Money | Alliance Virtual Offices

How to Secure Business Funding with Bad Credit

John Donovan — Fri, 27 Oct 2023 01:36:00 +0000

Does bad credit mean no funding?
What are secured loans?
How to win investors

Q: Is bad credit a deal-breaker when it comes to securing funding for my business? How can I secure business funding with bad credit?

A: Bad credit is a detriment when you’re trying to secure funding for your company, but it isn’t a deal-breaker. You can secure business funding with bad credit by seeking alternate financing sources, using online platforms that offer no-credit-check funding, or using a crowdfunding platform.

Many entrepreneurs are under the impression that securing funding with bad business credit is an impossible task.

They feel that convincing lenders to let their businesses borrow money is undoable unless they’re ready to show an excellent credit history to bolster their chances.

It may be true that securing business funding with bad credit is more difficult than securing funding with good credit, but that doesn’t mean you’re completely out of luck if your credit history isn’t up to snuff.

If bad credit prevented entrepreneurs from securing funding, we’d see fewer small businesses being launched. Considering there were more than 32 million small businesses in the US as of 2022, this isn’t the case.

The US Chamber of Commerce claims that 78% of small business owners use their funds to launch new companies, but most small businesses will eventually need funding.

Thankfully, there are several ways to secure business funding with bad credit.

In this article, we’ll explain why bad credit doesn’t necessarily mean you can’t get funded, explain secure loans, determine whether investors are the answer to getting businesses funded with bad credit, and finally, we’ll see how using a Virtual Office may help you find business funding with bad credit.

So, if you’re looking for business loans with a bad credit score or trying to apply for business grants with bad credit, you are in the right place.

Keep reading to understand why business funding with bad credit isn’t the end of the world!

Does bad credit mean no funding?
What are secured loans?
How to win investors
Using a Virtual Office to find business funding with bad credit

Does bad credit mean no funding?

You might think that bad credit will prevent your business from receiving funding or that having no credit will make it infinitely difficult to secure funding, but neither of these statements is the whole truth.

Realistically, bad credit will make it more difficult to secure funding. No credit will present similar problems, but with multiple platforms and lenders operating exclusively online, you have more options than you realize.

Business loans with a bad credit score may require you to deal with nontraditional lenders, but that is all right, so long as you ensure you are not taking a predatory loan or line of credit.

A small business loan is an amount of money you receive in a single lump sum that you must begin paying interest on as soon as you receive the capital.

A small business line of credit is access to capital that you can withdraw from as needed. With a line of credit, you pay for the money you use as you use it.

Both options are useful in their own right and can be attained with poor funding.

Below, we have compiled a list of methods to find business funding with bad credit. With each of these methods, you need to be aware that predatory lenders hope to take advantage of businesses with poor credit.

To avoid these bad actors, carefully read the fine print before signing any legally binding documents, ask as many questions as possible, and when in doubt, consult with an attorney to ensure that you are not receiving a raw deal.

Alternative funding options
Focus on business performance
Collateral and asset-based financing
Co-signers and guarantors
Credit repair and improvement

Alternative funding options

While traditional lenders may be hesitant to provide funding to businesses with bad credit, numerous alternative funding options are available.

These options include online lenders, crowdfunding platforms, peer-to-peer lending, and microloans, which often have more flexible criteria and consider factors beyond just credit scores.

Keep in mind, not all alternate lenders are created equally. Anyone trying to rush you into funding or who makes you feel like you will miss out if you do not borrow their money as quickly as possible most likely does not have your best interests in mind.

Take your time, speak to as many alternative lenders as possible, and do as much research as possible before taking a loan or line of credit like this.

Focus on business performance

Instead of solely relying on credit scores, some lenders and investors prioritize the actual performance of your business.

They may consider factors like revenue, profitability, business assets, and growth potential.

By demonstrating a strong business plan and providing evidence of your business’s success, you can overcome the limitations of bad credit.

Essentially, lenders just want to ensure they’ll see a return on their investment.

If your business is bringing in impressive revenue and has several regular customers, lenders will be far more likely to loan you money, helping you secure US business funding, no credit check required.

In addition to helping you secure alternative funding, creating an in-depth business plan is also good for your brand’s operational duties.

The more you plan for, the more you’re prepared to overcome. The more detailed a plan you create, the better off you are.

In a perfect world, your business plan is loaded with scenarios and situations you’ve deftly avoided. A detailed plan that walks you through as many scenarios and situations as possible helps you prevent finding yourself in positions that you’d prefer to avoid.

Collateral and asset-based financing

Many lenders are willing to provide funding based on collateral or specific business assets. This type of financing, known as asset-based lending, allows you to secure a loan using valuable assets, such as equipment, inventory, or accounts receivable.

By leveraging your business assets, you can secure funding even with bad credit.

Granted, not every business has access to assets and collateral, so this option may be null and void for some. But, if you have equipment or other assets on your balance sheet, this is a great way to avoid credit checks or personal guarantees.

Co-signers and guarantors

Your business credit is separate from your personal credit, but unfortunately, especially when your business doesn’t have an extensive credit history yet, your personal credit may be called into question sometimes.

If your personal credit is holding you back, you can explore options that involve a co–signer or a guarantor.

These individuals, who have better credit scores and are willing to take on the responsibility, can strengthen your loan application.

Lenders are more likely to be willing to approve the funding if they see a reliable co-signer or guarantor involved.

Keep in mind, some lenders will ask you for a personal guarantee if your credit history isn’t stellar enough. While there are situations in which this may be unavoidable, it’s typically not a great idea to combine your personal credit with your business credit unless necessary.

Credit repair and improvement

Although bad credit may limit your immediate funding options, it doesn’t mean it’s a permanent roadblock.

Taking steps to repair and improve your credit can significantly enhance your chances of obtaining funding in the future.

Implementing strategies like paying bills on time, reducing debt, and resolving any credit issues can help rebuild your creditworthiness over time.

As your credit improves, you can access more traditional funding sources as well.

Remember, the best way to build business credit is by never missing payments, staying on top of any outstanding debts, and utilizing services that use standard payments like utilities and other operational expenses to help bolster your company’s credit.

These are just a few of your options when seeking business funding with bad credit. If you’re unable to find an option above that works with your specific business, you may simply have to take the time to build your business credit yourself before seeking additional funding.

Nevertheless, building business credit, although slow-going at times, pays dividends over time. As your credit increases, so does the amount of capital you have access to.

What are secured loans?

Before we dive into secured loans, let’s take a moment to explain the differences between secured loans and unsecured loans.

Essentially, unsecured loans do not require collateral and rely solely on the borrower’s creditworthiness.

For companies with good credit, unsecured loans are the norm.

Secured loans, on the other hand, are a type of borrowing that require the borrower to pledge collateral as security for the lender.

The collateral acts as a safety net for the lender in case the borrower defaults on the loan. Common examples of collateral are real estate, vehicles, inventory, or equipment.

Secured loans are more accessible to individuals with bad credit because the collateral mitigates the risk for the lender, making approval more likely.

Let’s explore more about secured loans.

Benefits of secured loans
Collateral evaluation and loan amount
Application process and documentation
Finding secured loan providers
Choosing the right lender

Benefits of secured loans

Secured loans offer several advantages for businesses.

First, they generally have lower interest rates compared to unsecured loans, thanks to reduced risk for the lender.

Additionally, secured loans often have longer repayment terms, allowing businesses to spread their payments over a more extended period.

Lastly, they provide an opportunity for businesses with limited credit or a less-than-perfect credit history to access funding.

A secured loan is easier to get than an unsecured loan, and paying back a secured loan in a timely matter will positively affect your business’s credit history.

Collateral evaluation and loan amount

When applying for a secured loan, the lender will assess the collateral’s value.

The loan amount will typically be a percentage of the collateral’s appraised value, known as the loan-to-value ratio.

Lenders may also consider factors such as the business’s financials, cash flow, and creditworthiness in determining the loan amount.

This may present problems if you don’t have assets or collateral worth the amount of capital you’re looking for, but you can often make up for it with high-quality financials, cash flow, and incoming revenue.

Application process and documentation

To apply for a secured loan, businesses typically need to provide documentation such as a loan application, business financial statements, tax returns, bank statements, and a description of the collateral being offered.

The lender will evaluate these documents to assess the business’s creditworthiness and the value of the collateral.

Finding secured loan providers

Secured loans for businesses can be obtained from various sources, including traditional banks, credit unions, online lenders, and specialized lenders.

It is advisable to research and compare different lenders to find the most favorable terms and interest rates.

Working with a reputable lender who understands your industry and has experience with secured loans can greatly streamline the process and increase your chances of approval.

Choosing the right lender

Once you’ve found a few secured loan providers, you need to make sure you’re choosing the right lender.

Be wary of predatory lenders and be wary of lenders who aren’t good, but only “less predatory” than their peers.

Entrepreneurs seeking business funding with bad credit who aren’t aware that they have other options are often desperate to access funding to help their businesses continue to grow.

Unfortunately, this presents opportunities for bad actors to take advantage of individuals who may be blinded by their desire to improve their companies.

Disadvantages of secured loans

Although there are plenty of ways a secured loan can help your business, there are some disadvantages associated with these collateral-backed loans too.

The biggest risk is losing the pledged collateral should your loan default.

In addition, the lengthy application process requires extensive documentation that many entrepreneurs don’t have on hand.

And finally, depending on the lender or whether or not you used a personal guarantee, a secured loan may potentially impact your personal credit should you default.

Now that you understand what a secured loan is, let’s explore how you can win over investors.

How to win investors

There are several ways you can secure business loans with a bad credit score, and although these methods may require some work, you have endless options at your fingertips.

That said, winning investors is a better feeling than seeking your next loan.

There are countless options for small business loans provided by online lenders and other companies, but finding high-quality investors for your business gives you something a loan simply can’t provide: guidance.

Business funding with bad credit can only take you so far, and if you use the business funding you receive with poor credit to build a robust credit history, you can continue borrowing money forever while retaining as much of your company’s equity as possible. That said, not everyone finds themselves in this position.

We’ve created another list of methods you can use to win investors and forego expensive loans or lines of credit.

Networking and industry connections
Utilize online platforms and crowdfunding
Prepare a compelling business plan and pitch
Seek assistance from business incubators and accelerators
Establish credibility with a Virtual Office

Networking and industry connections

Tap into your existing network and industry connections to find potential investors for your small business.

Attend industry events, join professional organizations, and participate in networking activities to meet individuals who may be interested in investing in your business.

Personal referrals from trusted contacts can significantly increase your chances of finding suitable investors.

Remember, each connection you make may eventually be leveraged into an opportunity you never expected. This is why it’s important to network whenever the opportunity presents itself.

Utilize online platforms and crowdfunding

Take advantage of online platforms that connect entrepreneurs with potential investors.

Websites such as AngelList, Gust, and Fundable provide a platform to highlight your business and connect with angel investors, venture capitalists, and crowdfunding communities.

These platforms often have a wide reach and allow you to present your business idea to a large pool of potential investors.

AngelList

AngelList has more than 20,000 investors searching for innovative companies. Considering that at the time of writing, 3,017 startups are using the website, this is a great option for innovative businesses looking for capital.

Gust

Gust is a one-stop shop for new entrepreneurs hoping to get their businesses off the ground. Gust allows you to register for an LLC, issue stock, and manage company ownership from one webpage.

Fundable

Fundable is more similar to AngelList than it is to Gust. To date, Fundable has existed for over a decade, with more than 20,000 accredited investors using the platform and more than a half billion dollars raised in funding.

Prepare a compelling business plan and pitch

Develop a comprehensive business plan highlighting your unique value proposition, market potential, competitive advantage, and financial projections.

Craft an engaging pitch that communicates the investment opportunity and the potential returns for investors.

A well-prepared business plan and pitch are crucial in attracting investors and convincing them of the viability of your small business.

Seek aid from business incubators and accelerators

Business incubators and accelerators supply support and resources to early-stage startups, including access to a network of investors.

These programs often offer mentorship, guidance, and educational opportunities, enhancing your business’s appeal to potential investors.

Participating in an incubator or accelerator program can supply valuable introductions to investors interested in supporting businesses within your industry or niche.

Establish credibility with a Virtual Office

A Virtual Office from Alliance can help build trust and credibility with potential investors.

A Virtual Office offers a professional business address, mail handling services, and includes access to meeting rooms or coworking spaces on an as-needed basis.

By having a physical address associated with your business, you convey a sense of professionalism and stability, which can instill confidence in investors.

Additionally, a Virtual Office can create a positive impression by ensuring your business communications are handled efficiently and professionally, further bolstering investor trust.

Using a Virtual Office to find business funding with bad credit

Finding funding for a small business is possible even with bad credit through alternative options, focusing on business performance, asset-based financing, involving co-signers or guarantors, and working on credit repair.

Secured loans for businesses are a type of financing where certain collateral, typically real estate, vehicles, equipment, or inventory, is pledged to obtain more favorable terms and lower interest rates.

To find investors, leverage networking and online platforms, prepare a compelling business plan and pitch, seek support from incubators and accelerators, and establish credibility with a Virtual Office to earn trust.

Remember, your Virtual Office can immediately boost your business’s legitimacy and professionality solely by providing you with a physical address you can use to host meetings, enjoy coworking spaces, and even network with other like-minded entrepreneurs when the opportunity arises.

