You can expect to secure the maximum amount of credit available if you set up your business in a commercial office location.
A physical location that is zoned for business speaks volumes for your company and its operation.
When you apply for a loan there are certain things lenders look for to determine your business fundability. Banks always want to check if you are in compliance. Compliance basically means that you are doing everything in your power to make your business as credit worthy and prove your business fundability by complying with all aspects important to a lender. Everything in a lender’s list of requirements is geared to make sure your business has the ability, now or in theory, to repay a loan and the disposition to do so. A part of being compliant is geared toward proving your business actually exists and enjoys a good reputation as well.
To present a solid appearance, your address should be an actual street address not just a P.O. Box, and you should have a listed phone number. It is better to have a landline telephone even if you use a cell phone for most of your communication, however if you use cell service exclusively make sure it is a contract phone that will have your business name associated.
The amount of credit your business will qualify for is determined by these types of factors including company size. If you use your home office as your business address it can limit the amount of credit your company can obtain. Creditors believe it is unlikely that you can run a major corporation out of your home office.
Whereas if you have a commercial address it puts your business in a different light compared to a home based business. You can expect to secure the maximum amount of credit available if you set up your business in a commercial office location.
If you’re adamant about having a commercial address but renting office space is out of the question then you may want to consider renting a virtual office from Van Nuys Virtual Offices. Van Nuys Virtual Offices can provide you with all the benefits a traditional office gives you at a fraction of the cost.
Leasing commercial office space is one of the largest expenses you acquire when you are opening a new business or you’re expanding your business. So it is important to do your homework.
Van Nuys OfficesBasically, a lease is much like a partnership agreement in that it sets out the restrictions of a business relationship. When everything goes as planned, most any lease will serve the parties well but the true test occurs when there are obstacles in the partnership. If the lease has not been carefully drafted, an obstacle can become a major problem for either of the parties. Tenants often don’t read the entire “Standard Form Lease” or sometimes there is something they done understand what it means and if not appropriately brought to the landlords attention before the lease is signed , may not serve their interests when issues arise. On the other hand, a sophisticated tenant will often request changes to the lease that, if not fully understood, can cause unforeseen difficulties for the landlord as well.
Here are a few tips to help you when signing a commercial lease:
- First off, You always want to read the lease to its entirety, make sure you understand each term, word, clause or anything written. If you do not understand a term in the lease ask for clarification from a lawyer or knowledgeable disinterested party. Relying on the landlord or a listing agent to explain their lease is not a great idea because they could mislead you intentionally, or may not understand the lease themselves.
- How is your monthly rent calculated? The most basic equation for calculating a lease payment takes the number of square feet times the cost per square foot, then amortizes that over a 12 month span. It’s important that you understand exactly what you are paying for and what expenses the landlord will cover. Are you responsible for any costs other than the rent? Are you responsible for paying for your own utilities and garbage pickup? It’s good to understand that ahead of time.
- If there is any repairs that need to be done before you can move in, have the landlord do repairs before you sign a lease. If any work is to be done after you take occupancy be sure this is detailed in the lease including work completion times. You do not want to have your business shut down for weeks at a time because of ongoing work. Remember that any changes or improvements you make on a commercial property, unless you own that property, becomes an improvement for the land owner. This is an area to surely negotiate with the landlord.
- The lease terms. Consider the growth that you expect to see in your company in the coming years. A short-term lease may be ideal if the growth is hard to forecast, but the downside to short-term leases is that lease rates tend to change. Sometimes long-term lease agreements have the option of expansion so that growth can be accommodated. Long-term leases are ideal when real estate rental prices are low and are forecasted to rise. Short-term leases tend to lead to more frequent moving, which presents costs of time and money.
In order to play it safe, budget a six-month timeline from day one until to move-in. This will allow your company enough time to plan, find space, negotiate the deal, install IT infrastructure, make minor cosmetic alterations and move in.
Van Nuys Offices
Many people believe starting a business is a mysterious process. They know they want to start a business, but they don’t know the first steps to take. . . . . .
Understand that business startup isn’t rocket science. It isn’t easy to begin a business, but it’s not as complicated or as scary as many people think, either. It’s a step-by-step, common-sense procedure.
First step: Figure out what you want to do. Once you have the idea, talk to people to find out what they think. Ask “Would you buy and/or use this, and how much would you pay?” Determining what you want to do is only the first step. You’ve still got a lot of homework to do, a lot of research in front of you. One of the most common warnings you’ll hear is about the risk. Everyone will tell you it’s risky to start your own business. Sure, starting a business is risky, but what in life isn’t?
