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5 Must-ask Questions Before You Apply for a Business Loan

Business Loan
The formalities and documentation required for applying for a business loan can be a daunting task for business owners. As a business owner, you must know that money is needed for everything, right from development to expansion.

Applying for a business loan is much more than simply completing documentation work. There are various other aspects that must be taken into consideration. It would be best to ask yourself a few critical questions before applying for a business loan. Finally, take the time to evaluate and prepare thoroughly before meeting with lenders to increase your chances.

“Start-up Financing is not just about raising funds, it is a holistic process that involves proper business planning with thoughtful growth targets, deciding business valuation as per the current market standards, planning potential exit options for investors.”

- Nucleus Partners

Must-Ask Questions


What is the Purpose of Business Financing?

While the issue may seem trivial, your funding goal will highlight different aspects that will affect your decision-making process. For example, you are clear about the objective of your organization's financial demands. In that case, you can determine how much money you require, the types of business loans, and the repayment options available. However, a business plan is also necessary to persuade the lender to offer a company loan. Thus, the goal of financing the business is to address the commonly asked issue concerning the requirements for a business loan.

Who May Apply for a Business Loan?

Different lenders have different business loan requirements. To apply for a loan, you must meet their eligibility criteria. To begin with, familiarize yourself with the criteria, which will assist you in narrowing down the funding choices that your firm is likely to qualify for. Understanding your eligibility will inform you about the possibilities for loan acceptance and help you decide whether to apply for the loan or look out for another deal. However, the applicant's profile, financial history, credit score, and business viability all play a role in whether the business loan will be approved. This will save you a lot of time and effort even before you fill out applications.

What Is the State of My Credit History?

As a business owner, your credit history and credit score are critical factors to consider when applying for a business loan. One of the most significant disadvantages for small business owners is not understanding the credit score. Personal and commercial credit scores can significantly impact loan approval for company owners.

Your credit score has little impact on how successfully your business fulfills its responsibilities. However, most lenders take this into account when evaluating your loan application. It is a well-known fact that most lenders use previous credit history to assess  future behavior. Therefore, make it a goal to maintain a good personal credit score and a great corporate credit profile.

It is widely believed that business owners who have access to their credit score and monitor their business credit history have a better chance of getting their business loans approved quickly.

What Types of Loans Are Available?

Loans are divided into two categories: personal and business. A business loan protects the borrower's assets while allowing greater financial flexibility. Various types of business loans are available, so before you apply for a business loan, you can evaluate options that fit your choice of loan requirement. However, business loans are also offered without collateral for people with a good credit history and a stable revenue stream.

What Is the Total Cost of Capital, the Interest Rate, and the Annual Percentage Rate (APR)?

When a lender provides finance, they often display the loan's interest rate. While lenders and business owners sometimes focus exclusively on the APR or AIR, you should also consider the entire cost of borrowing. Interest rates for short-term loans might be rather complicated. Therefore, request that your lender disclose the entire cost of the loan to you. These calculations will assist you in making the best small business funding choices.

Business Loan Application Checklist

The best part about filing out an application is that most lenders ask for the same information. However, each lending program requires the completion of unique paperwork. It is essential to gather all the necessary materials before beginning the application process.

Here are some of the most common documents required for any small business loan process:

Loan Application Form: Required to supply basic personal information, such as present and previous addresses, names used, criminal history, and educational background.

Business Plan: The company’s business plan should include predicted profit and loss, cash flow, and balance sheet.

Income Tax Returns: Most lending programs require applicants to provide three years’ worth of personal and company income tax records.

Resumes: Proof of management or business expertise, especially when seeking funding to start a new firm.

Business Credit Report: If your firm is already established, you should be prepared to file a credit report for it.

Collateral: Prepare a collateral document outlining the cost/value of the personal or company property being used to secure the loan.

Financial Statements: Include expected financial figures in your company strategy or a part from it. To produce your forecasted financial statements, you may utilize the following forms:
  • Balance Sheet
  • Income Statement
  • Cash Flow
  • Bank Statements

Legal Documents: Submit one or more legal documents, such as copies of contracts you have with any third parties, articles of incorporation, franchise agreements, and commercial leases.

Accounts Receivable and Accounts Payable: Details of a business's most current financial position.

Conclusion

Small companies have various choices in both the private and government sectors. First, it is vital to comprehend the loan's necessity. If you're looking to apply for a business loan, consider the five questions mentioned above before choosing a lender or hiring a small business consultant who will help you make the right decision.

FAQ:


What do I need to know before getting a business loan?

Here are five factors to keep in mind when considering taking a small business loan:
  • Determine the urgency with which you require small business financing
  • Know your credit score
  • Records of business and personal tax returns
  • Financial statements of a business
  • Determine the amount of funds that you require

Why do I need a business loan?

A company loan may be required to overcome a temporary cash flow problem. A short-term loan offers funds to cover routine operational needs and can help your firm stay afloat during periods of low earnings.

How can a loan help my business?

If your firm is new and has no credit history, borrow a modest loan and repaying it on time might help you establish a credit profile.

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TECHNOLOGY, SMALL BUSINESS ADVICE

