Evan Vitale Archives | Page 11 of 15

Evan Vitale – Alternative Small Business Lending Thriving

December 24, 2015 by Evan Vitale

By Evan Vitale

According to Business Insider, Bizfi recently announced the close of a $65 million funding round to ease the alternative lending process for small businesses by providing an aggregating plaform that helps small businesses find the best lending platform for their needs.

Bizfi facilitates some loans, but it also works with alternative lenders such as OnDeck, Funding Circle and Kabbage to pair borrowers with investors.

Some say this indicates alternative business lending is thriving. Unfortunately, most small businesses’ credit needs are not met by traditional lenders. In fact, during the first half of 2014, over half of the small businesses that applied for loans from traditional banks had their applications rejected.

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Evan Vitale is a multifaceted finance and accounting professional who provides Audit, Accounting, Tax, Due Diligence and Advisory services to Venture Capital Funds, Hedge Funds, Private Equity Funds, Family Offices, Small Business Investment Companies (SBICs), Funds of Funds, Other Investment Groups and their management companies.

Today’s market has made it extremely difficult to predict what the next day will bring. For Funds and Other Investment Vehicles, the expectations remain to balance the different opportunities with a continued focus on value creation in existing portfolios. The key to any successful organization is building and maintaining the trust of your investors. Evan has the expertise to help you shine in your investor’s eyes and stand apart from the competition.

Funds have special needs when it comes to finding an accounting firm to help them with their accounting, auditing, tax and financial due diligence projects. Managing a fund is complicated enough without having to build the infrastructure to have accounting and tax services handled also. Evan helps Funds stand apart from their competition by exceeding their investor’s expectations with high quality and timely financial and tax reporting.

Connect and follow Evan Vitale on his Google+ page here: https://plus.google.com/+EvanVitale1/

Evan Vitale – Why Banks Reject Your Loan Request

December 23, 2015 by Evan Vitale

By Evan Vitale

Securing a bank loan for your business can be a difficult chore and, unfortunately, it’s like you almost know you’re going to get rejected the minute you walk in the door.

Don’t feel bad. Most small businesses can’t get a traditional loan from a traditional lending institution.

However, the answer to your bank loan request is always going to be “no” until you ask.

If rejection comes, dust yourself off and ask the bank for feedback on why your loan application was rejected. Usually, they will be forthcoming on the reason(s) for rejection and you can use this information to improve your chances the next time you approach your bank.

However, there are many reasons why your loan request was rejected. Here are some of them:

For a start-up business, the business idea wasn’t credible and too risky for the lender.
For an established business, applying for business expansion sometimes raises concerns that you will not be able to handle the extra strain on your business debts (even if you are turning a profit). This usually means you didn’t do a good job of presenting a plan on how you were going to be able to afford to pay back the loan.
Not enough collateral if things go bad.
Lack of personal commitment by you. In other words, how much of your own money have you invested into your business. Sweat equity doesn’t work.
Lack of a credible business plan and financial projections.
Not understanding a “good” loan purpose. The purpose of the loan request should be very specific and not general.
Not being able to talk the talk. You should be confident in asking for the loan and in your ability to pay it back. If you’re unsure, then the bank is going to be unsure as well.

Get your ducks in a row before you present your loan request to the bank. And, as always, you’ll be able to gain great advice by talking to your accountant, lawyer and, yes, even with your banker before you apply for a business loan.

Evan Vitale – Setting Business Resolutions for 2016

December 22, 2015 by Evan Vitale

By Evan Vitale

Every New Year’s Eve, people set personal resolutions for the upcoming year. They resolve to go on a diet; drink less; stop smoking; get a new job, etc.

But what about your business? Can you establish some New Year resolutions for your company?

Here are some business resolutions you can implement in 2016:

Appreciate your customers. When is the last time you “thanked” your customers for their business? Get into a better habit of sending thank you notes; call your customers and tell them how much you appreciate them. Let them know how awesome they are!
Invest more in your staff. This doesn’t necessarily mean a salary raise or additional bonuses, but there are other things you can do to help your employees grow which, in turn, will help your business. Consider additional training; allow them to attend local and regional conferences; give them additional responsibilities and roles (with less micro-managing).
Re-evaluate your company and its core competencies. Why do you have a loyal customer base and a great talent workforce? Identify what’s important and secure your company’s foundation for the upcoming year.
Growth. What is your ideal business growth for the upcoming year? Set some goals and break them down into smaller, achievable chunks.

Prepare and plan now for 2016. Stick to your resolutions and invest in your customers/clients and your employees. Reinforce your company’s core values. Approach the new year with a “look out, here we come!” attitude.

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You can read another blog by Evan Vitale at http://evanvitale.com

Evan Vitale – Year-End Bonuses?

December 17, 2015 by Evan Vitale

By Evan Vitale

Remember the scene in “Christmas Vacation” when Chevy Chase was waiting for his holiday bonus and his plans for purchasing an in-ground swimming pool?

Welcome to the “Jelly of the Month” club Chevy. It’s probably more than others receive each year during the holidays.

Surprisingly, a high number of employees still feel they are entitled to a year-end bonus and make “Chevy Chase” plans by spending money in advance.

In fact, 78% of all employees – even today – expect the year-end bonus and are later disappointed when it never arrives.

Unless it’s written in the employee contract or handbook, you shouldn’t count on receiving a holiday bonus.

