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Business Opportunities



The original blog about business opportunities and business ideas for small business entrepreneurs



Updated: 2017-06-22T04:01:03Z

 



How to Turn Your Hobby into a Profitable Business

2017-06-22T04:01:03Z

Have you ever heard that old saying, “If you truly love what you do, you will never work a day in your life”? Well, you can take that saying to heart, because it couldn’t be truer. The only real problem is finding a job that allows you to do something you truly love. This is why many people are turning their hobbies into full-fledged businesses, and you can do the same. Below you will learn how. The post How to Turn Your Hobby into a Profitable Business appeared first on Business Opportunities. How to Turn Your Hobby into a Profitable Business Have you ever heard that old saying, “If you truly love what you do, you will never work a day in your life”? Well, you can take that saying to heart, because it couldn’t be truer. The only real problem is finding a job that allows you to do something you love. This is why many people are turning their hobbies into full-fledged businesses, and you can do the same. Whether you have a wood-working hobby, a sewing hobby, or an interest in teaching, you can take any of these hobbies and turn them into a profitable, working business. Below you will learn how.   RELATED ARTICLE: TURN YOUR CHILDHOOD HOBBIES INTO A RETIREMENT BUSINESS   Develop a Realistic and Effective Strategy The first and most important thing that you need to know is that you will never get anywhere unless you develop and follow a proper strategy that will lead you to success. If you wanted to turn your abdominal region into a chiseled masterpiece, you wouldn’t expect to get there by eating donuts all day long, would you? No, and the same thing applies to your business strategy. You need to think of a good target audience and then develop a strategy as to how you can reach that certain group of people.   src="https://www.youtube.com/embed/g0bB4ZhcE6k" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">   Take Advantage of Social Media In today’s world, everyone is online. Businesses from Fortune 500 companies to mom-and-pop stores are taking advantage of this aspect. In order to get your hobby out into the world and turn it into a profitable business, you’re going to have to build and maintain a social media presence. There are numerous sites where business owners can market their wares and communicate with potential customers.   Draw in an Audience with Lucrative Offers It is very likely that your hobby is something that has already been done before. It is not like you are reinventing the wheel and coming up with something that no one has ever seen before. Therefore, in order to be successful you do need to make your products or services stand out from the competition. There is no better way to do that than by making lucrative offers that your target audience can’t resist. For instance, you can give away free samples or grant buy-one-get-one-free offers. Get creative and try anything you can think of to make your new business attractive and draw in a dependable customer base. Remember, though, don’t ever undersell yourself. Get yourself a reliable Orange County personal injury lawyer in case anything goes awry.   Advertise Your Hobby Through Expos If you are considering turning your hobby into a business, you should take advantage of expos. These events are designed for people and businesses who want to advertise and demonstrate their products and services. As a beginner, you will need to start low and work your way up. For example, if you craft handmade items such as ink pens, toys, or crocheted handbags, you should start with flea markets and festivals. These events are perfect for individuals who are working within a budget and not yet ready for an expo. Setting up at festivals and flea markets is a great way to earn a little extra cash. What’s more, it can help you to develop some brand awareness among your target audience. Who knows? You just might meet someone at one of these events who can help you take your hobby to the next level. The post How to Turn Your Hobby into a Profitable Business appeared first on Business Opportu[...]