Further reading

Alliance Virtual Offices offers Virtual Office services and more tools designed for established entrepreneurs, new business owners, and everyone in between.

If you’re seeking business funding with bad credit, Virtual Office can help show investors that you’re serious about your operations.

Contact us to see how Alliance can help you access funding regardless of your credit, and be sure to take a look at our Virtual Office Blog for more information.

The post How to Secure Business Funding with Bad Credit first appeared on Alliance Virtual Offices.

Here’s How to Make Money During a Recession

John Donovan — Thu, 26 Oct 2023 01:36:00 +0000

Why a side hustle is a good idea going into a recession
How a side hustle helps build financial security
How to set up a side hustle

Q: How can I make money during a recession? Should I have a second job?

A: A side hustle is one of the best ways to make money during a recession. Though technically similar, a side hustle is different from a second job because the best side hustles are small, solopreneur-run businesses designed solely to make money when times are tough economically.

Recessions are terrifying. Periods of low economic growth and high interest rates create situations where even the most prepared businesses may need help to succeed.

According to Forbes magazine, the United States isn’t in a recession yet.

Typically, a recession is outlined by two consecutive quarters of negative GDP. Although the US met this criterion in the first half of 2022, other factors prevented the government from labeling the downturn a bonafide recession.

Despite escaping a recession in 2022, economists and strategists alike are still patiently waiting for another downturn.

The Conference Board uses a probability model that claims a recession in the United States within the next year is close to 99% likely.

To deal with these economic downturns, you must learn how to make money during a recession.

During times of growth, interest rates are low, money is cheap, and succeeding is often as simple as a robust marketing plan.

However, that money is expensive during recessions, and if you aren’t prepared to weather an extended economic downturn without help, you may not make it through. Unfortunately, borrowing money during a recession is more expensive and infinitely more complex.

This is why it’s important to search for recession proof jobs that will help you retain capital throughout economic uncertainty.

In this article, we’ll be explaining why a side hustle is a great idea for a recession, how a side hustle can help build financial security, how to set up a side hustle, and finally, how to use what you’ve learned about how to make money during a recession to set yourself up for continued success after the fact.

So, if you’ve ever found yourself making Google searches like “how to make profit during recession” or “how to make profit in recession”, you’re in the right place.

Remember, you need to take advantage of the good times to prepare for downturns. Keep reading for more helpful information on learning how to make money during an economic recession.

Why a side hustle is a good idea going into a recession
How a side hustle helps build financial security
How to set up a side hustle
Taking what you know about how to make money during a recession further

Why a side hustle is a good idea going into a recession

For several reasons, starting a side hustle as the country enters an economic recession is a prudent decision.

First, no one knows for certain how long a recession is going to last. The longest US economic recession lasted more than five years, and the shortest, the Covid-19 recession, only lasted from February to April 2020.

Read more: How Long Does a Recession Last?

Outside of concerns about the length of a recession, there are many other reasons starting a side hustle is a wise decision.

We’ve covered some of these reasons below, so if you want to learn how to make money during a recession, keep reading.

Diversification of income
Financial security
Skill development and adaptability
Personal and professional growth
Potential for long-term success

Diversification of income

A side hustle during a recession can provide an additional source of income, reducing your reliance on a single job or industry that can be affected by economic downturns.

Multiple income streams can mitigate the financial impact of a recession and provide stability during uncertain times.

With a side hustle, you aren’t relying entirely on one source of income that may or may not make it through the same recession you’re experiencing.

Starting a side hustle as we enter a recession is taking control of your financial livelihood and ensuring that you aren’t relying too heavily on any one entity.

The more income you have coming in, the better prepared you are to deal with any kind of economic fallout.

Financial security

A recession often brings job insecurity and layoffs.

Having a side hustle creates a safety net that can help you stay afloat financially if your primary job is affected. It can provide a sense of security, knowing that you have an alternate income source to rely on in case of job loss.

Essentially, you improve your financial security by diversifying your income. The fewer people you depend on for your future, the better.

This is also why it’s helpful to pick a recession-proof industry for your side hustle. If your additional income source comes from an industry that doesn’t suffer from traditional recessions, you’re in a good spot.

Skill development and adaptability

Starting a side hustle during a recession can encourage you to acquire new skills and develop your entrepreneurial abilities.

This adaptability can be valuable during economic downturns when industries may be undergoing significant changes.

Exploring new ventures and industries increases your ability to pivot and adapt to the evolving job market.

Personal and professional growth

A recession can be a time of self-reflection and exploration. Launching a side hustle allows you to pursue your passions, explore new interests, and develop valuable skills outside your primary job.

It can enhance your personal and professional growth, providing a sense of fulfillment and expanding your network of contacts and opportunities.

Your side hustle can easily transform into something long-lasting and lucrative, but you have to give yourself the opportunity for transformation and growth to discover this effectively.

Potential for long-term success

Many successful businesses have emerged during or after recessions.

By starting a side hustle during a downturn, you position yourself to potentially capitalize on future economic growth. You can use the recession as an opportunity to lay the groundwork for a successful business that can thrive once the economy recovers, giving you a competitive advantage over those who only focus on traditional employment.

Remember, understanding how to make money during a recession is as simple as understanding that the downturns are for building positions, creating a network, and putting in the groundwork. Times of economic growth are for scaling up, capitalizing on your network, and taking advantage of the opportunities created for yourself during a recession.

How a side hustle helps build financial security

With a side hustle, you’re introducing a new source of income that helps you rely less on your traditional income sources.

Over time, these new income sources can exponentially increase, providing you with more capital that may help you attain financial security.

The key is understanding how to create a business built to handle recessions.

Once you’ve created a side hustle, you don’t have to allocate all your attention to your new endeavor immediately.

Instead, you can spread your focus between your traditional employment and your new side hustle until you find an opportunity that will result in higher earning potential from either side.

If managed correctly, this opportunity will typically come from your side hustle, but that doesn’t mean there aren’t situations where traditional employment could suddenly become considerably more lucrative either.

That said, let’s look at how a side hustle may help build financial security.

Supplemental income
Diversification of income sources
Flexibility and adaptability
Building emergency funds
Investment and retirement contributions

Supplemental income

A side hustle can significantly increase your overall income, providing an additional financial cushion.

The extra money earned from your side hustle can be used to pay off debts, cover unexpected expenses, or build up savings, ultimately improving your financial stability.

Simply put, the more money you bring in, the better off you are.

Diversification of income sources

Relying solely on a single source of income, such as a full-time job, can leave you vulnerable to financial shock.

Who’s to say the job you’re working on will exist should the country’s economic situation worsen?

A side hustle diversifies your income sources, reducing the impact of potential income loss from one stream. This diversification helps create a more stable financial foundation during times of economic uncertainty.

This way, if your traditional job disappears, you have a side hustle you can use to keep yourself afloat. Alternatively, if your side hustle falters, you still have traditional employment to rely on.

Flexibility and adaptability

Side hustles often offer flexible working arrangements, allowing you to earn money on your terms and schedule.

This flexibility enables you to better manage your finances and adapt to changing circumstances. If your primary job is affected by a pay cut or reduced hours, your side hustle can help bridge the financial gap.

Through flexible working arrangements, you can give yourself plenty of time for both options. If your traditional job is a standard 9-5, it’s easy to create side hustles wherein you only work at night or early in the morning.

Building emergency funds

A side hustle allows additional income to be allocated specifically toward building an emergency fund.

Having a separate fund dedicated to unexpected expenses, medical emergencies, or job loss enhances your financial stability.

It serves as a financial safety net and can prevent you from falling into debt during challenging times.

Many entrepreneurs think they need to make substantial profits during economic downturns to be successful, but that isn’t the case.

While there are situations where entrepreneurs hit it big during a recession, what’s more common is entrepreneurs using the downturns for positioning and building emergency funds to make it through other economic strife.

Rather than trying to bring in large profits during a recession, focus on simply making it through the recession itself. If your side hustle can survive through a recession, you’re set up to do very well during times of economic growth.

Investment and retirement contributions

Extra income generated from a side hustle can be channeled into investment accounts or retirement savings.

Increasing your savings rate accelerates your progress toward financial goals and creates long-term stability.

The additional funds can be used to build a retirement nest egg, invest in stocks or real estate, or contribute to other wealth-building initiatives.

Now that you know how learning how to make money during a recession can benefit you and lead to financial freedom, let’s explain how you can set up a side hustle.

How to set up a side hustle

The key to a side hustle that benefits you long after a recession ends is creating a business that can succeed regardless of economic conditions, saving money for economic downturns, and focusing on exponential growth during economic ease.

Keep in mind, these tips are applicable anywhere. If you’re wondering how to make money in a recession in the UK, you can apply the same principles you learn here without issue.

Below, we’ve created a step-by-step guide to creating a side hustle. Follow this advice to build a side hustle to help you achieve financial freedom and focus on doing what you enjoy.

Define your side hustle
Conduct market research
Create a business plan
Register an LLC
Establish a professional presence

Define your side hustle

Clearly define the nature of your side hustle and identify the specific products or services you will offer.

This clarity will guide your decision-making process and help you establish a strong foundation for your business.

The better defined your side hustle is, the better your business plan will be. You want a concisely defined side hustle and business plan to help you make data-driven decisions as you expand your operations.

Conduct market research

Before launching your side hustle, conduct thorough market research to understand your target audience, competition, and potential demand for your offerings.

This information will influence your marketing strategy, pricing, and overall business approach.

Again, the more research you conduct, the better off you are.

You want to know as much about your industry and competition as possible. The more data you can collect, the more informed your decisions will be.

Create a business plan

Develop a comprehensive business plan that outlines your goals, strategies, financial projections, and operational processes.

A well-defined business plan will serve as a roadmap for your side hustle, helping you make informed decisions and stay focused on your objectives.

Remember, in every business-related situation imaginable as you launch your side hustle, the more information and data you can collect, the better.

Too much data may exist for larger corporations analyzing more data than you’ve ever seen, but for new side hustles hoping to get off the ground, there is no such thing as too much data.

Register an LLC

Consider registering your side hustle as a Limited Liability Company, or LLC, to protect your personal assets and establish a formal legal entity.

Alliance Virtual Offices offers services to help you through the process of registering an LLC, which provides liability protection and separates your personal and business finances.

Simply put, creating an LLC keeps your personal finances safe and allows you to create an EIN, or employer identification number, that serves as a social security number for your business.

Your EIN is tied to your business credit. Your business credit is separate from your personal credit.

Establish a professional presence

Presenting your side hustle in a professional manager is crucial for attracting customers and building trust.

Utilize the services of Alliance Virtual Offices to establish a professional business address and telephone number.

This Virtual Office service can enhance your credibility and provide a dedicated business identity, even if you operate primarily from home or online.

With a Virtual Office, you get access to countless amenities that improve your brand’s image.

First, you get access to professional and well-known space that helps your company give a good impression to clients, investors, and customers alike. Not to mention, Alliance Virtual Offices offers space in every state and in almost every city.

Next, Alliance offers physical workspaces and meeting rooms that you can use to break the monotony of your daily routine.

Rather than feeling stuck working inside all of the time or feeling obligated to utilize a public and unsafe coffee shop, you can use one of Alliance’s coworking spaces at your Virtual Office center.

This allows you to network with other like-minded entrepreneurs who are focused on scaling their operations and helps spice up your routine.

Alliance’s meeting rooms come in a variety of sizes and can be used to accommodate any attendees you’re hoping to impress.

Additionally, Alliance offers mail forwarding and Live Receptionist add-ons that help you focus on scaling your operations and allow you to ignore some of the more frustrating logistic details of running a business.

Taking what you know about how to make money during a recession further

For several reasons, starting a side hustle during a recession can be a wise decision.

First, it offers a means to diversify income sources, increase financial stability, and develop valuable skills and adaptability. By following a strategic approach, registering an LLC with the assistance of Alliance Virtual Offices, and implementing effective business practices, you can set yourself up for success and navigate the challenges of a recession with resilience and confidence.

Remember, a side hustle can be a steppingstone toward financial security and provide opportunities for personal and professional growth, ultimately contributing to a more stable and fulfilling life.

Starting a side hustle can be frightening, and learning how to make money during a recession can seem daunting, which is why the best practice is simply to get started.

Take a sweeping inventory of your abilities and interests, determine which skills you’d enjoy using to make extra income, and get started.

Through the use of a Virtual Office and the information at your disposal, you can run a successful business from the comfort of your home.

Further reading:

Alliance Virtual Offices offers Virtual Office services and more to new entrepreneurs hoping to take advantage of an economic recession.

Don’t let bleak economic outlooks prevent you from taking advantage of the benefits of a side hustle. With Alliance’s help, you can learn how to make money during a recession and how to avoid the worst jobs during a recession.

Contact us today to see how Alliance can help you get started during times of economic strife, and be sure to check out our Virtual Office Blog for more information.

The post Here’s How to Make Money During a Recession first appeared on Alliance Virtual Offices.

Unlocking Opportunities: Business Funding Without Credit Checks

John Donovan — Fri, 20 Oct 2023 01:35:00 +0000

How credit checks hurt your business
Business funding options with no credit check
How to set up your business for funding approval

Q: Do I need a credit history to secure loans or lines of credit for my business? How can I secure business funding with no credit check?

