Of course, as an employee, you are the hired help just making a living, while the company is making exponentially more money from your hard work. But as a business owner, there is a lot on your plate. You are managing ups and downs in the economy. Your good employees never turn off those Indeed notifications as they keep one eye open for a better opportunity. Your bad-fit employees suck your time and energy before you part ways with them. And that’s just the tip of the iceberg. 

Risks and Rewards

There are risks and rewards on both paths. Understanding your own strengths and your capacity for risk-taking is part of the calculation when it comes to choosing the right path for you.

The decision does not have to be a once and done proposition. At different points in your life, you might find your prospects as an employee to be less advantageous. That can play out in several ways: you may take your employment as far as the company, your training and education can take you. You may find your skills and interests starting to diverge away from the job you currently hold.

But for this moment in time, what is the best path for you, employee or business owner? The first set of questions to ask yourself revolve around mindset. Where is your comfort zone? You can obviously work on making changes in your mindset to better meet challenges, but overall, where are you the most comfortable? Where are your gifts and experiences put to the best use?

Employee Mindset

With an employee mindset, the big picture is somebody else’s problem. 

As an employee, you are focused on a mission that may resonate with you but belongs to someone else. If you are happy to work under a corporate set of guiding principles and purpose, that’s great. If your preference is to have a set set of tasks and KPIs to measure your work against, that is an employee mindset. You’re there to do a job, do it well, reap the rewards, and not have the weight of the company on your shoulders when you are not working.

Owner Mindset

Starting your business is hard work that takes a lot of self-motivation. In the beginning, you will more than likely be putting more money into the business than you are getting out, but you know you want to persevere and grow this idea into a thriving business. If all of that excites you, that’s the owner mindset. If all of that makes you want to run in the other direction, stay on that employee path.

Pros and Cons of Employee Life

Pros and Cons of Starting and Owning a Business

Would You Rather Be Part of a Great Workplace or Run a Great Workplace?

Even if you work in a company that rewards you for innovation, allows you to set goals that are connected to larger corporate goals, allows you a lot of independence, and offers you a share in profits during solid times,  you are still working for someone else’s dream. If you are happy with that tradeoff, being an employee in a great company is a solid path for you.

But if you’d rather take your dreams and make them a reality, build a team, contribute to the wellbeing of your community, you might be cut out to start that business. 

It Might Not Have to be Either/Or

You may need to hold a job and start a business to build wealth. The truth is, for most of us, a paycheck and a 401(k) off in the distance somewhere are not going to get us where we want to go. And it’s not how the wealthy behave. People build and retain wealth by having multiple sources of income. 

If you are like me, the thought of running a business is pretty scary. If you feel that way, maybe don’t think of it as a business. “I own a few rental properties” isn’t hard to say. For tax purposes, you’ll probably do that through an LLC or S Corp. It’s technically a business, but that doesn’t mean you are leaving your day job, the benefits, and those 401(k) contributions. But you don’t really have to choose one or the other. There are ways to build wealth and grow a small business. Some popular options include owning real estate, affiliate marketing, or selling bespoke products online. None of those mean throwing away the security of being an employee.

Finding Your Own Path

The Robert Kiyosakis of the world will tell you to always get yourself into business ownership and investment, rather than being an employee or merely self-employed. But maybe you are not wired to just jump in and take the risks of starting a business. Walking away from your day job is great if you have the skills and determination to build a business and an investment portfolio. It isn’t the right choice for everyone.

But an approach that builds a plan over time to take advantage of the relative stability of your status as an employee, along with dipping a toe into, say, the short or long-term rental market, might be a great approach to building wealth beyond the 401(k). Plus you are making money you can use now. That 401(k) can’t be used for much (without a big penalty) until you reach age 59.5.

If you have that entrepreneurial bug, but don’t want to ditch that day job just yet, Nick Gallo offers some step-by-step instructions in this excellent article. He has some great advice if you are thinking about launching a business that you intend to replace your current job. 

But there are plenty of great reasons to remain an employee, enjoy that stability, reap the rewards, and let someone else manage the headaches of ownership.

Which Should It Be?

If you crave stability and want the buck to stop somewhere else, remaining an employee is the best bet. There are some ways you could, and probably should, start thinking about building wealth beyond the paycheck and the 401(k). But there is a lot to be said for having that day job be the bedrock of your financial plan.

On the other hand, if you are feeling hemmed in by your job description, have a passion, or a business idea you’ve been longing to test out, it may be time to start your own business. If you feel like you have the mindset and the passion to go for it, develop a solid plan, seek the guidance of wise mentors, and get started!

The post Should I Get a Job or Start A Business? appeared first on FinMasters.

The basic difference is obvious. Personal loans are for personal use, and business loans are for business use. But is there any overlap? If you’re just starting a business, do you apply for a business loan or a personal loan?

Let’s take a closer look.

Differences Between a Business Loan vs. a Personal Loan

There are important differences between business loans and personal loans.

• Collateral. Both personal and business loans may be unsecured, but business loans are more likely to be secured, while personal loans are more likely to be unsecured.
• Term. Business loans may have extended repayment periods, often up to ten years or more. Personal loans must be paid off more quickly.
• Amount. At least for qualified businesses, business loans are available in much larger amounts than personal loans, often in the millions of dollars.
• Tax Deduction. Interest paid on business loans can be tax deductible under local laws (check with a tax professional). Personal loan interest is not tax deductible.
• Interest Rates. Personal loan rates are generally higher than those for business loans. Business loans have a more rigorous approval process and usually offer less risk to the lender than personal loans.

Those features make a business loan look like a better way to fund a business. There’s a reason for that: it’s what business loans are designed to do. There are still pros and cons to both loan types.

Can I Use a Personal Loan for a Business?

Some lenders will permit you to use a personal loan for business purposes.

However, when you apply to a personal lender, remember that you will need information about how you plan to spend the cash. Your business purpose must meet their lending criteria to qualify.

A personal loan lender will base your creditworthiness on your personal finances, including your credit score and debt-to-income ratio, not the state of your business.

Even if you take out a personal loan for business purposes, you are liable for payment, not the business.

Pros & Cons of Business Loan vs. Personal Loan

Take a look at the advantages and downsides of using a business loan vs. personal loan to finance a business.

Pros & Cons of Business Loans

Business loans are usually a better choice for a business, but not always.