The 5 Steps You Need to Take Before Writing Your Business Plan

2017-06-22T03:55:45Z

If you want to start a business, you need to have a business plan. But before you even begin the drafting process for your business plan, there are some steps you should take to get your personal finances, logistics, and ideas in order. Without that foundation, writing a business plan will be substantially more difficult, so take the time to organize yourself in advance. The post The 5 Steps You Need to Take Before Writing Your Business Plan appeared first on Business Opportunities. The 5 Steps You Need to Take Before Writing Your Business Plan If you want to start a business, you need to have a business plan. However, before you even begin the drafting process for your business plan, there are some steps you should take to get your personal finances, logistics, and ideas in order. Without that foundation, writing a business plan will be substantially more difficult, so take the time to organize yourself in advance.   src="https://www.youtube.com/embed/zlrb_X6fYZ0" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">   Steps to Take Before Writing a Business Plan Follow these steps to give yourself the best platform for writing a business plan: 1. Get your personal finances in order. First, you’ll need to get your personal finances in order. If you’re going to start a business, you’ll need capital, which means you may need personal loans and funding. Use a credit score calculator to determine your current personal credit, and take the time to get it in good shape by paying down your debts and paying all your bills on time. Try to minimize your outstanding debts, and simultaneously build up an emergency fund. Your first few months and years as a business owner may not be especially profitable, so you need to be prepared.   2. Create a backup plan for your career and income. Some people claim that 90 percent of businesses fail within the first year of operations. In reality, the figure is closer to 20 percent, but the majority of businesses do fail within 10 years. For that reason, you need to have a backup plan. Businesses aren’t a get-rich-quick scheme, so if you want to survive reliably, you’ll need to have a backup career in mind, or at least a source of income you can rely on as a temporary measure.   3. Do some baseline research. You’re going to be doing a ton of research when you put your business plan together for the first time, but before you jump into that, do some baseline market and competitive research to make sure your idea is feasible. You may discover that another business is already doing what you had in mind, or that your intended target demographics just aren’t as interested in your products as you thought.   4. Talk to other entrepreneurs. Remember, there’s a psychological component to being a successful entrepreneur. You’re going to be working in a high-stress environment, working long hours, and dealing with the threat of a potential business collapse. Talk to other entrepreneurs about their experience, and get an accurate glimpse into the world of entrepreneurship before you take the next steps.   5. Learn what makes an “effective” business plan. Your business plan isn’t just an item on a checklist. It’s going to serve as the blueprint for your business and one of the best tools you have for pitching to both prospective investors and potential clients. Learning some of the most important fundamentals is essential if you want your draft to reflect what investors and clients are interested in.   RELATED ARTICLE: 50+ BUSINESS PLAN RESOURCES: SOFTWARE, TEMPLATES, TOOLS   Creating an Initial Draft With all those pieces in order, you should be ready to begin the actual drafting process. Your formatting and direction will vary based on your business plan and personal preferences, but these tips should help you get started on the right foot: Back everything with facts. Back every statement in your business plan with verifiable facts. For example, don’t say that middle-aged men will [...]



Why Business Owners Should Make Studying a Habit (and How to Do That)

2017-06-21T03:45:08Z

Studying is a tool to acquire and store information, but the word is almost exclusively associated with its academic context. High school and college students need to make studying a habit so they can get good grades and pass their courses, but even after you graduate and start your own business, you shouldn’t stop studying—ever. Nobody will be grading you, at least not in the formal sense, but the breadth of information you have and how up-to-date you stay on current events will have a direct effect on the success of your business. But what are business owners supposed to study, and how should they go about doing it? The post Why Business Owners Should Make Studying a Habit (and How to Do That) appeared first on Business Opportunities. Why Business Owners Should Make Studying a Habit (and How to Do That) Studying is a tool to acquire and store information, but the word is almost exclusively associated with its academic context. High school and college students need to make studying a habit so they can get good grades and pass their courses, but even after you graduate and start your own business, you shouldn’t stop studying—ever. Nobody will be grading you, at least not in the formal sense, but the breadth of information you have and how up-to-date you stay on current events will have a direct effect on the success of your business. But what are business owners supposed to study, and how should they go about doing it?   Why Studying Is Important Let’s start by looking at the practical benefits you as a business owner can enjoy if you make studying a habit: News. First, you’ll be more aware of current events, both within your industry and on a broader scale. This will help you make more informed business decisions, take advantage of new opportunities, and even have better conversations with your prospective partners and clients. Ideas. It’s notoriously difficult to generate ideas by brute force; you have to find a moment of inspiration. Immersing yourself in new subjects and learning new things is a great way to find that inspiration. Skills. Finally, studying the right subjects will help you build a better skill set, which you can use in your current role, or to improve your business in some way. In any case, if you make studying a habit, it makes you more valuable as a professional.   src="https://www.youtube.com/embed/flra_KrXcqI" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"> What to Study So what should you study to gain these benefits? Other businesses. Start looking at other businesses, particularly ones in your industry. Their respective owners have found some combination of tactics that works for them, and you’d do well to understand how it works. What are they doing? How are they doing it? What can you apply to your own business? New technologies. You’ll also want to stay up-to-date on the latest technologies, so you can use them for your business and/or harness them to come up with new ideas. TechCrunch and Engadget are two top news sites here, but you’ll need to dig a little deeper if you want to find out how all those new technologies work (and get inspired by how they can be used for your business). Economics. No business can succeed without the entrepreneur’s baseline understanding of economic principles like supply and demand. You might have taken a class on introductory economics in high school or college, but there’s much to learn on the subject. Consider enrolling in a free online economics class, or series of classes like those offered by MIT, to learn more. Other disciplines. There’s no real limit to what you can study to gain some benefit. You can study other disciplines, other industries, and other areas of expertise to learn a little more about how the world works or to expand your skill set. Online courses are a great way to start here, but if you’re serious about learning more, it’s advisable to find a mentor—or a peer with whom you can exchange information.   RELA[...]