Small Business Grants: Get Free Funding

Article | June 30, 2022

Doesn't free money for small businesses sound wonderful? Thus, free money to small-medium enterprises (SMEs) is the core purpose of small business grants. As a small business owner, you are constantly looking for funding opportunities for small businesses to expand your enterprise. This requirement became even more desirable during the coronavirus pandemic. The following are the top challenges facing small businesses: Cash flow is limited or inconsistent Lack of capital raising No provision for unforeseen expenses Inadequate tax compliance Absence of a budget Combining commercial and personal finances “It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.” – Richard Harroch, Venture Capitalist and Author How About We Figure Out What a Business Grant is? A grant is a sum of money provided to a business for a particular purpose. There are several financing possibilities for small enterprises when applying for start-up business grants. You only need to know where to find it. Government (federal and state), charities, and private institutions all offer small business grants. Unlike small business loans, small business grants do not need a repayment. In addition, unlike loans, you are not required to provide security, are not charged late fees or interest, and are not required to give away any ownership of your business. As a result, grants for small businesses are an appealing source of finance for businesses. Small business grants are frequently awarded based on specific areas, industrial sectors, community groups, or types of enterprises. Grants come in various forms, including those granted by the government, those supplied by private firms, and those directed for specific groups such as women, veterans, or women. In addition, considering the current pandemic crisis, a new grant has been established to assist individuals negatively impacted by the coronavirus pandemic. The federal government does not provide start-up business grants; instead, its grant programs are often directed toward non-profit organizations or other government agencies that face financing challenges. COVID-19 Small Business Grants Several types of COVID-19 small business grants are available to mitigate the loss caused by the coronavirus to small businesses. First, government grants for small businesses provide economic relief from the loss of revenue. The United States Small Business Administration (SBA) administers federal small business funds for coronavirus recovery under the Economic Aid to Hard-Hit Small Businesses, Non-profit Organizations, and Venues Act. Paycheck Protection Program (PPP): Small Business Administration (SBA) provides financial help by introducing financial assistance programs like Paycheck Protection Program (PPP). However, Paycheck Protection Program (PPP) concluded on May 31, 2021. Even after the termination of the program, you can still qualify for loan forgiveness. This program was a significant part of COVID-19 small business grants. As of May 10, 2021, the SBA has authorized $782 billion in PPP loans. To qualify for loan grants, you must establish the following: Maintaining employee and pay levels The revenues of the loan are used to cover payroll costs and other allowable expenses At least 60% of the earnings are used to cover payroll expenditures COVID-19 Targeted Economic Injury Disaster Loan (EIDL) The Federal government recognized the coronavirus's impact and introduced many COVID-19 small business grants, and Targeted EIDL was one of the leading financial assistance programs offered. The SBA makes targeted economic injury disaster funding available to small companies in low-income regions that have suffered revenue loss due to the coronavirus pandemic. This is more of a donation than a loan, as it is not returnable. The targeted EIDL offers up to $10,000 in advance if your firm is: Located in a low-income neighborhood Has sustained a higher than 30% economic loss Employ no more than 300 people Due to COVID-19, small business owners and qualified agricultural companies in all 50 states and territories of the United States are presently eligible to apply for a low-interest loan. Shuttered Venues Grant As of August 2021, the Shutter Venues Grant program is ended. However, later that month, the Small Business Administration (SBA) planned to establish a supplemental Shuttered Venue Operators Grant (SVOG) application for 50% of the initial amount, up to a maximum of $10 million. The Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act established the Shuttered Venue Operators Grant (SVOG) program, modified by the American Rescue Plan Act. The initiative, managed by the SBA's Office of Disaster Assistance, would provide over $16 billion in subsidies to closed venues. Eligible candidates may receive up to 45% of their gross earned revenue in the form of a grant. The maximum grant is ten million dollars. Restaurant Revitalization Fund (RRF) The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide emergency assistance for eligible restaurants, bars, and other eligible businesses impacted by the pandemic. This program compensates restaurants for income losses caused by the pandemic, up to a maximum of $10 million per firm and no more than $5 million per physical location. As of now, RRF is closed for new applications. Government Grants for Small Business Numerous government grants for small businesses have been made available for free by the federal, state, and municipal governments. However, accepting free government money entails a considerable bit of paperwork and is time-consuming and technical at the same time. Federal Government Grants for Small Business The federal government offers many other additional grants for small businesses along with COVID-19 assistance. Federal government grants for small businesses are generally available to firms engaged in research, technology, or health. The government agencies that support small company grants are the SBA, the National Institutes of Health (NIH), and the Department of Agriculture. Let us find out which are the most competitive government grants for small businesses. Small Business Innovation Research Program (SBIR) Small Business Technology Transfer Program (STTR) U.S. Small Business Administration State Trade Expansion Program (STEP) NIH Grants U.S. Department of Energy (DOE) and Environmental Protection Agency (EPA) U.S. Department of Agriculture (USDA) State Government Grants for Small Business State offers government incentives to a small business that address the state's social or economic issues. However, due to the minor application set for state funds, competition may be less severe and easily accessible. Federal agencies occasionally award grants to state governments, which then distribute the monies. Below is few resources body that offers funding opportunities for small businesses: U.S. Economic Development Administration State Business Incentives Database Small Business Development Centers (SBDCs) Private Small Business Grants While government grants are beneficial to small companies, the financing levels are insufficient. Occasionally, private corporations and charities step forward and provide small business grants. On the other hand, private business grants need separate applications and may have eligibility limits confined to specific industries. Numerous corporate-sponsored small business grants require applicants to compete in pitch competitions or something comparable. Unfortunately, few major private corporations provide substantial financial incentives to small businesses for joining (and winning) contests or pitch competitions. However, even if you do not win, you may receive a runner-up reward or exposure for your business. Below are few private small business grants available FedEx Small Business Grant Contest National Association of the Self-Employed (NASE) Visa Everywhere Initiative Wells Fargo Community Investment Nav's Quarterly $10,000 Business Grant Patagonia Corporate Grant Program Start-Up Business Grants A start-up business grant is money provided by the government or another entity to assist small businesses and organizations in establishing and developing their businesses. Initially, small business grants are often not accessible to launch a firm; nevertheless, they are available for specific businesses and owners. The following is a list of different sorts of businesses eligible for start-up small business grants: Innovators Rural Businesses Green businesses Women, veteran, or minority-owned businesses Non-profit organizations Here is an example of small business start-up grants 4.0 Schools fellowships Jack Daniel's pitch distilled Final Thought As the information above indicates, there are several small business grants available. However, applying for grants is time intensive and may result in your firm not receiving the money needed. Finally, explore the small business grant, whichyour business is eligible for. If small business grants are not a possibility for you, several alternative funding choices are available that fit your budget. FAQs: What can a small business grant be used for? Small business grants are used for a variety of purposes: to establish a business, to stimulate minority entrepreneurship, to support research and development in a particular industry, to bring innovation, and to assist businesses in the domains of science, technology, and health, the list goes on. How can I get a grant to start a small business? There are several websites and organizations where you may obtain small company grants, including the following: SBIR.gov USDA Rural Business Development Grants Small Business Development Centres Grants.gov National Association for the Self-Employed (NASE) FedEx Small Business Grant Contest What distinguishes grants from small business loans? The primary distinction between small business grants and small business loans is that grants are not returned (with certain circumstances), but loans need to be paid back. In addition, grants are generally reserved for small firms, requiring more time to process and receive the funds.

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TECHNOLOGY, SMALL BUSINESS ADVICE

How Are Small Business Accounting Software Meeting Industry Needs Today?

Article | July 20, 2022

Introduction With numerous tasks and operations to take care of, from basic invoicing and billing to project management and tax calculations, small business owners find it a nerve-wracking challenge to keep track of all monetary transactions and manage accounts payable. In addition, the advent of digitization, the growing penetration of cloud-based solutions in the industry, and the introduction of cutting-edge accounting software, among others, are eliminating the extra use of paper, pens, files, and voluminous binders. Because of these small business financing trends, businesses and start-ups are increasingly inclined toward online financial management tools, such as small business accounting software, to handle their financial data. The small business accounting software assists them in examining their financial condition along with accurately recording businesses’ cash flow, generating reports, tracking transactions, monitoring account balances, billing customers, creating purchase orders, and much more. Owing to such compelling features, these small business financial management solutions are garnering massive popularity in the industry. Small Business Accounting Software: Emerging Financial Needs in the Industry Running a small business sometimes entails wearing several hats, such as sending emails, paying suppliers, invoicing, creating processes, and preparing financial reports. All these are essential tasks, along with the other small business operations, such as employee management and work management, among others. None of the additional responsibilities faced by small business owners are as crucial as accounting. Robust accounting processes are vital for keeping businesses in excellent financial condition and helping owners to make smarter decisions. Accounting software provides various features that can facilitate the smooth operation of the organization. From processing invoices to monitoring cash flow, here are the primary ways accounting software can assist owners to meet financial requirements for small businesses and promote growth. Automate Invoicing and Billing Due to the shortage of cash inflow, it is vital for small businesses to keep the cash flowing by billing clients and crediting customers on time. Accounting software assists small businesses in automating the billing process, enabling owners to create recurring invoices, send follow-up reminders, and accept digital payments directly from the invoices. It also assists in tracking all unpaid invoices and preventing accidental missing payments, thereby fending off potential losses. Expense Tracking A common accounting mistake that small businesses often make is failing to accurately track business costs and expenses, which causes a shortage of cash flow. The deployment of the right small business accounting software prevents this from happening and enables firms to keep track of all the spending and identify the source where the money is being spent. Efficient Inventory Management Proper inventory management is a crucial part of small businesses as they cannot stock products in large quantities due to the unavailability of a large amount of capital. Good inventory management is necessary to guarantee an adequate supply and deliver superior customer service. Accounting software aids small businesses in recording stock keeping unit (SKU) codes, monitoring goods, preparing reports, tracking products sold, and running reports on which items firms are doing well and which ones aren’t. Bank Reconciliation Small business accounting solutions simplify one of the most fundamental tasks of the company—bank reconciliation. It enables small business owners to access their bank statements directly from the accounting solutions, along with comparing bank statements, balancing debits and credits, and identifying any discrepancies at the end of each financial period. The Final Thought Maintaining correct financial records at all times is essential for the success of small businesses and start-ups. For maintaining proper accounts, these businesses need a system that overcomes the drawbacks of traditional accounting tools such as spreadsheets. With the introduction of novel accounting software integrated with artificial intelligence, big data, and other technologies, these financial management solutions are paving the way for small businesses.