A friend told me once that his company would hand out bonuses mid-December. However, mid-year the company was purchased by another firm. My friend didn’t lose his job, but the annual holiday bonus event never happened again. Employees were crushed when they learned the rules were changed and bonus structures were cancelled. Even a few started looking for new jobs after the holidays.

In times of slow economic growth, companies continue to struggle to keep their doors open let alone offer holiday bonuses.

Since bonus expectations might be running high, companies should clearly communicate their bonus plans (or lack thereof) well ahead of the end of the year so employees know whether than can expect a bonus or not.

Evan Vitale – No Office Party!

December 16, 2015 by Evan Vitale

By Evan Vitale

A recent study conducted asked employees what they would rather do (or have) than the traditional – and sometimes dreaded – holiday office party.

Guess what?

Over 90% of all office employees surveyed said they didn’t want to have an office party. Instead, they would prefer a bonus, a gift, or even an extra day off around the holidays.

Many companies have cut back on the extra expense of the traditional office holiday party. However, cut backs are cut backs and they usually don’t mean that instead of an office party, employees are going to receive a bonus or extra days off work.

One my clients offered a few suggestions on how they handled the office party event.

During the first few years of being in business (a startup), the holiday office party included a pitch-in lunch and a simple gift exchange. After lunch, the owner allowed them to have the rest of the day off work (a Friday afternoon), so they could finish holiday shopping, etc.

As the company grew, my client had the holiday lunch catered, but money spent on the gift exchange was collected and given to the local food bank.

Some employees, depending on their age and work-place traditions enjoy the holiday season and, with it, still enjoy having a party with office staff, family and friends.

What do you think of the office holiday party?

Evan Vitale – Office Party Etiquette

December 15, 2015 by Evan Vitale

By Evan Vitale

Oh, it’s time for those dreaded holiday office parties (well, sometimes, they can be fun). However, if you don’t want to be the subject of many jokes and events remembered in the “tales of holiday parties of the past,” then follow these simple rules when it comes to holiday parties.

You should:

Attend the office party. Even if you don’t like your job or your boss, it creates a lot of goodwill when you attend.
Wear appropriate attire. Dress appropriately, professionally and follow the suggested dress code.
Be polite.

Remember, even though it’s an office party, you are still a representative of the company. Don’t embarrass yourself, your boss or the firm.

Do not:

Wear any revealing clothes, introduce a wild hair style or wear too much make-up.
Drink too much. Too much alcohol at the office party can typically lead to trouble. Years ago, a client recalls an event in which a staff member started doing a strip-tease after too much liquid cheer. It is still talked about today.
Sit in the corner. Socialize. Have fun. Meet new people!

Basically, during the office holiday party you should be on your best behavior, maintain your dignity and have a good time!

Evan Vitale – Capital Snapshot

December 10, 2015 by Evan Vitale

By Evan Vitale

In our six-part series on different types of capital, we offered some basic information as to the different types of capital and investors available for your business.

Here’s a quick review:

Debt Capital – This is capital that a business raises by taking out a loan. The loan is normally repaid at a future date, normally with interest.
Equity Capital – Typically you do not need to pay anything back to the investor. Instead, you are selling complete or partial ownership interest in your business in exchange for the capital.
Private Equity – Similar to a bank loan, private equity funds come from private individuals – or a group of individuals – who make investments or loans.
Venture Capital – These funds are usually for startups or growing businesses and come from venture capital firms specializing in building high-risk portfolios.
Angel Investors – An “angel” investor is someone who is typically a family member or a friend who is really investing in the individual. They want your business to be successful, but they are not looking to gain huge profits from their investment.
Investors – Investors are those who seek to grow their investment and earn an ownership stake in your company with their investment.

Evan Vitale – What Is An Investor?

December 9, 2015 by Evan Vitale

By Evan Vitale

(This is Part VI in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors)

An investor in your business can wear many hats and the term can mean different things to different business owners and types of businesses.

However, usually, an investor is a person who commits capital with the expectation of financial returns.

They are definitely looking to grow their money and, therefore, they generally prefer to minimize risk while maximizing their returns.

In most cases, investors want to call the shots with your business and become part of your team, which might not work for some startups and business owners who don’t want to give up a share of the company.

Evan Vitale – What Is An Angel Investor?

December 8, 2015 by Evan Vitale

By Evan Vitale

(This is Part V in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors)

While an “investor” is considered as someone who provides financial backing for small startup businesses or entrepreneurs, an “angel investor” is someone who is usually a family member or a friend (or a friend of a family member or friend). They are a little “closer” and connected to you in some way.

Typically, the capital they can provide can be:

A one-time injection of seed money.

Ongoing financial support.

Funds to help with expansion or to buy a piece of equipment.

Angel investors invest in the person rather than in the business. They do want your business to succeed, rather than be on the receiving on of huge profits from their investment(s).

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Check out Evan Vitale on http://about.me/evanvitale.

Evan Vitale – What is Venture Capital?

December 3, 2015 by Evan Vitale

By Evan Vitale

(This is Part IV in our series on different types of capital, including debt capital, equity capital, private equity, venture capital, angel investors and investors).

Venture capital is another type of funding for businesses and startups. However, with venture capital (sometimes called “risk capital”), dollars are typically earmarked for startup or growing businesses.

These funds usually come from venture capital firms that specialize in building high-risk financial portfolios. In these cases, venture capital (also known as “VC”) is given to the startup company in exchange for equity in the company.

These investments are made to firms that have long-term growth potential for above-average returns.