Top 20 Traits of Successful Small Business Owners

Do you have what it takes to start a successful small business? Financing is a vital part of starting a small business, however,  there are many other factors to consider. Here are some of the most common traits of entrepreneurs who have been successful as small business owners.

1. Driven: A successful small business owner has the tenacity and motivation to go into business and give 100 percent to build and grow the business. They are  driven to find the to find funding for the business by finding investors, loans and looking all options, including  non-traditional small business financing.

2. Goal oriented: A successful small business owner keeps his eyes on the end goal. They have a vision for the company and the future. This refers not only to growing the business, but also continuing to find financing when more money is needed for the growth of their business. The small business owner is open to non-traditional small business financing such as factoring, as another option to reaching important long and short-term goals.

3. Confident: Successful small business owners are self-assured, earn respect and trust, and take confident command of a situation.

4. Passionate: Successful small business owners are passionate about their business. Striving for success keeps a small business owner motivated, present and engaged in their business.

5. Budget minded: A small business owner is dedicated to keeping costs down and spending money wisely and conservatively. A successful business owner investigates options for loans, business credit cards, and other types of financing such as invoice factoring and other non-traditional small business financing.

6. Self-Reliant and Decisive: Successful small business owners are able think and act independently of others. They are confident in making large and small decisions for the business.

7. Humble: A successful small business owner will always remember the people who helped them along the way. They are open to constructive criticism and ideas from others. They are appreciative of help from others, be it operational advice, financing, or a combination of the two, such as obtaining non-traditional small business financing

8. Resilient: Successful small business owners are able to overcome set-backs. They identify the problem and do what is necessary to find a solution.

9. Focused: Successful small business owners able to focus on the task at hand. They have the focus and discipline to get the job done.

10. Open-Minded: Successful small business owners are open to new ideas. They will look at all options for the right solution. They are open-minded about different types of financing. They will find the best option in traditional loans and credit, or seek out non-traditional small business financing like invoice factoring.

11. Proactive: Successful small business owners are always looking for new opportunities to grow and improve their business. Proactive small business owners solve problems before they even happen, such as improving cash flow and profitability using non-traditional small business financing.

12. Collaborative: Successful small business owners work with others, effectively delegate, and build strong relationships that enhance their business and success.

13. Technically Aware: Successful small business owners find the right technology solutions for their specific business. They know that the right software is crucial for their business to run smoothly and best serve their clients.

14. Energetic: Successful small business owners have the energy to manage long hours and take on a lot of responsibility. They know that a business is a full-time, long-term commitment.

15. Risk-Takers: One trait all successful small business owners have in common is that they are not afraid to take a risk.

16. Accountable: A Successful small business owner takes responsibility for both the accomplishments and failures.

17. Trustworthy: A successful small business owner builds trust and trustworthy relationships. When signing contracts or obtaining a loan or non-traditional small business financing, it is important that others be able to trust you.

18. Forward Thinking: Successful small business owners take creative ideas and make them a reality.

19. Flexible: Successful small business owners are immune to setbacks and will regroup and find solutions for meeting their goals. For example, if traditional loans are not a current option, they will be flexible and look into non-traditional small business financing

20. Hard Working: A successful small business owner works until the job is done, and then works some more. They invest time, energy and money into their business, and do everything necessary to be successful and profitable. When they need better cash flow, they will search for financing, and seek out non-traditional small business financing, such as invoice factoring when traditional financing is not the best option,

If you identify with a lot of these character traits, chances are you have what it takes to be a successful small business owner. Never underestimate the power of determination, hard work, and getting some non-traditional small business financing help when you need it.

American Receivable has been helping small business owners with non-traditional small business financing for 40 years. Through invoicing factoring, American Receivable is able to assist small business owners by improving cash flow, thus providing the financial resources needed to grow, increase inventory, make payroll on time and effectively compete in the marketplace. Call American Receivable today at 1-800-297-6652, complete an application for factoring online, or visit our click here to learn more about how the best invoice factoring company can help your small business.

You may have no intention of selling your small business now. However, you have to accept that your small business will change hands one day. You might pass it down to the next generation, sell it, or, unfortunately you may need to close it down. Even if a change in ownership won’t happen until well into the future, it is always a good idea to plan for an inevitable transition and benefit your business value in the present. You may not plan on selling your business anytime soon, however, following these tips now will keep you from diminishing your business value when you are ready to make a change.