One of the best ways to determine whether your idea will succeed in your community is to talk to people you know. If it’s a business idea, talk to co-workers and colleagues. Run personal ideas by your family or neighbors. Don’t be afraid of people stealing your idea. Just discuss the general concept; you don’t need to spill all the details.
Hopefully by now, the process of determining what business is right for you has at least been somewhat demystified. Understand that many people around you won’t encourage you (some will even discourage you) to pursue your dream. Some will tell you they have your best interests at heart; they just want you to see the reality of the situation. Some will envy your courage; others will resent you for having the guts to actually do something. You can’t allow these kinds of people to talk you out of starting your business or influence you to stop your journey before it even begins.
What will you lose if things don’t work out? Don’t risk what you can’t afford. Don’t risk your home, your family or your health. Ask yourself “If this doesn’t work, will I be worse off than I am now?” If all you have to lose is some time, energy and money, then the risk is likely worth it. Van Nuys Offices
The decision to relocate has to be made with specific regard to the future of the business. It needs precise planning and research, the establishment needs to be faultless and the owner needs to be sure that relocating is the answer for his/her business future. Once you have made the decision to move your home business to an office, you have some planning to do.
The advantages of moving out of your home office comes down to increased professionalism, more space to work and unlimited growth potential. And less much less distraction. Renting a small office at a good price can be very meaningful.
The first decision you make when you have already decided to rent an office, should be your desired location. It’s usually a good idea to start looking at offices near your house to avoid a long commute. Of course, while this is the ideal option, it may not work out perfectly when you consider other details that greatly affect your business. You need to make sure the new location reaches your target audience, so do some research of the surrounding area to find out who lives near the building you are considering. Try giving Van Nuys Offices a call, they have small offices for short terms and for only $195 a month.
Second thing you should consider highly is making sure that all your office furniture, including desks, filing cabinets, and bookshelves, will fit into the new office space. Make sure you leave room for expansion, especially if you plan to hire a few employees soon. Also, consider where customers will sit when they come into the office. Draw a layout, measure your furniture and move your furniture around so that you can get an idea of how much square footage you will need.
Last thing after you have found your perfect office, you signed a lease, and now you’re ready to start running your business from the office. DON’T FORGET to update your address on all your licenses, bank account, vendor accounts, post office, and all your stationary. If you regularly get inventory shipments, you need to let the distributor know your company’s new address ahead of time. This can prevent you from having to move merchandise shortly after it is dropped off at your house, so be sure to update your business address. You will have to do the same for your mail and any marketing materials that feature your current address.
Launching a business requires capital. Even when a business is already up and running cash flow is important to keep things running smoothly and to allow expansion. Many businesses find there are enormous benefits from getting a small business loan.
There are a variety of financing programs that give emerging businesses the boost they need to expand and grow into a “bankable” enterprise that generates new jobs and strengthens the economy. Normally you have to have two to three years of solid financials before a money lender like a bank will even consider lending you money. Often you need to have a strong personal credit record to be eligible for a decent business loan from start-up.
There are other lenders that offer business loans specifically for start-ups so the process is easier now than it was a decade ago.
Such lenders can furnish you with a loan of the capital you require in order to get your business start-up running or to take your existing business to the next level. Getting approved for a business loan from a bank with a credit score of 650 or less can be extremely difficult. Before a lender approves your small business loan application, they will want to be certain that your business is capable of repaying the loan. This is why it’s so difficult for startups with unproven operating histories to obtain loans. In order for you to stand a chance in getting approved there are some steps you will need to take.
1. Check Your Credit History
It’s a good idea for business owners to check their credit histories before trying to get a loan. Correcting erroneous data or resolving any inconsistencies before applying for a loan will increase a business’s chances of getting one.
2. Research Potential Lending Institutions
Before you start applying for loans, you should gather some basic documentation about you and your business – such as a demonstrably good income record. The most important measure banks use in determining whether to loan money is the company’s ability to repay. Always try to approach a bank that is familiar with your industry and target market.
3. Create a Cash Flow Statement
A cash flow statement is a familiar financial statement to the banker and provides the banker with an understanding for the current assets and liabilities of the company. Banks prefer more assets than liabilities. In order to create the projected cash flow statements, you will need a detailed business plan. This is also something a bank will want to see before they approve your loan. The plan should be part of your loan application. You should focus on the details within the plan that explain how you will use the loan proceeds.
4. Invest in the Business
Invest your own funds. Lenders like to see personal investment. It is a sign of commitment. Wait until you can afford to invest your own funds before requesting the help of a lender. In general, a lender will help you to subsidize your total funding need, but will be reluctant to provide you with the entire amount.
Virtual offices are used by people and companies who need to present themselves from a high quality business location but don’t actually need to physically work from that location. This primarily applies to home workers, freelancers, business start-ups, small businesses and companies expanding into new markets. Sometimes you want to start your own business and need to save cash. Or maybe you want to test the waters of the business world before you sign a lease for an office space. Those are some of the reasons a virtual office is used.