Pros

• Larger loan amounts. Most business lenders have higher maximum loan limits than personal loan lenders.
• No personal liability. The debt is the responsibility of the business, not the individual.
• Tax-deductible interest. You may be able to deduct interest payments on your business (not personal) tax filing.

Cons

• Limited availability. New businesses may be unable to get business loans.
• Debt can be a problem. Businesses with existing loans or other debt may not be approved.
• Strict requirements. You must provide detailed documentation of your revenues, costs, and business plan.
• Longer approval times. The more detailed application requirements for business loans mean that the time required for review and approval is longer.

Pros & Cons of Using a Personal Loan for Business

Personal loans can be an option to finance a business, but there may be better options. Look at the pros and cons.

Pros

• Quick Application. A personal loan application can often be approved in minutes, and the funds can be released within a day.
• Less Paperwork. Personal loans typically require a minimum amount of documentation. You are not required to provide your company’s balance sheet/business plan.
• Personal Loans Are Usually Unsecured. You won’t risk assets belonging to you or the business.
• A Personal Loan May Provide Startup Money. Most small business lenders do not advance money to startups. A personal loan might be a good option if you are in that category.

Cons

• Personal Loans Do Not Establish Your Business Credit. They only have an impact on your individual credit rating. This will make it difficult for your business to establish its credit history.
• You are Personally Liable. You are personally responsible for everything that happens in connection with the loan collection and everything that follows, not the business.
• Personal Loans are Related to Personal Income. The amount you can borrow will be limited by your personal income.
  If you need an investment beyond what your income warrants, a personal loan will not help you.
• Blending Personal and Business Expenses. Using a personal loan for a business can complicate your accounting and taxes.
• Higher Rates. Personal loans typically have higher interest rates than business loans.

How to Choose

The choice between a business loan and a personal loan will be largely based on the circumstances of your business.

When a Business Loan is Best

• Your business is well established. A solid operating history will improve your chances of being approved for a business loan.
• Your business needs a large amount of money. In that case, a business loan will probably be a better option.
• You’re trying to establish business credit. A personal loan won’t help you build business credit.
• You don’t want your personal assets to be at risk. You will not be personally liable for a business loan.

Tip: If you get turned down for a business loan, consider it a reality check on the viability of your business. Ask for the criteria the lender used, and address the issues.

When a Personal Loan for Business Can Make Sense

• You need cash quickly. Some personal loan lenders may offer funding within one day. You may have to wait for some business loans.
• Your business is new. If your business is new or hasn’t yet built a solid credit history, you may have a better chance of being approved for a personal loan.
• You don’t have collateral or don’t want to use collateral. Most personal loans are unsecured.
• You need a relatively small amount. If you don’t need a large loan, the convenience of a personal loan is appealing.

Alternative Ways To Get Funding For a Business

Business loans are not the only way to get funding for a business. Here are some other options.

Small business loans from NBFCs, MFIs:

• Self-Financing your Startup. Using your own money offers the greatest flexibility if you can afford it.
• Microloans. Non-profit groups offer very small loans to people starting small businesses. These may be focused on specific groups, like minorities, women, or veterans.
• Crowdfunding. If you have an appealing product and story or a wide circle of friends, crowdfunding may raise the capital you need.
• Getting an Angel Investor. If your business has strong growth potential, it may attract investors. Seek legal advice before signing anything!
• Peer-to-Peer Lending. Some peer-to-peer lending platforms offer business lending.
• Government Lending Programs. Aside from SBA loans, many state and local governments support startup businesses. Look into what’s available in your area!

Financing a new business isn’t easy, but it doesn’t have to be impossible. Be creative, look for all possible financing options – there may be more than you think – and don’t give up!

The post Business Loan vs. Personal Loan: Which One to Use for Business Financing appeared first on FinMasters.

1. Self-Financing

This is your idea, so the first place to look for funding is obviously your own assets and your own collateral.

Your Savings

Of course, if you have savings, you can use them. Having skin in the game is important. If you are quitting your day job to start this venture, though, be sure you have enough savings, not just for the business, but to live on while the business ramps up.

Using your emergency fund as business capital is a risky proposition!

A Home Equity Line Of Credit (HELOC)

Homeowners with equity can use some of that equity to start a business. Requirements for HELOC loans have gotten tighter in the past 10 years, with most lenders requiring at least 20% of the home’s value to remain in the property.

I can say from personal experience that a HELOC is a helpful way to get money to start a business. I am also glad both the bank and I had the sense to stay above water on the loan! In no case do you want to owe more than your home is worth.

Remember that if you fail to pay, your home is at risk.

A Credit Card

This is a thing people do, but you should proceed with caution. It is the equivalent of going to a hard money lender for a loan to purchase an investment property (in other words, the terms and the interest rates are not in your favor).

Using credit cards as startup seed money is a last resort, and you should be sure the business can pay it back sooner than later. Credit card interest piles up brutally fast.

A Bank Loan

If you don’t own a home, you can approach the bank for a collateralized or noncollateralized loan. This can be tricky without collateral unless your credit score is excellent.

If there is a business partner or someone you know who could co-sign, that would be great. Just be sure that the other party is fully aware of the risk of co-signing a loan and that your relationship can manage the strain this kind of financial connection can bring.

If your business has collateral in the form of equipment or inventory, that could be sufficient to secure the loan without a co-signer.

2. Crowdfunding

Crowdfunding can get you the money you need to start a business. If you have helped a friend build their dream of a sock knitting business or run across a fascinating story about a unique product (like a foldable kayak – a real thing) through Kickstarter or a similar platform, you have seen crowdfunding at work.

This is also a great way to tell your story and for friends and people in your network to support you. You can build some capital and market the new business at the same time, especially if you offer something of value related to the business as an incentive to invest. 

Look at Kickstarter and other crowdfunding platforms. Don’t just dive on and make your pitch. Study the platform you’ve chosen. Look at what projects do well and how they pitch themselves. There are lots of ideas competing for crowdfunding dollars. Research will raise your chances of success.

3. SBA Loans

A Small Business Administration (SBA) loan will not just provide you with the financial backing you need to get your business off the ground. It will also force you to get your strategic planning ducks in a row. The SBA has rigorous standards and guidelines for the application process and for the terms of the loans themselves. You’ll have to do some work to meet the requirements, but the terms are excellent, and you’ll know your proposal has been professionally vetted.

Loans are guaranteed by the Small Business Administration, but funding comes from qualified banks, credit unions, and other lending institutions. There are several SBA products, but for our purposes here, I will highlight two.

