Do you have a great business idea, but cannot find a bank or investor to give you any funds? Maybe you need a little extra cash for your business, but again, you cannot find a bank lend you an money. There are really few options when you are in these types of situations. Often friends and family are unwilling or unable to help. Mixing family and business isn’t always a good idea and if you do be sure to have a legal contract.

A company called Auto Equity Loans offers loans on motor vehicles (cars, trucks, vans, motorcycles and farm equipment) that are owned outright. The loan amount is a percentage of the fair market value of the vehicle. The loan interest rate is not cheap, yet it can be a lifesaver at a time when you need cash now and do not have any other options available.

Auto Equity Loans is accredited by the Better Business Bureau. The offer loans for both personal and business needs. If you are in need of immediate funds and do not have anywhere else to turn this could be an option for you. Be sure to review all of the terms and understand the rate you are paying so that you are not caught off guard when the loan comes due.

To learn more about Auto Equity Loans visit their website. Please note that I have not used their services before. I am just informing small business owners about some additional options for quick cash or “seed” money to start their business. Be sure to check out any company before you sign any documents or agree to any financial terms.

A friend of mine wrote a booked called: Everyone Wins! Playing the Game of Conflict Resolution In All Your Relationships. I’m embarrassed to say that I’ve had his book sitting on my bookshelf for a while now. I just finished reading Good to Great and was looking for another business book to read. Many times I had passed over Everyone Wins!, but for some reason I decided to give it a try.

This book is a MUST read. I am not saying this because I know the man who wrote it. It is full of great advice, stories and exercises. Yes, exercises. If you have any type of conflict in your life, business or personal, you need to get a copy of this book.

As Larry mentions at the very beginning of the book you need to read it with an open mind. If you are going to resolve any conflicts you are currently experiencing, you will need to be flexible and willing to change. Otherwise, you’ll continue to remain in conflict with the person you are trying to get along with.

Chapter 2 is titled “Give Up Your Need to be Right, Not Your Needs.” When I was a teenager, still in high school and soon to graduate I decided that I was going to stop fighting with my Step-dad, who I call Dad. We would argue about anything and everything. We both needed to be right. Not knowing how to resolve this conflict, I just decided to give up the need to be right. Whenever I noticed my Dad and I getting into a debate I would stop arguing. I didn’t tell him I thought he was right, but I didn’t tell him I thought he was wrong. Our relationship started to change. We didn’t fight anymore and our relationship is very positive now. I wanted to get along with my Dad, not fight with him. My need was about getting along, not about being right.

I have used a similar approach in other relationships and it works. As do the many other concepts in Larry’s book. Check it out for yourself, visit Larry Barkan’s website.

When you started your business hopefully you wrote a business plan. If you did not, you can create a short version of a business plan now. While writing a business plan helps you prepare for the initial start-up phase and the first few years of operations at some point it becomes outdated. Many business owners will update their business plans once a year, which is a great exercise. However, if you did not write an initial plan or do not want to take the time to update your entire plan, there is another option – a shorter version, generally one or possibly two pages.

This shorter-version business plan can include items that are important for your business. There are many templates available, but I recommend creating a document that makes sense for your business so that you will actually use it on a regular basis.

When writing this short business plan consider the following sections:

1. Vision/Mission. When you started your business did you create Vision and Mission statements? If so, copy/paste them into this document so you can easily refer to them. Does the Vision or Mission need to be updated? Or do you need to re-evaluate how your business is following the original Vision and Mission? If you did not write a Vision or Mission, go ahead and create them now. The Vision Statement is more about the big picture – what do you want to accomplish.

The Mission Statement is about why the company exists, i.e., what is it that you are trying to accomplish with the services or products the business offers. Many Mission Statements include a brief declaration regarding employees, customers, and/or the community.

2. Product/Service Summary. Since many businesses are constantly changing their business offerings, it would be a good idea to include 2-3 sentences within the document that summarize the product/services you are offering. A business plan Executive Summary includes this information too, it is the basis for everything else in your document.

3. Target Market/Competitors. In this competitive environment it might make sense to re-evaluate your target market. Are the demographics of your customers the same as they were 18-24 months ago? If not, how would you describe your current customer? What about your competition? Have new competitors entered the market? How have they changed the way you attract or retain your customers? Have any competitors left the market or changed their focus? What were some reasons for them doing so? Can you gain insights as to how their exit might impact your business, either good or bad?

4. Tactical Goals. What are some tasks or projects that you want to complete within the next 9-12 months? For example, obtain XX number of new clients or XXX number of quality Twitter followers. Maybe you want to open XX number of new locations or add XX number of new products to your retail mix. The objectives should be measurable and realistic. You’ll use this information to create your strategies and plans.