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Small Business Advice

How Can Small Business Digital Transformation Opportunities Be Bagged?

Article | May 20, 2022

Small businesses are the backbone of the US economy, generating local jobs and innovation while encouraging entrepreneurship among minorities, women, veterans, and other community segments. As stated by Florida tax monitor data, small companies employ 48% of all Americans and generate 43.5 percent of the country's gross domestic product (GDP). At the speed of light, the corporate environment is continuously moving to new digital technologies. However, many small company owners are unable to keep up with this small business digital transformation. In the opinion of recent Google-commissioned small company research, 80% of small businesses in the United States are not fully utilizing digital technologies. A few more reasons at play prevent small firms from adopting digital technology and falling behind on digital transformation trends. Ignoring digital benefits or refusing to adjust is a surefire way to fail in a constantly evolving digital world. "At least 40% of all businesses will die in the next ten years… if they don't figure out how to change their entire company to accommodate new technologies." — John Chambers, Cisco Factors Contributing to the Lag in Digital Transformation Race Keeping up with New Technologies Is Tough Numerous small business owners are unable to keep up with emerging digital transformation trends. Various digital opportunities for small businesses exist to employ in their operations. However, companies lack the will to leverage digital capabilities and so fall short of their full potential. In addition, limited resources create an impediment to digital adoption inside. Employee experience and digital skills are other significant impediments to SMBs adopting digital technologies. Small businesses need to overcome their fear of change to capitalize on the digital dividend, accelerate growth, and scale effectively. Change in Customers Behavior and Persona Changes in customer behavior and knowledge of SMB consumer personas are critical components of small business digital transformation and are the primary issue confronting small business owners. The most significant change that small companies anticipate in the next five years is a shift in consumer expectations and personas. Owners believe they understand their businesses since they are small or medium-sized business owners. Still, customers have a different perspective more than 70% of the time due to social and digital transformation trends. For the next five years, the top three consumer trends are expected to increase product or service customization, increased emphasis on customer experience, and higher expectations of quality or value for money. "Clients are going to expect a lot of personalization in their businesses; consumers are going to expect the same. To avoid data silos, having an emphasis on driving real-time information from customer data and sources is core for any company to become digitally native." – Bibhakar Pandey, Vice President & Leader of Customer Experience, Marketing Services, Capgemini. Need Assistance for Right Decisions Making technological decisions is challenging for small firms. Additionally, many business decisions are made by small business owners. Therefore, they must have the appropriate knowledge and help when making digital decisions involving various conflicting obligations. Because the costs of digital technologies are so high, it is critical for small businesses to have sufficient information about the value of sales, service, and marketing technologies to select the appropriate digital systems, upgrade digital skills, and provide adequate protection and security. In addition, the small owners need timely assistance to cope up with small business digital transformation. Digital Gap Small firms have several digital gaps in various areas, including internal skills gaps, financial gaps, and digital infrastructure shortages. Due to the utilization of high-speed internet connections and cloud-based technologies, these disparities are more significant for small businesses than large enterprises. The owners need to cope up with different stages of digital transformation in small businesses. However, there is no denying the link between digital and productivity, which is critical for productivity. Digital Transformation Approaches: Adoption and Upgradation to CRMs To evaluate client behavior, it is critical to implement and improve your customer relationship management system (CRM). In addition, businesses should leverage cloud-based solutions to strengthen their relationships with their consumers. According to Deloitte, SMBS that use CRM generate 44 percent more income than those who do not have a system or only have a rudimentary system. However, numerous CRM features, such as omnichannel customer care, marketing automation, social tools, and predictive analytics with automation are not part of the classic CRM model. "Right from the start, based on our ICP, we focus on what level of personalization and automation needs to be built out and what touchpoints like overlays, retargeting, and remarketing are to be done to convert the customer in the end and take them to the SQL stage." – Amitabh Ramani, Global Marketing Director, Jade Global. Adoption and up-gradation of CRMs will open new digital opportunities for small businesses. Improvement in Digital Infrastructure To fill the digital gap and be a part of digital transformation trends, small businesses must embrace high-speed broadband for small business digital transformation. In addition, adopt digital technologies in the workplace to enhance SMB productivity and connectedness. By incorporating innovation and technology, small firms may increase their competitiveness. Below are few actions that can be taken for more digitally engaged small businesses: Raising awareness of digital opportunities SME training and upskilling programs Promoting business innovation and the provision of new digital solutions Implementation of Sales and Marketing Tools In today's competitive corporate climate, the focus is firmly placed on the sales and marketing aspects of the enterprise. As a result, small businesses strive to capitalize on possibilities for personalized marketing based on prior interactions or sales and engage clients through customized marketing. Amaysim is an example of a company that focuses on customized marketing using a cloud-based marketing platform; they ensure timely marketing communication and connect with clients in real-time via SMS. Only one in every five small businesses uses digital tools or social media platforms to acquire new consumers or connect with existing clients. Incorporate artificial intelligence into different business processes, such as predictive analytics, automated product recommendations, and upgrade suggestions based on consumer behavior. Shift to Online Interactions Face-to-face transactions have decreased as a percentage of total sales, and the line between physical and digital is becoming increasingly blurred, resulting in behavioral adjustments. The purchase is moving due to internet channels, or you might say that more consumers favor online purchases over in-person transactions. With the increase in online sales, small companies also need to enhance their delivery services to keep up with the demand. In addition, the shift in communication channels to emails, social media platforms, and websites have altered consumer behavior about enquires and complaints. As a result, implementing CRM software for service interactions has become a necessity of the hour to ensure a fast response. Shift to online interactions of sales or any business operation is an escalating demand for small business digital transformation. Final Thoughts With the evolution of digital trends in small businesses, owners can leverage small business digital transformation benefits by using the techniques as mentioned above. Regular use of digital tools may help small businesses enhance their performance and adapt to dynamic business conditions and changing consumer expectations and the surrounding environment. Engage small companies in new digital prospects for success and business growth, resulting in a greater return on investment (ROI). FAQs Why is digital transformation important for small businesses? Digital transformation enables small businesses to ease out their operations, increases efficiency, automates workflow, helps to improve customer relationships. Adopting digital transformation enables to fulfill changing behaviors and needs of customers. What are the most significant trends of digital transformation? Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs What are key areas of digital transformation? The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "Why is digital transformation important for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "Digital transformation enables small businesses to ease out their operations, increases efficiency, automates workflow, helps to improve customer relationships. Adopting digital transformation enables to fulfill changing behaviors and needs of customers." } },{ "@type": "Question", "name": "What are the most significant trends of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs" } },{ "@type": "Question", "name": "What are key areas of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation" } }] }

