10 Mistakes
You Should Avoid When Applying for a Loan for Your Business
7 Ideas to Start a
Home Business
7th Edition October - December 2018
Clarksville is growing and is one of the best cities in Tennessee to live and work in. Many of the people who live here prefer to have their own business, without having to go to an office every day. Hispanos Emprendedores brings you seven ideas to start a home-based business.
ARE YOU READY TO WORK FROM HOME? Running a business from home has many advantages such as flexible hours or being your own boss. But it also requires a lot of effort and organization. It will not always be a good day and you will have to find the motivation to be consistent with your venture. Working from home has become popular, especially among younger generations. Sometimes it is not a matter of preference, but that circumstances force us to start a business of our own. Whether you are going through difficult times or have decided to start your dream company, you should know that there are many opportunities to start a home business. To choose what to work on, you must be clear about your skills and experience. You must have a passion for what you are going to do, otherwise, the time will come when you get tired of the work. Or, you will not try hard enough to have a successful business
IDEAS FOR STARTING A HOME BUSINESS If you are set on being your own boss, these are some home business ideas that you can commit yourself to. Or at least they will inspire you to discover which talents you want to use the most.
1. Teach Online Courses Do you have any skills that you would like to teach other people? Online education is very popular nowadays and accessible, for both those who give classes and students. There are various educational platforms that allow you to teach online courses. You can also do it from your own website or take advantage of social networks such as YouTube. People like this form because they can make their own schedule and they are in the comfort of their home. As an instructor, you should take the time to develop the material, obeying copyright laws, invest in technology and promoting the course.
People frequently organize events of all kinds. You can specialize in one specific type of event or do them all. When the business grows you may need to hire other people to help you.
4. Copywriter Offer your services as a web editor and start a business as a copywriter. This is a necessary profession for digital marketing and today it is highly valued. Show your skills as a writer and, in addition, you must have some knowledge about the topics you write so you will be constantly learning. You should also have marketing knowledge because your texts will be aimed at convincing potential customers to acquire a 2. Sewing Business or Fashion product or service. Design If you have the skill to make clothes 5. Social network consultant or design, then you can start a Social networks are another tool sewing business. You will have to in online marketing. If you like make an initial investment to have to spend time in front of the professional work tools such as the computer and manage active sewing machine, scissors, a large communities, this is an option. table, iron, mirror, among other Managing social networks for things. brands and companies is not the same as having a personal Set aside space in your home to profile. One must create and receive your customers. You can maintain an image, know about design and sell clothes from your customer service, learn to create home through an online store. You visual and written content for will need a business license; seek these platforms. To learn how to legal advice to learn exactly what do it, you can enroll in online or permits you need. face-to-face courses. It is not just about knowing the 3. Party Planner platforms, but also you should A profession for which you do not know how to create strategies need to have an office is that of a for social networks. party planner. You can offer your services through social networks, 6. Accounting Services create your own website or by If you are an accountant and traditional means. If you have don’t want to always be in an planning skills and like to deal with office, you can look for your own people, this is an option for you. clients and work from home.
You can advise and manage the accounting of companies and individuals. Find out what legal obligations you must fulfill to exercise this profession. In addition, you must keep up to date with tax rules. 7. Catering services Among the successful business ideas, you can start is having your own catering company. These are responsible for preparing food and taking them to parties and events. You can work just with the food or complement it with the organization of the event, wait staff, etc. For this, you must have the licenses required by law. Find out what you need to do to sell food prepared at home, and if you are going to hire staff, you will need workers permits. These are just seven ideas to start a business from home. There are many others such as selling collectibles, repair of second-hand furniture, mobile application designer, among others. Have you worked from home? Tell us about your experience. In our blog, you will find information about the permits and the process to create your own company.
Information from www.irs.gov and will simply check a box on their will not need to make a shared tax return. responsibility payment. The Affordable Care Act includes the individual shared responsibility provision and the premium tax credit that may affect your tax return.