SBA 7(a) Loan

This is one of the more popular products SBA offers. The application and approval process takes some time, so this is not a source of immediate cash infusion for your business.

That being said, there is a lot of upsides, with low interest rates, no minimum loan amount, and a maximum of $5 million.

SBA Microloan Program

For loans of $50,000 and under, this can be an excellent program. Local nonprofit lenders like Pennsylvania’s Community First Fund do an outstanding job of building up local businesses–both new and established–with these types of loans.

You can use SBA microloans to finance the supplies, inventory, or equipment or as working capital for the business. You can’t use them to pay off debt.

You’ll need to be organized and prepared, but SBA loans are one of the top ways to get money to start a business if you can qualify.

4. Angel Investors

To connect with an angel investor, you either have to know somebody who knows somebody, get on Shark Tank, or – more likely – contact an investor network. Here are just a few organizations that serve as a matchmaker between angel investors and business ventures they might invest in:

• Tech Coast Angels
• MicroVentures
• Angel Capital Association

You can expect angel investors to be professionally skeptical and to take a good deal of convincing. You’ll want to fine tune your business plan and be ready to make a convincing pitch to a knowledgeable audience.

5. Venture Capital

Venture Capital (VC) firms invest in new enterprises in exchange for an equity stake in the business. A VC investment will provide your business with capital, but the firm will be a part owner of your business and will have a say in the way it’s managed. That arrangement works for many startups, but you’ll have to decide whether that dilution of your control works for you.

You may have to pay some attention to the structure of your business before approaching a Venture Capital firm. Limited liability companies (LLC) and S corporations are increasingly popular ways of creating a business entity, but many venture capitalists still prefer to invest in corporations, specifically C corporations.

Why would that be? Many VCs are organized as partnerships or LLCs, which are not allowed to own S Corporation shares. The S Corporation structure is designed for small businesses and has useful features for startups. Venture Capital investors may invest in small businesses, but they want those businesses to become bigger so they can sell their shares at a profit. S Corporations can only have up to 100 shareholders, and VCs don’t want to see that kind of limitation on growth. The C Corporation structure can accommodate more growth.

As with angel investors, your pitch to a VC firm has to be on point. These individuals and firms see hundreds if not thousands of pitches for new businesses every year and pick a handful to back. Be prepared.

Finding Your Own Path

This business is your dream. You’ve done your homework and have found a product or service that is in demand. There are many ways to finance that dream. Know that you have options. You might not have realized the resources available to you as you begin this new venture. You don’t have to pick just one. Most businesses use several funding sources to get off the ground.

Whatever the dream, you can get money to start that business. There are funding sources out there to take advantage of. It will take initiative, creativity, and persistence, and you may have to deal with some missteps and rejections along the way. Keep believing, refine your ideas, and don’t quit!

The post 5 Ways to Get Money to Start a Business appeared first on FinMasters.

What Is a Business Plan?

A business plan is an official document that explains your company’s objectives and what concrete steps you will take to meet those goals.

Essentially, a business plan is a roadmap for your company’s future. It will provide an outline for how you’ll execute your business strategy. Companies in the same industry may have similar elements in their plans, but ideally, your business plan should reflect the unique needs and mission of your company.

Why You Need a Business Plan

According to research reviewed by the Babson College Center for Entrepreneurship, fewer than a third of successful entrepreneurs actually had a formal business plan^[1].

How to Write a Business Plan for a Small Business Loan

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Does this mean that you don’t need a business plan? While some businesses may succeed despite lacking a formal plan, there are many reasons why you should create one anyway.

Here are some of the advantages of a business plan.

Get Funding

Business owners rely on outside funding to launch, maintain, or grow their businesses. If you seek a loan from a traditional lender, they will typically ask to review your business plan alongside your business data and credit score. A business plan can increase your eligibility for these loans. It may also influence your loan amount and terms.

Similarly, a business plan can help you attract outside investors. A well-written business plan can demonstrate the exact steps you’ll take to bring about the potential success of your new startup. Investors are more likely to allocate money to companies with clear goals and strategies.

Stay Focused

A business plan isn’t just for an outside audience. Your plan can also help you and your management team stay focused on your business goals. For example, if you’ve formed your business as a partnership, your business plan will keep everyone on the same page about your objectives and strategy.

Even if you’re a solo entrepreneur, a business plan can keep you focused and provide a way to track your progress as you meet benchmarks and key performance indicators (KPIs).

Negotiate Deals with Suppliers

Your company will probably need inventory and supplies to thrive. But in the early stages of your business, vendors may be reluctant to work with an unknown entity.

A business plan can show these suppliers that your business has both legitimacy and potential. Not only will you be able to secure contracts with suppliers, but your business data may help you qualify for discounts that can improve your profit margins.

Business Plan Outline

What does a business plan look like? While there’s more than one type of business plan, the most common business plan outlines look something like this:

• Executive summary
• Company description
• Organization and management
• Market analysis
• Description of products and services
• Funding request
• Financial projections
• Appendix (optional)

Does the order matter? To some degree, yes. An executive summary generally comes first, followed by a description of the company. Some plans may switch the order of your financial projections and funding request, though these sections are best reserved for the end, forming the conclusion of your plan as a whole.

How to Write a Business Plan

Every type of business has its own goals and objectives. However, the business plan still follows the same general format. Here’s how to create a simple business plan, with tips on how to write each section.

Executive Summary

An executive summary briefly summarizes the points in your plan, offering readers a snapshot of your company and your business goals. The executive summary functions as the “elevator pitch” for your business and your funding request. As such, aim for no more than 250 to 500 words.

Though brief, you might seek to include the following:

• Your business name
• Your company mission statement
• A basic summary of your product or service
• Your most immediate business objective(s)

Even though the executive summary will be the first part of your plan, consider writing this section last. That way, you can highlight the key points in other sections of your business plan.

Company Description

Your company description contains important information, including your registered business name and contact details.

But this is also where you want to elaborate on the nature of your business. Think about things like:

• What problems are you equipped to solve?
• Who is your target market?
• What advantage do you have over competitors?
• Does your location offer a strategic advantage?
• Do you have any experts on your management team?

You’ll elaborate more on your leadership team in a later section, but this can still be a good opportunity to brag about any specialists that offer your company a competitive edge.