5. Long-term Strategies. What are the long-term goals of your business? What types of activities will help you move from where you are today to that goal in 3-5 years? If you are a sole-preneur, would you like to add employees? If so, what would that look like for you and your business. If you have a retail operation, have you considered moving to a bigger location or adding stores? Think about what your business should look like in 3-5 years and create both long-term and short-term objectives to help you get there.

Remember to include a summary of the action steps you will take to achieve your objectives. For example, let’s say you want to attract 10 new clients for your coaching program. What types of activities could you engage in that might drive clients to your program? Establish Teleseminars, create a referral program or book speaking engagements/seminars. Where do you currently find your clients? Use that information to determine what activities you should be participating in to drive business to your door.

A short (or single page) business plan is easy to create. When you don’t have time to update your regular business plan, this is a great alternative. You can create these types of plans for different divisions, departments or product/service lines. Update your business plan at least once per year or when a major change occurs in your business or marketplace.

Consider the book by Jim Horan, the One-Page Business Plan to create this type of document for your business.

Most business owners are not accountants and know enough about Net Income and/or Cash Flow to get by. Your financial statements are full of a wealth of information and each statement tells its own story of what is happening in your business.

While cash is King, the balance in you checking account doesn’t tell you what you are doing right or wrong in your daily operations. The Income Statement (aka Profit and Loss Statement) does. Sometimes Net Income is mistaken for cash flow. While the two items are related, they are not the same, especially if you use the accrual method of accounting or have depreciation and/or amortization expenses.

Net Income is the profit generated by your daily operations. This figured includes all of your sales (aka revenues) and expenses (such as rent, utilities, auto, meals, travel, depreciation, interest, etc.). Some of the expenses used to calculate Net Income are considered “non-cash” items, such as depreciation and amortization. However, depreciation and amortization do not impact cash flow.

If you use the cash basis method of accounting usually the only difference between your Net Income and Cash Flow will be the non-cash items. However, if you use the accrual method of accounting the difference between Net Income and Cash Flow will be a little more complicated to calculate because you have to take into consideration the changes in your Accounts Receivable, Inventory, Accounts Payable and many other accounts.

There is no general rule that says Net Income is always higher than Cash Flows or vice versa. It is a good idea to ask your bookkeeper to prepare both the Income Statement and Statement of Cash Flows each month so that you can track the trends of your operations and how those items impact how much cash you have in the bank.

A Pro Forma is an estimated financial statement, usually the Income Statement (aka Profit and Loss Statement). Entrepreneurs prepare a pro forma for many reasons, but the main one is to obtain financing either from a bank or an investor. As with most everything, the pro forma is only valuable if the information used to create it is good and accurate.

I just finished helping two business owners prepare projections for their business ventures. The problem with an estimated projection of the future is that it is rarely 100 percent accurate. Generally you will not earn as much in revenues as you anticipate and your expenses will be higher. The expenses will be higher in part because items were left out, either intentionally or unintentionally.

Creating a pro forma is not a waste of time because it forces the business owner to really think about what the business can achieve. Can you really sell 100,000 widgets with only 1 sales person, i.e., yourself? When you put numbers on paper you have take an honest look at what needs to happen from a financial perspective to create and sell your products or services.

The real challenges for business owners is not the time it requires to create a pro forma/projection, but creating one that is realistically achievable. Does it really do you any good to underestimate your expenses or overstate your revenues? Do you think the bank or investor won’t doubt your numbers? They will, even if your numbers are totally realistic.

The problem with pro forma financial statements isn’t that they are unrealistic or unachievable, it is that often times the data used to create them isn’t accurate or there are too many unknowns. Yearly projections are a good business practice. These exercises can help you and your business be more profitable as long as the information used to create them is considered high-quality and items are not left off in order to make the numbers “look” good.

So here I sit debating whether or not I should resend my Monthly Minute newsletter after noticing 2 spelling errors. I used spell check, but missed these two words somehow. Oh well. I’m not perfect. Do I risk offending my subscribers by sending them a “corrected” version or just hope that most of them don’t notice or don’t care? I’m happy to admit I made a mistake, but I’m not sure doing so will matter.

This got me thinking. How often do managers or business owners or coaches or parents admit they are wrong or made a mistake? What is the risk of admitting fault as compared to not doing so? While it most likely will depend on the situation and the people involved, it is generally a good rule to at least acknowledge the truth.