3 Tips for Having a Successful Business in a Highly Competitive Industry

2017-06-21T02:55:37Z

If you’re a business owner, you probably realize the amount of work it takes to have a successful business. This is especially true if you’re in an industry that has a great deal of competition. Take time to find ways to market your business to aid you in getting and keeping clients. There are various ways you can accomplish this goal, and being aware of how to do so is essential. The post 3 Tips for Having a Successful Business in a Highly Competitive Industry appeared first on Business Opportunities. 3 Tips for Having a Successful Business in a Highly Competitive Industry If you’re a business owner, you probably realize the amount of work it takes to have a successful business. This is especially true if you’re in an industry that has a great deal of competition. For instance, if you provide consulting services to others there are likely to be many other providers in your area. You should take time to find ways to market your business to aid you in getting and keeping clients. There are various ways you can accomplish this goal, and being aware of how to do so is essential. src="https://www.youtube.com/embed/jirAABETIqc" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"> Tip #1: Use Search Engine Optimization In this day and age, you should utilize the Internet as much as possible to make your business more successful. That’s because millions of people complete online searches daily to find a business provider that can assist them with various issues. Implementing search engine optimization (SEO) is one of the top ways for you to increase the amount of traffic to your website with the least difficulty. This technique will place targeted keywords in your content that will be picked up during a search. This can be helpful in allowing potential clients and customers to find your site. Of course, you will need to use the right strategy to have the most success. This could mean relying on a professional such as Searchbloom. While you could educate yourself about SEO and try to implement it on your own, you do have a business to run. And working with qualified individuals who can write content for you and place the keywords correctly is important.   Tip #2: Rely on Social Media Getting the word out about a new business that you’re launching or letting others know about a promotion you’re having can be done easily thanks to the Internet. There are several social media platforms where you can advertise your new company or notify others of discounted products. Listed below are some of the top social media sites used today: Facebook – Promoting your business is as simple as posting an update about what you have to offer others. There are various ways you can update your Facebook status. For instance, you can provide factual information, add a funny cartoon or post pictures of events or group gatherings. Statista states that Facebook has more than 1.94 billion active users globally. Connect with enough of those people and you’ll be almost guaranteed a successful business. Twitter – Millions of businesses rely on Twitter to inform others of things that are going on in their companies. Tweeting has become one of the best ways to reach out to others. LinkedIn -Professionals from all walks of life can instantly connect on LinkedIn these days. You can promote your business quickly and let others know who you are. Instagram – This site will allow you to share photos and messages with people who follow you or are in your group. Relying on social media is a top way to develop a successful business. Doing a little research beforehand can enable you to find the best ways to update your status or tweet about your latest promotion.   RELATED ARTICLE: IS YOUR SOCIAL MEDIA MARKETING HITTING THE TARGET?   Tip #3: Safeguard Your Reputation You will want to keep your customers and clients happy. Do this by providing a product or service that does what you say it will do. One of the best ways t[...]



