pending invoices.

You can ask these customers to pay you sooner. Set a deadline and ask every customer to pay by that time. It won’t be easy but do not forget that you are fighting for the survival of your business. You can boost your cash flow significantly even if half of the customers agree to pay you on your set deadline.

Boost Your Revenue

This is an area where business owners have an advantage over people who do nine to five jobs. Salaried individuals don’t have any control over their salaries. It is a fixed amount that they will receive at the end of the month. On the other hand, you as a business owner have your revenues under your control. You can decide what your business earns at the end of the month. You can change prices, launch promotions, and cut your costs significantly to increase your revenue and profit.

One of the ways to get your customers’ attention is to launch promotions. However, you have to design your promotions carefully. You don’t want to shrink your profit margins until you know your promotion will increase your customer count considerably. If you have a loyal and repeating customer base, take advantage of that. Increase the prices a little to generate more revenue.

Slash Your Costs

Cost-cutting can be a huge step for a business. You have a hundred different costs that you can cut down. First, talk to the vendors that supply you the materials for your products. Quit the marketing campaigns that are not generating any returns. Reduce your operational costs as well. If possible, ask your workers to work from home to save yourself some money on office space. In fact, you can cut down your computer, internet connection, utility, etc. costs if you can make your employees work from home. Reduce office hours if your calculation tells you that certain hours are not as productive as much as they cost you.

Pay Your Debts First

A common mistake that business owners often make is treating debts as a secondary concern. You might feel tempted to buy more inventory, fulfill some orders, and pay the overhead expenses first, and then worry about your debts. However, this strategy can go against you. You will never be able to pay your debts if you make other business expenses first. The thought of repaying the debt is stressful. You can’t make great decisions when you are stressed. You will see a huge improvement in how you tackle your business related matters once you have paid off your debt.

Consider Consolidation

You can consolidate your loans to make things easier for you. What makes debts scary and stressful for business owners is that there can be many of them. Even if you pay one debt, you then have another to worry about. This format can be mentally devastating for the business. Moreover, you might be paying different interest rates on different debts. Consolidation helps you simplify your debt repayments.

First, it combines all the debts that you have to pay into one. As a result, you have to make just one payment every month that serves as the repayment of all your debts. Secondly, it helps you take advantage of a more affordable interest rate. The fact that you don’t have a bunch of different credits knocking on your door every day can be quite relieving too.

Find a New Partner

You want to take this step only as a last resort. Of course, the sight of seeing your business shut down is more painful than anything else. That’s why you can make a new partner in business by offering some equity rather than letting your business sink to the bottom. You can ask your new partner to finance your business for the chunk of equity you are offering him/her. A crucial consideration here is not to offer too much equity. You don’t want to lose control of your business as a result of this deal. Offer only enough equity that keeps the new partner interested but does not make you lose your control over your company.

Concluding Thoughts

You must not forget that these are only the extreme measures to dig out of debt. The first cure for avoiding debt is care. Make sure you start with a solid business plan wherein you have sorted out your expenses and loans already. Sometimes, venture capitalists are not the best option to fund a business. In that case, you have crowdfunding options available. Using the latter option, you can fund your business amply without necessarily giving up equity too much equity, if any at all.

 

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Business Credit Card vs. Business Loan for Funds

Funds

If you have long been looking for business funds, the multiple business financing options must have overwhelmed you. Many entrepreneurs don’t want to involve outside investors to raise capital for their lean startups to avoid entailing risks such as misaligned structure and timeline.

If you are one of them, business credit cards and business loans are some of the readily available options for you. Plus, these financing options are widely accessible for the entrepreneurs who want to self-finance their business.

Regardless of what options you choose, understanding their pros and cons is essential. But before we plunge into the details, let’s quickly split the difference between business credit cards and business loan to help you choose the most appropriate option for your business.

What Is the Difference between Business Credit Card and Business Loans

No doubt, it is one of the common questions that come to mind when it is about funding your startup. Typically, a business loan refers to a lump sum amount you are paid out that you need to pay back in the form of monthly installment over a specified period. A business credit card, on the other hand, is a credit line that allows you access to money or funds to a certain limit on a recurring basis. This credit line, like another credit amount, can be paid off through monthly payments or over any period of your choice unless you meet the credit limit of each month.