Organization and Management

Here is where you’ll explain more about your leadership team. Your organization and management section will include information such as:

• Your legal structure (sole proprietorship, partnership, LLC, etc.)
• The names of any partners or senior leaders
• The resumes or CVs of senior leaders
• An organizational chart showing your team’s responsibilities

Of course, if you’re a sole proprietor, you can also use this section to offer a unique bio. It’s okay to brag a little! Talk about your past accomplishments and why your education or experience makes you uniquely suited for this business or industry.

Market Analysis

The next section will be somewhat research-intensive. You’ll need to demonstrate a clear knowledge of industry and/or consumer trends, such as:

• What are the buying behaviors of your target market?
• What are some trends affecting your industry at the moment?
• What are the future prospects for your industry or target market?
• How do you intend to reach your target audience?
• Who are your major competitors?
• How will you set yourself apart from your competitors?

As you write a business plan, you’ll want to include data gleaned from industry publications and market research websites. Analyzing the behavior of your competitors is also a good way to attain information for your market analysis. And if you’ve been in business for a while, you can even look at your past marketing data to plot a course for your future.

Description of Products and Services

What exactly do you sell? This section will explain the type of products or services you offer and how they benefit your target market.

Don’t neglect the “nuts and bolts” of your sales and distribution strategy, including:

• Pricing model(s) (e.g., subscription packages)
• Sales strategy
• Distribution methods
• Supply chain and order fulfillment strategy

Even if your products are still in the research and development stage, you can explain more about this process and when you anticipate a prototype. You can also use this section to discuss any plans for patents or copyrights to protect your intellectual property.

Funding Request

If you write a business plan hoping to secure funding, here is where you’ll make your formal request.

Be specific. Clearly state the funding you need to invest in launching or growing your business. And also, be specific about how you’ll allocate that funding: for marketing, product research, new technology/equipment, etc.

Financial Records and Projections

Financials are a key part of any business plan, but if you make a funding request, they are all the more essential. You’ll want to include both records of actual pat performance ad projections for the future. Include data such as:

• Income statements
• Balance sheet
• Cash flow statements
• Any assets that can be used as collateral

But this is just the starting point. You’ll enhance your business plan by including additional elements such as:

• Net profit margin
• Current ratio
• Accounts receivable turnover ratio

These metrics reflect the amount of revenue your business generates and the amount of liquidity that can be used to pay back a loan.

Try to include data from the previous five years, if possible. And try to create a financial plan for the coming five years as well, based on past trends and industry research. Charts and graphs can be useful for summarizing key data and making it easier for readers to digest.

Keep your projections realistic and reasonable. Positive projections are always good, but lenders and investors will quickly spot projections that are too aspirational, and they won’t make a positive impression.

Appendix

Your most important data belongs in the corresponding sections of your business plan. But a simple business plan won’t always have room for supplemental information, which might be better in an appendix. Your appendix might include the following:

• Personal and business credit history
• Business licenses or permits
• Equipment lease agreements
• Patents and copyrights
• Professional contracts
• Resumes of key employees

If you have lots of data, it’s okay to create multiple appendices to group your information together.

Business Plan Templates

Learning how to write a business plan can be easier when you use a business plan template. Here are just a few suggestions on where to look for a free template.

Microsoft Word

Microsoft Word offers a large number of document templates, including several that you can use to write a business plan. You can also download PowerPoint templates that you can use for sharing your plan in a business meeting or presentation.

The SBA Website

If you go to the U.S. Small Business Administration website, you can fill out a business plan template online and then download the completed form as a PDF document.

This template is a bit lengthy but may be useful for those with a lot of data to organize and present.

Santa Clara University’s My Own Business Institute

You can find more free templates at the My Own Business Institute (MOBI), run by Santa Clara University through the Center for Entrepreneurship and Innovation at their Leavey School of Business.

You can download each of the 15 business plan sections as a separate MS Word document or a single free template to fill out. MOBI also offers a few free resources for small business owners that can be helpful as you launch or grow your company.

Tips for Writing an Effective Business Plan

Remember that your business plan is designed to help you secure funding, among other goals. Is there a way to write a business plan that improves your chances of securing the best loans?

Yes. The following tips can help you craft a quality business plan so you can reach your goals.

Be Realistic

First, it’s important to be realistic about your business. Lenders review the business plans of many companies in your industry. If your financial projections are overly optimistic, lenders may dismiss your plan as unrealistic. Keep your expectations — and your funding request — realistic and reasonable.

Proofread and Edit

You’ll want to proofread your work for spelling and grammar. But it also helps to get a fresh set of eyes to offer feedback. Ask someone to read your plan. At the very least, a proofreader can help you gauge the clarity of your writing, and they can help you give your business plan a final polish.

Get Help

Does the prospect of writing a business plan give you flashbacks to high school term papers? If writing doesn’t come naturally to you, seek outside help. The right assistance can guide you through the writing process and provide input on your market research, financial projections, and more.

Update Regularly

Don’t assume that your business plan is set in stone. Make a habit of regularly updating your business plan with the latest financial information after any major changes. Keeping your plan up-to-date will make it easier to secure funding if an unexpected business opportunity comes your way.

Your Future Self Will Thank You

Every business needs a good plan. Learning how to write a business plan will take time, but in the end, it will pay big dividends. A clear business plan will help lenders and investors take you more seriously, improving your chances of securing the funds you need to start your business or seize a new opportunity.

You’ll also be grateful that you completed this task simply because it helps you stay focused. Running a business is hard work. It’s easy to lose sight of your goals. Your plan can be both your starting point and stabilizing force, keeping you on the right trajectory to achieve your entrepreneurial dreams.

The post How to Write a Business Plan for a Small Business Loan appeared first on FinMasters.

What Is an SBA Loan?

An SBA loan is a small business loan that’s at least partially backed by the U.S Small Business Administration. The loans are issued by participating lenders and banks. A business owner can use an SBA loan to cover a range of business costs:

• Inventory
• Equipment
• Payroll
• Commercial real estate
• Refinancing business debts

How Do SBA Loans Work?

Since SBA loans are administered through traditional lenders, your bank or credit union will likely be your first stop. After you meet with the lender, the lender will apply to the SBA for a loan guarantee. The guarantee means that the SBA will pay the lender if you default on the loan.

The SBA also requires an unconditional personal guarantee from the borrower, as well as anyone with at least 20% ownership of the company. This can be risky because it means that you’re personally responsible for the loan in its entirety. Failure to pay the loan in full can put your personal assets in jeopardy.