When you apply for a loan there are certain things lenders look for to determine your business fundability. Many times lenders will check your address to make sure you are in a commercial location.
When you rent a virtual office you don’t have to worry about buying furniture or setting up the office. You will have your own mailbox so that people don’t believe someone is just forwarding your mail somewhere. No long term contracts. Your clients need never know that you are really working out of a home office…and may not even live in the prestigious Van Nuys area, or the United States. Contact us for a customized quote to see how using a Van Nuys Virtual Office can allow you to work virtually and improve your business.
The desire to own a small business hasn’t faded away, even in today’s economy. About 600,000 businesses are formed every year; roughly half will fail within their first five years. But that reality hasn’t prevented new entrepreneurs from following their dreams. With can-do attitudes, hordes of potential business owners want to work for themselves, according to USA Today.
Starting your own business is not just about having a dream. There are real steps to ensure your business a successful start. However, be aware that a high percentage of new businesses fail in their first 3 years of operation due to poor planning and management.
Step 1: Get InspiredIf you are looking for a new small business opportunity, you are in the right place. Learn how to think like an entrepreneur, take advantage of ideas and opportunity, and explore whether owning your own business is for you. Let your daily life lead the way to inspiration. Problems you have or see are a tremendous source for inspiration and innovation. We live in a world where many services can be instantly contracted or automated, and most products can be fabricated on demand. If you think it, you can create it. So, do it!
Step 2: Research Your Idea
In order for a small business to be successful, it must solve a problem, fulfill a need or offer something the market wants. There are a number of ways you can identify this need, including research, focus groups, and even trial and error.
Step 3: Write a Business Plan
Writing a business plan is important for three reasons. First, it serves as an operational road map; second, it lists goals to aim for; and third, it is a requirement of lenders if you should approach them for start-up capital. The SBA has an online tutorial to help you write a business plan. Small-business advisors like the Service Corps of Retired Executives (SCORE) can also provide assistance.
Step 4: Do you have enough money to start a small business?
It depends on your type of business and how quickly you plan to expand. You should sit down and write out how much your expected expenses will be for at least the next 24 months and how much you project to bring in as far as income on a monthly basis. There are several companies that can help you get started with funding your business.
Step 5: Start-up Expenses
Every business requires start-up expenses, which may be low or high depending on the business. For instance, the start-up expenses for a home-based business may require less capital than the expenses for the purchase or lease of a commercial structure. In general, most start-up expenses include utilities, office space, communication systems and office equipment. In addition, some businesses require licenses, permits and business insurance.
Step 6: Licenses and Permits
Federal or state licenses and permits are required to legally operate some businesses. The Small Business Administration (sba.gov) provides information regarding the prerequisite government licenses and permits for businesses. Other sources for local business regulation information can be found at the state and local level. Additionally, local government offices offer information on zoning laws and other restrictions for certain businesses and their locations. Van Nuys Offices
Finding money to start a small business takes a lot of work. To start with you will need a good business plan and several leads for small business loans and grants. There are a number of available programs to assist startups, micro businesses, and underserved or disadvantaged groups.
Start your capital search with a good business plan that shows investors and lenders your company’s potential. Follow that up with a thorough knowledge of the resources available and a determination to make your business a reality, and you should be on your way to uncovering a source that fits your new business’s cash needs.
There are several sources to consider when looking for financing. Don’t make the mistake of thinking that the only place you can find the money you need is through the bank or finance company. Explore all of your options before making a decision.
The first place to look for financing is right at home and personal savings and assets are the easiest source of capital. If you have money set aside, you use it instead of borrowing or rounding up investors.
Next, turn to members of your family or close friends who have faith in you and want to see you succeed. Borrowing from a friend or relative is generally the most readily available source, especially when the capital requirement is smaller. Relatives and people you know need fewer assurances and are more open to your ideas than professional investors.
Angels are private investors interested in making more on their capital than they can make through traditional markets such as mutual funds or publicly traded stocks. These “angels” can be your accountant, attorney, doctors or other individuals who seek out new businesses to invest in return for equity ownership. Usually providing additional capital in the range of $25,000 to $500,000, expect angel investors to demand high returns for their investments.
Either way, there are risks and gains; what you take will depend on your tolerance for risk and your personal objectives. Van Nuys Offices
Small Offices Available for rent
Law and Business Blog for Wisconsin and Illinois Dentists
Gadgets, fish finders, fishing tips, and related news
Partner of Fuzion Communications, Marketing & PR
Negosyo Tips for OFWs
The latest news on WordPress.com and the WordPress community.