1. 1. Make sure that someone else knows how to do your job. It is important that your business has the capability to succeed in your absence. Train your team members to handle operations. Prospective buyers will have more interest in a business that continues to thrive and maintain its business value  Share your techniques for maintaining cash flow.  Invoice factoring is a great way to keep cash flow positive.
   2. Develop procedures for all of your business’s operations. Having a go-to guide or manual will establish consistency and accuracy for all of the tasks managed in your small business will add business value to you currently, and to any future buyers.
   3. Give your employees job security. Employee retention will help your cash flow. The process of hiring and training is time-consuming and can be costly. When you are ready to sell, retaining seasoned employees will appeal to buyers and add to your business value.
   4. Keep accurate and up to date financial records, and a financial reporting process. Having a clear picture of your cash flow, revenues, profits, and costs will help you see where improvements can be made to increase your business value. When you are looking to sell, prospective buyers will want to see organized and accurate financial statements and tax returns.
   5. Do not neglect accounts receivables. Your small business will have a diminished business value if you have a large amount of uncollected accounts receivable. This will hurt your cash flow and your bottom line. If you have challenges with past due receivables and need to improve your cash flow consider invoice factoring from American Receivable. Prospective buyers will want to see a solid procedure for collecting from customers.
   6. Diversification guards against changing tastes and economic recessions. You may be making great profits on your current products or services, but diversifying will help improve your cash flow and business value by putting less dependence on just one or two primary products and/or services your company offers. Also, consider diversifying your client base. If you depend on just a few large clients, your business value—and cash flow—will greatly reduce if you lose just one of them.
   7. Strive to increase cash flow each year. Consider invoice factoring and other non-traditional small business financing to improve your cash flow. Your business value will rise if your cash flow trends upward each year instead of remaining level.
   8. Define your competitive advantage. Why are you better than your competitors? Figure out your competitive advantage, and promote it. Having a competitive advantage will increase your small business value to potential buyers.
   9. Have a clear growth plan, including how to finance the growth. Project the cash flow needed to cover the costs of growth. Educated yourself business financing, such as business loans, and non-traditional financing, such as invoice factoring. Having a plan already in place will add to your business value.
   10. Try to remove the emotion. You undoubtedly worked hard to make your business successful. It may be hard to let go.  Keep the emotion out of it.  Prospective buyers are only interested in the value of the business in the future.

Whether you are selling a business now, or not for many years, it is important to consider your business value in the daily operations of your small business. When you do plan to sell, you will get top dollar for your hard work and dedication. Plus, circumstances may change at any time, and you may not have time to plan ahead for a needed sale. However, if you follow these tips and avoid diminishing your business value, you will be attractive to buyers at any time.

Help the business value and growth of your small business by increasing your cash flow with invoice factoring. American Receivable has been providing small businesses with financial resources for almost 40 years. With no up-front fees, hidden costs, nor long-term contracts, American Receivable is the national #1 leader in factoring.  Call for a FREE Quote Today: 1-800-297-6652 or complete an application for factoring online.

Financing a business can be a challenge.  The old tradition of walking into the bank to get a loan has become more complicated.  You can no longer get a loan on a handshake.  As a small business owner, you may find that you do not qualify for a bank loan.  Banks require good credit and personal guarantees, which put you at risk if your business fails.   Banks usually require a proven track record of up to 3 years or more.   These criteria are impossible to meet when starting a new business.   This can be discouraging, because financing is crucial to any business.

Cash flow is the life blood to a business.  Operating expenses such as payroll, rent, office equipment, inventory, marketing, and the list can go on, require a business to have cash on hand to cover these expenses.  How you finance your business and the cost of the financing affects your bottom line and your ability to grow your business.

Family and friends are one source for getting cash and are a popular strategy for start-ups. You should present them with a strong business plan in place, as well as some incentive for them to take the risk.    Consider if it will be a loan, or if you will offer equity in the company.  It is also important to provide solid projections to indicate when they might get their investment back. However, if you run into problems with cash flow, or needing more capital, you may have to find new options.  The downside is that however you work it out, if the business fails, you may lose or damage the relationships.

Using a business credit card to finance your business can be helpful in emergency situations when you need cash, but using it for full time capital can be dangerous.  The interest rates are usually very high and if you only make minimum payments you will never be out of debt.   Falling behind on a credit card payment will put the business further behind and will damage the credit score of the owner. You can use it in temporary situations when your cash flow is problematic, but it will still be costly.

These are just a few of the options available in today’s market.  As a business owner, consider “funding” your business rather than financing your business.     Factoring or invoice factoring, has become more popular over the decades.  This method of funding allows you to use your receivables to fund your business and better manage cash flow.   Factoring is not a loan.  You, the business owner, sell your receivables (invoices) to the factoring company.  They in turn, give you a percentage usually within 24 hours and they wait for your customers to pay.  This is especially helpful with slow-paying customers. The factoring company waits for the payment and then returns the balance to you, less fees previously agreed upon.  Selling your invoices for cash, allows you to keep a positive cash flow for the needs of your business. Not all factoring companies are the same, do your homework. There are good companies in the marketplace, however some require long-term contracts and may require you to sell them all of your receivables.