A: To effectively secure loans or lines of credit for your business, a robust credit profile will help you get attractive rates, low-interest payments, and an overall better deal. That said, several platforms provide entrepreneurs with an easy way to get business funding without a credit check.

Starting a business was once a massive risk that only particular individuals could attempt.

Entrepreneurs had to find a perfect location that was well-priced and in a spot that consumers would feel drawn to. After finding a site, these entrepreneurs had to spend a sizable amount on security deposits, first and last month’s rent, monthly utility payments, general upkeep, and other recurring monthly costs.

Then, after these entrepreneurs started spending money, they had no real recourse if their businesses didn’t go as planned.

If the location wasn’t working or the rent payments were just too high, the new business owners found themselves in a predicament that required securing more capital or filing for bankruptcy and admitting defeat.

Now, business owners have it much easier.

Yes, starting a business is still a risk. Still, with tools like Virtual Offices and the explosion of ecommerce businesses, entrepreneurs don’t have to risk as much starting capital to try and make their dreams a reality.

Despite the lower risk, new business owners aren’t in a position where they can rest on their laurels because of the reduced barrier to entry.

Contrary to popular belief, 99% of all small businesses do not fail. Conversely, the United States Chamber of Commerce claims that 18% of small businesses fail within the first year, 50% fail after the first five years, and a whopping 65% yield by their tenth year in operation.

To avoid failure, businesses need funding. Unfortunately, not all companies have the credit history to land attractive rates for their loans or lines of credit.

Today, we’ll be exploring business funding with bad credit and how a new entrepreneur may be able to secure business funding, no credit check required.

We’ll explore how simply checking your credit harms your business, business funding options that don’t require a credit check, how to set your company up for funding approval, and finally, how to use an Alliance Virtual Office to secure US business funding without needing a credit check.

So, if your credit history is lacking and you’ve searched for things like business grants, no credit check, or business finance, no credit check, you’re in the right place.

How credit checks hurt your business
Business funding options with no credit check
How to set up your business for funding approval
Using Alliance’s Virtual Offices for business funding, with no credit check required

How credit checks hurt your business

Credit checks aren’t guaranteed to harm your business. Still, in many cases, the information you receive from running a credit check will result in less favorable conditions for your loan or line of credit.

Below, we’ve compiled a list of some ways a credit check may hurt your business. Then, we’ll explore securing start-up loans with no credit check.

Limited access to funding
Higher interest rates
Difficulty in securing partnerships
Limited growth opportunities
Negative impact on business reputation

Limited access to funding

Many traditional lenders and financial institutions rely heavily on credit checks to evaluate a business’s creditworthiness.

If your credit history is less than stellar, it may severely limit your access to business loans, lines of credit, and other forms of funding.

This can hinder your ability to invest in growth opportunities, purchase necessary equipment, or manage cash flow effectively.

For newer businesses, this is particularly frustrating. As a new company, you may not have the credit history required to get approval for covid business loans or other lines of credit, and getting credit checks too often, especially before you’ve built a solid credit history, can quickly become a detriment to your company.

Just like for personal credit, business credit inquiries stay on your credit report.

That said, business credit checks only damage your credit report for the first year, but the inquiries themselves are visible for up to two years.

This is also why you should keep track of your business’s credit so that you aren’t making unneeded inquiries and further damaging your credit.

If you’re able to keep up with your business’s payments and other operational duties, you’ll be able to retain a relatively decent idea of what’s affecting your business credit and what isn’t.

Higher interest rates

If your credit check reveals a poor credit score or a history of late payments or defaults, lenders may view your business as high-risk. As a result, they may offer you loans or financing options with higher interest rates and less favorable terms.

This can significantly increase your borrowing costs, making it harder to generate profits and reinvest in your business.

Business funding with no credit check may require more research and may require you to deal with more lenders, but this allows you to find an interest rate beforehand without needing a credit inquiry first.

Quick business loans with no credit checks, in the UK, the US, or otherwise, typically offer you a set rate that won’t be as attractive as other loans but may be better than making several inquiries that will be on your credit for years.

Difficulty in securing partnerships

Credit checks are not limited to lenders; potential business partners, suppliers, and vendors may also conduct credit assessments before entering into agreements with your company.

If your credit history is tarnished, it can erode trust and confidence in your business. Suppliers may require upfront payments, stricter payment terms, or refuse to extend credit, which can disrupt your supply chain and impact your ability to deliver products or services to customers.

As your business continues to grow, your partnerships and the companies you’re affiliated with will be a big part of your future scalability.

Limited growth opportunities

Business expansion often requires additional capital injections. However, if your credit check reveals financial instability or poor creditworthiness, investors or venture capitalists may hesitate to provide the necessary funding.

This can curtail your growth plans and prevent you from seizing market opportunities, launching new products, or expanding into new territories.

By finding business funding without a credit check, you can focus on growing your business and building your credit history so that future inquiries won’t have as negative an effect on your business credit history.

Although other businesses won’t have direct access to your credit history, the lack of funding itself is what may prevent other firms from dealing with your business.

Negative impact on business reputation

A poor credit check can reflect negatively on your business’s reputation and credibility. Potential customers or clients may question your financial stability and reliability, affecting their willingness to engage in business with you.

This can lead to lost sales, difficulty attracting new customers, and damage your overall brand image.

Even though other companies can’t directly access your credit history, they’ll still be able to know when you haven’t been able to access funding solely by using context clues and keeping an eye on your business.

Fortunately, there are several ways to get business funding with no credit check that will allow your company to continue scaling without requiring you to find a traditional lender.

Business funding options with no credit check

So, if credit check inquiries may hurt your business’s credit, what options do you have to find business funding?

You can take out microloans and other smaller amounts from nontraditional lenders and use those to build your business credit, but this is slow-going and may not be the best way to secure business funding with no credit check.

Here is a list of some of the best business funding options that don’t require a credit check.

Merchant cash advances
Crowdfunding
Revenue-based financing
Equipment financing
Invoice financing

Merchant cash advances

A merchant cash advance is a financing option where a lender provides a lump sum payment in exchange for a percentage of your future credit card sales or receivables.

Since repayment is tied to your business’s revenue, credit checks are not required, making it an accessible funding option for businesses with poor credit.

With this kind of business funding, you keep inquiries off your long-term credit history while securing the funding you need to continue growing.

For a merchant cash advance, you may not be dealing with a traditional bank or lender, so it’s important to do your due diligence to ensure that you aren’t receiving money from a predatory lender or a business that will hit you with endless loan fees and other unmentioned payments.

Crowdfunding

Crowdfunding platforms allow businesses to raise funds by collecting small contributions from a large number of individuals.

Unlike traditional lenders, these platforms generally do not perform credit checks.

Instead, they focus on the viability and appeal of your business idea or project, making it an inclusive funding avenue for entrepreneurs.

If you have a proprietary idea or an emotionally charged business mission, crowdfunding is a great alternative to traditional business funding without a credit check.

Most of these websites have a built-in audience that’s very different from your target audience. This exposes your company to individuals who may not have seen your brand otherwise.

Outside of the audience and the negation of credit checks, crowdfunding serves several other purposes too.

First, a successful crowdfunding campaign is effectively a proof of concept for your business idea.
If you haven’t launched yet, a crowdfunding campaign allows you to pre-sell your products or services. This results in your business generating revenue before it’s even launched.

Not to mention, this allows you to gather feedback and insights from your backers, which helps you refine your offerings and your marketing strategy.

This approach also helps you to create a community for your brand. The supporters who are emotionally invested in your success via crowdfunding can become brand ambassadors, which helps you to spread the word about your business.
Crowdfunding also keeps you from creating debt or equity obligations that may later come back to haunt you. The backers are usually rewarded with early access to your offerings or other rewards rather than receiving a portion of your company.
Finally, crowdfunding allows you to be flexible with your funding goals. This means you get to keep the money you’ve raised even if you fall short of your original goal.

As you can see, there are plenty of reasons to consider crowdfunding as an alternative to business funding without a credit check.

Revenue-based financing

Revenue-based financing is a loan arrangement where repayment is based on a percentage of your business’s future revenue.

Rather than relying solely on credit checks, lenders consider your revenue-generating potential.

This option provides flexibility and can be particularly beneficial for businesses with fluctuating or seasonal revenue streams.

Again, for these styles of financing that defer to your business’s operational capabilities rather than its credit history, you need to be sure that you’re dealing with a legitimate lender and not bad actors who only want to charge you as often as possible.

Equipment financing

Equipment financing involves obtaining a loan or lease specifically for purchasing equipment needed for your business operations.

Since the equipment itself serves as collateral, lenders may be willing to extend financing without conducting credit checks.

This enables businesses to acquire essential equipment while building credit through timely payments.

Granted, this option is best reserved for businesses that are new and still lacking pieces of equipment, but even older companies can utilize equipment financing if they have operational processes that new equipment would save time and effort.

Invoice financing

Invoice financing, also known as accounts receivable financing, allows businesses to obtain funds by leveraging their outstanding invoices.

Lenders provide a cash advance based on the value of the invoices, and repayment is made once the customers settle their invoices.

Since the focus is on the creditworthiness of your customers rather than your business’s credit history, credit checks may not be necessary.

In some cases, the lender you’re dealing with for invoice financing will be the company who ensures that customers pay their debts. This will free up your time and resources and allows you to focus on core activities like sales and operations.

Additionally, invoice financing uses the value of the invoices to determine the loan amount, so as your company grows, you’ll continuously have access to larger sums of capital as you make more sales.

How to set up your business for funding approval

So, now that you’re familiar with alternatives that allow you to raise business funding with no credit check, let’s explore how you can set your business up for funding approval so you don’t have to worry about these alternatives.

The first step is securing a Virtual Office. With a high-quality Virtual Office, you’re given access to a well-known and professional business address that you can use to show potential lenders that you’re serious about your business.

More on Virtual Offices shortly, but to properly leverage a Virtual Office to help you secure funding approval, you need to be familiar with the technology.

Below, we’ve listed some other options for helping your business find funding approval.

Build a strong business plan
Showcase positive cash flow
Provide collateral or guarantees
Seek alternate lenders
Leverage Virtual Office solutions

Build a strong business plan

Develop a comprehensive business plan highlighting your company’s mission, vision, market analysis, competitive advantage, and financial projections.

A well-crafted business plan demonstrates your commitment, preparedness, and potential for success, making it more attractive to lenders who may not rely heavily on credit checks.

Additionally, building a strong business plan is good for your brand as well! The more scenarios you’ve planned for and the more thought you’ve put into your company’s future, the better your business will perform.

The stronger the business plan and the more attention to detail you’ve put into creating this plan, the better off you’ll be.

Showcase positive cash flow

Emphasize your business’s ability to generate consistent and positive cash flow.

Demonstrating a history of strong revenue and profitability can help lenders see the potential for repayment, even without relying on credit checks. Prepare accurate statements, including income statements, cash flow statements, and balance sheets, to support your claims.

With a high enough positive cash flow, you may never have to provide a business credit check again. At the end of the day, all lenders want to know is whether you’ll be able to repay them.

If your business is making a substantial amount of money and has regular revenue coming in, it’ll be markedly easier to secure business funding without a credit check.

Provide collateral or guarantees

Offering collateral or personal guarantees can provide lenders with additional security, reducing their reliance on credit checks.

Assets like real estate, equipment, or inventory can be used as collateral to secure funding.

Personal guarantees, where you assume responsibility for repayment, can also help alleviate concerns about creditworthiness.

That said, you should try to avoid using a personal guarantee whenever possible.

Once you’ve personally guaranteed a loan’s repayment, your credit is now on the line.

Typically, business owners are only risking their business credit when they borrow money or create lines of credit, but with a personal guarantee, you’re muddying the waters.

Seek alternate lenders

Explore funding options beyond traditional banks and financial institutions. Alternative lenders, including online lenders, peer-to-peer lending platforms, and community development financial institutions (CDFIs), often have more flexible lending criteria and may not require credit checks.

Research and identify reputable lenders who specialize in providing funding to businesses with limited or no credit history.

Leverage Virtual Office solutions

Utilize resources like Alliance Virtual Offices to enhance your business’s professional image and credibility. A Virtual Office provides you with a prestigious business address, mail-handling services, and access to meeting rooms and coworking spaces when needed.

This can boost your credibility when applying for funding and instill confidence in lenders, potentially reducing their reliance on credit checks.

Using Alliance’s Virtual Offices for business funding, with no credit check required

Setting your business up for success in finding funding without credit checks involves building a strong business plan, showcasing positive cash flow, providing collateral or guarantees, seeking alternate lenders, and leveraging resources like Alliance Virtual Offices for a professional image.

By emphasizing your business’s potential for success, financial stability, and exploring nontraditional funding options, you can increase your chances of securing the required capital.

With careful planning, preparation, and a strategic approach, you can overcome credit-related barriers and access the funding your company needs to thrive.

Further reading

Alliance Virtual Offices provides Virtual Office solutions and a whole slew of other digital services for business owners hoping to save money and scale effectively.

With a Virtual Office from Alliance, you’re able to put on a professional and legitimate face you can use to inspire confidence in lenders, investors, clients, and even consumers.

Finding business funding with no credit check isn’t easy, but with a Virtual Office, you may be able to build your business’s credit history without utilizing these nontraditional alternatives.