Your lender will close the loan and distribute the funds accordingly. You’ll repay the lender directly over the lifespan of your loan.

SBA Prepayment Penalty

If your SBA loan has a maturity date of 15 years or longer, you can be assessed a prepayment penalty if you pay 25% or more of your loan within three years of receiving it^[1]. The prepayment penalty varies by year:

• During the first year: 5% of your total loan amount
• During the second year: 3% of your total loan amount
• During the third year: 1% of your total loan amount

Additionally, since you’ll make payments through a bank or credit union, your lender may assess additional prepayment penalties.

SBA Loan Types

The SBA offers multiple SBA loan types, each offering specific advantages for different small business needs.

• SBA 7(a) Loans – SBA 7(a) is the most common form of SBA loan. These loans are used for working capital, expansion, and equipment and property purchases. SBA 7(a) loans can also be among the largest, with amounts as high as $5 million and loan terms as long as 25 years.
• SBA Express Loans – As the name suggests, SBA Express loans are typically smaller than SBA 7(a) loans, with amounts that go up to $350,000. These can be great options for businesses with strong credit histories that need money fast.
• SBA 504 Loans – SBA 504 loans are used for fixed assets, including real estate, new construction, or equipment. Loan amounts are flexible and range from $125,000 to $20 million.
• SBA Microloans – SBA microloans are available for sums of up to $50,000^[2]. They are ideal for businesses with strong credit that need quick access to cash for operational costs such as supplies and inventory.
• SBA Disaster Loans – If your business was affected by a declared disaster, you might qualify for an SBA disaster loan. Loan amounts of up to $2 million can cover repairs and replacement costs to help you recover.
• SBA Community Advantage Loans – SBA Community Advantage loans are designed for underserved business owners. Loan amounts can go as high as $350,000. They can be used for working capital as well as fixed assets and equipment.
• SBA Export Working Capital Loans – SBA Export Working Capital loans provide support for businesses that make international sales. Loan amounts go up to $5 million, and they can be used for inventory, accounts receivables, and supplies necessary for international commerce.
• SBA Export Express Loans – Export Express loans from the SBA are also designed for companies selling outside the US, though loan amounts are smaller ($500,000), with shorter repayment terms of 12 months or less.
• SBA International Trade Loans – International Trade loans from the SBA are offered for amounts up to $5 million and can be used to fund international sales or purchases.
• SBA Line of Credit – An SBA line of credit (LOC) isn’t a traditional lump-sum loan. It works very much like a consumer credit card. Business owners can borrow up to a certain credit limit, then only pay interest on the amount they borrow. A line of credit provides a flexible, revolving source of funding for ongoing business needs.

Pros and Cons of SBA Loans

Before you apply for an SBA loan, it’s important to consider the pros and cons of this type of financing.

Pros

SBA loans are highly sought-after — and for good reason. These loans offer benefits that include:

• Competitive interest rates
• Low fees
• Flexible loan terms
• High loan amounts

If you’re a veteran, the SBA also offers incentives that can help you even if you have a lower credit score.

Cons

Despite these clear advantages, there are a few drawbacks to SBA loans:

• Qualification may be difficult.
• Lengthy funding process.
• Require a personal guarantee.

Some new business owners have trouble obtaining an SBA startup loan since they lack an extensive business credit history.

Current SBA Loan Rates and Terms

What is the interest rate on an SBA loan? SBA loan interest rates vary depending on the type, amount, and length of the loan.

SBA 7(a) Loan Interest Rates (2023)

The most common type of SBA loan is the SBA 7(a) loan, which may serve as an example of common SBA loan terms. If you pay the loan off within seven years, you can generally expect interest rates similar to the following, depending on the amount of your loan:

• $25,000 or less: 12%
• $25,000 to $50,000: 11%
• Over $50,000: 10%

If your loan period exceeds seven years, your interest rates will rise by an additional 0.5% (e.g., 12.5% for loans of $25,000 or less). These are the most recent rates, and they are subject to change.

SBA Microloan Interest Rates

SBA microloans can be helpful for business owners who need a small influx of working capital. These loans are easier to get, though they offer only $50,000 or less. Microloan interest rates are flexible, ranging between 6% and 9%.

How to Qualify for an SBA Loan

While SBA loans are among the most sought-after forms of small business financing, they can also be the most challenging to obtain. The following is the basic process you’ll go through to apply for an SBA loan.

1. Use the SBA Eligibility Checklist

In order to qualify for an SBA loan, you’ll need to meet the standards of both the Small Business Administration and your lender. You must have invested your own time and money in the business, and the business must:

• Be a for-profit organization (nonprofit or religious organizations do not qualify)
• Meet the SBA’s definition of a small business
• Operate in the United States
• Have at least two years of business history
• Have strong business credit (usually around 690 or higher)

Some lenders can be flexible when it comes to your business history and credit score, giving startups a better chance at funding. Otherwise, if your business operates outside these criteria — or if you’re struggling — you’re unlikely to obtain financing through the SBA.

Also, note that certain organizations do not qualify for SBA loans. These include:

• Nonprofits
• Gambling businesses
• Lending firms
• Cannabis businesses
• Government-owned businesses
• Real estate investment firms
• Dealers of rare coins and collectibles

Businesses in other industries are eligible, provided they meet the SBA loan qualifications.

2. Find an SBA Lender

After confirming that you meet the SBA’s qualifications, your next step will be to find an SBA lender. If you’re not sure where to look, visit the SBA’s convenient online Lender Match tool to find approved SBA lenders.

Each lender may have additional SBA loan requirements for existing businesses, so it’s helpful to ask questions about the lender’s expectations. Additionally, make sure to ask about the lenders:

• SBA loan approval rate
• SBA repayment terms
• SBA loan max amount
• Track record and experience in handling SBA loans

The last question may be particularly important, as an experienced SBA lender can offer guidance to help you learn how to get SBA loan approval.

Remember that interest rates may vary since SBA loans are administered through private lenders. It helps to compare rates and SBA repayment terms from at least three lenders before making a final decision.

3. Gather Your Application Documents

Once you settle on a lender, it’s time to complete the application process. If you want to streamline the SBA lending process, you’ll need to stay organized. Most lenders expect to see the following documents:

• Personal information (e.g., contact details, Social Security number)
• Personal financial statements
• Personal income tax returns, usually from the last two years
• Business licenses
• Business tax returns
• Lease agreements (if applicable)
• Business plan, including a one-year cash flow projection

If you have business partners, your lender will want to obtain their information and learn more about their roles within your company.

