Renting a Space For Business

If you are a new entrepreneur, you need to take note that location is important if you want to be successful. There are different factors to consider in choosing the right spot. There are some experts who believe that location is just as important in finding an affordable space to lease. You need to consider the type of business that you have. For service business that work on their customer’s place or if your business doesn’t deal with customers, the location is irrelevant. A business owner should be wise enough to go for low cost space. It could impact the prices of their products and profit margin.Profitable location for your business is determining how you will increase the volume of your customers. Consider factors like parking space, other nearby competition and the reputation of the community where your business will be situated. Remember that different businesses have different approach in luring customers. If you will be opening a coffee shop, situated it in a place where there is pedestrian traffic. Auto repair shops should be near the road so that drivers will see it easily. Think if your business would profit more if it is near other businesses. If you will be selling clothes, it should be near other shops because customers will tend to spend hours in one area. The bottom line is to know the habits of your customers so you can have an idea which location is the right one.Renting is a wise move rather than buying a space. Start up business might not have the funds to do so. When looking for a space to lease for your business, go for the one that you can afford. Do some financial projection and think how you can pay this every month considering other expenses. Seek the help of real estate brokers so you can get an idea on how much the rent will be in a particular neighborhood.When selecting a space for your business rental, consider your business itself. The facilities of the location should be appropriate for the kind of business that you have. If the building lacks a major thing that can affect your business operation, then scout for another one. Ask the landlord for information about communication wiring like internet and telephone. Aside from communication look into the electrical power source and see to that it is enough for your business requirements.

Men’s Wholesale Clothing – Cool Tips That Will Surely Boost Your Online Sales

Despite of the perception of many people that men do not like to shop but the fact is, men can be really discerning shoppers because they want to obtain that stylish, quality, and assortment of wardrobe so as to establish an image. Regardless of the purpose of their clothing, be it for office work, play or for casual, it plays a vital role in their lives as these represent their outlook and personality.In addition to have a good-looking appearance, men also want to have the best deals as much as it is possible. This means that when it comes to men’s wholesale clothing, it should be a combination of style and price. Many of them do prefer to have the privacy of shopping, this is where an online men’s wholesale clothing business will fill that need. That is why among the numerous opportunities in the Internet to generate income and revenue, a wholesale clothing business dedicated for men’s clothes is among the best to consider. Establishing an online men’s wholesale clothing business requires certain steps for you take and tips for you to consider. These are all important so that you will be able to put up that clothing business successfully.Particularly with the stock of men’s apparel for you to sell, it is vital that you get a reputable and reliable supplier. Since the suppliers commonly ship in large quantities therefore you are be assured of ample supply, stylish supply of clothing at price that is very reasonable which you can sell also at very reasonable rate.Typically, men are not after for bulk orders, perhaps they are just looking for a suit, workout gear or jacket. This is an important thing for you to consider in your business, therefore it is better to know and sell items according to individual costumers’ need and want. Here are some other cool tips that will surely help you with your online men’s wholesale clothing business.1. Once you order from the supplier, keep in your mind season changes and the delivery cycle, these should all coincide significantly. Meaning you need to be sure that once your supplier delivers the clothing in the month of December, those items should be in accordance with the Christmas season. You certainly do not want to sell summer clothing during Christmas or vise versa.
2. If you want to consider becoming a retailer associated with a particular brand label or manufacturer, then you need to choose a supplier or suppliers with an already established good image such as known to deliver goods in utmost quality to its customers.
3. As much as you can, establish a closer tie with your supplier so as to obtain great deals or offers. In return, you can also offer your own costumers exciting deals that they will surely love and would be a motivation for them to keep coming back to your site. Since your target market is the male clothing, great deals will surely be a big hit in your business.

Alternative Financing Vs. Venture Capital: Which Option Is Best for Boosting Working Capital?

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?