SBA Economic Injury Loans

For those of you have suffered economically from the recent floods, there are loans available. The SBA Economic Injury Loan is designed to help a business that has suffered substantial economic injury, regardless of physical damage, and is located in adeclared disaster area.

Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses. An Economic Injury Loan can help you meet necessary financial obligations that your business could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster.

In a nutshell, if you are unable to pay bills, because others owe money or lack of revenue due to the flood damage, this loan can be very helpful. However you should keep in mind that this is a loan, and if your business cannot handle additional debt, this will not be good route.

To apply for this loan online, go to https://disasterloan.sba.gov/ela/Default.aspx.

To simply learn more about the Economic Injury Loan, click the following link:

http://www.sba.gov/services/disasterassistance/businessesofallsizes/economicinjuryloans/index.html

How to Get Your Business Back on Track after a Disaster

We have definitely had our share of disasters in the Middle Tennessee area over the last few years (tornadoes, ice, drought, flood, etc.). Some of you may even be experts at getting your business back up and running. For those who are new to this, there are a million things running through your mind as you try to decide what to do next. There is no doubt that the next several weeks will be hectic. So the question; where do you begin?

The first thing you have to decide is “what does it take to make my business run”. What are the items you cannot do without? I have identified a list of these “must haves” for most small businesses:

Insurance:
*Your insurance agent will be a busy person for the next several weeks, so do not delay contacting them to inform them of what damages you have. Don’t assume that everything will be covered and make sure to document all of your losses.
Property:
*Make sure your facility is safe and free of water and debris before returning.
*Find an alternate worksite from which you can conduct business.
*If necessary, allow employees to work from home for a period of time. Yes, they may be more distracted at home, but if your workplace is not safe, it is the lesser of two evils.
Records:
*If you have water damage to your computer or laptop, you need to get your hands on another one as soon as possible. You will want to install your programs that you used to run your business, whether that is QuickBooks, Microsoft Outlook, spreadsheets, or any other contact management or industry specific software that you utilized. Once you do that, you can restore your backed up data (this is assuming that you backed up your computer files to something that wasn’t washed away) and get started.
*Gather all of your paper files, wet or not, and identify the processes that may be documented for operating your business from contacting clients, to tracking finances, to distributing your product or service.
Customers:
*Communicate to key customers that you are still operating.
*Use this time to also check on your customers and identify ways that you can support them through this process.
*This will be a difficult time for you financially, but if you carry an Accounts Receivable, you may want to work with several of your customers on payment plans, during this recovery period.
Equipment and inventory:
*Gather any lists of equipment and inventory that is on hand and check for any “unaccounted for” items.
*Order or even borrow any items that you need to operate your business, such as computers, inventory, vehicles, manufacturing, etc.
Employees:
*Locate your employees and make sure that they and their families are okay. If necessary, try to assist them in finding medical care, housing, food, and other necessities before bringing them back to work.
*If all employees are unable to return to work, make sure that you have identified the critical tasks necessary to operate your business and delegate them.
*You may need to modify office rules and procedures for a period of time. Dress codes, rules about children in the office, and restrictions on using telephones for personal business for example, may need to be temporarily disbanded during this recovery period.
*Make sure your employees are ready to come back to work. Exhaustion and lack of sleep can decrease alertness, impair judgment, and make people more vulnerable to accidents and mistakes.
Suppliers:
*Gather a list of all your suppliers. If they are local, they may have the same issues that you are dealing with now, and you may need to make alternate plans for supplies.
*If you are having trouble collecting Accounts Receivable during this period, you may ask your suppliers to work with you on payment plans as well.
With questions regarding SBA Disaster Loans you should visit: https://mail.tsbdc.org/exchweb/bin/redir.asp?URL=http://www.sba.gov/services/disasterassistance/index.html. Generally, SBA Disaster Loans are loans that are made available to help you cover losses that insurance does not cover.

Small Business Loan Workshop Coming Soon!