Business loans are generally installment debts; however, business credit cards are revolving debts. Although neither of these options hurt your personal credit scores in the long term if you pay them on time, it is worth noting that business credit card has more potential to affect your credit card scores.  If not paid on time, revolving debt may decrease debt to credit ratio.

Moreover, business loans undeniably offer large sums of funds and may have a lower interest rate as compared to business credit cards. However, qualifying for them is nerve-wrecking since the lending process is unnecessarily long and can take months.

Alternatively, business credit cards can offer you immediate access to funds or cash you need to invest in yours.  While their interest rate tends to be higher, you have an option to pay off your full bill each month. Besides this, the best business credit cards provide a slew of other reimbursements such as credit rewards, purchase protections, and perks that can particularly benefit business owners.

Business Credit Card or Business Loan- Which Can You Get Easily?

Having good credit card scores are necessary to qualify for both business credit cards and business loans.   In addition to that, to initiate the funding process, you will be asked to apply, along with the documentation showing your revenues. However, documentation for business loans tends to be more extensive and hectic. Not only this, you may find requirements for business loans stricter in terms of business profitability and length of time.

Overall, qualifying for business loans is more difficult than getting funds through business credit cards. The requirements become even more challenging to meet if your credit scores are low or you are a startup.

Luckily, Small Business Administration offers loans for startups. Although traditional lenders invest in these government-backed loans, guarantees up to 50% percent of the loan to make the process easier.

Business Credit Card or Business Loan- Which Can You Get Easily?

There is no easy answer to the question of whether one should opt for a business credit card or business loans. As mentioned earlier, to choose the best funding option, you need to compare the best features of each alternative.

Features Business Credit
Cards
Business Loans  
Loan amount Up to $50,000 Up to $5million
Loan type Revolving credit line Installment loan
Repayment Monthly payments to the minimum credit limit to pay off a debt to avoid high interest Set payments to be paid monthly over a specified time that can go up to 25 years
Average APR 13 to 20 percent 8 to 10 percent
Eligibility Steady income and personal credit history Good  business revenue model and credit
Approval Time Seven days Weeks or a minimum of six months
Benefits Sign up bonuses, reward programs,  purchase protection, trip insurance Government-backed loans

Business Credit Card or Business Loan: What is the best Option for You?

You have compared the features of both options; it is the right time to decide which works best for you.

Business loans are Ideal for your business if you;

  • Need large sums of funds
  • Want investment for profit-generating projects that include purchasing equipment hiring staff or renting new locations
  • Want to expand an established business that generates revenues up to 100,000

Business Credit Cards are ideal for your business if you

  • are looking for options to separate finances  or sole proprietor
  • Want to use the payment option that comes with big rewards
  • Need to access cash immediately
  • Do not want to borrow money and need a payment option that allows you to pay in a month
  • Want to invest in a project that has 0 percent introductory APR and plans to make payments before its promotional period deadline

Factors to consider while Choosing Business Credit Cards and Business Loans

Your job is not done after you decide which option you want to choose and why.  There are certain factors you need to consider to make a safe choice.

  • Interest Rate–   it is important to choose the option that has a low-interest rate. The interest rate in loans and credit cards are compounding, and you will end up wasting a lot of money if you are not diligent.
  • Other fees–   choosing a business credit card means you will have to pay annual fees, foreign transaction charges, and late payment charges
  • Eligibility– applying for consecutive loans or credit cards may ding your personal credit scores by resulting in the new inquiry.  

Final Thoughts

Overall, both financing options come with their perks and downsides. Given that, it is up to you when it comes to making the decision that meets the requirement of your small business.

Who we are:  Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

How to Increase Your Work Productivity

Productivity

Have you been complaining about how your day seems spiral out of control? You start your workday feeling a 100 with a goal, plan, and list, but at the end of the day, you are unable to accomplish most of the items on your list. There are days when completing our To-Do list seems beyond reach, and you keep scrambling to achieve deadlines.

Being productive at work can be a difficult task, and the temptation of mobile games, social media, the Internet and the bustle of co-workers doesn’t make things easier.

So, how do we go about becoming more productive at work?

