University of La Verne SBDC Small Biz Blog

  The right pricing model can make all the difference in the success of your business, yet it's often overlooked and undervalued. In this article, we will delve into the world of pricing models and show you how to make the most of them. From cost-plus pricing to percentage pricing, I will cover the most effective pricing models and help you determine which one is right for your business. Don't let inaccurate pricing hold you back any longer. Hourly Pricing Hourly is a pricing model that is commonly used by service business freelancers just getting into the market. Typically they pick a number they can live with. Ideally you want to base it on what you made before in your old job or to at least cover your expenses with the level of work and hours you can expect to work. Understand that realistically 50% of the time you wont be making money and you will be busy with administrative tasks like accounting or marketing. Alot small business owner miss this and even forget to add in a

Financial projections can often seem daunting when embarking on a business venture. In fact, they can be so intimidating that many individuals prefer to delay addressing them until the need arises. In our upcoming webinar, we will explore the following key topics: 1. Assessing the viability of your business concept. 2. Calculating the break-even point for sales volume. 3. Creating the financial projections necessary for securing an SBA loan. Getting Started Download the Google sheet and follow along  here.   You can view only. [ File > Download > Make a Copy ] so that you can create your own spreadsheet for you to keep and update. or  Download the Excel template  here .  Startup Phase Financial projections are invaluable in answering various crucial startup questions, such as: Will my business idea prove successful and feasible? What is an appropriate compensation for myself? What sales volume is required to attain profitability? How much capital is needed to launch the busines

  There are many hurdles new small businesses may need to endure when starting a business and opening a business bank account may prove to be the most confusing for some. Small businesses don’t have much money and hear horror stories about opening or having a business bank account which pushes them to use cash only, which tends to make record-keeping more difficult. In this article, we will tackle 5 myths that persist with bankers and what the truth really is. Myth 1. Banks Don't Want My Business Because it's Too Small You don’t need a lot of money to establish a banking relationship . Bankers want your business because they hope you use other services, like loans and lines of credit with the expectation your company will grow. You can open your business deposit accounts as soon as you have an Employer Identification Number (EIN) .  The FDIC’s 2018 Small Business Lending Survey found that smaller banks (up to $10 billion in assets) tend to be flexible in structuring loans for

    So you're applying for a small business loan, and you have to put together everything you need for the application. Whether you're a first-time borrower or a seasoned veteran, this information is crucial to getting your loan approved. The number of required documents can get a little daunting but in this article, I’ll list your requirements for your loan package, so you get your loan funded. 1. Business Plan When applying for a loan most lenders will require a business plan that describes your cause management and sales strategies. some lenders may only require financial projections if you've been in business for some time. a business plan will be required for all new companies to apply for financing. You can get help with creating your business plan from your local Small Business Development Center like us here at the University of La Verne SBDC. 2. Business Financial Statements Lenders will generally want to see business financial statements for the past 3 years an

Starting a business can be challenging, especially when you don't have a lot of money or investors. But with the right resources, you can still make your entrepreneurial dreams a reality. In this article, we'll explore several options for bootstrapping your business, from using special tools to asking friends and family for help to applying for microloans and SBA loans. We'll also cover grants, equity crowdfunding, and other financing options. Whether you have a simple business idea or a complex one, this article will help you find the best way to fund your venture and get your business off the ground. With a little bit of hard work and creativity, you can achieve your entrepreneurial goals and build a successful business. Bootstrapping If you want to start a business but don't have a lot of money or don't want to go to a bank, there is another option. This can work well for people with simple business ideas, like a consulting business or a small eCommerce store. If

  Learn what is required to fund your small business for start-up and growth. If you are unsure of how the business loan process works or if you qualify then join us for this webinar. In this webinar you will learn about:  Lending resources SBA loan programs Qualifications and requirements SBA loan application process Do's and don't when financing your business What is a CDC? CDCs or Certified Development Companies are private, non-profit entities with a mission to provide business financing to those who aren’t quite strong enough for bank financing. CDCs are certified by the SBA (Small Business Administration) to administer SBA 504 loans, primarily for commercial real estate. There are more than 260 CDCs in the United States. SBA Standard Operating Procedure (SOP) provides the rules, processes, and guidelines an SBA Lender may, must, or should follow. The Credit Box/internal credit policy – determines the lender’s appetite for risk. i.e. minimum FICO scores, collateral requi

Find out everything you need to start your small business so you can launch your business with confidence. Learn all the steps you need to take to start a business: from developing your plan to market research to filing your licenses in this simple step-by-step webinar, including: Business Planning Business planning resources Get the business plan template (Business Plan Outline)   Financial Projections Training  - Template Marketing Strategies NAICS Code Lookup   LA County Library / Reference USA LA County Demographics Licensing and Permits   Franchise Tax Board - Forms of Ownership LLCs & Corporations Name Search Los Angeles County Name Search for FBN (Sole Proprietorships) San Bernardino County Name Search for FBN (Sole Proprietorships)  Domain Name Search    Licenses & permits lookup Record-Keeping Record Keeping Systems    LA County Library / Lynda.com / LinkedIn Learning Outsourced accounting  ( https://bench.co/ ) Find a QuickBooks Pro Advisor Find a Professional Bu

By Joshua Botello Bookkeepers and accountants are professionals that help your business manage the money in your company and are worth their weight in gold. Accountants charge a hefty fee, while some bookkeepers run a simple business. But when do you need a bookkeeper and when do you need an accountant? In this video, I’ll cover what each professional does and stay till the end to find out which one you might need.   What’s a Bookkeeper or Accountant? So let’s start with what is a bookkeeper and what is an accountant. Let’s do a quick rundown before we get into the differences. Bookkeepers are in charge of recording and keeping financial data. The bookkeepers are responsible for keeping track of daily transactions. They are concerned with the day-to-day operations of the company. Accountants are responsible for the creation of reports. They are in charge of summarizing, evaluating, and interpreting the work of the bookkeeper. Accountants deal with financial issues such as cash flow and

  Financial projection are the most intimidating part of starting a business. So much so, that many people want to know how much it's going to take to start up. Many people just skip this step until they actually need it. In this webinar, you will learn: Determine the feasibility of your business idea Calculate the break-even sales volume Prepare financial projections often needed for an SBA loan Download the Google sheet and follow along  here.   You can view only. [ File > Download > Make a Copy ] so that you can create your own spreadsheet for you to keep and update. Start Up Financial projection can be use this to answer a lot of common startup questions like… Will my business idea work? Is my business feasible? How much should I pay myself? How much do I need to sell to be profitable? How much do I need to start the business? Common Start Up Expenses Existing Businesses You can also use this with clients seeking a loan because even if you’ve been in business for a long t

by Joshua Botello An income statement is the first financial statement that most business owners become accustomed to because it’s the easiest to interpret. Yet many of our clients just starting out are unsure how any of this financial stuff works. In this video, I’ll break down what an income statement is, its major components, and some useful formulas to better understand your business profitability. What is an Income Statement An income statement is a financial statement that shows how profitable a business is at a certain point in time. The income statement is also known as the profit and loss or P&L to show if they are making money by the job, month, or year. The major components of the Income statement include sources of income, expenses, and a net income or net profit to show how profitable the business is. The income statement is helpful because it itemizes expenses incurred by operations. All of these costs have a definitive number and business owners can pinpoint where t