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One financing option which I have given less attention to in this blog than to other options is the “Unsecured Line of Credit”. This financing method has two things in common with business cash advance: “unsecured” and “financing”. That is where the similarities end.

Unsecured lines of credit are gaining in popularity (among those who qualify) because so many small business owners are finding that despite impeccable credit and excess equity in real estate, real estate just doesn’t cut it any more in today’s economy. In short an unsecured line of credit is supposed to make financing much more accessible to businesses. In reality… it is still pretty tough to get.

Here are some key things to keep in mind if you are looking at this option for financing your business:

• It takes 4-6 weeks to obtain an unsecured line of credit. That is, if you are approved.
• You can’t really apply for an unsecured line of credit yourself – generally, you need to hire a specially trained financial consulting firm to do it for you. Yes, it really is that complicated.
• The minimum acceptable credit score is 680.
• You generally have to have been in business for at least two years.

I stopped here. I suppose working for FastUpFront makes me a bit biased, but compare the above with the following points on credit card factoring and you’ll understand my disgust. With credit card factoring:

1. It takes less than 24 hours to be approved.
2. Application is simple, you can do it yourself and don’t need to pay anyone fees to apply for you.
3. There is no credit check.
4. You can have been in business for as little as four months if you have been getting credit card receipts for that time.

I hope you can see why I think credit card factoring is so great. However, there are cases when you may want to consider an unsecured line of credit… like if your business doesn’t take credit cards!

Every small business owner uses credit cards — the question you should ask your self is: “Which one should I be using?”  Each credit card offers a different value – but all have some things in common.  Credit cards can help finance big purchases and they are also a great way for businesses to keep track of expenses and to push off paying, even if it is just for a few weeks.  So, where do they differ?

PERSONAL VS. BUSINESS

I generally suggest that business owners and entrepreneurs go with a business credit card for these two reasons:

1. Simplifies accounting by keeping personal and business expenditures separate

2. There are usually better rewards and perks on a business credit card

INTEREST RATES

If you plan to float a balance on your credit card, then you should make sure you find one with a very low rate.  The numbers you should be looking at are the APR  (annual percentage rate) and the terms of payment.  There are a lot of creative solutions out there to help (and attract) businesses, including a longer grace period to pay (interest free) and rebates for shopping at certain stores, or for paying early.

Side point – Although there are many cards which offer attractive introductory offers – those are often not the best cards for your business unless you are sure you won’t get caught by a jump in rates after the “introductory offer” runs out.  Make sure you keep your eye on the “big picture”.

REWARDS AND PERKS

Although rewards and perks are always great, you will often need to pick between getting the best rewards and getting the best APR.  If you pay off your balance every month anyway, then APR doesn’t matter and you can focus on the fun stuff.  Because your business makes such large purchases, a business credit card can take much more advantage of rewards programs than your personal one.  A good rule of thumb is that a reward is only useful if you are going to use it.  If your business uses services regularly, it makes sense to find ouot if there is a credit card out there that either offers rewards for it, offers it for rewards or at least has a discount.  When in doubt, go with “Cash Back”, since you will always use cash.

Here are some of the options you will see when looking into rewards programs:

• CASH BACK – Some credit cards offer between 1%-5% “cash back” on some purchases (by category or specific store) or even on all purchases.

• FREQUENT FLIER – Frequent flier points aren’t just available from the airline’s credit cards.  Be sure to check how many miles you get for each dollar you spend.  Also, many cards offer a very generous introductory bonus, after your first purchase, of 10-25,000 miles.

• GIFT CERTIFICATES – Some cards offer perks such as gift certificates for specific retailers or for gasoline.  If the certificates are for stores or supplies which you need en mass, then these may be more valuable to you than “cash back” because they often come out to more money.

• INSURANCE – Many cards include luggage insurance and other types of travel insurance for travel purchased with the card.  Many more offer car insurance for rental cars rented with the card (saving you from having to pay for extra insurance from the rental agency)

• CONCIERGE – Some higher-class cards offer concierge services, where the customer service department can make arrangements on your behalf.