The How to Apply for an SBA Community Express Loan Workshop will be held at Volunteer State Community College in the Betty Gibson Building on May 12th, 4:00 – 5:30 p.m.

Are you looking for a small business loan for $5K, $10K or $25K?
Apply for a loan at this FREE workshop!

Register at http://www.tsbdc.org/ under the Training tab.

Learn step-by-step how to apply for the SBA Community Express; Patriot Express & Export Express Loans.
Loans are available in following amounts:
· $5,000, $7,500, $10,000, $12,500, $15,000, $20,000 & $25,000
These loans are SBA-guaranteed and payable over 10 years with no prepayment penalty! This is NOT a credit card loan.
SBA Community Express Loan Program Highlights:
· Loans up to $25,000
· No financial statements or collateral required
WHO: Full-time and part-time businesses are eligible.

IMPORTANT NOTES
Bring the following if you wish to apply for a loan:
Photo copy of your driver’s License or official ID,
Social security number or Evidence of LPRA status if not a citizen
Federal Tax ID number (if applicable), and
Your Business Checkbook.

All partners, principals or co-owners of the business must apply together.
Those with a criminal history or anyone who has defaulted on a government loan including student loans is not eligible. Non-profit businesses are not eligible.

Time to Dust Off the Business Plan

This is the time of year that a lot of business owners start looking at a vacation from their business. I’m sure that the landscapers think that I am crazy, but for many business owners this is true. And it is understandable too. The kids will be out of school, the weather is nice, and you rationalize that you have the rest of the year to make your revenue goals.

This is also a good time of year to update the business plan that you developed five years ago. It is probably filed away or on a floppy disk somewhere. A business plan should be a work-in-progress. Even successful, growing businesses should maintain a current business plan. It should be a road map for your business to follow. The importance of a business plan is even more significant now, especially in the face of economic uncertainty. A well developed business plan can help you reconnect with your customers, create happier employees, give you Key Performance Indicators (KPIs) to know when things are going well, and most importantly allow you to work on your business, instead of in your business.

I usually hear the argument that an existing business does not need a business plan. Business owners will also give me the example of how they know of a particularly successful business owner that never developed a business plan, so that proves that a business plan is pointless. That is like saying basketball players don’t need any college experience before playing in the NBA, because Kobe Bryant and Kevin Garnett did it, and hey, they’re all-stars. But for every Kobe Bryant and Kevin Garnett there is a C.J. Miles, Ricky Sanchez, James Lang, Korleone Young, Ndudi Ebi, Kwame Brown, Darius Miles, Sebastian Telfair, Jonathan Bender, Leon Smith, and a dozen other kids that we have never heard of that tried the same thing. Chances are you never heard of these guys and if you did it was for the wrong reasons. So the question is, are you a Kobe Bryant or Kevin Garnett of your industry? If not it may be time to dust off the ole business plan.

If you are interested in jump starting your business plan you can use a business plan outline and websites for research on our site, http://www.volstate.edu/TSBDC/Documents/Business%20Plan%20Outline.pdf.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

More on Small Business Loans - The 5 C's of Credit

Below are the 5 C's of credit that lenders use when they consider a loan.

Capacity to repay is the most important of the five C's. The lender will want to know exactly how you intend to repay the loan, while considering your past credit history and cash flow.

Capital is the money that you will personally invest in the business. Lenders usually want at least a 10%-20% investment from you. This indicates to them that you are willing to risk some of your own money.

Collateral or guarantees are forms of security you can provide the lender in case the loan is defaulted on. This means that the remaining 90%-80% of the loan will need to have something to collateralize or guarantee it for you. This is usually real estate or a fixed asset.

Conditions is what the money will be used for. Will the money be used for working capital, additional equipment, or inventory? The lender also will consider the local economic climate and conditions both within your industry and in other industries that could affect your business.