Find out if your coverage qualifies Find out if you are exempt Report health coverage on your tax Claim or report an exemption on return Form 8965
Claiming and Reconciling Premium Tax Credit If you purchased coverage through The individual shared responsibility the Health Insurance Marketplace, provision requires you, your you may be eligible for the premium spouse, and your dependents to tax credit. have qualifying health insurance for the entire year, report a health Find out if you are eligible for the coverage exemption, or make a credit payment when you file. In addition, Claim and reconcile the credit on you may be eligible for the premium Form 8962 tax credit if you purchased health Report changes in circumstances coverage through the Health Insurance Marketplace. Claiming Coverage Exemptions Reporting Coverage Some taxpayers are exempt from the Most taxpayers already have requirement to have coverage and qualifying health care coverage,
Making a Shared Responsibility Payment If you do not have qualifying coverage or an exemption for each month of the year, you will need to make a payment with your return. Determine if you need to make a payment Reporting and Calculating your payment Shared Responsibility Payment Estimator
To start a business, you must know where and when to obtain financing in Clarksville. You need enough money to start and a plan that reflects the financial projections Hispanos Emprendedores contains a short guide so you know where to start.
SEEK ADVICE BEFORE SEEKING FINANCING One thing that’s for sure when starting a business is that you need enough money to start it. Some people invest money from their own savings, turn to relatives and acquaintances in search of a loan or request personal loans to start. By doing it this way all the risk falls on them, for this reason, they prefer to obtain some type of external financing. Obtaining a commercial loan is more complicated for new businesses or for those that have been operational for less than one year. This is due to the requirements set forth by banks and other organizations that offer financing.
To increase the chances of getting the necessary capital, it is best to get prior advice. There are different organizations willing to help entrepreneurs in this task. Among these are: • Small Business Administration (SBA): has different financing programs for small entrepreneurs, even those that are just beginning. In addition to financial advice, it serves as a link between entrepreneurs and banks. • Clarksville Entrepreneur Center: helps small entrepreneurs develop their business idea and make it a reality. They offer workshops and advice.
• Tennessee Small Business Development Center: provides advice to both new businesses and established businesses. Helps develop the business, financial and marketing plan. It also helps lets you know which the best sources of financing are. In addition to these, there are other organizations and resources that you can turn to in Tennessee if you are looking for guidance on how to apply for a business loan. Along with these alternatives, you can also consult with other business owners. While the financing needs of their company may be different from yours, they will help you know what your options are, and which institutions are trustworthy.
WHERE TO GET A BUSINESS LOAN
you can use microlenders. These non-profit organizations make small loans to entrepreneurs who have no collateral, or their credit history is not enough to qualify for financing at a bank.
2.Decide what type of loan you need. Based on what your answer is to the previous question. Among your options are family loans, lines of credit, personal loans, microcredits, among others.
• Find investors: there are people or organizations that invest capital in companies, usually in exchange for participating on the board of the company. Before investing they want to review the business plan.
3.Decide which lender is best for you. The above will help you decide the type of lender you are going to use. You already know that if the business is in its first phase it will be difficult to get financing from a bank, but you have other options that you can turn to.
• Online lenders: there are also lenders on the Internet that you can turn to. Some prefer to help companies that have already been operating for some time. But it is possible to find one that will help you.
4.Visit the bank or organization before requesting financing. Familiarize yourself with the requirements to apply for a business loan, go to the institutions that interest you and ask what you must submit and what they take • Crowdfunding: are people or into consideration to grant the organizations willing to help financing. entrepreneurs to realize their business idea. Unlike investors, 5.Get all the papers ready and they do not ask for a place on the ask for the loan. This is the time board of directors, but another to organize all the requirements type of recognition such as being and the business plan to apply for named in the credits. financial aid. Remember to include the financial projection.