• DISCOUNTS – Many cards offer discounts on services such as delivery, prescriptions, etc. 

The trick is to figure out how much you (or your business) value the different types of rewards.  When figuring this out, you may need to sit down with a list of your normal expenditures (a financial statement or old credit card statement) and looking at where you spend your money.

ANNUAL FEES and SMALL PRINT

Some cards have an annual fee, and you need to make sure you remember that when making your decision.  In many cases, you will earn back the money in rewards/cash back, but that is not always the case.  Some cards also cap rewards and don’t allow you to get more than $500 back each year.  If your business spends in the 5-digits over the course of a year, this might really reduce the value of a card.

CREDIT BUREAU REPORTING

If you want to build credit for your business, then you need to make sure you pick a card which reports to one of the major BUSINESS credit bureaus.  Many small business cards do not, rather they report to PERSONAL credit bureaus.  This not only takes away your opportunity to build credit for your business, but it greatly increases your risk of ruining your personal credit.

OTHER FACTORS

• Cost of extra cards for employees/partners.

• Security controls for employee cards.

• Ease of accounting (some cards have bills formatted in such a way that you can import them into your financial software).

Did I miss something?  Leave a comment and let me know.

I’ve spent the last week compiling info on the top business blogs – by golly there are a lot out there. So far, I have been taking John Crickett’s Top 100 Internet Business Blog list from his Business Opportunities and Ideas blog, and finding out key info on each blog and compiling it.

John’s list is based on the Alexa ratings. Most of the blogs listed there are focused on Online Marketing. I’d also like to add more business blogs with more general advice on running a business, or on other areas of business (such as financing) – perhaps some blogs similar to FastUpFront. Is your favorite business blog missing from the list? Let me know so I can add it to mine. I also plan to send John my detailed list so he has more specifics on the sites on his list.

Look for the completed list near the end of the week, or early next week. (It takes a long time to go to every site and see who writes it, what it is about, etc and then to write it all out!!  I’m a quarter done now.)

Ok, you may have heard this before, but I think its hillarious.    Of course, this would never work at FastUpFront, because we don’t ask for collateral!  This joke is going to be outdated soon. 😉

A well-dressed blonde woman goes into a bank in centran Manhattan and sits down to speak with the loan officer.  She explains to him that she will be traveling to Europe and will need a $5000 loan.  The loan officer explains that the bank will need some sort of collateral.  The woman produces keys to a Rolls-Royce parked outside.  She offers them to the loan manager, along with an envelope containing the car title.  The loan officer agrees to accept the car as collateral.  As the woman leaves, there are some snickers that she would leave a $250,000 car as collateral for a $5000 loan.  One of the bank managers takes the keys and from the loan officer and drives the car himself into the bank’s underground parking. 

Two weeks later, the woman comes back and repays the loan, plus $15.43 interest.  As she is taking her keys back, the loan officer gets up the courage to ask the question which has been nagging at him:  “While you were gone, we looked into your financial situation and we found out that you are a multi-millionnaire.  Why would you need a $5000 loan?”  She replies “Where else in Manhattan can I leave my car for two weeks, still have it be there when I get back, and only pay $15.43 for parking?” 

Who said blondes were stupid?

If you have ever been in Canada during the month of November, you are sure have to seen a plethora of red poppies on people’s lapels. Although Remembrance Day is November 11th (the US’ Veterans day), the entire nation buys and wears the little red cloth flowers in memorial of fallen soldiers from the Canadian Royal Legion over the course of the entire month. Money from the purchases support Veterans. The same poppies are worn in England. Most countries have two minutes of silence at 11am on November 11th in memory of the fallen.