4. Be Patient

The SBA loan process can be lengthy, even if you’ve remained organized. How long does it take to obtain an SBA loan? It depends on the loan type, but SBA 7(a) loans can take anywhere from 30 days to several months.

For this reason, some business owners prefer SBA Express loans. This program aims to provide approval within 36 hours. The loan amount is somewhat limited, but small businesses can still obtain as much as $500,000 in funding.

Alternatives to SBA Loans

Many businesses simply don’t meet the strict eligibility requirements of SBA loans. If that applies to your business, there are several alternative loan programs to consider. Each of these options offers distinct advantages for your small business:

• Traditional business loans
• Business lines of credit
• Equipment financing
• Merchant cash advances
• Business credit cards

For some borrowers, traditional business loans may offer an advantage over SBA loans. Some lenders offer lump-sum loans without the need for a personal guarantee. This means that you may not be held personally liable if your business should fail.

SBA Loans: The Gold Standard for the Small Business Community

While SBA loans can be difficult to get, their competitive rates and terms make them an incredible asset for the small business community. The right loan can help you improve your business model and provide the working capital you need to sustain your operations.

The post What Are SBA Loans and How to Qualify appeared first on FinMasters.

Working with entrepreneurs over the years has taught me that the very strengths that allowed them to build their business can also be to their detriment when it comes to actually running their business. Their creativity and “big picture” mindset allowed them to see things that, quite frankly, my more analytical mind often misses. But this can also lead them to overlook the small details that can create big problems down the road.

Small Business Startup To-Do List

No matter the size of the small business you operate or hope to operate one day, here are a few key things that I think every entrepreneur needs to address. Most, if not all, of these, can be handled by you, but often they are overlooked until a problem arises.

1. Name Your Business

Take the time to determine the name of your business before you begin operations. You’ll need it for many of the steps below, so get it done early so you don’t have to re-do any other steps because you’ve changed the business name.

If appropriate, check to make sure your business isn’t trademarked. Also, check with the Secretary of State’s office in your state to make sure the name is available. A simple Google search for “<your state> Secretary of State” should lead you to a searchable, online database.

2. Write Your Mission Statement

It sounds odd for an analytical CPA like myself to talk about “mission statements,” but taking a few minutes at the beginning of your company’s life to define what it is there to do is a great investment of time.

Often small businesses start with a hobby or idea, but exactly what the business will do (or won’t do) isn’t well defined. You don’t need to hire a slick marketing firm or spend untold hours getting every comma absolutely correct. The point is to decide – in advance – the who, what, when, and WHY you’re starting your endeavor. It can help keep you from getting sidetracked later!

3. Get an EIN – Even if You’re Unincorporated

Often a small business simply operates as a “sole-proprietor.” In other words, they are not an incorporated business, but simply an extension of the owner. The activity of the company will be reported on your personal tax return to the IRS and your state (and possibly local) governments. This is perfectly fine for many businesses. I do recommend, however, that you get an Employer Identification Number (EIN) from the IRS, even if you will not have employees.

Why do I recommend it? Under current law, any customers paying you (as a sole proprietor or an LLC owner) over $600 in a calendar year are required to report to the IRS the total of the payments (on Form 1099-MISC). On this form your customers will need to include an identifying number for you so the IRS can match it to your tax return. If you don’t have an EIN, they would use your Social Security Number.

In this time of vast identity theft problems, why would you want to distribute your name, address, and SOCIAL SECURITY NUMBER to your customers? An EIN will avoid this obvious problem.

4. Open a Business Bank Account

Once you have your EIN you can easily open a bank account in the name of the company. I am a big advocate of keeping your personal activity personal and your business activity separate.

First, it makes keeping track of the business’s profitability much easier (see below). You don’t miss legitimate business tax deductions because it was lost among your personal transactions.

Second, if you do set up a corporation or an LLC, it preserves the personal protection provided when they were established. What’s the point in setting them up to protect your personal assets only to co-mingle your funds and lose that exact protection?

Third, it helps prevent you from accidentally overdrawing – or under-drawing – funds to be used for personal purposes. If your personal funds are mixed in with the business, how much of the balance is “yours” and how much is for the business to use to take care of its bills?

One account for everything business. Bonsai Cash lets you pay for your business expenses anywhere and anyhow. Automatically track expenses from your card with tax write-offs already calculated. Learn more →

5. Get the Appropriate Business Licenses From Your Local Government

Be sure to check with your local government to determine any business license requirements. This is determined by locality, so there is no way to describe what, if any, license your particular business would need.

In my home county, I don’t need a business license unless I run a funeral home or are a fortune teller (interesting combination – I guess the fortune teller can tell you when you’ll need to funeral home!). Just down the street, within the same county, is an incorporated town that does require a business license for virtually all companies located there.

The point is to make sure you stay in good standing with the federal, state and LOCAL regulators.  A simple phone call or Internet search is usually all that’s needed.

6. Keep Good Records

With the low cost and easy availability of many record keeping options, there is no reason to not do this right. It doesn’t have to cost a lot of money and will, in fact, save you money. Few things are more time consuming for a CPA (that you are probably paying by the hour) than having to work through a big box of receipts handed to them at the end of the year.

Whether you purchase inexpensive accounting software like Quickbooks or use a simple spreadsheet – or even use a hand written columnar pad (if there’s not too much activity) – please take the time to address this issue at the very beginning. The small cost and time spent upfront will save you money in the long run.

Also, there is no way to accurately determine the profitability (or loss!) of your business if you don’t keep good records. Build a habit of keeping your records constantly up-to-date! That’s what successful businesses do, so you should too.

7. Make Estimated Tax Payments (If Necessary)

A common mistake small business owners can easily make is not segregating funds for their tax liability, or they fail to send in the payments in a timely manner. The IRS and many states require estimated tax payments to be made throughout the year. These rules vary by state and by each taxpayer’s individual situation.

Keep in mind that in addition to traditional income tax, self-employment tax (currently 15.3%) is generally due on the profits (not gross revenue typically) of sole proprietorships and LLCs. I often see clients setting aside 35% to 45% of their profits to use for estimated tax payments. Penalties and interest charges can be steep if you fail to make these payments in a timely manner, so be sure to learn the specific requirements for your situation.