Character is the general impression you make on the lender. This is made up of your experience in running a business, in this industry and the "gut" feeling they have about you.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Small Business Loans

Right now lending is as tight as it has ever been, however, it is not impossible to get a loan. We have had several clients obtain financing over the past year, but they were more than qualified. I often get questions about how to get a small business loan. Below is what a bank is commonly looking for, especially in a start up business.

Obtain capital/loan if necessary. You will need the following:
1. A complete business plan that discusses how this loan will positively benefit your business.
2. A sources and uses list:
*How much the entire project will cost.
*How much of your own money you are putting into the project (20-25%).
*How much money you need to borrow.
*Provide a list of how the funds will be used (be specific).
3. A completed personal financial statement.
4. Two to three years of tax returns.
5. Cash flow projections for one to three years.
6. If applicable: Copy of leases, purchase and sales agreements, partnership agreements.
7. A completed loan application (provided by the lender).
Any other information that you feel may be helpful to the lender.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Break-even example

Let’s take a look at the example below to calculate break-even for Bill’s Lemonade Stand:

• Fixed Costs=(Rent, insurance, marketing) $300
• Gross Margin % (Covers cost of lemons, water, sugar) 30% (for every $.10 sale $.07 covers immediate costs)
• Break-Even, (FC)/(GM)%, $300/30% or .30 = $1,000

So how many sales will the lemonade stand have to make to break-even?

Divide the break-even point by the unit cost. In this case the break-even is $1,000 and each cup of lemonade is sold for only $.10. $1,000/$.10 = 10,000

This means it will take 10,000 cups of lemonade per month to break even. This will now equip Bill with the information he needs to be successful in making business decisions. It sounds like Bill may want to raise the price a little.

If you would like to take a more in depth look at calculating your break-even use the link below. You will be able to identify the number of units that it will take to break-even. Units could be the number of products or services you have to sell to break-even. http://www.dinkytown.net/java/BreakEven.html

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Break-even for Small Businesses

What is break-even? I could give you a multitude of different definitions and formulas that could make your head spin. However, I think I will opt for the down-to-earth definition. Break-even is the point at which you are not making any money and you are not losing any money. You are simply breaking even.

Knowing your break-even point is one of the most important pieces of information that a business owner should know. Whenever I ask someone if they know what their break-even is, I always get the answer of “I have a ballpark idea of what it is”. This is not good enough to make important decisions in your business such as hiring additional personnel, buying a piece of equipment, or offering a new product or service. You need to know exactly how much money it takes to break-even.

There are a variety of different ways to calculate your break-even point. For the sake of this blog, let’s use the simplest one, which is:

Breakeven = Fixed Costs (FC)/Gross Margin (GM)%

Fixed costs are any costs that your business incurs whether you make money or not, such as, rent, utilities, insurance, taxes, office expenses, etc. Gross margin percentage is what you make after pay immediate expenses associated with the product or service you offer. This could be materials to make the product, payroll for the service, and even sales commissions.

Next week we'll look at an example of how to calculate break-even. And when I say we, I mean me, my wife, and the one other random person that may read this.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Cash Flow for Small Businesses

One of the big issues facing small businesses is trying to figure out where your money is going. Many times you can show a profit on an income statement, but the cash flow (real money in, real money out) will be almost negative. Here's a tip. The cash flow CAN NOT be negative. When it hits the red line, it is usually game over, because there is no money to pay the bills.

Don't ever think you're too busy making sales and working in your business to worry about your cash flow. This way of thinking is the same as burying your head in the sand and just hoping everything will work itself out.

Click here, http://www.volstate.edu/TSBDC/tools.php, for a financial worksheet to get you started.

Remember, your cash flow is not the same as your profits. You can have a profitable business, but a negative cash flow. Prepare a monthly cash flow statement to ensure that you don't get caught unexpectedly without enough cash to handle your day-to-day operations.