On Israel’s Memorial Day (Yom HaZicharon), there are 2 separate minutes of silence (one in the morning and one in the evening) where the entire country stops, gets out of their cars, stands on their porches and listens to a siren while reflecting on the lives which have been given by its soldiers. The radio stations all play sad songs, and there are sad movies on the television.

In the US, although there are some ceremonies and some volunteers who decorate graves of fallen soldiers, most Americans consider Memorial Day to be the 3rd day of Memorial Day Weekend. This is a time to go on vacation and have fun, maybe have a barbeque or go on a fishing trip.

Now that the US is at war again, and the number of fallen soldiers is growing more and more, perhaps more people recognize the disservice we are doing to the memory of those who have fallen for our freedom. There has been a growing movement to change Memorial Day back to May 30th – so as to separate it from the “three day holiday” mentality.

What do you think?  Do you “celebrate” Memorial Day?  Or Memorial Day Weekend?  How does the 3-day weekend effect your business?  Let me know your thoughts?

My colleague, Gary Barzel, recently posted the “Definitive Guide to Turning Your Business Green”. Although it would be nice if we were all inspired to “go green” for the pure motivation of saving the environment – many of us are more motivated by the other type of green: MONEY. I’d like to expand on a few points Gary brought up, with the goal of showing that often times the two types of green are synonymous. What do I mean? Well, many of the tips Gary gave can actually save your business money.
Gary’s content is blue, my notes are green.

Many of Gary’s suggestions require some sort of initial investment. Check with your accountant to see which of these you can get special tax benefits for instituting in your business.

Operating in the Green

1. Reduce waste:

• Look for ways to reduce the use of paper in your business’ internal and external communications by, for example, setting your printer to automatically print double-sided, switching from a fax machine to a fax modem to send and receive paperless documents, using electronic forms whenever possible, and emailing letters and documents to be read online rather than printed out. Also make sure to review your company’s mailing lists. This saves money on paper, toner, filing space, etc.
  

• Recycle or refill the ink cartridges in your printer. Many stores, such as Office Max or Staples, will either recycle your old cartridges or refill them. Refilling cartridges can save a ton of money on ink. Some people even refill their own cartridges with a special syringe.
  

• Provide washable china and utensils for your employees so they do not have to use plasticware or styrofoam cups. I would actually recommend non-breakable dishes. Mugs would be the exception. Many companies spend lot’s of money on disposable cups and cutlery to keep their kitchen area stocked. The challenge here is getting your employees to clean up after themselves! Encourage your employees to bring lunch from home in reusable containers This is a great way for your employees to save money; food from home is a lot cheaper than food from a restaurant. or frequent restaurants that offer green packaging.

2. Conserve resources:

All the tips Gary gave in this section all will save you money on your energy bill each month. Each tip might save a little, but added together it makes a good sized chunk

The only exception was this one:

• Save on water with faucets that automatically shut off as well as water conserving toilets. This will save you on your water bill AND you might be able get help from your government in switching to water conserving toilets.
  

3. Dispose of waste responsibly.

Establish a recycling program in your business. Set up bins to collect scrap paper for reuse. Recycle aluminum cans, glass, Don’t forget to collect the deposits on these. cardboard, office paper and newsprint. Make sure to also dispose of your old equipment responsibly. You could bring these items to an E-Waste facility or take advantage of manufacturer take-back programs. You can also donate old equipment to Goodwill and get a tax deduction.

Don’t forget to exploit your “Greenness” for full marketing benefit. You can have an “Environmental Awareness Statement” or an “Environmentally Friendly” notice in the corner of company literterature. This will help others feel good about frequenting your business, and is great PR.

