Financial

Funding Your Venture So you have a no-fail business idea. All you need is the funding to get it off the ground. But where do you go to get what you need to get started? A lot of new small business owners start with their own savings accounts, credit cards and home equity loans. This works great for smaller ventures. Just be careful as you are putting your own credit rating or retirement fund in jeopardy. If you use your home as collateral for the home equity loan, you risk losing that if your business does not succeed. Friends and family are the next step for funding. If you choose this method, make sure you have it in writing as opposed to agreeing on a handshake. Work with an accountant or lawyer to draw up an agreement that specifies amounts, payback dates, etc. Check the wording of your agreement to make sure it is clear to your friends and family that this is a loan and not a business partnership. A bank loan is harder to get for a new small business as most banks will require some sort of tangible asset for collateral. As you are just starting out, you don’t really have a business yet for that purpose. A lot of banks also require you to be in business for two years before they will give you a loan. But if you are a member in good standing with your bank, they may take a chance on your new business. Crowdfunding is a new method that has proven successful. This method works by investor donation through various internet sites such as Kickstarter or Indiegogo. Usually a donation will be made in exchange for a small token from your business – a t-shirt, free meal, coupon for services, etc. The competition for a government loan or grant is very steep. If you are a non-profit business or minority, or if your business will improve your community, you may have more opportunities to take advantage of this method. Check out the Small Business Administration website for further information. http://www.sba.gov/category/navigation-structure/loans-grants No matter what method you choose to pursue, you will need to have an updated business plan ready to go. Make sure you know everything there is to know about your new small business so you will be able to answer the necessary questions in order to get funding. Funding is difficult to obtain for a new small business. But once you have your funding in place, you will be well on your way to fulfilling your...

  Business  Growth for High School Students   Where do you get career advice if you are a high school student?  Building Bridges for Business, using their video series Coffee With… has created a program called See It, Believe It, Do It, that brings high school students and local business people, government officials and entrepreneurs together in a format where the students can ask questions and get support in their career decision making process.  Those who have participated have found benefit in talking to “real people” about their futures.  this is a unique high school business growth educational program.   The Coffee With…video series started two years ago but has only recently been taken to the school system.  The students, in addition to watching the film series, also get to meet those involved in the videos.  After watching, a question and answer period takes place where the students can talk about job shadowing, different stages of any career choice, or whatever is on their mind.   As high school students, there are a lot of decisions to be made.  In addition to talking to their parents about their dreams and desires, the See It, Believe It, Do It program gives students an opportunity to talk to local entrepreneurs about what lies ahead and can help young people realize that the business community is behind them.  Advice is out there if they know who to ask.  Building Bridges for Business is an outlet they can depend on for...

The Franchise Show—http://www.thefranchiseshow.net The Franchise Show is for anyone who may be contemplating buying a franchise, whether they are in the beginning stages or well on the way.  Finding the right franchise can be a difficult task as there are so many concepts to consider.   The Franchise Show gives you the chance to learn more about different franchise concepts from your own computer, by listening to live and/or recorded webcasts from some of the best franchise companies. This is not a full list of franchises available in the US ; it is only meant to show the range of opportunities and industries available.   Post submitted by John Tubridy | Principal and Franchise Specialist Franchise Network of Pittsburgh | FranNet p. 412.486.2546  c. 724.612.0961 e. jtubridy@frannet.com http://www.frannet.com/jtubridy...

How to ARM Your Select Employees for Success Provided By:  Anthony Mastro, Northwestern Mutual Most business owners would love to have employees who are as passionate about the company as they are. It makes sense: The future of a closely-held or family business depends on how securely its select employees are tied to it. But creating an environment where employees feel like owners doesn’t happen overnight. To ensure the continued success of a business, owners need to ARM – attract, retain and motivate – select employees who can help grow and sustain their business.  For many closely held companies, a well-designed compensation strategy that is directly connected to the growth plan of the business may be the answer. Here’s why. Many, if not most, businesses are sold to select employees. As a result, your ability to harvest the value of your business may be directly tied to the success of the people you leave running the company. But even in the instance of a third party buyer, the value of a business can be seriously hampered by the lack of good management team.  In fact, unless you have capable successors and employees, your closely held business may not survive your departure if your select employees leave instead of adapting to new owners and management. Tying employee’s interests with yours The purpose of a select employee compensation plan is to put “glue in the seats” for those members of your management team who are critical to the success of your business. Equally important, it’s purpose is to provide a tool owners can use to identify current and future employees who thrive on peak performance and who have the ability to think and act like an owner – and therefore, have the potential to become one. Of course, most employees recognize the bottom line to a company’s success is, well, the bottom line. But it’s also crucial that they understand how their contributions will help make that happen. A select employee compensation plan can help connect the dots between performance and results, providing a means to create and sustain long-term engagement. There are numerous methods for rewarding a select employee’s commitment, loyalty and hard work. The most effective incentive plans are multi-layered, providing short-term compensation and, in the longer-term, deferred compensation and perhaps even a stake in the business. But whether they are cash-based, equity-based or a combination of the two, effective inventive plans typically share four common features: (1) the rewards are substantial; (2) specific and measurable; (3) tied directly to an increase in the company’s economic value and the owner’s objectives; and (4) designed to vest over time. Motivational tools There are few better motivators for retaining top performing employees than making them an owner. Stock ownership provides a “golden handcuff,” tying a select employee’s financial goals and other interests to the growth and long-term success of the company. Many owners of closely held businesses, however, don’t want to involve employees in all the decision making for the business. Rather than giving or selling shares outright to a select employee, many closely held companies reward select employees by allowing them to share in the success of the business through cash-based plans, such as bonus and/or profit sharing plans, which are offered when select employees meet measurable goals; non-qualified deferred compensation plans, which provide supplemental retirement benefits for a select group of employees; or so-called “phantom stock plans” that give rights to the appreciation in stock value rather than the stock itself. Selecting the right plan for your business Retaining select employees is crucial to growing the value of a business and to the owner’s goal of one day harvesting that value.  A well-designed select employee compensation program can ARM your business for success by helping you to attract, retain and motivate the employees who can make a measurable difference in your company’s bottom line. Each of these plans requires careful planning, however, to maximize their effectiveness and to make certain that federal regulations are satisfied. That’s why it pays to speak with your attorney, accountant or financial advisor to learn more about how a select employee compensation plan can help your business survive and prosper into the future. Who Are Your Select Employees? The term “select employee” can mean different things to different people.  Generally speaking, however, select employees typically possess these three vital qualities: Their efforts have a direct and significant impact on the value of the business Their talents, skills and experience would be difficult to replace; and They participate in a meaningful way in the long-term success of the company   Article prepared by Northwestern Mutual with the cooperation of Anthony...