New survey results from Gallup and Wells Fargo show business owners are feeling more optimistic while and managing their business loans more effectively. According to the Small Business Index which began in August 2003, optimism has bounced back to 2008 levels and is continuing to push upward. Results showed owners were also feeling better about future prospects and were confident in their current business picture. Consumer confidence is showing corresponding growth according to Gallup, signalling to small business owners that the economy is finally turning around in earnest. The same goes for economic and hiring confidence, all strong, positive indicators for businesses that the recession may finally be drawing to a close. Having available credit was integral in elevated business … [Read more...]

They may seem like minor details to some entrepreneurs, but signage and advertising affect the willingness of customers to spend money and pull in repeat patronage. A FedEx study, "What's Your Sign?" found 76 percent of consumers were likely to enter a store they weren't familiar with if its sign was eye-catching and interesting. Customers will also be more likely to talk about a small business in casual conversation if it sported interesting signage, according to the study. The results of the survey determined this put location at a lower importance than the store's sign, backing up FedEx's study from last year, "Signs of the Times," wherein 90 percent of owners said their outside advertising was a reflection of the quality of their products or … [Read more...]

 A critical refinancing program was the subject of my BoeFly Blog on May 7. You’ll recall that the U.S. Small Business Administration’s refinancing version of its standard 504 program is temporary and expires on September 17. The program also makes sense for owner-occupants of small buildings who want a 20-year, fixed-rate loan, at a current all-in rate of 4.66 percent. Buildings, fixed assets worth approximately $15 million or less may be suitable. Recent changes permit of to 15 percent of the total loan amount to include projected working capital. But Chris Hurn, chief executive of Mercantile Capital Corporation reminded me that I only wrote about half of the equation. After reading my Blog, he said that I should have included “First Mortgage Lien Pool or FMLP program.” It is … [Read more...]

The problem of getting financing isn't the only thing entrepreneurs looking for a small business loan have to contend with. There's still the issue of high prices for raw goods and consumer products. According to the Bureau of Labor and Statistics' Consumer Price Index, there's been roughly a 3 percent hike across the board for commodities prices, and with gas prices holding steady near $4 a gallon, businesses are looking for places to make up the difference. A survey by The Commercial Appeal of Memphis, Tennessee, found that just about half of the respondents are trying to match their price increases by using cost pass-through, but 46 percent weren't having luck using this tactic, and only 5 percent said they hadn't felt the effects of inflation on their … [Read more...]

Businesses are feeling somewhat more confident about economic conditions this month than earlier in the year, but they're still holding back on building inventory and feeling a bit unsure about earning trends, according to the National Federation of Independent Business' small business optimism index. A recent study may shed light on what's causing this sentiment to prevail. A survey by the Kauffman Foundation found that one of the biggest stumbling blocks new small business owners are encountering is getting their customers to pay back their debts. The most recent figures show a 12 percent leap in businesses getting late or no payment from their customer base in the last 2 years. These figures aren't keeping businesses from introducing new products and services, … [Read more...]

You may not see as many people lining up for business startup loans as in the past, according to a recent Census Bureau study. The results of the study looked at the rate of new businesses per year, with the most recent reporting period being 2010 due to the length of time it took researchers to collect and tabulate all the data gathered. According to the report "Where Have All the Young Firms Gone?" there has been a sharp decline in the number of new companies over the last six years while current rates are at their lowest recorded point overall. Regardless, the size of each new business is about the same as always. This research only tabulated the numerical data but didn't look deeper for what was causing the problem. "There are a lot of questions as to why the … [Read more...]

If you've been to the pump recently, you may have noticed that gasoline keeps getting more expensive. According to the Huffington Post, the average cost for a gallon of gas right now is just over $4. As prices continue to climb, small businesses are rethinking their transportation costs. The Energy Department said that gas will fall to about $3.79 a gallon this summer and while it's a decrease from previously projected amounts for the season, it's still hitting small businesses hard. Companies that rely on a mobile workforce will see the numbers add up a lot faster, and for companies carrying small business loans who need to see a profit to make their investment count, more and more of it is being poured directly into the gas tank. If you're looking for a small business … [Read more...]

SMB owners know the importance of a locale's economic climate when deciding where to conduct their business. There are many factors that contribute to this imperative calculation, and two recent surveys show a trend in geographically dictated prosperity. By polling over 6,000 independent business owners, Thumbtack.com found that companies favored states in the central U.S. like Texas, Idaho and Utah, while they disliked coastal states. The Tumbtack.com Small Business Survey collected a wide range of metrics to conclude which states came out on top, including how easy it was to get a business going, how much it cost to hire and train new employees, local zoning, licensing and environmental standards. Being in a good physical location can help a business thrive, but to get it started … [Read more...]

National Small Business Week is coming up and several businesses have taken initiative to offer programs to existing and forming small businesses seeking a variety of help and advice. The U.S. Census Bureau said recently that franchises make up one tenth of all business, and as part of Nationwide Insurance's celebration of National Small Business Week, the company will be providing an incentive to start-ups and small businesses looking to form corporations or LLCs. Seeing as franchises require an owner to personally guarantee performance results from a new establishment, it may be wise to consider operating under a different classification than sole proprietorship. The program not only provides information but also offers reduced fees for LLC formation. An online marketplace like … [Read more...]

The first quarter has seen slight increases in consumer spending and business optimism and that warming of the economy seems to be spreading into every aspect of business lending. A recent report from the National Association of Realtors shows business real estate ending could be seeing the same swing recently reported for other business loans. The Commercial Real Estate Lending Survey found a consistent trend of financial hardship affecting business deals for commercial loan officers for all of 2011. Almost 60 percent of respondents said they couldn't complete a credit transaction at least once due to a lack of financing, even considering that SBA loans are still available for commercial lending, and nearly 90 percent said finance was a major driving factor for their business clients … [Read more...]