The Vital Importance of Confidentiality for Startups

2017-06-21T02:50:08Z

It is not easy maintaining confidentiality around your business ideas. However, it is necessary if you want to retain possession of those ideas. When you're starting a business, it is vital that you keep your sensitive information private. The post The Vital Importance of Confidentiality for Startups appeared first on Business Opportunities. The Vital Importance of Confidentiality for Startups Starting a business is not an easy task. Neither is it easy to maintain confidentiality over its most sensitive aspects. An entrepreneur is an individual who is able to convert an idea into a profit-generating business. It can be tough to do this successfully. One of the chief reasons is that other people can so easily steal and use your ideas—if you are unwise enough to disclose the details heedlessly. For this reason, you will need to take precautions. It is of vital importance to play your cards close to your vest. Below are some ways of doing so:   RELATED ARTICLE: THE IMPORTANCE OF COMMERCIAL SECURITY MEASURES   Maintain Confidentiality with Non-Disclosure Agreements Among the ways you can protect your business ideas are to prepare a non-disclosure agreement for your employees and business partners to sign before they begin working with you. Keep in mind that the information or idea you’re basing your business on has value. It’s every bit as valuable as currency, maybe even more so. Insist that your employees sign a non-disclosure document agreeing that they will not share information about your business with anyone, especially your competitors or anyone who might become your competitor. For another example, let’s say you are working with other players on a single business idea. Each person in the group will contribute to the implementation of that business idea. You therefore need to disclose your idea to them to the degree that they can add to it with their own ideas. However, if they have not agreed to respect the confidential nature of their work with you, they might decide to sell that idea elsewhere. With a nondisclosure agreement they will be obligated to keep valuable information about your business private.   src="https://www.youtube.com/embed/FE1Rhn_WmR4" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">   Keep Your Business Idea Unique Yes, it can be great fun to share about your ideas, almost as much fun as playing slots for free in the comfort of your own home. After all, you’re excited about your ideas—so excited, in fact, that you’ve started a business based on them. But don’t let your excitement get the better of you. Don’t tell anyone and everyone about your great new ideas. That’s just not smart. Remember that if you make your idea public, then it is no longer your idea. If everyone can learn about it, someone else besides you could choose to implement it before you do. Keep such vital information private until you have fully executed your idea. Share your best business ideas only as necessary and only with a few people you know you can trust. Keep access to vital information about your business within a small, tight circle.   Protect Your Intellectual Property If your idea is truly unique and you believe it has great potential for generating profits for your company, it might be smart to register it for a patent. With a patent, your idea will be protected under the law as your intellectual property, at least for the foreseeable future. However, the process of obtaining and maintaining patents is an expensive one and not a wise choice for most small businesses. It is not easy maintaining confidentiality around your business ideas. However, it is necessary if you want to retain possession of those ideas. When you’re starting a business, it is vital that you keep your sensitive information private. The post The Vital Importance of Confidentiality for Startups appeared first on Business Opp[...]



Base Your Marketing Choices on Cost-Effective Solutions

2017-06-21T02:41:38Z

Cost-effective marketing solutions can communicate the substance of your business and put you on the road to success. For example, a focus on content marketing doesn’t have to be a huge expense. But it can give your business a much-needed boost. Just focus on providing quality content and the results are sure to follow. The post Base Your Marketing Choices on Cost-Effective Solutions appeared first on Business Opportunities. Base Your Marketing Choices on Cost-Effective Solutions Cost-effective marketing solutions can communicate the substance of your business and put you on the road to success. For example, a focus on content marketing doesn’t have to be a huge expense. But it can give your business a much-needed boost. Just focus on providing quality content and the results are sure to follow. When you upgrade your online content marketing to maximize SEO (Search Engine Optimization), you can be sure that you’re making the best use of your marketing budget. Such a strategy will give your business the cost-effective, long-reaching advertising it deserves. Additionally, you can employ SMO (Social Media Optimization), guest-blogging, and Google Reviews.   RELATED ARTICLE: MARKETING FOR NON-MARKETERS: GET GOOD AT IT BY LEARNING TO LOVE IT   Cost-Effective Marketing Solutions Maximize Return on Investment Many business owners allow costs to restrict their marketing strategies, but this doesn’t have to be the case. Often, a single marketing expense can yield multiple benefits, maximizing effectiveness and return on investment (ROI) while minimizing the financial outlay. It might take you a few trials and errors to find your balance with this strategy, but by using your imagination and being creative you’ll eventually produce the results you’re after. src="https://www.youtube.com/embed/BF3z4PNKr6o" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">   Expensive Architecture Versus Cost-Effective Architecture Here’s an analogy that illustrates these points. You could purchase a top-of-the-line structure for your business’s base of operations. You’ll have all the modern amenities, the comforts required to make the daily grind less difficult to bear and prime construction designed to stand the test of time. Going this route will provide some cushy pluses, to be sure, but will the additional expense ultimately yield the advantages your business could most benefit from? Alternatively, you could take a completely different route. You could decide that substance beats style in the long run. In this case, you might consider prefabricated options for your business’s home base. According to FidelitySteel.com, a maker of prefabricated metal buildings, “Any building that has been engineered or fabricated in a factory before shipment can be referred to as classic, pre-engineered, prefabricated, or prefab.” Consider the advantages: 1. Prefabricated buildings are relatively inexpensive. For example, aircraft can be stored in expensive buildings, and in most airports they are. However, some airports use less expensive options which essentially do the same job. Some of the best aircraft hangars are of the prefabricated variety. This is a cost-effective solution that additionally has great longevity.   2. Prefabricated buildings are constructed to withstand the elements. Some even have an aerodynamic design known to stand the test of time. After all, Antarctica’s bases are mostly prefabricated structures. Do you see what we’re getting at here? When it comes to architecture for your business, you have plenty of options. Some of those options are better than the most expensive ones—at a fraction of the cost.   You’ve Got to Work up to Rocco Moto Status Marketing likewise benefits from substance over style. For evidence of this principle, just think of a Tommy Hilfiger ad. For another example, take Rocco Moto, which produces [...]