American Receivable has been helping small business owners with funding and cash flow for 40 years. We work individually with each business owner to find the right solutions for their specific industry and needs.  American Receivable is ranked #1 Nationally among factoring companies by multiple ranking agencies.  We pride ourselves on excellent customer service, tenured and experienced account managers, and value our clients as our greatest assets.  We are owned and managed by the original managing partners.  Call American Receivable today and find out how we can benefit your business and save you time to manage and grow your business without the worry of cash flow and funding.

Factoring is not the same as invoice discounting (which is called an assignment of accounts receivable in American accounting – as propagated by FASB within GAAP).^[8][1] Factoring is the sale of receivables, whereas invoice discounting (“assignment of accounts receivable” in American accounting) is a borrowing that involves the use of the accounts receivable assets as collateral for the loan.^[1] However, in some other markets, such as the UK, invoice discounting is considered to be a form of factoring, involving the “assignment of receivables”, that is included in official factoring statistics.^[9] It is therefore also not considered to be borrowing in the UK. In the UK the arrangement is usually confidential in that the debtor is not notified of the assignment of the receivable and the seller of the receivable collects the debt on behalf of the factor. In the UK, the main difference between factoring and invoice discounting is confidentiality.^[10] Scottish law differs from that of the rest of the UK, in that notification to the account debtor is required for the assignment to take place. The Scottish Law Commission is^[when?]reviewing this position and seeks to propose reform by the end of 2017.^[11]

Use Your Business Corporate Culture to Improve Employee Retention

In today’s business world, it can be challenging to attract talented and qualified employees. Even more difficult is employee retention: keeping team members happy, productive and engaged. When employees are not happy with the company work environment, and other jobs are available, they are likely to leave for greener pastures. Losing employees costs a small business time and affects cash flow, so finding ways to retain qualified workers is preferable to turnover. This article discusses how a positive corporate culture can help a small business retain employees and keep the team motivated.

What is Corporate Culture?

Corporate culture encapsulates the rules, values and behaviors that outline how employees behave and are expected to act in a workplace. For example, is the culture in your company to work overtime every day or have a work-life balance? How do managers approach conflict and disputes? Do employees work independently or collaboratively? Are upper-level employees approachable by all? Do you offer fair benefits or any extra perks? What is the expected attire? Does your business have employee retention programs in place?

Positive Corporate Culture = Employee Retention

Positive corporate cultures are sought after by talent. You will likely achieve higher employee retention if your business reflects the workplace values of your employees. It is important that the behaviors, rules and values on paper are reflected in actual practice. If you say that your culture is to encourage creativity through down time and respite, but then you don’t approve any requested vacation time, you are sending the wrong message and can alienate employees. It is best to lead by example and display the values and behaviors you want to be reflected as part of your culture.

A positive corporate culture will have employees feeling that they are an asset to the company. They will feel respected, cared about, and an important part of the team. The office atmosphere will be energized and encouraging. Happier employees will work harder and tend to be more productive, which is always good for the growth, profits and cash flow of a business.

Negative Corporate Culture = Losing Employees

If your small business has a negative corporate culture, you risk losing talented workers who want to seek greater job satisfaction, ultimately hurting your bottom line and cash flow. If you are losing a lot of employees, or you see that employees are not working well together, it is an indication that your corporate culture needs some reviewing. What behaviors do you want to see and how can they be achieved? For example, does management dictate a “yes, sir/yes, ma’am” attitude or do you want team members to be able to voice opinions and concerns? Be honest with your corporate culture’s faults and brainstorm ways to improve morale.

Employee retention starts even before the hiring process. How is your company thought of in the industry? Does your business’s reputation reflect having a positive corporate culture or do you have bad press?  Are your company values conveyed to the public accurately? Do you have a lot of negative or questionable reviews? In other words, are highly-qualified employees going to apply for open positions considering your reputation?

During the hiring process, it is important to make sure candidates will fit in with your corporate culture and be productive and satisfied once they encounter the day to day routines and behaviors. Ask pointed questions during the interview and make sure you have a match. This will save having to go through the hiring process again later, which will cost your company money and reduce its cash flow.