Contact us to see how Alliance can help you find business funding with no credit check and be sure to check out our Virtual Office Blog for more!

The post Unlocking Opportunities: Business Funding Without Credit Checks first appeared on Alliance Virtual Offices.

US Business Funding: Getting Funds Domestically and Abroad

John Donovan — Thu, 19 Oct 2023 01:35:00 +0000

How US business funding differs from foreign funding sources
Should you seek domestic or international funding?
Making the most of your business funding

Q: Are there any differences in securing US-based funding vs. foreign funding sources? Which should I secure for my US-based business?

A: Yes, there are key differences between US-based funding and foreign funding, including additional risk for foreign funding, different cultural practices within the funding process, currency-exchange issues, and legal and regulatory problems that may arise. US-based funding is almost always your best bet if you’re targeting an American market and aren’t planning on immediate expansion.

Starting a business may be lower risk than it was in the past, thanks to the streamlined nature of business ownership in conjunction with tools that allow entrepreneurs to operate their businesses from home, but securing funding is still an important aspect of any company’s long-term success.

Unfortunately, not all businesses have access to grants and other secondary forms of funding, so determining how US business funding works is the first step in securing a future for your small business.

Some business owners are under the impression that they can only utilize US-based funding for their businesses, but this simply isn’t the case. Thanks to the ease of communication and widespread interest in US-based companies, business owners can secure US business funding or foreign funding depending on what they hope to accomplish and their connections in both areas.

According to the US Chamber of Commerce, most businesses that fail do so because of poor marketing initiatives, a lack of quality management, or problems with securing financing.

When you understand US business funding, you can negate these issues by ensuring your company always has the necessary capital to get you through any tough economic downturns or other issues out of your control.

In this article, we’ll be explaining how US business funding is different from foreign funding sources, whether you should seek domestic or international funding, how to make the most of your business funding, and finally, how Alliance Virtual Offices can help you secure US business funding without forcing you to look for capital overseas.

So, if you’ve been hunting for US business funding solutions, you’re in the right place. Keep reading for US business funding, solutions, reviews, and more!

How US business funding differs from foreign funding sources
Should you seek domestic or international funding?
Making the most of your business funding
Using a Virtual Office to help secure US business funding

How US business funding differs from foreign funding sources

Before we dive into how US business funding differs from foreign funding sources and how a company might secure business funding with bad credit, let’s take a moment to explain some fundamentals about business funding.

The first and most basic distinction entrepreneurs should be aware of is the difference between a loan and a line of credit.

A small business loan is a lump sum payment received all at once that begins accruing interest as soon as the lump sum is paid out.

For a loan, you’ll be required to start making payments immediately and often have a set amount of time to repay the loan without additional penalties.

A small business line of credit is access to capital that you can pull from as needed; think of it like a credit card. With a line of credit, you start paying for the money as you use it and can only pull out what you need when you need it.

As you can imagine, each lending style is appropriate for different business needs.

If you’re making several changes and are unsure of the final cost, a line of credit is your best bet.

If you’re making several changes and are unsure of what the final cost may be, a line of credit is your best bet.

Alternatively, if you’re just hoping to build your business credit in a low-risk way, a line of credit is a great way to get started.

Now, let’s look at the differences between US business funding and foreign funding sources.

Here’s a brief list of some of the key differences.

Access to capital
Venture capital culture
Entrepreneurial support
IPO market
Innovation ecosystem

Access to capital

Regardless of what you hope to do for your business, access to capital is the most important aspect of your US business funding journey. If you don’t have access to capital, you cannot move forward.

The United States boasts a robust and well-developed financial ecosystem, offering diverse funding options for businesses.

From venture capital firms and angel investors to crowdfunding platforms and government grants, US business funding sources provide entrepreneurs with a wide range of opportunities to secure capital.

Other countries likely won’t make it as easy on you, but in the US, you have endless opportunities when you need to secure business funding.

Even for individuals seeking business funding with no credit check, the US has more options and opportunities than anywhere else.

Venture capital culture

Venture capital firms are entrenched in American culture, both financial and otherwise.

This culture isn’t well-replicated anywhere else. The US’s strong venture capital culture includes several venture capital firms that are actively investing in innovative startups across various industries.

These firms typically have deep pockets and a high-risk appetite, making them more inclined to invest significant capital in early-stage companies with high growth potential.

If you’re leading an innovative business and you plan on doing business in the US for the most part, you’ll have an easier time finding venture capital funding here than you would in a foreign country.

That said, venture capital firms do exist elsewhere, and if your business is selling its offerings to another country, it might benefit you to try and connect with venture capitalists in that country instead.

Entrepreneurial support

The United States doesn’t just welcome entrepreneurs, it incentivizes them too.

The US offers extensive support systems for entrepreneurs, including startup incubators, accelerators, and mentorship programs. These resources provide financial assistance, invaluable guidance, networking opportunities, and access to industry experts, facilitating business growth and success.

For individuals who are just getting started and feel confused by all of the financial jargon, the United States is a very welcoming environment. Even if you’re surrounded by individuals who expect you to simply keep up, there are plenty of resources available for you to utilize.

IPO market

The US has one of the most prominent initial public offering (IPO) markets globally, with stock exchanges such as the New York Stock Exchange (NYSE) and NASDAQ.

Going public through an IPO can provide access to substantial amounts of capital and increase a company’s visibility, attracting further investments and opportunities for expansion.

Sure, not every private small business will be able to have an IPO, but you have better chances if your company is based in the US.

In an IPO, a private company makes its stock available to retail investors.

This is done by determining how many shares the business wants to offer the public; then, an investment bank suggests an initial price for the shares by predicting the public’s demand for the newly available shares.

Unsurprisingly, an IPO can be very profitable, resulting in ample capital that can be reinvested in your business. That said, NASDAQ analysis states that only 20% of the companies that IPO are successful in the long term.

Innovation ecosystem

The United States has a reputation for fostering innovation and technological advancements. Consequently, business funding sources in the US tend to be more receptive to disruptive and groundbreaking ideas.

This supportive environment attracts investors who are eager to participate in cutting-edge ventures and contribute to the growth of innovative businesses.

This means that if you’ve created an innovative business that’s now seeking funding, your best bet is in the US.

Now that we’ve explored what sets US business funding apart from its foreign counterpart, let’s determine whether you should seek domestic or international funding for your startup.

Should you seek domestic or international funding?

As you know, there are endless opportunities to find business funding.

The key is finding funding that isn’t predatory and won’t leave you in a worse position than you were before you took the loan or line of credit.

Although you want your business to be in a better spot operationally after funding, you want your business’s credit history to improve too.

Some entrepreneurs improve their funding through microloans and other strategic debt, but if you need money quickly, these small loans may not provide you with enough capital.

When you’re trying to decide if you want US business funding or foreign funding, here are a few things to keep in mind.

Market scope
Competitive landscape
Regulatory considerations
Industry expertise
Risk diversification

Market scope

The first question you need to ask yourself is what the scope of your market is. If you’re targeting a specific audience, as you should be, you should probably try to raise money in the area you’re hoping to find consumers.

To do this, consider your target market and expansion plans. If the business primarily targets the US market and has no immediate plans for international expansion, seeking US funding may be more suitable.

US funding sources are often well-versed in the local market and can provide valuable industry connections and expertise.

If you’re hoping to target a different demographic, you can still raise money in the United States, but your options are limited. Raising money in foreign countries can be daunting and frustrating, but it’s nice to have the option open.

Competitive landscape

Your industry’s competition may vary from a local to a global scale.

This is why it’s important to do as much research as possible and find out where the competition is fiercest.

Essentially, you need to assess the level of competition in your company’s industry on a global scale.

If the industry is highly competitive internationally, seeking international funding could provide access to larger capital pools and potential strategic partnerships, enabling your business to gain a competitive edge and expand into new markets.

Regulatory considerations

Just like you need to research your industry’s competition before you raise money, you need to research various regulatory considerations too.

Evaluate the regulatory environment in both the US and international markets. If the business operates in a highly regulated industry or faces specific compliance requirements, seeking funding from a jurisdiction with favorable regulations can simplify the process and reduce legal complexities.

Industry expertise

Determine if the business requires industry-specific expertise or specialized knowledge that is more readily available in either the US or international markets.

Seeking funding from a source with a deep understanding of your business’s industry can provide valuable insights, mentorships, and networking opportunities.

Risk diversification

Analyze the risk profile of the business and consider the benefits of diversifying funding sources.

Relying solely on one market for funding may be risky, as economic or political changes may impact the availability of capital.

Diversifying funding across both US and international sources can mitigate risks and provide a broader range of financial support.

So, the decision of going with US business funding vs foreign funding depends largely on your specific business, what you hope to accomplish, and your target demographic.

Regardless of which you choose, or if you choose to find US business funding in addition to foreign funding, you’ll want to make the most of any capital you do secure.

Making the most of your business funding

Making the most of your business funding is paramount to your company’s long-term success.

At the end of the day, raising money is easy. What’s difficult is raising money and using those funds to put your business in a better position where you aren’t just working towards your next raise or loan.

Below, we’ve listed some strategies you may employ to make the most of your business’s funding, US business funding, foreign funding, or a combination of both.

Strategic financial planning
Seek expert advice
Build strong relationships
Prioritize growth and scalability
Monitor and evaluate performance

Strategic financial planning

The first step for any successful business is strategic financial planning.

First, develop a comprehensive financial plan aligning with your business goals and funding objectives.

Clearly define how the allocated funds will be utilized and create a budget that accounts for various expenses, including operational costs, marketing, research and development, and expansion plans.

Regularly review and update the financial plan to ensure the effective allocation of resources.

With a detailed plan, you always have an idea of what’s next. You can plan for anything because regardless of whether those plans come to fruition, it’s always wiser to be overprepared rather than underprepared.

Seek expert advice

Engage with financial advisors, accountants, and business consultants who specialize in assisting startups and small businesses. Their expertise can help you make informed decisions regarding budgeting, financial management, tax strategies, and investment opportunities.

Their guidance can maximize the value and impact of your funding.

In an environment with so many options, it’s nice to have someone that can point you in the right direction. Whether that means helping you determine the efficacy of payroll loans, pointing you toward US business funding, BBB application help, or more, guidance is always undervalued.

Build strong relationships

Cultivate strong relationships with your investors and funding partners.

Maintain open lines of communication, provide regular updates on your progress, and involve them in key decision-making processes.

By establishing trust and demonstrating transparency, you can strengthen your reputation and potentially gain access to additional funding or support in the future.

Prioritize growth and scalability

Utilize the funding to drive growth and scalability.

Focus on activities that have the potential to generate long-term value and attract additional investors or customers.

Invest in marketing and sales initiatives, product development, technology infrastructure, and talent acquisition to create a strong foundation for sustained growth and profitability.

Monitor and evaluate performance

Implement robust systems for monitoring and evaluating the performance of your business. Regularly track key performance indicators (KPIs), financial metrics, and milestones to assess the effectiveness of your funding utilization.

Identify areas of improvement, adjust strategies as needed, and make data-driven decisions to optimize your business operations and maximize the return on your funding investment.

Another way you can get the most out of your business funding is through the use of one of Alliance’s Virtual Offices.

With a Virtual Office, you get access to a well-known and professional business address that you can use in your branding to inspire confidence in investors, clients, and customers alike.

Not to mention, Alliance provides other services and products designed to make your entrepreneurial journey more straightforward.

Using a Virtual Office to help secure US business funding

Making the most of business funding in the US involves strategic financial planning, seeking expert advice, and building strong relationships with investors.

Prioritizing growth and scalability, businesses should allocate funds to activities that generate long-term value, such as marketing, product development, and talent acquisition. Continuous monitoring and evaluation of performance metrics enable data-driven decision-making, ensuring optimal utilization of funding and maximizing the return on investment.

Further reading

Alliance Virtual Offices offers Virtual Offices, Live Receptionists, mail forwarding, and more to established entrepreneurs and brand-new business owners alike.

Regardless of whether you’re searching for US business funding or foreign funding sources, an Alliance Virtual Office helps you build legitimacy while giving you physical space that you can use to host meetings or even just escape your daily routine and work.

Don’t let the search for US business funding prevent you from running a business you love. Contact us today to see how Alliance can help you get started!

The post US Business Funding: Getting Funds Domestically and Abroad first appeared on Alliance Virtual Offices.

Profitability vs. Business Growth: Which Is More Important?

Bradon Matthews — Sat, 23 Sep 2023 20:37:00 +0000

Balancing Priorities
Profit-Driven Strategies
Sustainable Growth

Q: Can a startup focus on both profitability and growth simultaneously?

A: Yes, by integrating strategic business monetization and expansion efforts, startups can achieve balanced success.

As a small business owner, understanding the nuanced relationship between profit vs. growth is essential. In this article, we’ll explore strategies that allow you to navigate this delicate equilibrium while building a thriving startup.

Balancing Priorities
Profit-Driven Strategies
Sustainable Growth
Measuring Success
Monetization’s Role
Wrapping Up

Get Your FREE Guide Today!

How to Start a Business in a Recession

Balancing Priorities

Striking the right balance between immediate profit vs. growth is a perpetual challenge. While the pressure to achieve rapid growth can be enticing, focusing solely on expansion without ensuring profit vs. growth can lead to unsustainable business models.