Living It up in Atlanta

2017-06-21T02:36:00Z

Are you thinking of moving your business to another location but you’re uncertain as to where? Which city would be a smart move for a young, business-savvy entrepreneur like you? Haven’t you heard the latest news? Atlanta is a new up-and-coming business center as well as a vibrant entertainment capital. The post Living It up in Atlanta appeared first on Business Opportunities. Living It up in Atlanta Are you thinking of moving your business to another location but you’re uncertain as to where? Which city would be a smart move for a young, business-savvy entrepreneur like you? Haven’t you heard the latest news? Atlanta is a new up-and-coming business center as well as a vibrant entertainment capital.   RELATED ARTICLE: 3 THINGS TO REMEMBER WHEN MOVING YOUR BUSINESS’S LOCATION   Atlanta Is Booming According to the latest studies, the city of Atlanta is becoming one of the most culturally diverse and economically profitable cities in the US. In recent years, Atlanta’s economy has been on the rise and there’s no stopping it. Atlanta has boomed, first as home to such giants as Coca-Cola and Delta Airlines, and more recently as the business center for large corporations such as Home Depot, UPS, CNN, Bellsouth and many others. The Georgia capital is attracting people from across the country, and more and more people are moving to this city because of the culture and commerce. If you look into everything Atlanta has to offer, it’s easy to see why. Atlanta features one of the highest rates of job growth in the US, iconic landmarks such as the Alliance Theatre, the CNN Center and Michelin star restaurants, to name a few. The rise of the city’s star is especially true with regard to the world of entertainment and film. The Washington Times has nicknamed Atlanta the “Hollywood of the South.”   The City in the Trees Another of the city’s nicknames is the “City in the Trees” because of its foliage. The climate is fairly reasonable, with mild winters and summers that aren’t too hot.   Real Estate in Atlanta There is also a lot of transit between Atlanta and other major US cities like Los Angeles and New York. As a result, there’s a rise in Atlanta’s population, which has resulted in higher real estate valuations and better living conditions. This basically means that smart property investments could bring you a greater profit later on. New luxury condos opening in Atlanta could be the direction in which to invest your savings. You can buy a condo to live in or you can rent it out through an agency and have secure income every month. Think of it like another paycheck to look forward to every month. There are many real estate agencies which can help you find reliable tenants. But even if you decide to change the scenery once again, sell your property and move your business to another city, Atlanta’s economic trends will bring you an increase in your property value. Basically, selling your condo could make you more money than you had invested in it. That’s why you need to be careful in choosing the right location before you buy a condo. That right location would ideally be in the heart of Atlanta.   Benefits of Owning a Condo There are many benefits of owning a condo. By owning a condo, not only do you secure a roof over your head, you also have a comfortable place from which to conduct your home-based business. You also gain access to clubhouses, golf courses, swimming pools, tennis courts and fitness facilities that you otherwise might not be able to afford. Another benefit of owning a condo is living within a community that would be perfect for all those who always wanted to be a part of a big family.   About the Author Tamara Stanojević is an influencer marketing pro with brownboxbranding.com. Tamara is passionate about building authentic relationships and helping businesses connect with their id[...]



