In just 60 seconds, we’ll show you how to determine if an RCL is right for you.
For financing flexibility, nothing beats a revolving credit line (RCL). Structured much like your personal credit card, RCLs allow approved borrowers to tap only as much money as needed to stay atop seasonal and business cycle fluctuations. Application and repayment requirements are generally far simpler than loans and other common financing options.
However, an RCL is by no means a panacea for a small business, nor is it entirely free of requirements and risks. In just 60 seconds, we’ll show you how to determine if an RCL is right for you.
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Think of a budget as a useful tool—a written financial plan that helps you set goals and measure progress.
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Start by coming up with a sales revenue target. Make it your best estimate.
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Based on past experience, estimate your cost of goods sold (e.g., 70 percent of sales) and subtract it from the sales revenue to come up with your estimated gross margin.
When most of us think about franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.
Franchising is not for everyone, but for an individual who has limited business experience or someone who enjoys working within an established system, franchising can be the best possible path.
Betty Otte, SCORE Counselor
When most of us think about franchises, we are referring to the business-based franchise like the top 500 franchises published in Entrepreneur magazine each year. Entrepreneur’s 75 different categories range from automotive to services, but they all have one thing in common—a systematic method to deliver services or products.
5 Tips on Finding Angel Investors and Venture Capitalists
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Do some research. Identify the most likely candidates by asking your accountant, banker and lawyer.
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Keep an open mind—potential investors may be anywhere. According to Success magazine, one entrepreneur found an angel investor among the motorcyclists he rides with on weekends.
5 Tips for Writing a Business Plan For a Loan
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Begin with a statement of purpose. You should be able to explain your business in 25 words or less.
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Tell how your business will work and why it will be successful. List the owners.
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Fill in the business details. Describe its products or services, the customers, the market and the competition. List the managers and their credentials.
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Supply three years of projected financial statements. Include income, loss, and cash-flow projections.
Two women co-workers and friends, Nikole Stillman and Elisabeth Nassberg, decided it was time to take their expertise and open their own private-duty home care business. After researching several markets, Nikole, Elisabeth and Elisabeth's husband, Jacob, settled on Naples.
To help acclimate them to the new market and get their business started, the young entrepreneurs turned to Naples SCORE mentor Chick Heithaus. Other SCORE mentors helped them develop advertising and marketing, and look for additional financing sources. "It was a match made in heaven," says Elisabeth. "They were there with us in the very beginning stages."
Owner/Founder
Nikole Stillman, Jacob Stillman & Elisabeth Nassberg
My Successes
"We utilized some SCORE mentoring sessions to move forward, even if it was not as quickly as we had planned; we had to adjust our business strategy to keep up with the economy," says Elisabeth.
Through it all, Nikole, Elisabeth and Jacob continue to give back to the community, both monetarily and with their own time. "When we first moved here to start the business, the YMCA was the best child care in town," says Nikole.
Recognized as the YMCA's Volunteers of the Year in 2009, Nikole says there are about 20 different programs there the three of them are involved in. Just Like Family Home Care is the recipient of the 2010 SCORE Award for Outstanding Woman-owned Business.
What's Great About My Mentor?
"Even with all my business background, I really needed someone to help bounce things off of. (SCORE was) there with us in the very beginning stages. SCORE Counselor Chick Heithaus always came up with ideas."
—Elisabeth Nassberg, co-owner, Just Like Family Home Care
How SCORE Helped
Unfortunately, soon after Just Like Family Home Care was founded, the economy floundered, and Nikole, Elisabeth and Jacob needed to adapt. They turned to SCORE again to help them be successful in a tough economy.
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