Business Monetization strategies must align with growth initiatives to create a solid foundation for your startup.

Profit-Driven Strategies

Prioritizing profitability doesn’t mean shunning growth. It involves adopting strategies that generate revenue while promoting steady expansion. Implementing efficient operations, optimizing pricing models, and exploring partnerships can drive both profitability and growth. In major urban hubs like Chicago and San Francisco, these strategies can be particularly effective.

Sustainable Growth

Growth without sustainability is akin to building on shaky ground. Ensuring that your expansion plans are backed by a solid financial framework is essential. Investing in market research, customer acquisition, and employee training contributes to a sustainable growth trajectory. Combining growth and business monetization efforts can lead to a holistic approach.

Measuring Success

Determining the success of your startup involves more than just financial metrics. While profitability metrics are essential, factors like customer satisfaction, market share, and brand reputation are equally critical. Balancing the pursuit of profitability with achieving qualitative milestones ensures a comprehensive view of success.

Monetization’s Role

The dichotomy between profit vs. growth often finds resolution through effective business monetization. Monetization strategies can not only contribute to revenue generation but also facilitate measured expansion. By exploring the lessons learned from businesses in cities like New York, you can glean insights into harmonizing these priorities.

Wrapping Up

The interplay between profit vs. growth is a complex dance that demands strategic finesse. By embracing a balanced approach that leverages both growth and monetization efforts, you can establish your startup as a resilient player in the competitive markets of New York, Los Angeles, Chicago, San Francisco, and Miami.

The post Profitability vs. Business Growth: Which Is More Important? first appeared on Alliance Virtual Offices.

Affordable and Efficient: Why Live Receptionists are a Must-Have for Budget-Conscious Startups

Bradon Matthews — Thu, 14 Sep 2023 22:47:00 +0000

Elevating Professionalism and Making First Impressions Count
Streamlining Operations for Enhanced Productivity
The Cost-Effective Communication Solution

Q: How Can Live Receptionists Benefit My Startup?

A: Live Receptionists can be a potent asset for startups. They help in reducing costs, projecting professionalism, optimizing operations, enhancing productivity, and providing tailor-made services. This service can be seamlessly molded to suit the unique requirements of your startup, irrespective of its geographical location.

In the dynamic and competitive landscape of today’s business world, startups striving for success, even in bustling metropolises like New York, Los Angeles, Chicago, and Washington DC, face a multitude of challenges. Among the many aspects that require meticulous consideration, communication stands out as a pivotal factor.

Emerging enterprises often grapple with the task of efficiently managing incoming calls while keeping costs in check. This is where Live Receptionists emerge as the game-changers, offering an affordable, efficient, and invaluable solution for budget-conscious startups.

This comprehensive article aims to delve deep into the multifaceted advantages of integrating Live Receptionists into your business operations, providing indispensable insights for small business owners aiming to optimize their operational efficiency without straining their financial resources.

The Cost-Effective Communication Solution
Elevating Professionalism and Making First Impressions Count
Streamlining Operations for Enhanced Productivity
Customization and Flexibility Tailored to Your Needs
Wrapping Up: The Power of Live Answering Service

How to Get A FREE Live Receptionist

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Live Receptionist for 1 Month!

The Cost-Effective Communication Solution

In the bustling business hubs of New York, Los Angeles, Chicago, and Washington DC, startups frequently encounter the challenge of managing an influx of calls. Herein lies the significance of Live Receptionists.

These adept professionals, powered by Live Answering Services, serve as virtual extensions of your team, seamlessly managing incoming calls during your business hours. What sets this approach apart is its cost-effectiveness.

By opting for a Live Answering Service, startups can wave goodbye to the need for a full-time, in-house receptionist, a move that significantly slashes fixed costs associated with salaries, benefits, and office space. This resourceful approach empowers startups to channel their funds towards avenues that directly contribute to their growth trajectory.

Elevating Professionalism and Making First Impressions Count

In the intricate tapestry of the business world, the significance of a favorable first impression cannot be overstated.

This is where Live Receptionists shine, regardless of whether your startup is flourishing in Chicago or navigating the intricacies of Washington DC.

A live person answering calls imparts an unparalleled aura of professionalism that automated systems struggle to replicate. It is in this personalized approach that the power of Live Receptionists comes to the fore.

Trained to manage calls seamlessly, these professionals can deftly guide callers to the appropriate departments, ensuring every caller is treated with the utmost respect and attention.

Streamlining Operations for Enhanced Productivity

In the relentless pursuit of success, time proves to be one of the most precious resources for startups. This is where the role of Live Answering Services assumes paramount importance.

A Live Receptionist can catalyze operational efficiency by relieving your team of the burden of call management.

This recalibration of responsibilities translates into enhanced productivity. Imagine the impact of this streamlined approach, particularly in bustling cities like New York and Los Angeles, where every moment can translate into a strategic advantage.

Customization and Flexibility Tailored to Your Needs

The hallmark of Live Receptionists lies in their adaptability to your startup’s unique needs.

From crafting personalized call greetings that mirror your brand’s voice to furnishing essential information about your offerings, these professionals become true ambassadors of your business.

Furthermore, their versatility extends to tasks such as appointment scheduling, routing urgent calls, and taking messages – all meticulously tailored to align with your startup’s distinctive requirements. This degree of customization ensures that each caller experiences a consistent, personalized, and reassuring interaction that resonates with your brand ethos.

Wrapping Up: The Power of Live Answering Service

In the intricate web of business operations, where efficiency, professionalism, and cost-effectiveness reign supreme, the integration of a Live Answering Service can be a strategic masterstroke.

Regardless of whether your startup is navigating the vibrant streets of New York, thriving in the creative energy of Los Angeles, embracing the industrious spirit of Chicago, or immersing itself in the political arena of Washington DC, Live Receptionists offer an accessible avenue to manage communication without compromising on quality.

The benefits encompass cost reduction, enhanced brand image, streamlined operations, amplified productivity, and customization capabilities. In a world where startups are constantly seeking ways to amplify their presence, Live Receptionists offer a compelling solution that balances efficacy with budgetary prudence.

The post Affordable and Efficient: Why Live Receptionists are a Must-Have for Budget-Conscious Startups first appeared on Alliance Virtual Offices.

Path to Profitability Turning Your Startup Profitable

Bradon Matthews — Wed, 13 Sep 2023 02:35:00 +0000

Understanding Your Market
Optimizing Operations
Effective Marketing Techniques

Q: Can I operate a startup profitably in expensive cities?

A: Yes, by optimizing costs, targeting niche markets, and leveraging virtual services, you can make your startup profitable even in high-cost areas.

Path to Profitability: Turning Your Startup Profitable

Starting a new business, especially in vibrant metropolises like New York, Los Angeles, Chicago, San Francisco, and Miami, can be an exciting endeavor. However, the ultimate goal for any startup profit is to achieve sustainability and profitability.

The journey from inception to profitability can be challenging, but with the right strategies, dedication, and perseverance, you can navigate this path successfully.

Understanding Your Market
Optimizing Operations
Effective Marketing Techniques
Wrapping Up

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How to Survive and Thrive in an Economic Downturn

Understanding Your Market

Market Research is Key

Before you dive headfirst into your startup venture, it’s essential to conduct thorough market research. Understanding your target audience’s needs, preferences, and pain points is vital. Identify your competitors and assess gaps in the market that your product or service can fulfill. By gaining insights into customer behavior, you can tailor your offerings to better meet their demands.

Localization Matters

Whether you’re in New York, Los Angeles, Chicago, San Francisco, or Miami, your startup should adapt to the local market. Each city has its unique characteristics and consumer behaviors. A “one-size-fits-all” approach might not be effective. Tailor your strategies to resonate with the local population, thereby increasing your chances of success.

Leverage Live Receptionist and Virtual Office Services

In the digital age, having a physical presence is important, but it doesn’t have to be costly. Consider the benefits of a virtual office, especially for startups in high-cost cities. A virtual office allows you to have a prestigious address, access to meeting spaces, and even a live receptionist to handle calls professionally. This not only enhances your business image but also saves on overhead costs.

Optimizing Operations

Streamline Processes

Efficiency is the cornerstone of profitability. Examine your operational processes and identify areas where you can streamline. Automate repetitive tasks and invest in tools that help you manage your workflow effectively. By reducing operational inefficiencies, you can save both time and money.

Focus on Customer Experience

In major cities like New York, Los Angeles, Chicago, San Francisco, and Miami, customers have high expectations. Prioritize delivering exceptional customer experiences. Happy customers are more likely to become repeat buyers and brand advocates, which can significantly boost your startup profit.

Embrace Remote Work

The trend of remote work has gained momentum, and startups can benefit from it. Embracing remote work not only reduces overhead costs but also widens your talent pool. You can hire skilled professionals from around the world without being limited to your geographical location.

Effective Marketing Techniques

Digital Marketing Dominance

In today’s digital age, an online presence is non-negotiable. Leverage social media, content marketing, and search engine optimization (SEO) to increase your visibility. Whether you’re in New York or Miami, an effective online strategy can help you reach a broader audience.

Targeted Advertising

Rather than casting a wide net, focus on targeted advertising. Platforms like Facebook and Google allow you to define your audience based on demographics, interests, and behaviors. This approach ensures that your marketing efforts are directed toward those most likely to convert.

Wrapping Up

The road to startup profit is paved with challenges, but by following these strategies, you can increase your chances of turning your venture into a profitable business. Understand your market, optimize your operations, and employ effective marketing techniques to build a strong foundation for your startup’s success.

The post Path to Profitability Turning Your Startup Profitable first appeared on Alliance Virtual Offices.

Is a Cheap Virtual Office Costing You?

John Donovan — Mon, 05 Jun 2023 11:19:00 +0000

Are cheap “virtual offices” real Virtual Offices?
The downsides of a cheap virtual office
The best Virtual Office
High-quality Virtual Office integration

Q: Should I find a cheap virtual office for my business? Is there any problem with seeking out the least expensive virtual office and using that for my operations?

A: While a cheap virtual office might sound attractive, it’ll likely cost you a lot more money in the long run. Instead of seeking out a cheap virtual office, consider using one of Alliance’s Virtual Offices to ensure you get the most value from your hard-earned money.

According to Gallup’s research, approximately 70 million American workers can do their jobs remotely. Of these individuals, only 20% are currently working onsite full-time.

These statistics paint a vivid picture of the new reality for modern entrepreneurs, business owners, employees, and everyone in between.

During the pandemic, government shutdowns, mask mandates, and general public fear helped push a massive transition to remote work that had been in progress for years but was accentuated by Covid-19.

What started as working remotely out of necessity has quickly turned into something different. Now, workers are demanding the right to work from home or in the office, and thanks to the Great Resignation that brought the highest quit rates America has seen in decades, employers don’t have much of a choice.

Along with this transition to remote work, countless modern solutions have been created to allow business owners and entrepreneurs to extend their existing companies’ operations or start virtual businesses. One of these services is the virtual office.

With a virtual office, business owners can create satellite offices anywhere they’d like, new entrepreneurs have a cost-efficient way to break into the world of business ownership, and these options are available for anyone.

Unfortunately, not all virtual offices are created equally.

Some business owners and entrepreneurs, unaware of the risks of using a cheap virtual office, try to save as much capital as possible in structuring their virtual office rather than choosing the best-value office and saving capital long-term.

In this article, we’ll be looking at what a cheap virtual office is, the downsides of using a cheap virtual office, why Alliance Virtual Offices has better services, and how to integrate a high-quality Virtual Office with other tools.

So, if you’ve ever Googled “cheap virtual office space near me” – don’t, but know you’re in the right place.

What is a cheap virtual office?

Before we cover the problems with searching for things like “cheap virtual office near me,” let’s take a moment to cover what a virtual office is.

Essentially, a virtual office is a service that gives individuals access to an address they can use to register their company as an LLC.

This service’s baseline is providing an address, but high-quality offices will include access to workspaces, mail forwarding options, and several other amenities.

Low-quality offices might include mail forwarding but won’t provide a good address, workspaces, or any other amenities. Depending on the addresses the provider is using, it might not allow you to register your business.

With that in mind, let’s dive into the issues with cheap virtual office spaces. As we move forward, though, keep in mind that there’s a difference between an affordable Virtual Office and a cheap virtual office space.

A cheap virtual office is effectively just a PO box. Occasionally, the cheap virtual office is just a PO box.

If the provider is using PO boxes, there’s a good chance you’ll be incapable of registering your business, as most states don’t allow companies to register with anything but a physical mailing address.

That said, even if the cheap virtual office isn’t using a PO box, the virtual office will function like one.

They might allow you to register your business and get mail forwarded, but they don’t provide you with any actual office space or other amenities.

Often, these cheap virtual offices are located in retail locations as well.

Think about this: imagine two businesses.

For the sake of argument, both of these companies are the same. They’re technology startups with talented teams, but no prior experience.

One of these companies is using a cheap virtual office. Because of this, the first business is registered to a mini-mall in Kansas and shares its address with another retailer.

The second company uses a high-quality Virtual Office. This allows the second company to register with an address in Silicon Valley and share an address with several other successful and well-known businesses.

Potential investors, potential clients, and potential consumers will look at these two businesses and instinctively trust the business registered to an address in Silicon Valley more.