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Small Business Advice

Small Business Financial Management: One-Stop Solution for Financial Hurdles

Article | September 23, 2022

Introduction Managing finances is crucial for organizations, especially small businesses, to create a stable financial future in which the business is less likely to fail. Small businesses and start-up companies have to face numerous challenges and even bear losses at their introductory stage due to the difficulties in maintaining proper cash flow. According to a study, around 61% of small business owners say that they face challenges in handling consistent and steady cash flow. Many start-ups undertake operational business activities after obtaining loans from different financial institutions due to insufficient cash flow and capital. Hence, to keep small business operations running smoothly, they need to optimize the inflow and outflow of cash and financial management. Small business financial management assists these start-up companies in reducing financial costs, facilitating the availability of investment, and planning, organizing, directing, and controlling financial activities. With competition intensifying in the sector, the need for financial management is becoming even more critical for small businesses. Why Are Financial Management Solutions Becoming Imperative for Small Businesses? Running a small business is not an easy task. Even if you have a great idea and a large number of people longing for your product or service, the financial difficulties of operating a small business can quickly escalate and hamper the business. A plethora of expected and unexpected issues, such as overhead costs, rising interest or inflation rates, impending tax deadlines, remediating damage from a natural disaster, and many more, can create insurmountable obstacles for small business owners. Whether it is insufficient cash flow or a lack of accurate monthly reconciliation reports, many small business finance-related issues can be avoided with the proper management of finance and reporting. What are the other small business money management challenges that financial management solutions can assist to overcome? Let's see: Poor cash flow management Managing a budget Planning future expenses Controlling debt Inconsistent cash flow Tips for Effective Small Business Financial Management Small businesses today are highly fragile due to excessive competition in the industry. Hence, start-ups and new companies have to invest a significant amount of money in order to keep their business fully functional and running. Right from accumulating funds to allocating and spending them, it is crucial for small business owners to have a transparent view of their financial position and business undertakings to engage in planning for efficient utilization of available resources. Effective financial management not only assists in managing small businesses' finance and rotating the cash invested in the business, but it also assists in analyzing revenue generation, formulating suitable financial strategies, and calculating adequate returns, among others. It is undoubtedly one of the most important aspects of businesses, irrespective of their size. With an increasing need for managing huge funds, continuous transactions, daily cash flow, payrolls, and others, it is becoming even more critical for small businesses and start-ups to manage their finances effectively. Here are some of the vital tips that can help small businesses analyze and manage their finance effectively: Prioritize business financial planning Create a budget and stick to it Analyze cash flow Keep business and personal finances separate Focus on expenditures but also ROI Monitor spending Opt for a financial solution or service Final Thoughts With the fast-changing financial requirements of small businesses and the emergence of novel small business financing trends, entrepreneurs are emphasizing streamlining and managing their financial chores. To overcome a growing number of financial obstacles, leading financial solution developers are aiming at integrating advanced technologies such as artificial intelligence, machine learning, and data analytics in novel small business financial management solutions. This is anticipated to create a strong demand for innovative financial management tools, such as small business accounting software, across the industry in the forthcoming years.

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TECHNOLOGY, SMALL BUSINESS ADVICE

Reasons Why Small Businesses Need CRM?

Article | June 30, 2022

Doesn't free money for small businesses sound wonderful? Thus, free money to small-medium enterprises (SMEs) is the core purpose of small business grants. As a small business owner, you are constantly looking for funding opportunities for small businesses to expand your enterprise. This requirement became even more desirable during the coronavirus pandemic. The following are the top challenges facing small businesses: Cash flow is limited or inconsistent Lack of capital raising No provision for unforeseen expenses Inadequate tax compliance Absence of a budget Combining commercial and personal finances “It’s almost always harder to raise capital than you thought it would be, and it always takes longer. So plan for that.” – Richard Harroch, Venture Capitalist and Author How About We Figure Out What a Business Grant is? A grant is a sum of money provided to a business for a particular purpose. There are several financing possibilities for small enterprises when applying for start-up business grants. You only need to know where to find it. Government (federal and state), charities, and private institutions all offer small business grants. Unlike small business loans, small business grants do not need a repayment. In addition, unlike loans, you are not required to provide security, are not charged late fees or interest, and are not required to give away any ownership of your business. As a result, grants for small businesses are an appealing source of finance for businesses. Small business grants are frequently awarded based on specific areas, industrial sectors, community groups, or types of enterprises. Grants come in various forms, including those granted by the government, those supplied by private firms, and those directed for specific groups such as women, veterans, or women. In addition, considering the current pandemic crisis, a new grant has been established to assist individuals negatively impacted by the coronavirus pandemic. The federal government does not provide start-up business grants; instead, its grant programs are often directed toward non-profit organizations or other government agencies that face financing challenges. COVID-19 Small Business Grants Several types of COVID-19 small business grants are available to mitigate the loss caused by the coronavirus to small businesses. First, government grants for small businesses provide economic relief from the loss of revenue. The United States Small Business Administration (SBA) administers federal small business funds for coronavirus recovery under the Economic Aid to Hard-Hit Small Businesses, Non-profit Organizations, and Venues Act. Paycheck Protection Program (PPP): Small Business Administration (SBA) provides financial help by introducing financial assistance programs like Paycheck Protection Program (PPP). However, Paycheck Protection Program (PPP) concluded on May 31, 2021. Even after the termination of the program, you can still qualify for loan forgiveness. This program was a significant part of COVID-19 small business grants. As of May 10, 2021, the SBA has authorized $782 billion in PPP loans. To qualify for loan grants, you must establish the following: Maintaining employee and pay levels The revenues of the loan are used to cover payroll costs and other allowable expenses At least 60% of the earnings are used to cover payroll expenditures COVID-19 Targeted Economic Injury Disaster Loan (EIDL) The Federal government recognized the coronavirus's impact and introduced many COVID-19 small business grants, and Targeted EIDL was one of the leading financial assistance programs offered. The SBA makes targeted economic injury disaster funding available to small companies in low-income regions that have suffered revenue loss due to the coronavirus pandemic. This is more of a donation than a loan, as it is not returnable. The targeted EIDL offers up to $10,000 in advance if your firm is: Located in a low-income neighborhood Has sustained a higher than 30% economic loss Employ no more than 300 people Due to COVID-19, small business owners and qualified agricultural companies in all 50 states and territories of the United States are presently eligible to apply for a low-interest loan. Shuttered Venues Grant As of August 2021, the Shutter Venues Grant program is ended. However, later that month, the Small Business Administration (SBA) planned to establish a supplemental Shuttered Venue Operators Grant (SVOG) application for 50% of the initial amount, up to a maximum of $10 million. The Economic Aid to Hard-Hit Small Businesses, Non-profits, and Venues Act established the Shuttered Venue Operators Grant (SVOG) program, modified by the American Rescue Plan Act. The initiative, managed by the SBA's Office of Disaster Assistance, would provide over $16 billion in subsidies to closed venues. Eligible candidates may receive up to 45% of their gross earned revenue in the form of a grant. The maximum grant is ten million dollars. Restaurant Revitalization Fund (RRF) The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide emergency assistance for eligible restaurants, bars, and other eligible businesses impacted by the pandemic. This program compensates restaurants for income losses caused by the pandemic, up to a maximum of $10 million per firm and no more than $5 million per physical location. As of now, RRF is closed for new applications. Government Grants for Small Business Numerous government grants for small businesses have been made available for free by the federal, state, and municipal governments. However, accepting free government money entails a considerable bit of paperwork and is time-consuming and technical at the same time. Federal Government Grants for Small Business The federal government offers many other additional grants for small businesses along with COVID-19 assistance. Federal government grants for small businesses are generally available to firms engaged in research, technology, or health. The government agencies that support small company grants are the SBA, the National Institutes of Health (NIH), and the Department of Agriculture. Let us find out which are the most competitive government grants for small businesses. Small Business Innovation Research Program (SBIR) Small Business Technology Transfer Program (STTR) U.S. Small Business Administration State Trade Expansion Program (STEP) NIH Grants U.S. Department of Energy (DOE) and Environmental Protection Agency (EPA) U.S. Department of Agriculture (USDA) State Government Grants for Small Business State offers government incentives to a small business that address the state's social or economic issues. However, due to the minor application set for state funds, competition may be less severe and easily accessible. Federal agencies occasionally award grants to state governments, which then distribute the monies. Below is few resources body that offers funding opportunities for small businesses: U.S. Economic Development Administration State Business Incentives Database Small Business Development Centers (SBDCs) Private Small Business Grants While government grants are beneficial to small companies, the financing levels are insufficient. Occasionally, private corporations and charities step forward and provide small business grants. On the other hand, private business grants need separate applications and may have eligibility limits confined to specific industries. Numerous corporate-sponsored small business grants require applicants to compete in pitch competitions or something comparable. Unfortunately, few major private corporations provide substantial financial incentives to small businesses for joining (and winning) contests or pitch competitions. However, even if you do not win, you may receive a runner-up reward or exposure for your business. Below are few private small business grants available FedEx Small Business Grant Contest National Association of the Self-Employed (NASE) Visa Everywhere Initiative Wells Fargo Community Investment Nav's Quarterly $10,000 Business Grant Patagonia Corporate Grant Program Start-Up Business Grants A start-up business grant is money provided by the government or another entity to assist small businesses and organizations in establishing and developing their businesses. Initially, small business grants are often not accessible to launch a firm; nevertheless, they are available for specific businesses and owners. The following is a list of different sorts of businesses eligible for start-up small business grants: Innovators Rural Businesses Green businesses Women, veteran, or minority-owned businesses Non-profit organizations Here is an example of small business start-up grants 4.0 Schools fellowships Jack Daniel's pitch distilled Final Thought As the information above indicates, there are several small business grants available. However, applying for grants is time intensive and may result in your firm not receiving the money needed. Finally, explore the small business grant, whichyour business is eligible for. If small business grants are not a possibility for you, several alternative funding choices are available that fit your budget. FAQs: What can a small business grant be used for? Small business grants are used for a variety of purposes: to establish a business, to stimulate minority entrepreneurship, to support research and development in a particular industry, to bring innovation, and to assist businesses in the domains of science, technology, and health, the list goes on. How can I get a grant to start a small business? There are several websites and organizations where you may obtain small company grants, including the following: SBIR.gov USDA Rural Business Development Grants Small Business Development Centres Grants.gov National Association for the Self-Employed (NASE) FedEx Small Business Grant Contest What distinguishes grants from small business loans? The primary distinction between small business grants and small business loans is that grants are not returned (with certain circumstances), but loans need to be paid back. In addition, grants are generally reserved for small firms, requiring more time to process and receive the funds.