Do not hesitate to call or email the TSBDC for assistance in putting together your cash flow.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Interviewing

One question that I get quite a bit is, "How can I make sure that someone can do, what they say they can do, during an interview?". Unless you can get them to agree to a polygraph test, you will have to rely on your own sleuthing skills. One way I have found to be successful for the small business owner is to ask behavioral style interview questions. Behavioral style interview questions ask the candidate how they have handled a particular situation in the past. You may ask for a specific example as well. Instead of asking “how do you handle stressful situations”, ask “how did you handle a stressful situation at the last company you worked for and what was the result”. This prevents elaborate, made-up answers that may or may not have any actual substance to them. What you are looking for is someone who has experience with the skill set that you are seeking. To find more examples of behavioral style interview questions review this link http://career.berkeley.edu/Article/010928a.stm.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Data Backup for Your Small Business

Eventually, almost every computer crashes and takes your data with it. Data files such as, QuickBooks®, Microsoft® files (Outlook, Word, Excel, Access, PowerPoint), pictures, industry specific software databases, or anything else could be lost forever. This can be detrimental to any size business. You need to make an effort to back you data up daily. You can use a variety of methods ranging from something as simple as a DVD backup to something a little more substantial, such as an external hard drive. A flash drive is convenient and easy to use, but not exactly a long term solution.





If you are looking to use an online service and do not have a substantial amount of data, try using a free or inexpensive service to begin with. Consumer Reports suggests the data-backup service Mozy (http://mozy.com/). They say it offers the most features and control, scheduling backups is easy, and customer service is quick and helpful. The service is free for up to 2GB of data, and $4.95 per month gets you unlimited storage. Another service, Xdrive (http://xdrive.com/) lets you store up to 5GB for free; $9.95 per month gets you 50GB.



I’ve always said that the best option is the one that you will personally remember to use. If you feel you need additional assistance, it is always a good idea to consult an I.T. professional.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Time Management Tools

It usually seems that something is always stealing the business owner's time. It's time to enlist some help. The best way to embrace time management is to use one of the following tools:

1. A Day-Timer® - This uses a proven system that is inexpensive and allows you to easily prioritize tasks and document important items.
2. Microsoft Outlook® - This software is a robust calendar, task list, and contact database all rolled into one. It gives you the ability to set electronic reminders that will keep you on task, keep track of all of your tasks and allow you to prioritize them, and keep up with everything that you do with a contact.
3. A PDA/Cell Phone – You can use virtually any pda or cell phone to keep contacts and to set reminders of important activities. In many cases a pda or cell phone can even sync up with Microsoft Outlook® to keep you on track on the road or at your desk.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Organization Chart

All of the tasks and activities that you identify to reach goals need to be assigned to someone in your business. The best way to do this is with an organizational chart. Even the smallest businesses should have an organizational chart. An organizational chart allows you to not only identify what departments your organization has, but also to identify what departments that you will need to create. You can then begin to plug in existing employees. Lastly assign tasks to each of the existing employees and you will then get a good idea of how large your organization will have to grow to reach your business goals.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Corporate Buzzwords vs Small Business Buzzwords

Corporate Buzzwords
One of the benefits of being a small business owner, is that you get to avoid some of the most commonly used corporate buzzwords during the course your work day. For example:

• Thirty Thousand Foot View: The big picture.
• At the End of the Day: The final result.
• Game changer: Do something different.
• Value-add: If we spend money or change processes, something good needs to happen.

"At the end of the day, we need to look at this from a thirty thousand foot view to see if this new product will be a game changer and give us a real value-add for our customers."


Small Business Buzzwords
The realm of buzzwords could go on and on. In fact, they do go on and on. One thing that I have noticed over the last couple of years is that some of the corporate jargon has slipped in to the small business world. They are simpler words, but they are on their way to becoming as annoying. For example:

• Opportunity: Give me the chance to sell you something.
• Partner: Actually sell you something and maybe vice-versa.
• Resources: Money, assets, time.
• Leverage: Take those resources and use them.

"I would like to meet with you to see if we had the opportunity to partner together and leverage our resources."