When considering the long-term costs of using a cheap virtual office, there’s no reason to consider using anything but a high-quality, yet affordable, Virtual Office. Even if you’re just hoping to expand your business and corner a new market, a Virtual Office is how you should try and accomplish those goals.

A cheap virtual office isn’t going to do your business’s image any favors. It doesn’t matter where you search for a cheap virtual office, Los Angeles or New York, the cheaper providers won’t be able to provide you with an address of any merit.

Now, let’s look at the real downsides of using a cheap virtual office.

The downsides of a cheap virtual office

As the public perception of remote work continues to improve and publications like Forbes continue to point entrepreneurs toward remote and hybrid workstyles, using a cheap virtual office should be seen as similar to the way choosing an office in a bad location was viewed years ago.

Some business owners are under the impression that they can just find a cheap virtual office in a popular location and get around the other negatives associated with these offices. Searching for “cheap virtual office Miami” won’t be enough to negate the lack of space or other amenities.

Alternatively, some business owners think saving money via a cheap virtual office is good because it increases their company’s overall profitability.

While this might be true in the short term, using a cheap virtual office stands to cost you far more money over time than simply using a high-quality Virtual Office initially.

Instead of trying to find the cheapest virtual office, you should be looking for Virtual Offices that provide all of the amenities your business needs to succeed. If your Virtual Office is to act as your company’s hub – why not treat it with respect?

There are plenty of amenities you should be looking for – but what about cheap virtual offices should you try to avoid?

Below, we’ve put together a brief list of the numerous downsides of using a cheap virtual office.

Poor optics
Consumer skepticism
Only remote work
Nowhere to meet clients or team
Limited amenities
Hidden fees
Bad client support

Poor optics

One of the biggest problems with using a cheap virtual office is that your business is often registered with a retail space or mail center. This means that when curious consumers search for your company, they’ll see this.

Not to mention, if a scam business uses the same provider for a cheap virtual office, as these cheap office companies typically don’t vet their customers, then your business stands to lose customers from the fallout too.

Scams are on the rise and consumers are wary – when bad actors use the same address as your company to commit crimes, your brand image will take a hit.

When you’re using a cheap virtual office, this is an unfortunate risk that you’re always susceptible to – as you can’t control how another person or business acts.

Consumer skepticism

Despite the widespread transition to remote and hybrid workstyles and the countless digital businesses starting up, people are still generally skeptical about online businesses.

When you’re using a cheap virtual office, nothing about your business stands out. Using a questionable address and having no discernible location is often enough to prevent some customers from making purchases.

Only remote work

A cheap virtual office isn’t going to provide you with easy access to coworking spaces and meeting rooms.

This means you won’t have anywhere to go when you want to use a workspace. Anyone that’s worked from home for any time will understand how frustrating it is to feel stuck working from the same place where you already spend all of your time.

With a cheap virtual office, you’re paying money without access to a workspace. If you want to break the monotony of working from home to revitalize your work, you’ll have to work in an unsecured public location or pay more money for a place to work.

Neither of these options are very attractive. Unfortunately, they’re the only options you have with a cheap virtual office.

Nowhere to meet clients or team

Building on the previous point, you don’t have anywhere to meet with clients or your team. There’s no meeting space, and when you need one, you have to pay hefty sums to rent out-of-the-way locations.

Even if you’re hosting virtual meetings, you’ll have the same problems. Using virtual office backgrounds is typically seen as poor etiquette, and when you host virtual meetings from home you risk innumerable distractions.

Hosting meetings at a coffee shop or another public location wouldn’t be appropriate. Paying for a hotel conference room requires a large budget, a ton of advanced notice, and attendees willing to drive.

Limited amenities

A virtual office is meant to act as your company’s central hub. Even though the service is just that, a service, the other amenities, like access to space and full customization, create an environment where you have all the benefits of a traditional office at a fraction of the price.

Cheap virtual office providers aren’t going to give you the amenities your business needs to thrive. Sure, they might offer mail forwarding, but is missing out on all the methods of improving your business infrastructure worth the cheap price tag?

Hidden fees

Some lower-quality and more questionable virtual office providers may advertise an extraordinarily low price upfront. Then once you’ve signed the document and started the service, they charge you countless hidden fees.

When looking at a cheap virtual office, it’s important to consider the charges you might incur during your daily operations. The mail forwarding and call answering that you thought were included might incur fees you don’t know about until it’s time to pay.

It’s not uncommon to be charged for using certain perks of a virtual office, part of what makes them so flexible is the ability to only pay for what you need. But when you’re still not getting access to a workspace and the fees are obfuscated, it’s a good sign you’re using a low-quality and cheap virtual office.

Bad client support

Cheap virtual offices are incredibly unlikely to have full-time staff available to walk you through any issues that might arise in the setup or daily operations of your virtual office.

This creates scenarios where customers are waiting on you while you are waiting on your cheap virtual office’s customer support, creating an environment where no one is happy, and you may actively lose consumers.

Becoming technically literate isn’t a small task. Even with high-quality Virtual Offices, you will likely need some help with setup and other technical issues that arise.

The difference between cheap virtual offices and real Virtual Offices is that a cheap virtual office will leave you to deal with urgent problems for days at a time, whereas high-quality Virtual Office support is available on-demand and will never leave you feeling ignored.

When running a business, it’s important to assess the quality, availability, and professionality of your Virtual Office’s customer support. Your business can’t wait around for someone else, so why risk using a cheap virtual office?

It’s also important to remember that there are other, better ways to save money than using a cheap virtual office. Sure, a cheap virtual office might save you money at the moment, but the shortcomings of your virtual office will quickly eclipse those minor savings over time.

As you can see, the downsides of using a cheap virtual office are fairly extensive. Your brand image, your ability to host meetings and use a workspace, and your susceptibility to scammers make it incredibly difficult to get any real value from a cheap office.

Thankfully, Alliance Virtual Offices provides a solution.

What sets Alliance Virtual Offices apart

Alliance Virtual Offices provides an affordable Virtual Office that saves considerable capital in comparison to traditional commercial leases – without giving up any of the amenities traditional spaces are known for.

Below, we’ve put together another checklist of the ways that Alliance’s Virtual Offices stand out.

Professional address

Alliance has addresses available in all fifty states and almost every city.

Want to start a fashion business in Los Angeles or Miami? Not a problem!

Want to start a financial services business in New York? No issue.

With Alliance, we want you to have the flexibility to work anywhere you want. This is why we include Virtual Office centers from all over the world.

Our Virtual Offices are available everywhere. We also include options from major central business districts in well-known locations to ensure your business receives the best optics available.

Your Virtual Office should improve the public’s perception of your operations, not the other way around.

Mail forwarding

Alliance Virtual Offices’ mail forwarding system allows business owners to receive mail at four different levels. Keep in mind, these prices may vary slightly depending on where your Virtual Office is located.

Once monthly, $10 per month
Twice monthly, $20 per month
Weekly, $30.00 per month
Daily, $70.00 per month

These tiers allow businesses to pay for the mail forwarding they need and not one flat rate that’s too often or too seldom. Better yet, Alliance allows you to change your mail forwarding tier as needed, so you can move through the tiers without feeling stuck in any one spot.

Keep in mind, the best value is the daily option.

The first two tiers come out to $10.00 per mail delivery. The third tier, weekly mail forwarding, comes out to $7.50 per mail delivery.

The fourth and final tier, daily mail forwarding, comes out to only about $3.30 per delivery – meaning it’s the best value for your money.

Workspaces and meeting rooms

As you know, having access to meeting rooms and workspaces is paramount to a healthy work-life balance. There’s no point in spending money on a cheap virtual office when you aren’t given access to workspaces and meeting rooms that you can use to break the monotony of a boring routine.

Because Alliance only utilizes the highest quality Virtual Office centers, the workspace you’ll have access to is populated by other motivated entrepreneurs trying to expand their businesses. When your peers are also trying to improve, it’s difficult not to want to improve yourself.

For meeting rooms, Alliance gives you countless different choices.

If you need to host a large meeting room for an entire day, you’ve got the option. Alternatively, if you just need to host a small meeting for half a dozen individuals for one hour, you can do that too.

Alliance believes in customization, so for any size meeting you need to host, we can help.

Onsite staff

The centers that Alliance uses also are staffed by friendly and professional workers who are fully willing to answer any questions that might arise when you’re using the facilities.

With a cheap virtual office, you don’t have access to any kind of workspace. Through Alliance, you have access to physical workspaces and staff that know what they’re doing.

In addition, Alliance offers support outside of the workspaces and meeting rooms too.

Virtual Office setup can be confusing and we want our partners to get the most out of their offices, so we’re available by phone or email whenever you need us. Alliance’s support goes above and beyond to ensure your Virtual Office functions as it should.

Office amenities

Finally, with Alliance’s Virtual Offices, you have access to an assortment of office amenities.

In a traditional space, these amenities require upkeep and regular refills. With your Virtual Office space, you can use what you need, when you need it.

Cost-efficiency

Sure, you’re going to spend a little more than you would if you were using a cheap virtual office, but all things considered, you’re still saving a considerable amount of capital.

In the past, commercial leases lasted anywhere from 3-5 years. However, with one of Alliance’s Virtual Offices, you can get a plan starting with a 6-month minimum.

Not to mention, the money you’re saving through using a Virtual Office can quickly be reinvested into your business to improve infrastructure and scalability.

At the end of the day, Alliance provides more value per dollar than any cheap virtual office could ever offer.

High-quality Virtual Office integration

Cheap virtual offices end up costing you substantial capital and business infrastructure problems in the long run.

Alliance Virtual Offices provides more for your money. We support your growth and help you build your business.

In addition to being considerably better value than a cheap virtual office, Alliance lets you fully integrate other digital solutions into your Virtual Office.

Consider one of Alliance’s Live Receptionists to help you answer phones, create healthier customer relationships, and better focus on the more nuanced aspects of your business.

Additionally, using one of our virtual receptionists will help you avoid hiring for another full or part-time position.

Want a business phone number to go with your professional and well-known address? Alliance provides a Virtual Phone that you can use to separate personal calls from your business calls and gives you unlimited extensions so you can smoothly onboard new team members.

Don’t settle for a cheap virtual office – get the most out of your hard-earned money.

Further reading

Alliance Virtual Offices provides digital solutions and Virtual Office integration for business owners and entrepreneurs globally.

Instead of using a cheap virtual office and wasting money in the long run, use one of Alliance’s Virtual Offices to position your business for long-term success.

Contact us today to see how Alliance can help you avoid using a cheap virtual office. Check out our Virtual Office Blog for more digital services information and helpful business tips.

The post Is a Cheap Virtual Office Costing You? first appeared on Alliance Virtual Offices.

Small Business Insurance Cost Doesn’t Have to Break the Bank

John Donovan — Thu, 20 Apr 2023 11:28:00 +0000

Do you need small business insurance?
What are the small business insurance costs?
Other ways to protect your small business
Digital tools that help ease the small business insurance cost

Q: Does having an LLC protect my business completely? What kind of small business insurance cost can I expect to pay?
A: While your Limited Liability Corporation does provide specific protections for you and your business, it certainly doesn’t protect your company completely. Your LLC does provide personal asset protection, but the LLC itself can still be held liable for debts, lawsuits, or other extraneous costs. Your small business insurance cost will vary depending on what level of risk your business operates within, how large your company is, and how new it is.

Once you’ve registered for an LLC, you might assume you’re in for some smooth sailing.

Your assets are protected, your savings account is protected, and you feel insulated by your Limited Liability Corporation.

Unfortunately, your assets might be protected, but that doesn’t mean your LLC isn’t at risk. Enter the world of insurance for small business.

During the Covid-19 pandemic, Americans were confronted with the sobering realization of just how important small business insurance is.

Government lending programs helped keep some businesses afloat. Still, the businesses operating in high-risk environments had to deal with skyrocketing small business insurance costs in conjunction with widespread economic fear and uncertainty.

Starting and running a small business is very challenging, and one of the largest concerns is the cost of insurance. Countless business owners assume that insurance will be prohibitively expensive, but the truth is, small business insurance cost doesn’t have to be a burden.

If you take the right approach, you can find coverage that fits your needs and budget without stunting future growth.

In this article, we’ll examine whether or not your business needs small business insurance, small business insurance requirements, small business insurance prices, and other ways you can protect your small business. Finally, we’ll cover some digital tools that can help to ease the small business insurance cost.

So, if you’ve ever searched the web for “small business insurance near me” – then you’re in the right spot. Keep reading for more!

Do you need small business insurance?
What are the small business insurance costs?
Other ways to protect your small business
Digital tools that help ease the small business insurance cost

The importance of small business insurance

The world of insurance might seem intentionally obtuse. With countless different plans with different premiums with different rules, it’s no small wonder that anyone can confidently secure an insurance plan.

But just like finding a home for your business requires serious research, understanding the importance of small business insurance requires the same commitment to research.

You might be asking, “why do I need small business insurance if I already have an LLC?” If this is the case, don’t worry: small business insurance can help you protect yourself from the chaos of running a business.

While an LLC might protect your personal assets, chances are you want to keep your business going. Small business insurance helps you avoid a financial catastrophe should something happen to your business.

Below, we’ve covered a few scenarios wherein your LLC won’t protect your business. These are the kinds of situations in which the small business insurance cost won’t matter because the penalty is often much higher than expensive premiums.