Clarksville is among the best cities in Tennessee to start a business. But the opportunities to open a business must be accompanied by financing options. You can use your own resources to finance the start-up of your company or resort HOW TO GET FINANCING IN This information will help you CLARKSVILLE to third parties know where and how to get financing in Clarksville. There are If you are wondering where you The following steps will guide you many resources you can use to can get a business loan, the so that you know how to obtain a start businesses in Tennessee. loan to open a business. The first alternatives are: thing is always to have a solid • Banks: requesting a bank loan business plan that convinces the is the first option we evaluate to lender or the investor to give you finance the business. They have the money your business needs. different financing options, but you need to have collateral and a 1.Define what you want the loan good credit history, which is why for. The first thing you will be it gets complicated for companies asked at the bank or by any other that are less than two years old. In lender will be what you need the this case, an alternative is to ask for money for. For this reason, you must be clear before going to any a personal loan. institution. Decide if you need it • Micro-lenders: if you have to start the business, for the daily difficulties obtaining a bank loan, management, a backup, etc.
WILLIAN AND ISABEL ARE A HISPANIC COUPLE WHO ADHERED TO THEIR BELIEFS AND VALUES TO DEMONSTRATE THAT WITH SOME EFFORT AND WORK IT IS POSSIBLE TO FULFILL A DREAM. Willian and Isabel are a Hispanic couple who adhered to their beliefs and values to demonstrate that with some effort and work it is possible to fulfill a dream. “In all things God works for the good of those who love him.” (Romans 8:28). This biblical quotation is a reality for Willian
Alfaro, a Salvadoran resident in Clarksville, who gave the best of himself in one of the hardest moments of his life. A few days before Christmas in 2009, Willian was fired from his job and was left completely adrift. With bills to pay and worried about his future, he made a request to God, that today is the key to the success of his business, according to Willian himself. “I cried and said, God, give me a business! I promise you for the love of my mother, my wife, and my children that I am not going to do the same thing that was just done to me.” Only a few hours passed before receiving an answer to his prayer. “He listened to me and within
hours I received a phone call to start working on my own.” This is how Williams Painting was born, a company dedicated to painting homes and businesses in Clarksville. Together with his wife Isabel, Willian found the ideal balance to start a business that would allow him to provide economic stability to his family. Since then they have been an inseparable pair in this business, with which they have been able to set themselves apart for their quality of service and their excellent workmanship. They also founded a new company called Sparkle Cleaning Services from where Isabel coordinates and
executes the cleaning tasks that must be done after painting. “She paints when she does not have to clean, but the next day she puts on her Sparkle Cleaning Services shirt,” says Willian, proud of his partner’s tenacity. Mutual support, patience, and understanding allow them to maintain the role of couple and partners, in harmony. “Many people think it can’t be done, but we work well together. The chemistry or the mechanism to work perfectly with your wife is that you do not forget that you asked God for the blessing.” “We try to be flexible between the two, in fact, there are differences of opinion, but we solve it,” adds Isabel, who arrived in the United States in 2007 from Lima, Peru. Wise advice Every beginning is difficult. It is an undisputed truth for those who decide to form
their own company. Now that the Hispanic community is growing in the state of Tennessee, Willian takes the opportunity to offer some tips that will help new entrepreneurs.
Third, have experience in the type of business that will be developed. And finally, he recommends being aware that the legal expenses and commitments of the company are ahead of their personal interests.
The first is to write the business plan, detailing the areas that will be needed to manage the company. The second is to be very respectful of American laws. With this, he refers to carrying out all the legal procedures so that the company is incorporated according to the rules, which includes the obtaining of permits and licenses, insurance, bank accounts, tax payments, among others.
“Working alone, under your own limitations and your own expectations is an adventure. You must be aware that everything that involves the business comes first and as for me ... Let’s see how it goes!” A path of much work, effort, investment, and savings but today has borne the fruit that he expected for his home. “You know it’s going to be hard from the very first day, but in the long run it provides for your well-being.”