Debt Consolidation Scams: Know the Signs to Avoid Getting Burned

2017-06-19T00:36:05Z

In a perfect world, debt consolidation scams wouldn’t exist. But unfortunately we do not live in a perfect world. So just like any other industry, there are companies out there trying to take advantage of businesses that need their services as well as good, unsuspecting people like you. Use the information here to avoid debt consolidation scams so you don't get burned. The post Debt Consolidation Scams: Know the Signs to Avoid Getting Burned appeared first on Business Opportunities. Debt Consolidation Scams: Know the Signs to Avoid Getting Burned In a perfect world, debt consolidation scams wouldn’t exist. But unfortunately we do not live in a perfect world. So just like any other industry, there are unscrupulous companies out there. These companies try to take advantage of businesses that need their services as well as good, unsuspecting people like you. Instead of falling prey to these heinous scams, prepare yourself. Know what to look for when you seek help from debt consolidation companies. Let’s take a look at some of the most important things to look for when you’re seeking to consolidate your business debts. If you spot any of the red flags we share here, avoid those companies like the plague.   RELATED ARTICLE: 3 THINGS TO CONSIDER WHEN CHOOSING A LOAN FOR DEBT CONSOLIDATION   Red Flags to Watch For 1. Is the company trying to sell you services other than debt consolidation? Unfortunately, there are a number of companies out there that make the claim of providing debt consolidation services. But then you learn this is just a technique that they’re using to get you in the door. Once you sit down and speak with a representative of the company, they begin to try to sell you on other services. They want to work out deals with lenders, lower the amount of money that you owe to creditors, and things of this nature. While you may think these things are beneficial in some ways, this isn’t actually debt consolidation. During a legitimate debt consolidation process, a representative will never attempt to lower your existing balances. The only thing involved in debt consolidation is transferring your current debt to a new loan that has different, hopefully better, terms than your previous credit terms. When a company attempts to lower your principal balance, this is more like a debt settlement service, not debt consolidation. It’s something totally different than what you’re attempting to do, and it’s a much greater risk that could potentially damage your credit score. So, steer clear of any company that tries to take advantage of you by claiming to offer debt consolidation services when what they’re really after is providing debt settlement services instead.   2. They have aggressive and pushy sales tactics. Entering into a loan of any type, including a debt consolidation loan, is a big decision. You need to take your time and give it some forethought. It’s not something you should immediately jump into the moment you hear about it. So, if the company is pressuring you to make a quick decision about a debt consolidation loan, put things on hold. Take a moment to step back, catch your breath, and realize that this isn’t the best company for you. If they really cared about your financial well-being, they wouldn’t attempt to force you into a specific debt consolidation loan in a matter of days. They’d allow you enough time to make a proper decision. According to Debtconsolidate.company, a website sharing information about legitimate Christian debt consolidation companies online, “Many people today are turning to debt consolidation in order to find some much needed financial relief.” Ultimately, you shouldn’t ignore debt consolidation. Just be careful about the company you choose to give your business to. Make sure they have your best interests at heart.   3. They claim debt con[...]



Get Creative: Use Consolidation Solutions to Diminish Business Debt

2017-06-19T00:34:10Z

In order to diminish business debt, the key is to eliminate as much interest as possible. Thankfully, with many debt consolidation solutions, you’re likely to encounter interest rates which are designed to make paying what you owe less overwhelming and more manageable. The post Get Creative: Use Consolidation Solutions to Diminish Business Debt appeared first on Business Opportunities. Get Creative: Use Consolidation Solutions to Diminish Business Debt One of the biggest problems with any debt, but particularly business debt, is the concept of lending at interest. This is great for the lender, but it’s not so great for your business. Interest can double the cost of a loan relatively quickly. Consider a $10,000 loan at 5% interest compounded monthly. After the first month, the price goes up to $10,500. After the second month, you’re looking at $11,025. At that rate, the principal will double in less than a year and a half. Now, this is an extreme example of compound interest. However, you might find yourself in just this situation. This could especially be the case if a certain time period has elapsed wherein responsibility for the loan has changed.   Compound Interest Works Against the Borrower Often the interest on a loan won’t start to accrue until a certain period of time has elapsed. However, there are times when interest accrues even during the “grace” period, as with student loans. If you don’t get the principal paid off quickly, compound interest can work against you. It can sometimes take years to pay off a small loan with compound interest.   RELATED ARTICLE: 5 STEPS TO BUILDING A ROBUST BUSINESS CREDIT PROFILE   While interest only calculated on the principal increases at a predictable rate, the terms on some loans have the interest compounding on the principal as well as on the additionally applied interest. Granted, there are many places where such practices are illegal. However, depending on your credit, the only way to get a loan when you really need it might be to accept such a bad deal. If you’ve been roped into a scheme like this, you need to get out of from under the thumb of that debt as quickly as possible. src="https://www.youtube.com/embed/wf91rEGw88Q" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen">   Get Ahead of the Interest The best way to diminish business debt of this kind is to make payments that amount to more than the amount the interest adds to the loan within the compound period. For example, if your interest compounds monthly, you want to make monthly payments that are larger than the amount interest adds every month. This is simple enough to do with a single loan, but when you have multiple debts to contend with, such payments get complicated quickly. You may very well need exterior management to prevail in such a situation. And that’s where consolidation comes in.   Debt Consolidation Loans Can Lower Your Interest DebtConsolidation.loans will help you find top banks for debt consolidation loans, which can help you diminish business debt and attain financial independence. A debt consolidation loan is a loan that you use to pay off other debts. You consolidate your bills into a single loan. Then you don’t have to worry about tracking multiple payments with different schedules. Basically, a consolidation loan rids you of many smaller loans which each have their own separate interest rates. If you’ve got five debts with 3% interest at $3,000 per principal, then you’re looking at $15,000 at 15% interest. Meanwhile, if you pay all those debts off with a consolidation loan, then you owe the bank who paid the consolidation loan $15,000 plus whatever interest they tack on. Even if their interest is 5%, you still end up saving 10% in interest as outlined in this specific scenario, and that can [...]