Employee injuries
Liability claims
Cyber attacks
Business interruption
Product liability

Employee injuries

As you’re likely aware, your LLC is a business structure that protects your assets and personal finances through something called personal liability protection.

This means that the personal assets of any founding members are typically protected by law from creditors and lawsuits that might crop up during regular business operations.

Unfortunately, your LLC isn’t able to protect the business itself.

This is why finding a reasonable small business insurance cost is so important. If your employees get injured on the job and you don’t have insurance, it could be a financial disaster for your company.

For instance, let’s say that an employee has injured themselves on the job while working for your company. Since that employee was injured at work, they can file a workers’ compensation claim against your business.

If you don’t have the right kind of insurance, there’s a chance that your business will be on the hook for paying for that employee’s medical treatment, lost wages, or other associated fees.

Most small businesses aren’t quite flush with extra spending money, and such a serious expense could effectively cripple your business.

When employees are injured on the job, small business insurance is the best way to ensure that your business isn’t put in a position from which it can’t recover.

Liability claims

Liability claims can come in several different forms, and thankfully, liability insurance is the broadest available kind of insurance for small businesses.

Here are some modern examples of standard liability claims your company might have to deal with.

Slip and falls

For digital businesses, you presumably won’t have to deal with any slip-and-fall claims, and for that, you should be thankful. If a customer falls in your store and breaks an arm or hurts themselves in any manner, that customer can file a claim for damages caused that your business will be on the hook for without insurance.

Road liabilities

If you’re employing a delivery driver and that driver causes an accident while on the job, any other drivers injured in the accident can quickly file a claim for damages against your business. Again, without small business insurance, your business might be responsible for ensuring that each victim is paid in full.

Poorly managed digital-first operations

Unfortunately, while slip-and-falls and other liabilities might not be common for digital-first businesses, there are still several ways to get your business into hot water without a physical location.

Suppose a customer visits your online store, website, or mobile application and suffers a financial loss or a bug that causes their software to function strangely. In that case, the customer can file a claim that argues that your company was negligent in maintaining a “safe online environment” because companies are usually held liable for accidents resulting from using their products or services.

Situations like these are why it’s generally good practice to find some kind of general liability business insurance for your operations.

Even a slightly high small business insurance cost would save considerably more money than being placed on the hook for an employee’s medical bills and missed wages.

Cyber attacks

By and large, American small business owners are woefully unprepared for any kind of cyber-attack against their business.

This is a confusing statistic for several reasons.

Despite several high-profile attacks over the past few years and American consumer confidence in small business cybersecurity being lower than ever, business owners are generally unconcerned with how they would react to a cyber-attack. Most business owners assume they’d be able to “quickly handle” any attempt made on their operations.

This laissez-faire approach to cybercrime is guaranteed to upset customers and paint a huge target on your business’s back. From a recent poll, 55% of American consumers are less likely to continue doing business with brands that have fallen victim to cyber-attacks in the past.

While this might not seem fair, it’s difficult to blame consumers for taking such a stand.

Data breaches, ransomware, cyber extortion, and phishing attacks are all common attack vectors for bad actors to use against small businesses. These kinds of attacks are often even more difficult on the customers whose information was ransacked.

A data breach is when your business’s confidential information has been accessed by someone without the right to do so. This might include your business’s banking information, your customers’ information, your suppliers’ information, and so on.

Ransomware and cyber extortion are fairly similar styles of attack. Cyber extortion typically involves the threat to release sensitive or confidential information, disrupt daily operations, or launch a more disastrous attack until a ransom is paid.

On the other hand, ransomware is a kind of nefarious software that encrypts your business’s files and demands a ransom payment be made in exchange for the decryption key.

Essentially, ransomware prevents you from getting into your information, whereas cyber extortion threatens you with your information being released.

Fortunately, several kinds of small business insurance are available specifically designed to help your business cope with a cyber-attack.

Business interruption

As made clear by the Covid-19 pandemic, business interruptions can be catastrophic for small businesses.

Sure, we hope we won’t have to deal with another pandemic as devastating as Covid-19, but there’s no guarantee that this will be the case. Also, natural disasters like tornados, hurricanes, floods, earthquakes, or anything else along those lines can have the same effect on your operations.

When you’re only using your LLC, your business isn’t protected against any natural or manufactured disaster that forces you to shutter operations for any amount of time.

If you’re lucky, you might see some government-subsidized relief programs, but that’s an incredibly risky bet.

Instead, the right small business insurance can help ensure that your business isn’t devastated due to a pause in its daily operations.

Product liability

While some of these liabilities are far more dangerous for physical businesses, product liability is an issue for any company selling products. If a customer can prove that you sold them a defective item, you could be responsible for a sizable payment to that individual.

Remember, your business is liable for any damages that result from using your products or services. Without small business insurance, your LLC won’t protect your business from being on the hook for paying medical bills, legal expenses, or damage awards.

Imagine that you own an e-commerce business that specializes in selling outdoor equipment. A customer purchases a weed eater from your online store and uses it for a few weeks without fail.

After using the weed eater without issue, the customer experiences a jam in the weed eater blades and attempts to clear it. In doing so, the customer sustains an injury and realizes that the safety guard was never properly closed.

Now, the customer can bring forth a product liability claim against your business by alleging that the weed eater was designed and manufactured defectively and/or that your business was negligent for making the sale without properly inspecting and testing the equipment.

Without insurance, your business will be liable for any payments the customer is awarded. Accounting for medical bills, legal expenses, and awarded damages, it could be a large enough sum to effectively decapitate your business.

At the end of the day, regardless of the small business insurance cost, you’re taking steps to add a layer of protection so your business can keep growing, even if you’re hit with an expensive lawsuit or forced to stop production for a while.

That said, this doesn’t mean you should throw caution to the wind and deal only with the most expensive small business insurance companies. Instead, you just need to take the time to do as much research as you can before making a decision.

How to find cost-effective small business insurance

There are several options for small business insurance. Just like when you’re hoping to secure a loan or line of credit, you can easily spend a lot of money on substandard rates; but with enough planning and consideration, you can find a plan that works well for you.

The best way to find the most cost-effective small business insurance plans is to shop around and compare quotes.

Despite a rise in insurance jobs across the country, you don’t need to work for an insurance broker to understand how to find fair-priced coverage.

Read more: 6 Best Cities for Insurance Jobs

Various providers will evaluate your business and provide quotes based on how risky they feel your business is.

Remember that there are several different kinds of small business insurance, so your small business insurance cost depends entirely on the kind of insurance you receive and your business’s unique qualities.

Below we’ve covered a few qualities that the average small business insurance company could look for when determining your business’s risk.

Age of business

The age of your company has a direct influence on your small business insurance cost. Established businesses are usually financially stable and have a long history of operations, which makes them easier and less expensive to insure. For newer businesses, the sheer lack of historical data makes it more difficult for underwriters to assess risk – which typically leads to erring on the side of caution.

Location of business

If your business operates from a brick-and-mortar location, the area you’re located in can seriously impact your small business insurance cost. First, if you’re in an area susceptible to crime or natural disasters, you’ll likely pay more than a business susceptible to neither. In addition, the competition around your business, the regulations you’re forced to comply with, and even the location’s demographics directly affect how much you are required to pay.

Industry in which the business operates

Unsurprisingly, the more dangerous your operations are, the higher your small business insurance cost will be. Construction companies, restaurants, retail locations, and businesses that handle hazardous materials are inherently at higher risk than their lower-stakes counterparts.

Digital or physical operations

If you’re operating an e-commerce business or another digital-first company, your small business insurance cost will be lower than running a brick-and-mortar location. With physical locations, you’re subject to high insurance costs because of the inventory, assets, and liabilities associated with that location. For digital businesses, inventory is less of a problem, and issues like theft and natural disasters won’t affect you as much.

On this note, another way to make your small business insurance cost more manageable is to reduce the risk associated with your business.

If you’re getting several quotes that are just too pricey, think about areas where you can improve your safety rating. If you make your business safer, small business insurance companies might offer lower rates.

Additionally, it’s important to assess how much coverage you think your business needs.

Unfortunately, no small business insurance cost calculator tells you precisely how much coverage you need to secure for your business.

There’s no correct answer here – ultimately – it comes down to how comfortable you are with risk.

Fortunately, small business insurance isn’t the only way to protect your business. Keep reading for more!

Other things you can do to make your business safer

Making your business safer not only reduces your insurance rates, but it reduces the likelihood of needing insurance in the first place.

Not to mention, taking these steps will typically help your business significantly reduce operational costs. This means that even if you don’t necessarily need insurance, the small business insurance cost won’t be near as detrimental to your finances.

One of the best things you can do for your business’s security is to register your business with a Virtual Office.

Virtual Office Benefits

Privacy

A Virtual Office protects your business mail. Your mail is held at a business center where only you or the people you designate can access it, severely reducing the chance of any data leaks or compromises.

Work-life balance

Your Virtual Office separates your home address from your business address, adding another layer to your privacy and allowing you to feel more at ease.

Cost-efficient

With the cost savings of switching to a Virtual Office from a traditional office, you can afford a significantly higher small business insurance cost.

Traditional commercial leases can last anywhere from 3-5 years. With one of Alliance’s Virtual Offices, you can start with an easy-to-manage 6-month plan.

Add-ons

From mail forwarding to easily reservable meeting rooms, your Virtual Office provides several other tools that you can use to help your business scale.

Our mail forwarding service has multiple tiers that you can cycle through as your business grows, and our meeting rooms are available in tons of sizes.

Flexibility

One of your office’s nicest benefits is working from anywhere worldwide. Simultaneously, you’re perfectly positioned for rapid growth thanks to the low-cost and highly-efficient nature of your Virtual Office.

In our digital-first economy, flexibility is vital. The faster you can react to the shifts in the market, the better.

With a Virtual Office, you can make your business considerably safer from a privacy and security standpoint while increasing your flexibility and reducing your operational costs simultaneously.

Outside of our Virtual Offices, several other digital tools can help ease the burden of a high small business insurance cost.

Digital tools that help ease the small business insurance cost

Business insurance can be vital for your company’s longevity.

The longer your business is around, the likelier it is to be sued, suffer a class-action lawsuit, deal with product liability claims, or even cope with a natural disaster. With high-quality insurance, the damages associated with any of these kinds of situations can be seriously negated.

The best way to find an attractive small business insurance cost is to shop around and make your business as safe and secure as possible.

Remember, a Virtual Office helps you make your business much safer.

Additionally, Alliance provides several other tools that can assist in your efforts to find a reasonable small business insurance cost.

With our Live Receptionist, you don’t have to worry about filling another part-time or full-time position. Instead, you can use the capital you’d set aside for filling the position to assist in your efforts to find a high-quality plan.

Our Virtual Phone Numbers serve a similar purpose. With unlimited extensions, we’re allowing business owners to focus on onboarding new employees and protecting their existing employees’ privacy without having to get a new device.

With our easily reservable Coworking Spaces, you can break the monotony of your day-to-day routine without being forced to work in a freezing library. Not to mention, changing up your routine helps you avoid work-related burnout and stress.

With our Meeting Rooms, you can host client, investor, or team onboarding meetings in a professional, clean, and private room of any size you’d like! Using our Meeting Rooms helps you legitimize your business and shows potential clients or investors you’re serious about your operations.

Further reading

Depending on the kind of company you own, your small business insurance cost could be astronomical or easy to handle.

The key is determining how you can make insuring your current operations as cost-effective as possible – without losing the coverage you need.

Whether you’re a newcomer to business ownership or an established entrepreneur with decades of experience, Alliance Virtual Offices is ready to help you attain the best small business insurance cost available.

The post Small Business Insurance Cost Doesn’t Have to Break the Bank first appeared on Alliance Virtual Offices.

Everything You Need to Optimize Your Net Profit

John Donovan — Thu, 13 Apr 2023 11:38:00 +0000

What is net profit?
The difference between net profit and net income
The easiest way to optimize net profit
Modern digital tools that can be leveraged to boost net profit

Q: What is my business’s net profit? In addition, how can I optimize my company’s net profit?
A: Your business’s net profit is your total sales minus all of your operating expenses. Essentially, your net profit is the money left over after all costs are accounted for. The best ways to optimize your company’s net profits are by taking advantage of the available digital tools, strengthening your company’s infrastructure, and increasing your company’s profitability.

Despite the widespread transition to collaborative work environments in conjunction with studies about the productivity of healthy and happy employees, employers continue to struggle to fully optimize their employees.

According to Gallup, a surprisingly small 7% of American workers are fully optimized. With so much research pointing to the efficacy of engaged employees, why do business owners still struggle to retain quality employees and make the most out of the employees that stay?

Although there isn’t any one-size fits all answer to that question, many employers are focusing too much on net profit, struggling to cultivate a healthy working environment, or simply getting complacent.

But wait, how can your business succeed without focusing on net profit, especially with the economy being on such shaky ground? While many entrepreneurs feel that a “more is more” approach to their net profit formula is the answer, the truth is that net profit optimization is a much more strategic solution.

To truly understand how to get the most out of your net income, the first step is diving into net profit and all its moving parts.

Education on net profit vs. gross profit (or even just net profit meaning) will help you set your business up for long-term success, improved employee retention, and net profit optimization.