I'm not saying that you shouldn't massage the English language once in a while, especially if you need to be tactful or even creative. Just be aware that the person or audience you are addressing is probably aware of possible, hidden meanings. If you want to sell someone something, don't be afraid to tell them how it will make their life easier, especially if it will. You don't have to bowl them over, but please don't try to trick them into thinking you are just having a cup of coffee either. That will kill a potential "partnership" and "opportunity".

To learn more about buzzwords, check out these websites:

http://www.businessbuzzwordbingo.com/bbbingo.html
http://therussler.tripod.com/ling/corporate_buzzwords.html
http://www.buzzwhack.com/buzzcomp/indac.htm

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Marketing: 3 Things a Day

One of my favorite quotes from author John Maxwell is "The whole idea of motivation is a trap. Forget motivation. Just do it. Exercise, lose weight, test your blood sugar, or whatever. Do it without motivation. And then, guess what. After you start doing the thing, that’s when the motivation comes and makes it easy for you to keep on doing it. "

The reason I find it appropriate for marketing is because so many small business owners are looking for some type of encouragement to get them out the door and sell their product or service. Don't worry about the motivation. Just get out there and do something! Once you start doing it on a regular basis, it will become habit, and then the motivation will come.

To get started write down at least three marketing activities that you can do every day to attract the potential customer. Use a calendar, your PDA/cell phone, or a string on your finger if necessary to remember to do these three things, but the key is to do them! I would suggest thinking about who your best type of customer is and implement marketing actions to get that same type of customer again. If you are completely befuddled as to what to do, then try any of the following activities:

* Knock on doors, call, email, or send direct mail to prospective customers.

* Attend at least two networking events per week.

* Do a press release.

* Give away free samples or give away your product or service on a trial basis.

* Call existing clients and ask for more work or referrals.

* Put a magnet on your car.

* Partner with another business, in a different industry that has similar customers, and send each other referrals.

* Offer to do any type of speech or seminar on a specific topic (not a sales pitch) for free.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Focus Group Study

Once you have identified who your target market is, you can then develop a focus group study. Focus groups provide tremendous opportunities to evaluate your products, services, or even new ideas. Basically, focus groups are interviews, of 6-10 people at the same time in the same group. You can get a great deal of information during a focus group study. You can perform a focus group study in five steps.
1. Prepare for the Focus Group Study – Invite people to the focus group that belong to your target market. It is usually very helpful to provide an incentive for them to spend an hour or longer of their time, such as discounts or a free meal.
2. Develop Questions – Create five or six questions that will facilitate a discussion on the topic you want to cover with your target market. Make sure that you can quantify the results and that you don’t just have a bunch of open-ended answers.
3. Plan the Session – Have a clear agenda, refreshments, clear ground rules (don’t let one person dominate the study), and have it at a time that is suitable for those involved.
4. Facilitate the Session – Introduce everyone, make sure everyone is on the same page regarding the agenda, get even participation, and make sure to take plenty of notes.
5. Evaluate the Results – It is important to tally the results and to not let your “gut” react to things you heard. Then create a plan to make changes to your business according to the results of the session.
If you would like a Focus Group Study template, simply email me and I will be happy to send you one.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Small Business Resources in the News

News Channel 5 just did a story about small business resources available in the Middle Tennessee area that featured the Vol State Tennessee Small Business Development Center and Perkins Drugs in Gallatin, TN.

http://www.newschannel5.com/Global/story.asp?S=11006203

Customer Loyalty Program

We have all heard the statistics on how much easier it is to keep a customer than it is to create a new customer. Well here are some steps for creating a customer loyalty program that will allow you to keep your customers and create new repeat customers.