Please note: Taxes are a complicated topic and well beyond the scope of this post. Everyone’s tax situation is different. Please educate yourself, or engage a competent professional, about your specific situation before making any tax-related decisions.

8. Adequately Insure Your Small Business

Finally, make sure you’ve adequately insured your business operations and your assets. All insurance is essentially a risk transfer product. You are moving the risk of loss to an insurance company in exchange for a premium payment. The risk of any losses that you cannot afford to pay yourself should be assigned to an insurance company via a policy.

Also, some states and localities require some forms of insurance (for example, workers’ compensation insurance if you hire employees). Talk with an insurance agent familiar with the rules in your area to make sure you’re adequately covered.

After an accident and potential loss has been incurred is the wrong time to find out you’re not properly covered!

Don’t let these issues discourage you from starting the small business you’re dreaming of, nor should you panic if you’ve already started your business but not addressed these issues. Simply take a moment to get them resolved now so you can focus on growing your dream, not dealing with administrative problems!

The post Small Business Startup Checklist appeared first on FinMasters.

Breaking Down S.M.A.R.T. Business Goals

S.M.A.R.T. goals are not a new concept. They’ve been around since the ’80s and have been used by countless organizations and individuals. Let’s review what the famous acronym stands for once again, this time focusing specifically on businesses.

Specific – setting broad and generic goals for your business, like “make a profit,” means setting yourself up to fail. Among 90% of studies about goal setting, specific goals were more likely to be met^[1]. When setting your goal, always ask yourself how achieving it will help your business.

Measurable – your goal will be more achievable if you assign a numerical value to it and create clear benchmarks to track your progress.

Achievable – set goals that can be accomplished through actionable steps are more practical than overly ambitious targets.

Realistic – your startup may have limited resources. Ask yourself if your goal is realistic given your current circumstances or if you need to adjust it. 

Time-based – set a deadline that will keep you motivated and accountable.

S.M.A.R.T. Business Goal Examples

I don’t know about you, but I’ve always understood a concept better when I see an actual example. That’s why we’ve compiled a list of 4 different examples of S.M.A.R.T. startup goals below.

The post How to Set S.M.A.R.T. Goals for Your Business (With Examples) appeared first on FinMasters.

New business owners are often confused about whether to form a sole proprietorship or a limited liability company (LLC). It is important to understand the costs, paperwork, time required, and legal protections for a sole proprietorship and an LLC.

Sole Proprietorship

A sole proprietorship is a business owned, controlled, and run by one person. It provides no legal distinction between the owner and the business entity. You receive all the profit and are responsible for all the losses and debts.

A sole proprietorship does not necessarily mean you will work alone as you may employ other people. It means that you alone are responsible for the business. If there’s any legal action stemming from the business, it will involve you personally.

How to Form a Sole Proprietorship

The steps are simple. While it is tempting to just start doing business without any formalities, you can prevent many problems by doing things by the book.

Here are the steps you should take to form a sole proprietorship:

1. Choose a business name.
2. File a fictitious name certificate with the county clerk’s office.
3. Obtain licenses, permits, and zoning clearance.
4. Obtain an Employer Identification Number.

Tip: Make sure to find out what local (town, city, or state) permits and licenses you need.

 All four steps will keep you from running into penalties from local authorities and will put you in good standing for your taxes.

Limited Liability Company

A limited liability company (LLC) is a commercial business structure with up to 50 shareholders. The owners of the company are referred to as members. Profits and losses are shared among the members, and decision-making is shared among them.

How Do I Form an LLC?

An LLC is a more formal organization than a sole proprietorship and therefore has more requirements.

1. File articles of organization with your state’s corporate filing office, often the Secretary of State.
2. Designate a registered agent. This is an individual or company that agrees to accept legal papers on behalf of the LLC if someone sues the company. The registered agent must have a physical street address in the state where the LLC is registered. An LLC member can act as a registered agent.
3. Create an LLC operating agreement. This is an internal document that establishes how your LLC will be run, including how the LLC will be managed. In the absence of an operating agreement, state law will govern how your LLC operates.
4. Apply for an employer identification number or EIN.
5. Obtain Business Licenses. Depending on the type of business and where it is located, your LLC may need to obtain local and state business licenses. Check with the appropriate state agencies to ensure you are properly registered, licensed, and permitted to do business in your state.
6. Register with a state taxing authority.

You’ll need to register and pay taxes for your company in the state where it was formed.

How to Choose Between a Sole Proprietorship vs. LLC

The most crucial difference between an LLC and a sole proprietorship is liability. The LLC protects members in the event of business-related lawsuits, and the sole proprietorship does not. Individuals in the LLC cannot have assets seized in cases where the company is sued. The business has its own credit rating separate from yours.

The LLC structure is more flexible and better protected, but it’s also more complicated and more expensive to set up and manage.

You can start your business as a sole proprietorship and move to LLC status later if it seems appropriate.

Neither of these structures is inherently better or worse than the other. They are designed for different types of businesses, or for different stages of business development. Your task is to assess your needs honestly and select the structure that best suits your needs. If you’re not sure, consider consulting an attorney with experience in handling startup businesses.

The post Sole Proprietorship vs. LLC: Which is Right for Your Business? appeared first on FinMasters.

That’s also understandable. Working a 9-to-5 job keeps you busy for at least eight hours a day, if not more. Maintaining relationships, cleaning your home, and staying in shape leave you with very little time or energy to build a business. It is possible, though: Over 4.4 million companies started in 2020 despite the pandemic.^[2] Mine was one of them, and I started it while working full-time. You can do the same thing. Here’s what you need to know to pull it off.

In this post:

• Choose a Great (Not Perfect) Business Idea
• Get Proof of Concept
• Save Startup Funds as a Safety Net
• Consider the Financial Costs of the Business
• How to Transition to Full-time Business Owner
• Set Goals for Scale
• Plan Carefully, But Don’t Be Afraid to Act

Choose a Great (Not Perfect) Business Idea

Before you can try to start a business while working full-time, you need to figure out the right one to start. Unfortunately, those earliest days are often among the hardest for people. Many struggle to find the perfect business idea and end up jumping from one to the next, never committing. That ends in a dozen half-finished projects and nothing substantial to show for all the effort that went into them.