In this article, we’ll be taking a closer look at net profit as a whole, the difference between net profit vs. net income, the easiest way to optimize your business’s net profit, and some modern digital tools that can be leveraged to help boost net profit.

So, if you’re looking for better information about your net profit margin and how to get the most out of the money your business is bringing in – you’re in the right place. Keep reading for more!

What is net profit?
The difference between net profit and net income
The easiest way to optimize net profit
Modern digital tools that can be leveraged to boost net profit

What is net profit?

Before we dive into net profit optimization, let’s take a closer look at net profit as a whole.

First, net profit is the amount left over after deducting all of your business’s operating expenses. You calculate your net profit by taking your gross profits and subtracting all operating expenses beyond the cost of production.

Net profit can also be calculated from revenue by subtracting all expenses from your company’s total gross revenue.

To ensure that nothing gets lost in translation, let’s take a moment to examine some of these terms.

Gross profit
Operating profit
Operating expenses
Gross revenue
Operating revenue
Non-operating revenue
Earnings after tax (EAT)

Gross profit

Gross profit is most easily described as your company’s total sales minus the COGS, or cost of goods sold.

An easy formula to remember when calculating your company’s gross profit is simply:

Total revenue – COGS = gross profit

Operating profit

For many small businesses, operating profit isn’t going to be much different from your net profit.

Operating profit is also referred to as earnings before interest and taxes, or EBIT. It is calculated as gross profit minus operating expenses, not including the deduction of any applicable interest payments or taxes.

This means that if your business has no outstanding loans or lines of credit, doesn’t pay a lot in taxes, or isn’t worrying about either, your operating profit won’t be too much different from your net profit.

Operating expenses

Your business’s operating expenses are any expenses incurred during normal, daily operations.

Any money you spend on normal business operations falls into your company’s operating expenses.

Gross revenue

Gross revenue is the sum of all the money your company generates. Any amount of money you bring in is added to your company’s gross revenue.

That said, your business’s gross revenue doesn’t take into account any of your operating expenses, so you can technically have impressive gross revenue without making any money.

We’ll touch on situations like this soon, but this is why net profit optimization is so important to your business’s long-term success.

Operating revenue

Operating revenue is money that your business accrues during its normal operations. I.e., if you’re running a digital clothing company, all of the money you make selling clothes online is accounted for in your operating revenue.

Non-operating revenue

As you can imagine, if operating revenue is the money your business makes in its normal operations, non-operating revenue is income generated outside of its primary operations.

This means that if you’re making any investments, purchasing real estate or assets, exchanging currencies, or buying other kinds of speculative assets, any income generated is added to your non-operating revenue.

Earnings after tax (EAT)

Technically, your company’s earnings after tax are the same as your company’s net profit.

Often, financial institutions, banks, and other potential lenders will look at your company’s earnings after tax to get a picture of your business’s financial standing. Your earnings after tax are also sometimes called your business’s “bottom line.”

Now that you’ve taken the time to familiarize yourself with the various aspects of profit itself, it’s time to move into the difference between net profit and net income.

The difference between net profit and net income

In many ways, net profit and net income are synonymous.

That said, you should still take the time to dig a bit deeper into net profit vs. net income. Thankfully, you’re in the right place.

Your net income is the amount of money your business makes over a set period, like a quarter. Your net income is also referred to as the net profit, so the two terms are essentially the same.

The key difference between the two is that “income” refers to the money that comes into the company and includes revenue as well as profit.

“Profit” always involves money beyond expenses, though the particular expenses deducted will vary by type.

Ultimately, net profit and net revenue refer to the same figure, but the terminology differs slightly.

Remember, these distinctions require some serious nuance, and the terminology is endless. Thankfully, modern business owners have more resources at their fingertips than ever before.

Don’t be afraid to take advantage of these tools, and remember that the internet exists for a reason – anything that is giving you trouble is just a search away.

With these differences in mind, you can start focusing on the best ways for your business to optimize its net profit.

The easiest way to optimize net profit

Unfortunately, there’s no perfect approach to optimizing net profits – as each business is slightly different.

Many business owners are under the impression that focusing entirely on net profit and trying to bring in as much money as possible is the best way to run a successful business, but that couldn’t be further from the truth.

Alternatively, the answer more often lies in improving management skills, creating a more collaborative workspace, and making use of modern tools to cut operational costs.

Luckily, we’ve compiled a list of some of the best ways any business can optimize its net profit. Keep in mind there are multiple avenues to improving your net profit – sometimes, you just need to think outside of the box.

Increase gross revenue
Reduce operating expenses
Cultivate a collaborative working environment
Improve your company’s infrastructure
Utilize a Virtual Office

Increasing gross revenue

The first way to increase your net profits is simply increasing gross revenue. If you increase the amount of money your business makes, chances are that you’ll also increase your net profit.

You should be aware though; this isn’t always the case.

Focusing solely on increasing gross revenue without worrying about your operating expenses can sometimes leave you in a bad position. You’re bringing in more money but spending it too fast for it to matter.

Although this is a powerful way to increase net profit, it isn’t easy. Making quick-payoff decisions like increasing prices can often lead to fewer sales, backfiring entirely on your company.

Reducing operating expenses

Reducing your company’s operating expenses is an excellent way to increase profitability, thereby increasing your net profit.

Doing this allows you to keep your prices the same while increasing your net income on each sale. This makes it easier to continue capturing and converting new leads, gives your business more room to breathe, and ultimately boosts your net profit effortlessly.

While cutting costs, you should try to avoid cutting out key employees while still keeping in mind the benefits of outsourcing.

Cutting costs is a great way to increase net profitability, but you should be wary of cutting necessary aspects of your operation.

Remember, the goal is increasing your bottom line. If you’re making sweeping cuts, there’s a great chance you will wind up making it more difficult for your business in the long run.

Cultivating a collaborative working environment

In the past, businesses weren’t worried about creating a collaborative environment at all.

Instead, the focus was on a more authoritarian style of management. This authoritarian management style was harsh and unforgiving and enforced a strict hierarchy in the workplace.

As you can imagine, authoritarian working environments aren’t exactly a breeding ground for innovation.

Now, with more and more studies showing that a happy employee is a productive employee, businesses are more incentivized than ever to cultivate a healthy and collaborative environment at work.

You might be wondering how happy employees could lead to a higher net profit, but the answer is simple.

Hiring is costly. The onboarding process takes time and money. The Great Resignation made it painfully clear that the modern worker, if unhappy, is more than willing to search for a new position at a new company or strike out on their own.

Not to mention, paying for yearly raises and applicable bonuses for a few key employees will be far cheaper than hiring a new batch of core employees every couple of months.

In a collaborative environment, delegation and decentralization are king.

Rather than having one employee that makes all decisions and dictates the direction of each employee, all of your employees are given some level of decision-making. They and are told to focus on deadlines rather than an arbitrary “task at hand.”

With a fully functioning collaborative environment, you’ll be able to take a step back and let your business function as a living and breathing environment.

Collaboration means everyone is working together.

If deadlines are clear and the workflow is straightforward, your business will be operating at its most productive – meaning your net profit will increase regardless of whether or not you’re bringing in more money.

Improving your company’s infrastructure

Improvements to your company’s infrastructure are an underrated way to increase your net profit in the long term.

All too often, business owners are too focused on increasing revenue and scaling quicker than they can manage, despite not having a strong infrastructure to fall back on.

When you try and scale too quickly, you’re opening your business up for several problems.

First, when you don’t have a healthy infrastructure to rely on, you’re at the whim of your suppliers and, by extension, their suppliers.

This can lead to situations where customers are waiting unreasonably long amounts of time for their orders, getting the wrong orders, or even not getting what they’ve ordered at all.

Another problem your business might run into if you don’t have an adequate business infrastructure as you grow is falling victim to cyber-attacks.

New reports tell us that small businesses are three times more likely to be targeted by cybercriminals than larger companies.

This is likely because hackers and bad actors are aware that small businesses might not have the firewalls and security in place to defend against their attacks. Taking the time to beef up your business’s cyber security and thereby bolstering your company’s infrastructure is a great way to protect yourself from these kinds of attacks.

As you can see, the benefits of improving your infrastructure are far-reaching.

For good measure, we’ve included a brief list of actionable methods you can use to improve your business’s infrastructure over time.

Pay for high-quality cybersecurity

It’s worth spending a little extra to ensure your business won’t fall victim to scammers. If your company is hacked, you can lose valuable customer data as well as your company’s secrets.

In the aftermath of such an attack, regaining customer trust is going to be an uphill battle. It’s best just to protect yourself against these kinds of attacks as soon as you possibly can.

Educate your team

All too often, scammers are simply using impersonation to access private information and customer payment methods.

If you educate your team about these kinds of scams before they’re approached, they stand a much better chance of realizing the warning signs than if they were uneducated on what to look out for.

Create healthy relationships with suppliers

This goes for any business that deals with suppliers of any kind. If you’re going to be purchasing anything from one company with regularity, do your best to create a relationship with the individuals you’re purchasing from.

Not only will this help you get key information about your orders, if necessary, but it can also help you get better deals over time.

The better your business relationships are, the more legitimate your business will appear. Additionally, with solid relationships, you’ll have far more leeway than if you didn’t try to cultivate any relationship at all.

Plan ahead

A realistic blueprint for your business’s short and long-term goals might sound like a silly way to better your business infrastructure, but often the simple act of creating a detailed plan will illuminate issues you might not have seen while simultaneously pointing out areas in which your business excels.

Remember, there’s no such thing as too much planning. The more situations you plan for, the better prepared you are for anything you encounter.

As you can see, a strong business infrastructure is a perfect method of improving your overall net profit.

While these solutions might not have the most significant short-term results, the benefit of making these decisions will become increasingly apparent over time.

Fortunately, there are plenty of steps your business can take that will drastically cut operational costs and increase net profit in the short term.

Utilizing a Virtual Office

A Virtual Office is the ideal way to improve your business’s net profit, as a business’s biggest expense is rent.

The standard commercial lease lasts about three to five years. Not to mention, you’re responsible for paying a security deposit, monthly utilities, rent, and keeping the office stocked.

With a Virtual Office, you can radically reduce your monthly rent while maintaining all the professionalism and security of a traditional office.

Outside of maintaining professionalism, Virtual Offices provide a whole slew of additional benefits. We’ve listed some of these benefits below to help explain how using one of Alliance’s Virtual Offices can drastically improve your company’s net profit.

Work anywhere

With locations in every state and most major cities, your business can be anywhere. Wherever your business takes you, we’ll be waiting.

Although our offices are backed by physical space, that doesn’t stop you from working anywhere you see fit. Virtual Offices are built for remote work.

Privacy

Registering your business with your home address puts your information into the public domain. This means that anyone who is looking can easily access your personal information.

Because our Virtual Offices are backed by physical space, you’re able to register with a real address that prevents you from being forced to use your home.

Legitimize your operations

Not only are our addresses real, but they’re also professional and well-known too. You can register your tech company to an address in Silicon Valley or your financial services company to an address in Manhattan.

Your address is often the first thing potential customers or curious clients find when searching for your company. With one of Alliance’s Virtual Offices, you can ensure that they’re seeing an address that instantly legitimizes your business.

Cost-efficient

With plans that only require a 6-month minimum and monthly payments that make you question why you ever paid commercial rent before, you’re able to reinvest a considerable amount of money into your business.

If you’re just hoping to increase net profits, switching to a Virtual Office will drastically reduce your operating expenses, making your business inherently more profitable.

Virtual Offices offer a flexible and cost-effective alternative to traditional offices that drastically save on operational costs and lend to greater net profits. That said, Virtual Offices are just the tip of the iceberg.

Keep reading for more digital tools!

Modern digital tools you can use to boost net profit

Net profit is the money your business makes minus all the money your business spends. Many businesses focus on optimizing by increasing prices, but this is heavily risky.

Instead, the best way to boost net profit is to reduce operating expenses through a Virtual Office.

But what other tools does Alliance offer to help boost net profit?

Live Receptionists are a fantastic solution that helps you save money and reduce hiring expenses simultaneously.

If you’ve ever been the only one answering phones for your business, you understand how quickly things can get out of hand. Instead of risking upsetting a customer or missing an important piece of a conversation, consider using one of our Live Receptionists to deepen customer relations while personally screening and answering every call.

This way, you’re able to focus on your business’s core operations without having to make a part-time or full-time hire.

Alliance’s Virtual Phone is another great tool.

Another way to increase your privacy and keep your work-life balance in check, our Virtual Phones offer business owners a designated company phone number. Also, unlimited extensions mean that you have a streamlined way to onboard new team members and extend the same privacy to those individuals as well.

Further reading

Alliance Virtual Offices helps modern entrepreneurs find solutions to the countless problems experienced when running a business.

From bolstering your professionality to saving money on unnecessary hires, Alliance has something for all kinds of business owners.

Regardless of whether you’ve been in business for decades or are just starting to get your feet wet, Alliance Virtual Offices has tools that can help you save money, reduce operational costs, improve your company’s image, and connect with like-minded business owners.

Contact us today to see how Alliance can help your company grow and check out our Virtual Office Blog for further information about increasing net profits and more.

The post Everything You Need to Optimize Your Net Profit first appeared on Alliance Virtual Offices.