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TECHNOLOGY, SMALL BUSINESS ADVICE

How Are Android Payment Solutions Changing the Game for Small Businesses?

Article | July 20, 2022

Introduction With numerous tasks and operations to take care of, from basic invoicing and billing to project management and tax calculations, small business owners find it a nerve-wracking challenge to keep track of all monetary transactions and manage accounts payable. In addition, the advent of digitization, the growing penetration of cloud-based solutions in the industry, and the introduction of cutting-edge accounting software, among others, are eliminating the extra use of paper, pens, files, and voluminous binders. Because of these small business financing trends, businesses and start-ups are increasingly inclined toward online financial management tools, such as small business accounting software, to handle their financial data. The small business accounting software assists them in examining their financial condition along with accurately recording businesses’ cash flow, generating reports, tracking transactions, monitoring account balances, billing customers, creating purchase orders, and much more. Owing to such compelling features, these small business financial management solutions are garnering massive popularity in the industry. Small Business Accounting Software: Emerging Financial Needs in the Industry Running a small business sometimes entails wearing several hats, such as sending emails, paying suppliers, invoicing, creating processes, and preparing financial reports. All these are essential tasks, along with the other small business operations, such as employee management and work management, among others. None of the additional responsibilities faced by small business owners are as crucial as accounting. Robust accounting processes are vital for keeping businesses in excellent financial condition and helping owners to make smarter decisions. Accounting software provides various features that can facilitate the smooth operation of the organization. From processing invoices to monitoring cash flow, here are the primary ways accounting software can assist owners to meet financial requirements for small businesses and promote growth. Automate Invoicing and Billing Due to the shortage of cash inflow, it is vital for small businesses to keep the cash flowing by billing clients and crediting customers on time. Accounting software assists small businesses in automating the billing process, enabling owners to create recurring invoices, send follow-up reminders, and accept digital payments directly from the invoices. It also assists in tracking all unpaid invoices and preventing accidental missing payments, thereby fending off potential losses. Expense Tracking A common accounting mistake that small businesses often make is failing to accurately track business costs and expenses, which causes a shortage of cash flow. The deployment of the right small business accounting software prevents this from happening and enables firms to keep track of all the spending and identify the source where the money is being spent. Efficient Inventory Management Proper inventory management is a crucial part of small businesses as they cannot stock products in large quantities due to the unavailability of a large amount of capital. Good inventory management is necessary to guarantee an adequate supply and deliver superior customer service. Accounting software aids small businesses in recording stock keeping unit (SKU) codes, monitoring goods, preparing reports, tracking products sold, and running reports on which items firms are doing well and which ones aren’t. Bank Reconciliation Small business accounting solutions simplify one of the most fundamental tasks of the company—bank reconciliation. It enables small business owners to access their bank statements directly from the accounting solutions, along with comparing bank statements, balancing debits and credits, and identifying any discrepancies at the end of each financial period. The Final Thought Maintaining correct financial records at all times is essential for the success of small businesses and start-ups. For maintaining proper accounts, these businesses need a system that overcomes the drawbacks of traditional accounting tools such as spreadsheets. With the introduction of novel accounting software integrated with artificial intelligence, big data, and other technologies, these financial management solutions are paving the way for small businesses.