Get the best of both worlds: Get Some Green by Going Green

As children, most of us learn how to resolve, defuse and avoid conflict with our peers, parents and siblings. We may even learn how to “always win”. However, as professional adults, we often only remember how to defuse and avoid conflict; resolution escapes us. You might wonder: “What’s the difference?” or “Of course I want to avoid conflict at work!” But, the fact of the matter is, that when working with other people, conflict resolution can be a much more effective solution to potential conflict. This is true because:

• When conflict is resolved, the situation changes; this allows the employees to move forward without cycling continually around the base issues. When we don’t face the conflict and work through it, we avoid and/or try to defuse it instead. If this is the case, the issues underlying the conflict do not change, they will just be compounded. So there will always be the SAME conflicts to avoid and to diffuse.
• New information and ideas are discovered through conflict resolution. When a team is committed to resolving a conflict, they will be more certain to hear everyone’s view point. Many conflicts may be based on misunderstandings, or mis-aligned goals. When everyone involved names the issues as they see them, it is likely that new possibilities will surface. New possibilities not only can render the conflict obsolete, but can lead to innovation.
• Team building. The experience of experiencing conflict, facing it and successfully resolving it will strengthen a team and build trust. A team who knows they can resolve conflict with each other will work much effectively, and they won’t be afraid to bring up important issues. This, in turn, means that important issues will get dealt with instead of being tabled indefinitely for fear of conflict.

So, if you decide you want to take the risk and try facing and resolving conflict – how do you go about it successfully?

1. No playing dirty. Keep it role/behavior focused – don’t attack a person’s character. On top of this, make it clear that you are not attacking the person’s character.
2. Don’t take it personally. On the flip side of not playing dirty is remembering that other’s are also focusing on your role/behavior. If it feels to you that there are people “playing dirty” – call them on it. And don’t forget to let them know how it makes you feel/react.
3. Lay it all out. No conflict will be truly resolved if you do not share all the relevant issues as you see them. Don’t try to “tone down” your thoughts because you are unsure how they might be received.
4. Don’t back pedal. If you meant something, don’t say “I didn’t mean it,” just because others responded negatively. If you tell someone that you don’t like how they did something, don’t say “It really wasn’t so bad” just because they seem upset by your feedback. When you back pedal, it sends conflicting messages, and it detracts from your message.
5. Keep to what you know. If you suspect something, or are “making up a story” about something happening – verify it! If you act on assumptions regarding what others are thinking/feeling/doing, then not only will you be ineffective at resolving conflict, but you will look like an idiot. You can always ask – more often than not, you will get an honest answer.
6. Empathize. When we are involved in a conflict, it is easy to forget that our “opponents” are people too. It is much easier to think of them as “the manager”, “the accountant”, etc. After that we start thinking of them as: “the thing which is blocking progress” or “the one standing in my way.” When we think this way, we lose influence with other people, because they see we are focussed only on ourselves, and that we don’t care about them. If instead, we remain aware that we are dealing with “real people” with real emotions, real goals and real desires, then we will be able to resolve conflict with them much more effectively.

The “rules” I have outlined here are true for all sorts of conflict, in all venues.

Happy fighting!

The topic of workplace bullying has been grabbing the spotlight in recent years. Far from those playground days when the class bully would wait to pounce on his victims as they made their way to and from school, in the work environment, physical threats are replaced by emotional and psychological harassment that can at times be very subtle. According to a survey conducted in fall 2007 by research firm Zogby International, over a third of American workers responded that they had experienced bullying at work.For the victims of workplace bullying, life can be tortuous. The negative effects of bullying show up not only in general work performance and job satisfaction, but also in the victim’s psychological, emotional, and physical health.

Victims of workplace bullying, however, do not have to respond passively to their situation. Here is a series of steps that victims of workplace bullying can do to regain control over their lives:

1. Recognition. The first step towards properly defending yourself against a workplace bully is to recognize that you are being bullied in the first place. Common signs of workplace bullying include:

repeated mistreatment in the form of verbal abuse, offensive conduct or behaviors (verbal and nonverbal) which are threatening, humiliating or intimidating, and/or preventing work from getting done through interference or sabotage.