1. Track every possible customer. Get the names, phone numbers addresses, and especially email addresses of the customers you deal with on a regular basis. There are several good contact management programs available, such as Microsoft Outlook, that many folks have already. Then ask them to join your customer loyalty program and make the program available at every point-of-sale.
2. Give your repeat customers special offers not available to the general public. Either give them a discount, special buying terms, or something for free (even if it is something small).
3. Let your repeat customers get the first shot at new products and/or services. This will make them feel special and it will allow you to test the product or service before offering it to the general public.
4. Tell them thank you! This doesn't cost anything! Simply send them an email or if you really want to get into this, pick up the phone or write a personal letter. Actually hand write it the letter. Nobody does that anymore and people love it.
5. Be creative when deciding how create loyalty. Nobody knows your customers better than you. Also, don't be afraid to ask them what they want. Makes life easier.
6. Lastly, do not make the rules for joining your program difficult. If there are too many rules to joining, the reward system could end up being more trouble than it is worth.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Small Business Grants....

Or as I like to call them unicorns. Small business grants have always been a hot topic, especially now. As stimulus money is being distributed, we wonder, what about me? Then guess what? We see these friendly folks on tv (usually on late at night) telling us about all of this "free" money being made available to you! You want it, right? Well of course you do! After all it's really your money to begin with. All you have to do, is send them $30-$300 to get the ball rolling. Oh by the way, do not ever, ever, ever, ever, ever give someone money up-front for something that is supposed to be FREE.



In reality getting a small business grant to start or expand your business isn't very likely. This is why I make the comparison to unicorns. See, if we had to draw a picture of a unicorn, most of us could do it. If you thought long and hard about it, I'll bet you could even think of a friend (albeit a childhood friend) that claims to have once seen a unicorn. But when it gets right down to it, you have never actually come face-to-face with a unicorn. The same goes with a small business grant. Sure they may be out there somewhere, but the only ones that I have come across are for non-profits, educational institutions, government projects, and even for workforce development training, but not to start or expand a small business. That doesn't mean they don't exist, but trying to locate one might be as worthwhile as trying to find a horse with a horn sticking out of his head.


You may be better served to learn more about the updated SBA lending programs that are part of the 2009 Recovery Act, http://sba.gov/recovery/index.html, or sit down with your local TSBDC counselor, SCORE counselor, CPA, banker, or anyone else that can review your financials and help you find the light at the end of the tunnel.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Do your own cash flow projection

One of the recurring issues that I see from clients is the “I seem to be making money, but don’t have any money” scenario. This is not uncommon. One of the biggest issues small businesses face is managing their cash flow. To many entrepreneurs, it is also one of the more intimidating aspects of a business. Cash flow is different than just looking at a profit and loss statement. Cash flow statements show money coming in the business and money going out of the business, in real time. The best way to find out where your money is going is to put together a cash flow projection.
Below is a link to our Business Tools. One of the tools is a financial worksheet that you can use to create a cash flow projection. Simply fill out the yellow fields in the “income statement” tab and it will auto calculate the cash flow projection. If you need any help in doing this, give me a call or email.
http://www.volstate.edu/tsbdc/tools.html

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdcThe Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.

Consider using automatic drafts or credit card transactions

Instead of carrying an accounts receivable, you may want to consider using automatic drafts from the customer’s bank account or use automatic credit card transactions. You can set up payments on a certain date or on a recurring basis. You will incur some costs to get this set up and may even incur costs each time the transaction occurs, however, it may be well worth it in the long run.

Let's take a Day Care for example.

(pwease don't kick us out, we're wittle)

If you have a few customers who are consistently late, you could have serious cash flow issues. The insurance, lease, and payroll won’t wait for these delinquent customers to pay you and you feel like the bad guy each time you have to remind your customer that Little Johnny’s and Little Susie's care isn’t free. If you set up an automatic draft out of the customer’s account for each Monday, you could solve that collections issue. You can make it mandatory for all new customers and slowly implement it for your existing customer base.

The TSBDC offers free and confidential one-on-one counseling for existing and start up small businesses. To register for go to www.tsbdc.org.
Other contact information - Phone (615) 230-4780 www.volstate.edu/tsbdc
The Tennessee Small Business Development Center Network is funded by the U.S. Small Business Administration and local community donors.