To start a business or expand it, capital is needed. Borrowing from banks and other entities is an option to raise the necessary funds. Increase the chances of being approved by memorizing these mistakes that you should avoid when applying for a loan for your business as suggested by Hispanos Emprendedores. Traditional banks and other types of lenders offer financial support for entrepreneurs. However, before delivering the money to anyone who applies, they evaluate the risks very well. Every lender wants to make sure he puts his money in the hands of someone responsible; that the business has a vision
for the future and that it will be able to recover its money. Therefore, they will carefully analyze each request, looking for warning signs. As an entrepreneur, you may be faced for the first time with the application for a commercial loan. Or that you may have already applied, and they have rejected you. There are mistakes that are very common when applying for financing. The following list contains ten of these so that you do not commit them when requesting your business loan. MISTAKES YOU SHOULD AVOID WHEN APPLYING FOR A LOAN FOR YOUR BUSINESS If you do not want to be rejected by lenders, you must avoid these
mistakes when applying for a loan for a business. 1. Apply for a loan without knowing the credit score One of the most common mistakes when requesting loans for small businesses is to ignore the credit score of the business. Those who are aware of this score and understand its meaning are more likely to get the loan. Before submitting the application, ask for a report before credit bureaus like Equifax or Experian. Check it to make sure all the information is up to date. These documents contain all the financial information, including debts, payment dates or if there is a bankruptcy declaration. Be prepared to explain to the lender the reasons for any negative situation. In addition to the credit score of
the business, it is also advisable to present your balance and income statement. 2. Not having collateral Offering collateral is one of the main requirements of every lender. This is their way of protecting themselves in case they do not get paid. Therefore, presenting collateral when looking for financing for business will increase the chances of getting it. The collateral can be money saved, material goods such as a car or property, certificates of deposit, among others. 3. Lack of a business plan All entrepreneurs ask themselves whether they need a business plan or not. To request financing a business plan is essential; it is among the requirements that any lender will request. The plan describes the business and market characteristics. It indicates what the financial projections are and how they are to be achieved. It will help you to convince the lender, as well help you to calculate how much money you need 4. Present incomplete requirements Having incomplete documentation will not only delay the process but may also cause you to be denied the loan. Carefully read what are the requirements demanded by the lender and make sure you gather them all. 5. Not exploring the different options of lenders It is normal that when you need a loan you turn to the bank with which you do business. But you
should know that this is not your only option. There are other entities willing to offer financing and financial support to start a business. Investigate any alternatives you may have. You can even find out if you a qualify for any government institution financing programs. There are many types of lenders that you can turn to, not just traditional banking.
9. Signing without understanding the terms of the loan The process to obtain a loan to start a business is more than just taking the papers and explaining your business model. You must pay close attention to the terms and conditions of the lender. Read the contract well and if you have doubts about any point, seek clarification before committing yourself.
6. Borrowing from lenders that have a poor reputation The previous point does not mean that it is convenient to resort to any person or institution. Look into the reputation of the lender before applying for financing. In some cases, it will be difficult to learn their history. If you do not get any references, it is better to reject them.
10. Making changes to the application You must be consistent from the moment you make the loan request. After presenting the documentation you should not make changes such as asking for a different amount or saying that you will use the money in another way.
7. Being vague when saying what you need the money for Another reason why loan applications are refused is that they do not specify what the money is needed for. The lender will ask for this information and you will have to explain why you need the loan and how you will use the money. Show that you have a solid plan. 8. Not calculating the real cost of the loan Make sure you know the real cost and if you will be able to assume the full debt before signing the contract. The lender is not going to tell you; therefore, you must know what the associated costs really are. If this topic is complicated, seek advice. You can also use a commercial loan calculator
These are the mistakes you should avoid when applying for a loan for your business. If you want to know more about entrepreneurship, we invite you to get more tips on our website www.hispanosemprendedores. com.
Hispanic consumers interact more with brands on social media according to the Global Web Index study. They also use these platforms to buy and follow their favorite brands. In Hispanic Emprendedores, we bring you more information about this research.
