Ensuring Your Small Business is a Success

April Boone

The time you spend working in your business has value. And that is a value that you should always consider when calculating the success of your business. The time you spend is a real number just like the supplies you buy.

There are many ways that you can determine whether your small business is doing well. You can track your profits, run a stock-check, work out your marketing success, and so on and so forth. However, the best method to ensure that you’re in the black (or green, as is the money.) is to calculate your ROI. Say what?

ROI is an acronym for Return On Investment. Whether you’re business is doing well, or will continue to do well using your present products and marketing techniques, is a matter that is decided by your ROI. This is why it is extremely important that the ROI is calculated in the right manner. Most small business owners tend to calculate their ROI disregarding hidden expenses, and in fact, disregarding their own time. You are working at your business, right? Doesn’t the amount of time you spend on it count? Of course it does.

Basically, the ROI is a ratio of the return of money directly generated by your marketing and the total amount of resources used for it. In simpler terms, your Return on Investment is calculated by taking the net amount of your business returns and dividing that by the total resources invested into it.

Figuratively:

ROI = (Payments from Investment – Cost of Investment) / (Cost of Investment)

Miscalculating your ROI can lead to you feeling falsely secure because your small business is doing well, when it actually isn’t. This is why, when getting your ROI, you must include all resources used, most important of which is your time. When small business owners calculate this ratio, some may actually feel they’re better off working full-time.

If you’ve just opened up your business, your ROI is bound to be quite low. This shouldn’t discourage you. However, if your ROI is still low after two years, it may be time for a change of products, or marketing techniques. And if it’s still low after ten years, then you’re better off getting a better pay for your hours elsewhere.

Get more about small business issues at FreelanceSprout.com.

ABOUT THE AUTHOR

April Boone is the owner of Global Marketing Solutions in Foley Alabama.

How Commercial Loans Help Expand your Investment Portfolio

Author: Aidan Kellsey

A commercial loan makes it easier for those seeking opportunities to expand their investment portfolio. Instead of letting your money freeze, let your finances work for you and earn you a regular income through property rentals.

A commercial loan makes it easier for those seeking opportunities to expand their investment portfolio. Instead of letting your money freeze, let your finances work for you and earn you a regular income through property rentals.

To beging with, aim for a property in your neighborhood that is for sale and have it rented. This way, it is less difficult for you to monitor and manage the occupants of your estate because you have established your presence in your area.

Once you have gathered the experience of managing your own investment property and have faced and settled issues along the way, you have earned the right to invest in properties outside the vicinity, maybe in another neighborhood, another state, or another country.

Qualifying for a Business Loan

Since the prices of real estate properties are shrinking, it is best for most people to invest in these today. Banks, however, have exercised prudence and have put up strict requirements for borrowers.

The entire loan procedure starts when a broker provides you with estimate of the value of the asset have mortgaged in a commercial loan.

Before a business loan is approved, the bank or lender demands more requirements such as specific details of the investment property.

The bank or lending company would want to know the location of the property, the nature of the property, revenues in the past two years, and the taxes paid. Most importantly, they would also like to understand how the property will be managed and what is the estimation of its performance in the real estate business.

The chance of a commercial loan approval highly depends upon the kind of information provided to the bank. It will also be a good idea if you will seek professional assistance on this issue.

Tips in Getting an Investment Loan

Here are some tips that you may want to use should you decide to join the investment game in the future:

* Keep your credit record clean.
* Have up-to-date records of your properties.
* Always be updated with the movements in the investment market.
* Be aware of the current lending rates.
* Teach yourself on how to negotiate.
* Be informed about the asset you are eyeing.
* Always have a business plan prepared.

The times now surely benefits buyers as assets are at very low prices. There may be an extravagance of investment assets following the mortgage mess. Always keep in mind, however, to evaluate the practicality of the property before you line up at the auction block.

today if you’re firm in your decision of getting in to the investments business. Lawrence Yun of the National Association of Realtors believes that inflation may further go up as a result of federal cuts. This report was published in BusinessWeek and was written by Peter Coy. It’s then important for you to invest now if you want to expand your investment portfolio.

About Author

Invest in your future now with a practical commercial loan, like an apartment mortgage or office building loans. Visit NationalCommercialFunding.com now for a free quote.

Article Source: http://www.1888articles.com/author-aidan-kellsey-7550.html

Easy Commercial Real Estate Loans

Author: Aidan Kellsey

Investors are provided with several loan packages, depending on their business and loan requirements.

Investors are provided with several loan packages, depending on their business and loan requirements. Non-traditional lending companies provide loans for $500,000 to $5,000,000 and give these at considerably reduced interest rates (1%-3%).

The Security Enforced on Loans

Purchasing business premises, expanding business boundaries, developing property and investing in commercial or residential properties are but few of the most common reasons why people apply for business loans. Negotiations on the kind of security attached to the loan are accepted for the sole purpose of letting the borrower take advantage of his/her loan.

Private lenders offer quick and dependable service to those who want to apply for a small or a big loan because they do away with the red tape and unnecessary paperwork that prolongs the loan application procedure.

Banks and other traditional lending firms offer a standard procedure for refinancing and getting a mortgage. However, the value of the collateral and not the borrower?s credit history is the major consideration of lenders when approving commercial loans.

In applying for a commercial loan, you are required to make use of a commercial real estate property as security. It must be in good condition, otherwise lenders will charge you with a bigger downpayment or disqualify you for an apartment loan while they evaluate your application using the loan-to-value ratio.

The Buyer-Seller Transaction

Commercial real estate loans need a buyer-seller relationship. Before one can select an investment property, one must check the available estates for sale to seek out the best property and get top value for one's funds. Sellers have to ensure that their estates are in top condition and the documents are available for reference.

When buying a property, buyers assess its location and condition. Because buyers don?t like to incur more travel expenses when checking on the property and dislike to inconvenience possible customers, they want ease-of-access and less traffic. Good condition is important as the opposite would require added expenses to take care of primary repairs.

The LTV Ratio and Commercial Real Estate Loans

The loan amount is calculated using the loan-to-value (LTV) ratio. This figure is the ratio of the amount of a loan to the appraised value of the property pledged as security. For instance, an estate quoted at $180,000 will give a borrower $150,000 for the loan.

The LTV ratio is indirectly related to the risk of the borrower. This suggests that high risk borrowers, or those with not-so-good credit history, are given lower LTV ratios. In addition, by giving high LTV ratios, lenders are shielded from the pressures of foreclosures. In isolated cases, a full ratio may be awarded to the deserving borrowers.

In general, factors such as the borrower?s credit standing, success and type of the business you are managing and nature of the estate about to be purchased are evaluated by the lenders before approving a commercial loan. The good news is, the NCF has a better way of processing loans as compared to those of the traditional lenders.

About Author

Start investing with low-interest commercial real estate loans, multifamily apartment loans, or mobile home park loans. Visit NationalCommercialFunding.com today and get the loan that's suited for your investment needs.

Article Source: http://www.1888articles.com/author-aidan-kellsey-7550.html