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Small Business Advice

Time to Reinvent the Small Business Insurance

Article | May 20, 2022

Small businesses are the backbone of the US economy, generating local jobs and innovation while encouraging entrepreneurship among minorities, women, veterans, and other community segments. As stated by Florida tax monitor data, small companies employ 48% of all Americans and generate 43.5 percent of the country's gross domestic product (GDP). At the speed of light, the corporate environment is continuously moving to new digital technologies. However, many small company owners are unable to keep up with this small business digital transformation. In the opinion of recent Google-commissioned small company research, 80% of small businesses in the United States are not fully utilizing digital technologies. A few more reasons at play prevent small firms from adopting digital technology and falling behind on digital transformation trends. Ignoring digital benefits or refusing to adjust is a surefire way to fail in a constantly evolving digital world. "At least 40% of all businesses will die in the next ten years… if they don't figure out how to change their entire company to accommodate new technologies." — John Chambers, Cisco Factors Contributing to the Lag in Digital Transformation Race Keeping up with New Technologies Is Tough Numerous small business owners are unable to keep up with emerging digital transformation trends. Various digital opportunities for small businesses exist to employ in their operations. However, companies lack the will to leverage digital capabilities and so fall short of their full potential. In addition, limited resources create an impediment to digital adoption inside. Employee experience and digital skills are other significant impediments to SMBs adopting digital technologies. Small businesses need to overcome their fear of change to capitalize on the digital dividend, accelerate growth, and scale effectively. Change in Customers Behavior and Persona Changes in customer behavior and knowledge of SMB consumer personas are critical components of small business digital transformation and are the primary issue confronting small business owners. The most significant change that small companies anticipate in the next five years is a shift in consumer expectations and personas. Owners believe they understand their businesses since they are small or medium-sized business owners. Still, customers have a different perspective more than 70% of the time due to social and digital transformation trends. For the next five years, the top three consumer trends are expected to increase product or service customization, increased emphasis on customer experience, and higher expectations of quality or value for money. "Clients are going to expect a lot of personalization in their businesses; consumers are going to expect the same. To avoid data silos, having an emphasis on driving real-time information from customer data and sources is core for any company to become digitally native." – Bibhakar Pandey, Vice President & Leader of Customer Experience, Marketing Services, Capgemini. Need Assistance for Right Decisions Making technological decisions is challenging for small firms. Additionally, many business decisions are made by small business owners. Therefore, they must have the appropriate knowledge and help when making digital decisions involving various conflicting obligations. Because the costs of digital technologies are so high, it is critical for small businesses to have sufficient information about the value of sales, service, and marketing technologies to select the appropriate digital systems, upgrade digital skills, and provide adequate protection and security. In addition, the small owners need timely assistance to cope up with small business digital transformation. Digital Gap Small firms have several digital gaps in various areas, including internal skills gaps, financial gaps, and digital infrastructure shortages. Due to the utilization of high-speed internet connections and cloud-based technologies, these disparities are more significant for small businesses than large enterprises. The owners need to cope up with different stages of digital transformation in small businesses. However, there is no denying the link between digital and productivity, which is critical for productivity. Digital Transformation Approaches: Adoption and Upgradation to CRMs To evaluate client behavior, it is critical to implement and improve your customer relationship management system (CRM). In addition, businesses should leverage cloud-based solutions to strengthen their relationships with their consumers. According to Deloitte, SMBS that use CRM generate 44 percent more income than those who do not have a system or only have a rudimentary system. However, numerous CRM features, such as omnichannel customer care, marketing automation, social tools, and predictive analytics with automation are not part of the classic CRM model. "Right from the start, based on our ICP, we focus on what level of personalization and automation needs to be built out and what touchpoints like overlays, retargeting, and remarketing are to be done to convert the customer in the end and take them to the SQL stage." – Amitabh Ramani, Global Marketing Director, Jade Global. Adoption and up-gradation of CRMs will open new digital opportunities for small businesses. Improvement in Digital Infrastructure To fill the digital gap and be a part of digital transformation trends, small businesses must embrace high-speed broadband for small business digital transformation. In addition, adopt digital technologies in the workplace to enhance SMB productivity and connectedness. By incorporating innovation and technology, small firms may increase their competitiveness. Below are few actions that can be taken for more digitally engaged small businesses: Raising awareness of digital opportunities SME training and upskilling programs Promoting business innovation and the provision of new digital solutions Implementation of Sales and Marketing Tools In today's competitive corporate climate, the focus is firmly placed on the sales and marketing aspects of the enterprise. As a result, small businesses strive to capitalize on possibilities for personalized marketing based on prior interactions or sales and engage clients through customized marketing. Amaysim is an example of a company that focuses on customized marketing using a cloud-based marketing platform; they ensure timely marketing communication and connect with clients in real-time via SMS. Only one in every five small businesses uses digital tools or social media platforms to acquire new consumers or connect with existing clients. Incorporate artificial intelligence into different business processes, such as predictive analytics, automated product recommendations, and upgrade suggestions based on consumer behavior. Shift to Online Interactions Face-to-face transactions have decreased as a percentage of total sales, and the line between physical and digital is becoming increasingly blurred, resulting in behavioral adjustments. The purchase is moving due to internet channels, or you might say that more consumers favor online purchases over in-person transactions. With the increase in online sales, small companies also need to enhance their delivery services to keep up with the demand. In addition, the shift in communication channels to emails, social media platforms, and websites have altered consumer behavior about enquires and complaints. As a result, implementing CRM software for service interactions has become a necessity of the hour to ensure a fast response. Shift to online interactions of sales or any business operation is an escalating demand for small business digital transformation. Final Thoughts With the evolution of digital trends in small businesses, owners can leverage small business digital transformation benefits by using the techniques as mentioned above. Regular use of digital tools may help small businesses enhance their performance and adapt to dynamic business conditions and changing consumer expectations and the surrounding environment. Engage small companies in new digital prospects for success and business growth, resulting in a greater return on investment (ROI). FAQs Why is digital transformation important for small businesses? Digital transformation enables small businesses to ease out their operations, increases efficiency, automates workflow, helps to improve customer relationships. Adopting digital transformation enables to fulfill changing behaviors and needs of customers. What are the most significant trends of digital transformation? Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs What are key areas of digital transformation? The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "Why is digital transformation important for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "Digital transformation enables small businesses to ease out their operations, increases efficiency, automates workflow, helps to improve customer relationships. Adopting digital transformation enables to fulfill changing behaviors and needs of customers." } },{ "@type": "Question", "name": "What are the most significant trends of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs" } },{ "@type": "Question", "name": "What are key areas of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation" } }] }

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Small Business Advice

Small Business Financial Management: One-Stop Solution for Financial Hurdles

Article | September 23, 2022

Introduction Managing finances is crucial for organizations, especially small businesses, to create a stable financial future in which the business is less likely to fail. Small businesses and start-up companies have to face numerous challenges and even bear losses at their introductory stage due to the difficulties in maintaining proper cash flow. According to a study, around 61% of small business owners say that they face challenges in handling consistent and steady cash flow. Many start-ups undertake operational business activities after obtaining loans from different financial institutions due to insufficient cash flow and capital. Hence, to keep small business operations running smoothly, they need to optimize the inflow and outflow of cash and financial management. Small business financial management assists these start-up companies in reducing financial costs, facilitating the availability of investment, and planning, organizing, directing, and controlling financial activities. With competition intensifying in the sector, the need for financial management is becoming even more critical for small businesses. Why Are Financial Management Solutions Becoming Imperative for Small Businesses? Running a small business is not an easy task. Even if you have a great idea and a large number of people longing for your product or service, the financial difficulties of operating a small business can quickly escalate and hamper the business. A plethora of expected and unexpected issues, such as overhead costs, rising interest or inflation rates, impending tax deadlines, remediating damage from a natural disaster, and many more, can create insurmountable obstacles for small business owners. Whether it is insufficient cash flow or a lack of accurate monthly reconciliation reports, many small business finance-related issues can be avoided with the proper management of finance and reporting. What are the other small business money management challenges that financial management solutions can assist to overcome? Let's see: Poor cash flow management Managing a budget Planning future expenses Controlling debt Inconsistent cash flow Tips for Effective Small Business Financial Management Small businesses today are highly fragile due to excessive competition in the industry. Hence, start-ups and new companies have to invest a significant amount of money in order to keep their business fully functional and running. Right from accumulating funds to allocating and spending them, it is crucial for small business owners to have a transparent view of their financial position and business undertakings to engage in planning for efficient utilization of available resources. Effective financial management not only assists in managing small businesses' finance and rotating the cash invested in the business, but it also assists in analyzing revenue generation, formulating suitable financial strategies, and calculating adequate returns, among others. It is undoubtedly one of the most important aspects of businesses, irrespective of their size. With an increasing need for managing huge funds, continuous transactions, daily cash flow, payrolls, and others, it is becoming even more critical for small businesses and start-ups to manage their finances effectively. Here are some of the vital tips that can help small businesses analyze and manage their finance effectively: Prioritize business financial planning Create a budget and stick to it Analyze cash flow Keep business and personal finances separate Focus on expenditures but also ROI Monitor spending Opt for a financial solution or service Final Thoughts With the fast-changing financial requirements of small businesses and the emergence of novel small business financing trends, entrepreneurs are emphasizing streamlining and managing their financial chores. To overcome a growing number of financial obstacles, leading financial solution developers are aiming at integrating advanced technologies such as artificial intelligence, machine learning, and data analytics in novel small business financial management solutions. This is anticipated to create a strong demand for innovative financial management tools, such as small business accounting software, across the industry in the forthcoming years.