The truth is that there is no perfect business idea. You’re much better off selecting a proven idea that caters to your strengths and doing it better than your competitors. Here’s a checklist you can use to make sure an idea is at least workable:

1. Profitable:  Your business should have the potential to replace and surpass your previous full-time income, preferably within a matter of months. You don’t want to tread water financially for too long, and you’ll need to be able to fund lost benefits (health insurance and retirement matches) on top of your lifestyle.
2. Leverage Your Skills: A common cliche is “If it were easy, everyone would do it.” The slightly less well-known follow-up is: “and no one would pay for it.” Your business should solve a problem you’re well-equipped to handle that others struggle with in some way.
3. Enjoyable: One of the main reasons people want to start a business while working full-time is because they don’t enjoy their current jobs. The core function of your business should be something you enjoy. Try not to monetize a favorite hobby, though. You’ll probably find you like it less if you make it a full-time business.
4. Scalable: To start a business while working full-time, you’ll need to be scale the business down at first. That’ll let you get some paying customers and test the business model while keeping costs (money, time, and energy) low. You can then scale it up once you’re confident that the model works, and you can transition to the growth stage.

Learn More: Want some tips to kickstart your brainstorming? Take a look at some of our ideas to help you start making extra income. Remember, getting started is half the battle: How to Start Making Extra Income.

Get Proof of Concept

What do you think constitutes a business? Is it settling on a perfect name for the company or building a fancy website? Maybe it’s having a batch of fancy eggshell business cards with Romalian type, like Christian Bale in American Psycho.

Those are all nice, but none of them are what makes a business. In our capitalist, dollar-based society, “business” is fundamentally the exchange of goods or services for currency. That means that to have a business, you only need two things: paying customers and something they’re willing to pay for.

That doesn’t mean getting a bunch of your friends to say “What a great idea, go for it!” or “I would totally pay for that!” It means getting people to give you money in exchange for whatever product or service you plan to offer. Three customers is a great place to start for most businesses. One can be a fluke, two might be a coincidence, but three is a pattern.

Save Startup Funds as a Safety Net

Some people (not all) can build a business in their spare hours. Even if you can, it’s not nearly as efficient as devoting your prime working hours to the effort. You’ll have to contend with:

• Competitors who have much more time to devote to their business.
• Limitations from your job, such as non-compete clauses or a need for anonymity.
• Reduced efficiency and energy due to a greatly increased work-load.

Your business will have the best chance of success if you can quit your job and give it your full attention. Someone working a full-time job with 2 to 3 hours a day to put toward their fledgling business can devote a maximum of 15 hours to it during the weekdays. That’s less than half the amount of someone working at it full-time, and they’d probably be tired and inefficient during those hours.

I don’t recommend quitting your job without a safety net. It may sound inspiring to take a “sink or swim” mindset, but you run a real risk of sinking.

My favorite way to transition from employment to running a business is to save up a substantial financial runway. With cash in the bank, you can afford those months of little to no cash-flow from your business until you build momentum.

Your startup funds should be at least six months of expenses. You don’t want to have any fear that you won’t be able to make ends meet. As a naturally cautious man, I had about twelve months’ worth saved up before I felt comfortable transitioning to full-time self-employment.

Learn More: Want to learn how you can save faster to build up those startup funds? Take a look at some of our favorite money-saving strategies: Saving Money 101.

Consider the Financial Costs of the Business

I strongly believe it’s best to start a business that doesn’t require much financial investment upfront. Every business has a chance to fail, but capital-intensive businesses can fail disastrously.

How to Start a Business While Working Full-time (And Replace Your Job)

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For example, most service businesses are unlikely to bankrupt you. If your house-cleaning business fails, you’ve lost your time and the cost of some bleach that you should probably use on your own toilets anyway. On the other hand, spending $50,000 on coding for what you think will be the next big social media app is a tremendous risk. If it doesn’t produce a return, you’ve lost your time and $50,000.

Be cautious of any business that might require something like:

• A storefront or an office with significant overhead
• Expensive manufacturing equipment
• The acquisition, production, and housing of inventories
• Hiring employees

If you do decide to start a business along these lines, make sure you understand the risks and take steps to protect yourself from financial ruin. You may have to seek outside financing and professional financial advice.

For example: Imagine that you want to start a house flipping business. Don’t spend your last $10,000 on the down payment for your first property. Make sure you have plenty of cash left over to fund both your personal expenses and the cost of running the business (repairs, utilities, taxes, mortgage) for an extended period with no revenue.

How to Transition to Full-time Business Owner

There’s no universally ideal time to quit your job and work on your business full-time. It would be nice if your business income replaced your wages first, but that’s a demanding and sometimes impossible ask.

Quitting once you’ve proven the concept and saved up enough financial runway is the bare minimum. Leaving your job once your business generates enough revenue to cover your expenses is probably the most balanced goal. Note that it’s a lot easier to do that when you have a budget in place and spend less than you make.

Whenever you quit, transitioning from being a full-time employee to running a business full-time is intense in more ways than one. Even with enough cash in the bank to cover you for months at a time, you shouldn’t throw yourself recklessly into self-employment. 

Make sure to develop a plan in case things don’t go as well as you hope. For example, decide what you’ll do if there are no signs of growth by the time you’re halfway through your startup funds.

Set Goals for Scale

Growing a business into something that can replace your full-time job takes focused effort, especially if you’re doing it in a limited time window. Make sure you have specific goals to structure your growth and scale up as quickly as possible.

I recommend setting net income goals since that’s the best measure of a business’s success. Create artificial deadlines, then do whatever it takes to generate a monthly income that reaches your goal by that date.

Making enough to cover your expenses is always the most important goal to reach. At that point, you can stop draining your startup funds (though they’re still nice to have) and continue your efforts indefinitely.

Learn More: Want some more guidance on ways to set proper financial goals? Take a look at our favorite strategies: How to Set S.M.A.R.T. Financial Goals (With Examples).

Plan Carefully, But Don’t Be Afraid to Act

It’s easy to talk yourself out of even trying to start a business while working full-time.  After all, it feels riskier, but there are risks to every path in life. There’s an illusion of safety in employment because your paycheck shows up every two weeks, but it’s not guaranteed. Remember, 15% of American adults lost their jobs during the pandemic.^[3]

If you do your due diligence, you can transition from employee to business owner with a minimum amount of risk. Choose a proven business idea, get some paying customers, save up your financial runway, and then give the business your undivided attention. If you need help figuring out whether your financial foundation is strong enough to make the switch, talk to a Certified Public Accountant or another financial expert before taking the plunge.

The post How to Start a Business While Working Full-time (And Replace Your Job) appeared first on FinMasters.