Workplace bullying will often involve other workers who will then side with the bully, either voluntarily or through coercion, and it usually undermines legitimate business interests when bullies’ personal agendas take precedence over work itself. (Workplace Bullying Institute)

2. Acceptance. Once you have recognized the fact that you are being bullied, you need to validate and legitimize your feelings next to it. Workplace bullying is held at the same level as sexual harassment or physical abuse which are known to cause detrimental effects to the victim’s physical, emotional, and psychological health. So if you are experiencing any form of distress as a result of workplace bullying accept the fact that it is normal.

3. Monitor your health. According the Zogby survey, 45% of victims of workplace bullying suffer a host of stress-related health problems including: high blood pressure, hypertension, neurotransmitter disruption, and Chronic Fatigue Syndrome. They also suffer from a slew of psychological and emotional issues, such as anxiety, Depression, and Post-Traumatic Stress.

In order to break the hold that your bullying co-worker or boss has over your life, you must first address any health related issues with a qualified professional.

4. Research your options. Seek advice (preferably from someone outside of your work environment) over what you can do in your given situation. Research state and federal law to see if any legal action can be taken (usually only in cases that involve some form of discrimination or sexual harassment). Consider looking for a new job or a transfer to another part of the company.

Trying to convince employers, even from a financial or business perspective, to do something about your workplace bully may end in frustration, but you should also consider this option.

5. Take action. Once you have researched your options, choose the one that makes the most sense for your health and well-being. Your ability to rebound from your bullying experience will depend on how well you considered you options and acted on them.

In short, you can gain control of your life even from the worst workplace bully.

“The fastest way to succeed is to double your failure rate.” – IBM’s Thomas Watson, Sr.

“There is something about losing and coming back from it that burns character into a man’s soul, breeds confidence without arrogance, and makes a man believable when he talks about problems.” – John Sears, Campaign Manager for Ronald Reagan

____________________________

Many scientists, business leaders, and sport coaches all believe the same thing: the road to success is lined with failures, and every failure can bring you closer to success. Wise risk-taking opens doors, but how do you know when it’s wise? How do you convince your team members that risks are worth taking? And, how do you get the most out of each failure?

• Make sure you have an exit strategy, or that you somehow take into account that the majority of your risks might fail.

• Encourage communication across the board – collaborate with others. This will only work if there is not a destructively competitive atmosphere in the group you are working in. Your failure might give someone else an idea, or vice a versa. Many successes, from Post-It notes to Silly Putty, came from someone’s failure.

• Analyze, Analyze, Analyze. After every failure (and after every success) you have you analyze what made the endeavor succeed/fail. That is the only way to learn, and succeed the next time.

• Admit your mistakes. Others respect when you admit your failures, and it makes them feel more comfortable taking risks around you. Also, as I mentioned in point 2, with collaboration, you could turn your failure into a success. You also can’t analyze (point 3) very well if you don’t even admit the problem.

I wish all of our readers many successes, and only the most useful failures. 😉

Read How to Avoid Being Screwed by Customer Service (Part I) first.

A supervisor can help you. They have:

• More ability to provide perks/freebies/refunds
• Power to put a note (good or bad) in the file of someone else you spoke to.
• Special training to deal with customer grievances to prevent them from escalating to the higher echelon/legal channels.

Don’t:

If you are obnoxious and just seem like you are out to get something, then it is unlikely that you will succeed. If you yell and threaten, it is also unlikely you will prevail. Unless you are a lawyer, the supervisor probably knows laws relating their industry better than you do.

Do:

• Be polite.
• Use the person’s name as often as possible.
• Take thorough notes.
• Be honest.

How Your Side of the Call Should Go:

1. Thank the supervisor for taking your call.
2. Briefly summarize any positive experiences you have had or have heard about their company.
3. Calmly and correctly outline your issue from the beginning.
4. Describe the response you received from the customer service agent.
5. “How do you advise we solve this problem so that I can feel good about your company again?”

Next Step: Lawyer

If you don’t feel that you have been properly treated, and you still want to put up a fight, then you can take your notes to a lawyer to see what your options are.

Good Luck!