With only so many hours in a day, maximizing this time is critical to productivity. There are two ways you can increase your success output in a day – you either increase the number of hours you work for or you work smart. The second one is the better option.

Being more productive at work shouldn’t be confused with busyness. Productivity means getting effective results in a short amount of time as possible, leaving you with more free time.

Imagine ending your workday with a contented sigh, knowing that you productively achieved everything on your list. In this post, we will walk you through practical and easily applicable strategies for increasing your work productivity.

Stop Multitasking

Taking on a few tasks at once can be quite tempting, especially if some seem easy or small. But it doesn’t work. According to Earl K. Miller, a neuroscience professor, “multitasking is not humanly possible.”

Research also shows that trying to do several things at the same time reduces productivity, and shuffling tasks can cost up to 40% of one’s time. When you have to switch between tasks, your concentration and focus are continuously affected.

Need for reasons to stop multitasking? A study conducted in the University of Sussex in the UK reports that multitasking may be harming your brain physically.

So, stop trying to juggle eating lunch, presentation, and making phone calls. If you focus on completing one task, you will end it faster, giving you more to move on to the next. So, dramatically increase your productivity by prioritizing the tasks you have on your plate and allocating time for each.

Take Regular Breaks

This might sound counter-intuitive. However, taking scheduled breaks will help improve your concentration.

Some research also shows that taking short breaks in between long tasks will ensure that you maintain a constant level of performance. You might have noticed that when you are burned out, you never work as well.

Learn to spend that 15 minutes grabbing coffee mid-afternoon or taking a 5-minute walk around the office. Besides improving your concentration, this will also boost your mood.

Set Small Goals

Have you ever experienced an overwhelming feeling while looking at the big projects you have on your calendar? This happens to even the best of us and isn’t a cause for alarm. If the goals you set for a day are looking complex, you can break them down into smaller tasks.

This will make you feel more in control, keep you on track with your day-to-day activities, and increase your productivity. So, rather than write a project on your to-do list and allocate a deadline, you can try breaking down the project into all the tasks that will go into completing it.

Do the Biggest Tasks When You’re at Your Best

Several people do mental sludge tasks such as reading emails and other routine chores in the morning. Sometimes, we unconsciously push our big goals to the end of the day because we are not confident in our ability to accomplish them.

And by the time we finally get to them, we are too burned out from the day to give them the attention they deserve.

This is wrong; several work productivity experts recommend that you start your day with tasks that are the most creatively demanding, especially if you are a morning person.

However, if you work better at night, this doesn’t apply to you. Tony Wong, a productivity expert, advises that we do our most demanding tasks at times when we feel most productive.

Understand that there is no perfect schedule that is ideal for everyone. Understand how and when you work best to get your big projects done in no time.

Prepare a To-Do List

Each night, create a to-do list for the next day. To-do lists are invaluable aids for productivity. They help you get organized, provide you with pivotal focus, and reward you with feelings of satisfaction when you check things off your list.

What’s more, making a to-do list and updating it each night before going to bed means that you won’t waste time looking for your next tasks at the start of the workday. You can also try to talk through your list with someone else.

The co-founder of Buffer, Leo Wildrich, talks about this technique in “What Multitasking Does to Our Brains,” saying:

“The to-do list I jotted down didn’t change, but it felt as if I had done half the work of it all in my head already. The next day, all I had to do is look at the task and get it done.”

The next question is: how many items are on your ideal to-do list? To become a productivity superstar, you have to stay focused.

And getting that focus involves narrowing down your options (the items on your to-do list). So, as you review your to-do list each night, you have to ask yourself some critical questions:

  1. What are the crucial tasks on this list?
  2. How many of these highlighted (important) tasks can I achieve realistically or make significant progress on tomorrow?

Be Proactive

You need to put yourself on a realistic deadline for your tasks and work towards achieving them. This will help you eliminate distractions.

However, it is also essential that we take note of certain unavoidable disruptions such as a colleague asking for quick assistance or your manager requesting a quick meet. To handle these, you have to know how to deal with interruptions.

Inform your colleagues of your need to focus. On your work chat app, turn your status on as “unavailable/busy.” Let them know of your deadline and need to concentrate. This will significantly minimize your chances of being interrupted.

Bottomline

These strategies discussed above should serve as a solid foundation for you to most out of your time in a short time.