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FINANCE, BUSINESS STRATEGY

Small Retailers Boost Profits with Sustainable Return Strategies

Software Advice | November 07, 2023

Small and midsize retail businesses (SMBs) are grappling with a challenging confluence of factors: a rise in product returns and escalating consumer demands for eco-friendly practices. Establishing a sustainable returns process has become paramount for recouping expenses and retaining customers. According to Software Advice's 2023 Retail Returns and Sustainability Strategies Survey, a remarkable 93% of SMB retailers place sustainability at the forefront of their approach to managing customer returns, with 58% identifying inventory cost optimization as a tangible advantage of their existing returns procedures. To enhance their returns strategies, SMBs have adopted a diverse set of tactics, including logistics and packaging: A noteworthy 59% of SMB retailers are now utilizing environmentally friendly logistics, up from 43% in the previous year. The percentage of SMB retailers collaborating with third-party specialists to handle product returns has surged to 49%, a substantial increase from the 31% reported in 2022. Right-sized packaging is embraced by 63% of these businesses, and 55% opt for recyclable or reusable shipping containers. Smaller retailers are increasingly acknowledging the potential of returned products, if properly assessed, can be resold or recycled, thus reducing waste and recuperating some of the lost sales. In fact, recycling is deemed a top action in managing returned items by 51% of retail SMBs, followed closely by repackaging and refurbishing. Thanks to these measures, 35% state that they can recover over half of the cost of a returned product. In addition to cost recovery, an efficient and eco-conscious returns process can boost a retailer's market standing. This year, 41% of retail SMBs report that their current returns process has heightened their competitiveness in the marketplace. An impressive 64% note a substantial increase in customer satisfaction stemming from their current returns process, a significant uptick from the 35% reported in 2022. However, while sustainability endeavors are closely linked to customer satisfaction, 63% of SMB retailers concede that their company's actions do not align with their public messaging—a notable increase from the 46% recorded in 2022. To avert the disparity between actual efforts and messaging, it is crucial to effectively monitor the reverse logistics process. Leveraging technology such as point-of-sale systems, inventory management software, and business intelligence tools can furnish the transparency necessary to ensure alignment. About Software Advice Software Advice, established in 2005, simplifies the software procurement process by providing personalized guidance and industry-specific insights to help buyers identify the most suitable software solutions in as little as 15 minutes, all at no cost. The company has assisted over 950,000 businesses in finding the right software to meet their unique needs. With a repository of over 2 million verified user reviews, Software Advice empowers individuals to make confident technology decisions.

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SMALL BUSINESS ADVICE

Intuit Unveils QuickBooks Money Redefining Small Business Finance

Intuit | September 18, 2023

Intuit has introduced QuickBooks Money, an all-in-one payments and banking solution tailored for small businesses. QuickBooks Money is a refined version of the "Money by QuickBooks" service launched in 2021. A report by PYMNTS Intelligence reveals that 65% of medium-sized businesses spend 14 hours per week on administrative tasks, emphasizing the need for automation and digital tools. Intuit, a leading global technology platform, has recently introduced QuickBooks Money, an all-in-one payment and banking solution that comes with no monthly fees or minimum balance requirements. This innovative offering empowers small businesses by providing them with complete control over their finances from anywhere. While QuickBooks Money may seem like a new addition, it's actually a refined version of the previously launched "Money by QuickBooks" service from 2021. The revamped solution comes with enhanced features, including a web experience and additional banking and invoicing capabilities. Intuit's future plans for QuickBooks Money include granting subscription-free access to other QuickBooks small business solutions such as bill payment, in-person payments, and lending. With QuickBooks Money, small and medium-sized businesses (SMBs) can offer their customers a variety of payment options, including Google Pay, Apple Pay, or Venmo, in addition to traditional methods. Transactions can be settled on the same day, ensuring fast access to cash while also allowing businesses to track their income and expenses. This updated solution consolidates two other Intuit-owned financial services, QuickBooks Checking and QuickBooks Payments, into one seamless offering. David Talach, Senior Vice President of the QuickBooks Money Platform at Intuit, commented, QuickBooks Money represents an incredible opportunity to expand the reach of our fintech platform and give more small businesses access to powerful cash flow management tools. [Source: PYMNTS] A recent report titled "Tapping the Payments Opportunity in SMB Retail," by PYMNTS Intelligence, underscores the significance of digital payment adoption and the use of modern solutions for SMBs survival and meeting evolving customer expectations. The report highlights that a substantial 65% of medium-sized businesses spend 14 hours per week on administrative tasks related to payment collection. Automation and digital solutions are poised to make an immediate impact in streamlining these processes. Intuit has long been recognized for its suite of products, including Quickbooks, TurboTax, Credit Karma, and Mailchimp. On September 6, 2023, the company also introduced Intuit Assist, a generative artificial intelligence (AI) tool designed to assist its small business customers.

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BUSINESS STRATEGY

Synchrony Launches New Learning Center to Support Small Businesses

Synchrony | November 08, 2023

Synchrony introduces the Small Business Learning Center, aiding small businesses with credit and financing knowledge. The Learning Center offers flexible courses, expert content, and user-friendly features for effective learning. Synchrony is committed to helping small businesses and has already benefited hundreds of thousands of businesses. Synchrony, a prominent consumer financing company, has recently introduced the Synchrony Small Business Learning Center—a new digital learning platform designed to empower Synchrony's small business partners in optimizing their operations and fostering more efficient and effective growth. This platform will assist Synchrony's small merchants, dealers, and wellness providers in comprehending the intricacies of credit and financing, integrating these concepts into their business models, harnessing their potential to elevate customer experiences, and ultimately driving increased sales. The Small Business Learning Center features an array of offerings: A diverse range of industry-specific courses encompassing videos, games, interactive experiences, and various contemporary learning modalities, facilitating small business owners and their teams to acquire knowledge at their preferred pace and in their preferred style. Topics encompassing sales techniques, compliance, employee motivation, cash flow management, vendor management, and customer service. The content is thoughtfully crafted by Synchrony's learning experts, drawing upon the insights of Synchrony's professionals and leaders. The platform consistently introduces fresh content, courses, and tools to keep the learning experience engaging and captivating. Synchrony regularly collaborates with leading learning technology companies to ensure that Synchrony's small businesses have access to the latest learning resources. The user-friendly dashboard highlights essential content and provides curated content recommendations. A new countdown clock feature has been integrated, designed specifically for merchants and dealers, to serve as a visual reminder of impending deadlines for priority or mandatory courses. Simple links to a comprehensive content library, enabling learners to explore all available courses and select their preferred topics and pace for completion. Furthermore, small merchants and dealers can conveniently access the Learning Center through Business Center, Synchrony's robust online business platform. By consolidating all Synchrony partner financing activities, from application processing to sales transactions, into a single location, this enhancement streamlines operations and saves merchants valuable time. Synchrony's health and wellness partners will continue to access the Learning Center via the Provider Center. Synchrony's Learning Center represents an expansion of the company's extensive portfolio of innovative, turnkey business tools, which have already empowered hundreds of thousands of small businesses in managing, marketing, and expanding their operations, including: Synchrony Business Solutions Synchrony's Pillars Project Synchrony Connect Business Schooled Roadmap to Diversity Toolkit Financing programs Digital tools Advertising Center Across the United States, small businesses are already experiencing the benefits of Synchrony's offerings. For instance, Day's Jewelers, an employee-owned company with locations in Maine and New Hampshire, has successfully leveraged the Learning Center. Synchrony has been a trusted provider of financing options to retailers for over 90 years. With a network of more than 460,000 merchant and provider locations and 70 million active accounts, Synchrony's innovative shopping and payment solutions enable businesses to boost sales, foster customer loyalty and offer secure, convenient, and personalized shopping experiences.

