Monthly Archives: March 2015

Getting a Loan for Your Business


Getting a loan for your business can be a huge challenge. It takes money to make money; however, most start-up business does not have enough money to start doing business.  Here are some potential sources to get the start-up money for your business:

Getting a loan for your business from a bank

Banks require business owners to show repayment ability and have acceptable collateral to back up the loan. At the same time, they must have good business and personal credit and a reasonable owner investment in the project.

The business owner needs to show that her business idea has merit.  Therefore, a well written and research business plan may help to convince a bank to loan money to start your business.

Angel equity

If you must sell an ownership stake to get your company off the ground, start by finding a respected industry executive who is willing to invest a reasonable amount and give your venture credibility with other investors.  It is also an opportunity to work with a mentor and expand your business network.

Ordinary (equity) shares

Once your business has started and growing, you might want to raise more cash by issuing ordinary shares. The shares may be issued to existing shareholders or investors from outside of the company.  Moreover, ordinary shareholders are entitled to receive dividends if any are available after dividends on preferred shares are paid.

Friends and family

If you’re lucky, friends and family members might be the most lenient investors. They don’t tend to make you pledge your house, and they might even agree to sell their interest in your company back to you for a nominal return.

The need for a business plan for getting a loan for your business

Lastly, a well written business plan will give investors and banks an idea of how viable your business idea or expansion plan is. Visit  for help in writing your business plan.

Starting an Online Retail Business

Starting an online retail business is not easy.

What to expect when starting an online retail business

Armando Roggio recognizes seven surprises that await newly established Bricks and Clicks retailers:

1 To manage inventory will be difficult

It is already difficult enough to manage the inventory of a single retail store when you have to plan to stock the right type and quantity of inventory during the right season. Things may be getting really complicated when adding an online channel and your customers want to purchase products you advertise online and can’t find them in your shop.

2 You should plan your online retail store the same way as you plan your physical store

Treat your online store as a new retail location. You should think about how to decorate the store, how to present products, how to attract new customers, how you would staff the shop and how you’d take payments. You should therefore prepare a new business plan for the new retail store.

3 You will need a marketing strategy

One of the most important parts of e commerce success is marketing. So when you open an online store, you will need a marketing strategy.

You should design your website to suit your customer’s requirements and needs.  A plan to use the internet to brand your retail store by using social networking sites and affiliate marketing should be in place.

4 You need compelling pictures

In a physical store, shoppers can pick up an item, feel its texture, and get a sense of the product. Online, products are primarily presented with photographs, so you will need good ones.

If you want to sell online, you will need to learn about taking good pictures and processing those pictures for display in your online shop.

5 Websites Cost Money, Time, or Both

You will either need to spend some serious time researching e commerce platforms, understanding site layout, figuring out content management, or you will need to hire someone to build your site and show you how to manage it.

6 Shipping Is Expensive

When a customer buys something from a physical store, she picks that item up and carries it out the door.

When a customer buys something online, you will need to ship it to her, and shipping is very expensive. In fact, the cost of packaging and shipping products may be one of the most expensive operations when opening an online retail store.

7 Be patient

Building a successful online business takes a lot of time. And adding e commerce to an existing retail business probably won’t boost sales significantly overnight.

Visit eBizplan for your help with your business plans and marketing plans to start your online retail business.