But you should also keep in mind that change does not happen overnight. Start with small steps and be consistent. Consistency is the key. Even if you slip up on any, dust yourself up and try it again.

Cheers to more productive days!

Who we are:  Funded.com is a platform that is A+ BBB rated over 10+ years. Access our network of Investors, get instantly matched with a Lender, or get a business plan by visiting us Funded.com

What the Right Team Means for a Business

Team

Just because you have a small business today does not mean it is going to remain small forever. Of course, you have to work to expand your business team and turn it into a company that serves a worldwide audience. Whenever it comes to the expansion of a project, the first few things that you mostly think about are costs, taxes, cash flow, etc. What many small business owners often ignore is the right team that is crucial not only during the process of expansion but to keep the business afloat for many years to come.

The Need for a Team

The first thing that one wants to understand is why they need a team in the first place. If you have a small business and you never want to grow it, you might never need a team. However, for any businessman who has the mission of expanding with the passage of time, they need a team. First of all, you cannot act as the one-man-army. As you expand your operations, add more branches to your business and get more clients to work with, you will have to distribute those responsibilities. You can manage some of them with great efficiency, but if you think you can manage them all perfectly, you might be wrong.

You might not have paid attention to this particular piece of detail but when you try to manage everything on your own, you turn your own employees against you. They feel as though you do not trust them with the responsibilities of your business. Furthermore, they don’t see any chances of growth and this is why they do not plan to stay with you for a long time. This reduces the retention rate at your company to a low level.

Not just that, your core team is even more important when you are in a startup stage. When you present your business idea to the potential investors, they will consider several metrics to find out how successful their investments will be with you. One of the indicators for them to identify a successful startup is its core team. If your idea is unique, you have everything else in place, but your team seems to lack confidence or is missing important persons, there is a big chance you will not get any investments.

What to Consider When Building a Team

There are quite a few things that you have to consider when building your core team. Here are some of the most important ones.

  • Be Personally Involved

The first and foremost requirement of building the right team is for you to involve yourself in the process personally. No one knows your business better than you, and the many requirements to run it successfully. You can talk to an individual and know if he/she is the right person for your team. You will have to talk to everyone in person to know how they will fit or not fit. Convince yourself that this is an important process and manage enough time from your schedule to interview the potential candidates.

  • Consider Vision Alignment

When it comes to adding people to your core business team, it will be wrong to focus solely on their qualification and experience. The most important factor to look at is their vision. Do you think they are comfortable with your vision of your business? Do you think they are not just comfortable but also passionate about the same vision? It did not matter how talented, qualified and experienced they are because if their thoughts do not align with yours, they will always remain a misfit. Hiring the person who does not agree with your scope of the business is a huge mistake. Your and their position in the company will be like two people pushing a vehicle from the opposite sides.

  • Look for Leaders

You must realize that you are building a core team for your business; not hiring employees to fill certain positions at the company. Do not think of your team members as tires in a vehicle which you can replace when one goes flat. Every individual you make a part of your team should have leadership qualities—the qualities to lead the team in your absence or the absence of the appointed leader. What’s even more important is that these are the individuals who will act as your right hand. You cannot expect your business to keep on elevating and not experience any hiccups.

It is the people with leadership qualities that help you pull the business out of hard times with their will to lead and the undying attitude.

  • Involve Other Team Members

If you already have a small team, but you are looking for more people, you will have to make the existing members a part of the hiring process. When you do this, it will make them feel like a valuable part of the company. Secondly, it will also show you whether you and your existing partners are on the same page or not. They should also know what type of talent is lacking in the team just like you do. On the flip side, it will also show the potential candidates how unified your approach is. They will know they are becoming a part of a strong team and prepare mentally to fit in.

  • Consider All the Options

You have to wait before you can make the hiring decision just like consumer surveys the market before making a purchase. Some candidate might seem like a perfect fit, but you can’t reach a final decision unless you have talked to all the remaining candidates.

Creating the perfect team is only one step in the right direction. The more important part is to keep the team united and in unison. Do not forget that a melody only sounds good when all the instruments are playing in harmony. So, if you are a startup or a small business, be sure to start delegating responsibilities to the right people and hiring the ones that are missing.

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