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FINANCE, BUSINESS STRATEGY

Small Retailers Boost Profits with Sustainable Return Strategies

Software Advice | November 07, 2023

Small and midsize retail businesses (SMBs) are grappling with a challenging confluence of factors: a rise in product returns and escalating consumer demands for eco-friendly practices. Establishing a sustainable returns process has become paramount for recouping expenses and retaining customers. According to Software Advice's 2023 Retail Returns and Sustainability Strategies Survey, a remarkable 93% of SMB retailers place sustainability at the forefront of their approach to managing customer returns, with 58% identifying inventory cost optimization as a tangible advantage of their existing returns procedures. To enhance their returns strategies, SMBs have adopted a diverse set of tactics, including logistics and packaging: A noteworthy 59% of SMB retailers are now utilizing environmentally friendly logistics, up from 43% in the previous year. The percentage of SMB retailers collaborating with third-party specialists to handle product returns has surged to 49%, a substantial increase from the 31% reported in 2022. Right-sized packaging is embraced by 63% of these businesses, and 55% opt for recyclable or reusable shipping containers. Smaller retailers are increasingly acknowledging the potential of returned products, if properly assessed, can be resold or recycled, thus reducing waste and recuperating some of the lost sales. In fact, recycling is deemed a top action in managing returned items by 51% of retail SMBs, followed closely by repackaging and refurbishing. Thanks to these measures, 35% state that they can recover over half of the cost of a returned product. In addition to cost recovery, an efficient and eco-conscious returns process can boost a retailer's market standing. This year, 41% of retail SMBs report that their current returns process has heightened their competitiveness in the marketplace. An impressive 64% note a substantial increase in customer satisfaction stemming from their current returns process, a significant uptick from the 35% reported in 2022. However, while sustainability endeavors are closely linked to customer satisfaction, 63% of SMB retailers concede that their company's actions do not align with their public messaging—a notable increase from the 46% recorded in 2022. To avert the disparity between actual efforts and messaging, it is crucial to effectively monitor the reverse logistics process. Leveraging technology such as point-of-sale systems, inventory management software, and business intelligence tools can furnish the transparency necessary to ensure alignment. About Software Advice Software Advice, established in 2005, simplifies the software procurement process by providing personalized guidance and industry-specific insights to help buyers identify the most suitable software solutions in as little as 15 minutes, all at no cost. The company has assisted over 950,000 businesses in finding the right software to meet their unique needs. With a repository of over 2 million verified user reviews, Software Advice empowers individuals to make confident technology decisions.

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SMALL BUSINESS ADVICE

Intuit Unveils QuickBooks Money Redefining Small Business Finance

Intuit | September 18, 2023

Intuit has introduced QuickBooks Money, an all-in-one payments and banking solution tailored for small businesses. QuickBooks Money is a refined version of the "Money by QuickBooks" service launched in 2021. A report by PYMNTS Intelligence reveals that 65% of medium-sized businesses spend 14 hours per week on administrative tasks, emphasizing the need for automation and digital tools. Intuit, a leading global technology platform, has recently introduced QuickBooks Money, an all-in-one payment and banking solution that comes with no monthly fees or minimum balance requirements. This innovative offering empowers small businesses by providing them with complete control over their finances from anywhere. While QuickBooks Money may seem like a new addition, it's actually a refined version of the previously launched "Money by QuickBooks" service from 2021. The revamped solution comes with enhanced features, including a web experience and additional banking and invoicing capabilities. Intuit's future plans for QuickBooks Money include granting subscription-free access to other QuickBooks small business solutions such as bill payment, in-person payments, and lending. With QuickBooks Money, small and medium-sized businesses (SMBs) can offer their customers a variety of payment options, including Google Pay, Apple Pay, or Venmo, in addition to traditional methods. Transactions can be settled on the same day, ensuring fast access to cash while also allowing businesses to track their income and expenses. This updated solution consolidates two other Intuit-owned financial services, QuickBooks Checking and QuickBooks Payments, into one seamless offering. David Talach, Senior Vice President of the QuickBooks Money Platform at Intuit, commented, QuickBooks Money represents an incredible opportunity to expand the reach of our fintech platform and give more small businesses access to powerful cash flow management tools. [Source: PYMNTS] A recent report titled "Tapping the Payments Opportunity in SMB Retail," by PYMNTS Intelligence, underscores the significance of digital payment adoption and the use of modern solutions for SMBs survival and meeting evolving customer expectations. The report highlights that a substantial 65% of medium-sized businesses spend 14 hours per week on administrative tasks related to payment collection. Automation and digital solutions are poised to make an immediate impact in streamlining these processes. Intuit has long been recognized for its suite of products, including Quickbooks, TurboTax, Credit Karma, and Mailchimp. On September 6, 2023, the company also introduced Intuit Assist, a generative artificial intelligence (AI) tool designed to assist its small business customers.

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BUSINESS STRATEGY

Synchrony Launches New Learning Center to Support Small Businesses

Synchrony | November 08, 2023

Synchrony introduces the Small Business Learning Center, aiding small businesses with credit and financing knowledge. The Learning Center offers flexible courses, expert content, and user-friendly features for effective learning. Synchrony is committed to helping small businesses and has already benefited hundreds of thousands of businesses. Synchrony, a prominent consumer financing company, has recently introduced the Synchrony Small Business Learning Center—a new digital learning platform designed to empower Synchrony's small business partners in optimizing their operations and fostering more efficient and effective growth. This platform will assist Synchrony's small merchants, dealers, and wellness providers in comprehending the intricacies of credit and financing, integrating these concepts into their business models, harnessing their potential to elevate customer experiences, and ultimately driving increased sales. The Small Business Learning Center features an array of offerings: A diverse range of industry-specific courses encompassing videos, games, interactive experiences, and various contemporary learning modalities, facilitating small business owners and their teams to acquire knowledge at their preferred pace and in their preferred style. Topics encompassing sales techniques, compliance, employee motivation, cash flow management, vendor management, and customer service. The content is thoughtfully crafted by Synchrony's learning experts, drawing upon the insights of Synchrony's professionals and leaders. The platform consistently introduces fresh content, courses, and tools to keep the learning experience engaging and captivating. Synchrony regularly collaborates with leading learning technology companies to ensure that Synchrony's small businesses have access to the latest learning resources. The user-friendly dashboard highlights essential content and provides curated content recommendations. A new countdown clock feature has been integrated, designed specifically for merchants and dealers, to serve as a visual reminder of impending deadlines for priority or mandatory courses. Simple links to a comprehensive content library, enabling learners to explore all available courses and select their preferred topics and pace for completion. Furthermore, small merchants and dealers can conveniently access the Learning Center through Business Center, Synchrony's robust online business platform. By consolidating all Synchrony partner financing activities, from application processing to sales transactions, into a single location, this enhancement streamlines operations and saves merchants valuable time. Synchrony's health and wellness partners will continue to access the Learning Center via the Provider Center. Synchrony's Learning Center represents an expansion of the company's extensive portfolio of innovative, turnkey business tools, which have already empowered hundreds of thousands of small businesses in managing, marketing, and expanding their operations, including: Synchrony Business Solutions Synchrony's Pillars Project Synchrony Connect Business Schooled Roadmap to Diversity Toolkit Financing programs Digital tools Advertising Center Across the United States, small businesses are already experiencing the benefits of Synchrony's offerings. For instance, Day's Jewelers, an employee-owned company with locations in Maine and New Hampshire, has successfully leveraged the Learning Center. Synchrony has been a trusted provider of financing options to retailers for over 90 years. With a network of more than 460,000 merchant and provider locations and 70 million active accounts, Synchrony's innovative shopping and payment solutions enable businesses to boost sales, foster customer loyalty and offer secure, convenient, and personalized shopping experiences.

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