Hispanics vs. NonHispanics: How are social networks used? The Hispanic population is the most important minority group in the United States. According to the last census, 2017 closed with 58.9 million Hispanics in the country, which represents 18.1% of the total population. For those in marketing, it is essential to know this data as this population has become the target audience of many brands.
Based on that premise, Global Web Index conducted its research Social Media and Hispanics in the U.S.A., to know their behavior and how these platforms are used. The study, which compares non-Hispanic consumers with Hispanics, reveals that the latter use social media more than the former. In other words, 38% of Hispanics spend more than 2 hours a day surfing on social media; compared to 28% of nonHispanics. Not only do they spend more time on online networks, but
they also have more profiles on different social networks. On average, Hispanics have 7.1 social network accounts while non-Hispanics have only 6. Research on social networks indicates that the consumer uses these platforms, especially for entertainment. But they are also a means to connect with their favorite brands, research products, and shop.
industry and to be aware of what want to reach this audience to the competition is doing. increase sales and become an ambassador for your brand you According to the Global Web Index, must develop a clear strategy. Hispanics in the United States give great importance to their The key is to involve the public relationship with brands on social in what the brand does. The media. Thirty-seven percent of this same study indicates that there population uses them as a point of are three key factors for the contact when they investigate a audience to promote a brand on brand or product. In contrast, only the Internet: 27% of non-Hispanics use them for this purpose. • Access to exclusive content
or services.
Whom do they follow on the social networks?
Forty percent of Hispanics follow a brand on social media, compared to 36% of the nonHispanic population. Which means that a company, with a well-planned strategy, has great possibilities of connecting with customers in this way. In addition to brands, Hispanic consumers are also followers of:
• Singers, musicians or bands, 40%. • Actors, 35%. • Comedians 29%. • News and media, 29%.
They are also more likely to make purchases and interact by this • Internal knowledge of the means, especially Hispanics who brand. speak only Spanish or who are Spanish-preferring. • The feeling of being Fifty-seven percent of Spanishpreferring Hispanics, shop through social media. That same percentage follows at least one brand and 45% interacts with brands. In these areas, they outnumber bilinguals and English-preferring Hispanics. The most frequent interactions of that same group are uploading content to brand pages, reading blogs and writing on messaging applications. In the case of bilinguals, the preferences are the same, but they prefer communication through the applications.
involved.
Identify what your audience likes, the content they like most and interact with the most. Offer something in exchange for their loyalty, have contests, special offers for your followers, among other actions. All this will help you get closer to your Hispanic audience.
Take advantage of the fact that Hispanics interact more with brands on social media and connect with them. Today, marketing on social networks is On the other hand, English- vital for any company. preferring Hispanics interact more Hispanics interact more with with ads paid on the networks. Second, they watch brand videos brands on social networks It is proven that social networks and, finally, they download brand are an efficient channel to connect applications. with the current customer and potential consumers. They serve How to benefit from this in your to express the personality of the strategy? brands, do promotions, interact, This information regarding the use serve the customer. You can of social networks is valuable for even use them to know what is any business whose goal it is to said about your company, the reach the Hispanic public. If you
We can not start this editorial without thanking all our readers, friends and entrepreneurs who have supported us until now, helping Hispanos Emprendedores keep growing. The magazine was nominated in its second year to THE BEST OF CLARKSVILLE, a nomination that fills us with pride. For us to be taken into consideration for these awards, where the winners are chosen by the people of the city, gives us strength to keep fighting and working to always represent with excellence our Hispanic community. We overcome difficult times where we have won many battles, but we are confident that with hard work and effort we will achieve our goals, and always thanking God for all that he has let us achieve so far.
Thank you Hispanics.
Once again Hispanos Emprendedores opens doors for our entire community, this time, we participate in The Best Of Clarksville, as the first Hispanic magazine
in the city. An event that brings together more than 5,000 people to learn about the different businesses and economic activities that take place in the city.