Remember the Tax Man: Tax Consequences of Debt Relief for Businesses

2017-06-19T00:32:21Z

When you’re trying to get your business out of debt, you have some options. However, regardless of what you choose to do, you’ll need to consider the tax consequences of debt relief. The post Remember the Tax Man: Tax Consequences of Debt Relief for Businesses appeared first on Business Opportunities. Remember the Tax Man: Tax Consequences of Debt Relief for Businesses When you’re trying to get your business out of debt, you have some options. However, regardless of what you choose to do, you’ll need to consider the tax consequences of debt relief.   Covering All the Angles If you can negotiate with creditors and end up with a debt consolidation or a debt settlement, you’ll have to consider the taxable implications of those actions as well. What basically happens is that, in the US, the Internal Revenue Service considers funds which have been excised from debt to be income. According to DebtSettlement.co, how a debt settlement affects your taxes boils down to paying taxes on the subtracted sum: “If…savings [is] $400…the creditor will issue a 1099-C to you at the beginning of the following year, which shows the $400. You are required to report it as income on your personal tax return.” If you get your debt reduced and don’t pay your taxes, you’re not out of the woods. Here’s the thing: there is no shortage of consolidation agencies which neglect to spell this out. They may have you sign a 1099-C, but they never explain it. And such a thing can be easy to forget. Imagine that you’re a small- to medium-sized business offering tours of historical St. Augustine. Things are going well, but you had to take out a loan in order to properly market to tourists. Well, unfortunately, you did that before an economic downturn that undercut your profits and made it impossible to pay back the loan on time. You managed to renegotiate the terms of the loan, consolidate your debt, and cut a thousand dollars from what you owe. But then, when you file your taxes in April of the following year, you forget to incorporate your debt savings as additional income. Suddenly you’re under audit, and you didn’t save receipts for the year in question.   RELATED ARTICLE: EVERYTHING YOU NEED TO KNOW ABOUT DEBT FINANCING   Businesses Are Exceptionally Vulnerable Well, the above is a real scenario. The sad truth is, you’re more likely to experience such a scenario if you’re a business. Certainly, personal debt can backhand you with such sequences of events, too, but as a business you’re more visible to the IRS. Especially if you’re successful. All that being said, there are quite a few positive attributes to debt consolidation which make such solutions worth your time. If you can cut $1,000 from debt you owe through negotiations, and you only have to pay 25% tax on that, then you’ve managed to save $750. That must might be the rent payment you need to stay open. When you go into negotiations for debt relief, ensure that the person you’re working with reviews all the angles with you. It may turn out that reducing what you owe isn’t your best choice. In that case, you’ll want to look at other ways of reducing your debt burden.   Consolidation and Crossover For example, if you can consolidate multiple debts into a single payment through a consolidation loan, then it’s likely you can cut multiple debts with varying interest rate increases into a single loan at a fixed interest rate. When you’ve got debt at interest from four locations, the interest can fluctuate on all those debts. Meanwhile, a single payment will only have one interest stream. Additionally, there are ways to reduce the size of that fixed-rate interest. For instance, you could obtain a consolidated loan with a cosigner. This is especially feasible for businesses that have a lot of c[...]