Job Satisfaction Improves Bottom Line

In today’s society, employees are putting value on quality of life in both personal lifestyle and in the workplace. A high salary is no longer the greatest incentive when choosing an employer. Employees are looking for companies that share their values, one that will bring job satisfaction, and offer a corporate culture that makes the workday something to look forward to. While most small businesses with smaller cash flow can’t afford catered lunches and weekly massages, there are still a lot of ways your company culture can be a positive one. This will keep your employees happy and productive, and keep you happy by helping your bottom line. Here are a few ideas:

20 Low-Cost Employee Retention Tactics to Try

1. Give each employee positive feedback on an ongoing basis
2. Offer a relaxed dress code and special dress-up theme days
3. Provide continual training for workers, allowing them the opportunity to grow
4. Determine which employees are looking for more to do, and give them added responsibility periodically
5. Give your staff extra creative time to brainstorm ideas or work on side projects that interest them
6. Express your appreciation regularly, even for the little things
7. Get to know employees better and schedule one-on-one time with them
8. Have open-ended conversations with employees, welcoming them to discuss what’s on their mind
9. Evaluate how your work schedule promotes work-life balance
10. Avoid or minimize sudden changes in the workplace
11. Arrange for team lunches, dinners and/or social outings
12. Ask your employees to offer feedback on important projects
13. Keep the workplace organized, uncluttered, and low-risk from danger or accidents
14. Empower employees by providing tools to complete their work faster or more effectively
15. Allow employees to decorate their own work spaces and/or have an office decorating contest
16. Provide adequate and regular rest periods throughout the day for your employees
17. Create a comfortable relaxation zone or separate room where staff can re-energize
18. Arrange for employee discounts at related entities
19. Offer telecommuting “work from home” day options
20. Encourage your team to thank one another and/or create a peer-to-peer recognition program

American Receivable, with offices in Dallas and Austin, can improve your bottom line and cash flow. We are ranked No. 1 nationally among small-business factoring companies and have a high satisfaction with our long-time staff. We provide small businesses with the financial resources and accounts receivable management strategies they need to improve cash flow, grow, increase inventory, make payroll on time, and effectively compete in the marketplace. American Receivable, helping small businesses since 1979, is the best choice for factoring and accounts receivable management. Call us for a FREE quote today at 1-800-297-6652, or complete the quick quote form below.

Tax Changes for Business Owners

The dreaded part of every new year has arrived, and it is called Tax Season! It is not uncommon for business owners, even those with the best record keeping in place, to be recipient of some unexpected surprises when it comes time to send in their taxes.

Tax Reform Legislation was passed in December of 2017. The IRS has published some of the changes that may affect self-employed individuals as well as the bottom line for many small business owners. It is important to be aware of these changes when filing your 2018 business tax returns.

Qualified Business Income Deduction

Owner’s of sole proprietorships, partnerships, trusts and S corporations may deduct 20% of their qualified business income (Section 199A qualified business deduction) for the first time on their 2018 returns.

The deduction applies to qualified:

• Business Income
• Real estate investment trust dividends
• Publicly traded partnership income

For more information on this deduction see REG-107892-18 at www.irs.gov.

Temporary 100% Expensing for Certain Business Assets

Business assets with a recovery period of 20 years or less generally qualify. Some real property such as office equipment, machinery, furniture and appliances may also apply.

Fringe Benefits

Fringe benefits cover a broad spectrum. Some of the benefits affected are:

• Meals and Entertainment. The deduction for entertainment or recreational expenses has been eliminated. Fifty percent of the cost of business meals may be allowed if the business owner or an employee is in attendance and consulting for current or potential clients, or similar business contacts. Other qualifying criteria may be

• Deductions for transportation fringe benefits has been disallowed, as well as benefits associated with commuting. The exception is made when these benefits are in place as a necessity for safety.

• Bicycle Commuting. Qualified bicycle commuting may be deducted as a business expense for 2018-2025. Employers are now required to include these reimbursements in employee

·         Moving Expenses. Moving expenses reimbursed by an employer to an employee are now taxable. Moving expenses for years prior to 2018 are exempt. Payments made by employers to a moving companies in 2018 for a prior year, are also exempt.

• Employee Awards/gifts. Employee awards considered tangible personal property may be excluded from wages. Some of these may be deducted by the employer, subject to New definition of tangible personal property is not inclusive of cash, gift cards or cash equivalents, event tickets, stocks, meals and other like items.

For a complete explanation, specifics and FAQ’s go to www.irs.gov.

Any aspect of the Tax Reform may affect your business. Many business owners experience a cash deficit when they have to put available funds toward taxes. American Receivable is here to help! Business owners can sell their outstanding invoices to American Receivable for immediate funding, eliminating a slow- down in business due to lack of cash. Cash is vital for any business to flourish as expenses such as payroll, rent, and other operational costs have to be met. The ability to obtain cash for invoices allows the business owner to put funds where they feel they are most needed to keep their business on track and growing.

Call American Receivable today and let us help you survive tax season!