I have found that honesty is the best policy. When I first started teaching I was hesitant to admit I had made a mistake for fear that my students would think I didn’t know the material or question my fairness in grading. However, I found students are very forgiving when you admit you made a mistake, most of the time. They tend to trust and respect me more for admitting my error(s). I find this to be true with clients too.

I haven’t always been quick to admit fault. But it is so freeing to do so. In the workplace it improves your relationship with your staff. Consider two options. The first is to pretend like you didn’t make the mistake and place blame on someone else, probably your staff. When you do this you create conflict – conflict that could have been avoided. Now your staff doesn’t trust you, they don’t believe you know your stuff, and they are resentful that you blamed them. The second option is to admit your mistake. Your staff won’t resent you and they will probably develop a greater trust toward you. They know that we all make mistakes so it is unlikely they will start to doubt your abilities, unless you make BIG mistakes a lot.

Try it and see if it works. Maybe try it at home before taking the plunge at the office. You might just find your personal relationships start to improve too. Good luck.

Owning a small business can come with a lot of decisions, even before you make the first sale. One of the most common decisions is whether to form a Corporation or to operate as a Sole Proprietorship or Limited Liability Company (LLC).

A corporation might sound like a good idea to a small business owner because Corporations are their own separate entity. Meaning that the corporation stands alone so there is little to no risk of loss of the owner’s personal assets, unless they personally guarantee a business debt. Whereas this is not the case when you operate as a Sole Proprietorship- where the owner is at risk for ALL business related debts.

Forming a corporation might not be the best decision for a small business owner, but it might be the right decision for larger businesses. There are several reasons why this is so.

After a corporation is formed there are many rules and regulations that must be followed by the business. These rules and regulations might not sound bad at first but for a small business owner these rules might be a bit constricting. Also, there are forms that must be filed on an annual basis to maintain the corporation in “good standing” with the local Corporation Commission.

Other disadvantages are associated with how items are taxed within the Corporation. Sometimes corporations are subject to what is known as double taxation. This occurs when a Corporation pays a dividend to the shareholder, i.e.,owner. The Corporation does not get to treat the dividend as an expense, yet the shareholder treats the dividend as income. With a Sole Proprietorship or LLC any losses flow through to the business owner on their personal income tax returns. But with a Corporation those losses remain within the Corporation until the entity generates positive taxable income. For a small business owner this can be tough, because it could be a number of years before that business really turns a profit.

If at some point in the future you want to “go public” consult with your CPA or attorney to determine if a Corporation is the right decision today. Sometimes it might make sense to start as an LLC then convert to a Corporation when the timing is right. There may be tax consequences with this approach so you have to weigh the benefits of another entity type, such as an LLC, with the limitations of a Corporation.

A sole proprietorship is one of the easier and most common forms to start a business. The only requirement of a sole proprietorship is registration as a business if any name other than the owners name is used for the business. The sole proprietorship is an extension of the business owner, not separate from it. Although this form of business is one of the simpler forms of organization there are numerous disadvantages.

One primary disadvantage of a sole proprietorship is that the owner is personally liable for ALL business debts and lawsuits. Meaning a sole proprietorship, i.e., the business owner, can lose personal property (such as their house, cars, jewelry, etc.) and savings to cover business related debts or to cover the costs of lawsuits. The sole proprietor is also responsible for the mistakes made by employees, if any, that can result in lawsuits or loss of income.

A sole proprietorship is also limited in the ability to obtain business financing. Financing for this type of entity structure is usually in the form of personal loans and credit cards because the business is not separate from the owner. Another disadvantage of a sole proprietorship is that it will be dissolved upon the death of the owner meaning this entity structure does not have continuity.

When choosing a business structure think about the future of the the business. Decide what the current and future business goals are for the company. Think about the longevity of the business and the protections afforded by organizing under a different form, such as a Limited Liability Company, S-Corporation or Corporation. Consider the ability to raise capital by adding partners or shareholders.

A sole proprietorship can be started simply by setting up “shop”, but unlimited liability is the main reason you should consider another form of organizational structure. Take into account the long term goals of the company and the protections afford by certain forms of organization. It is best to consult with your CPA or attorney to determine which entity structure makes the most sense for your business.

Ultimately, the owner makes the decision as to which form of organization is best. It is ease and relatively inexpensive to register an LLC, Corporation or S-Corporation with your local Corporation Commission. Visit their website to read the instructions and determine the fees based on the entity type you choose. If you decide you need help, there are many online sites that can help for a small fee.

As you finalize your 2009 taxes, it is time to look at how your business has performed during the first 3 months of 2010. If you have not received your March financial statements from your bookkeeper, contact them today for that information. A review of the first quarter will give you insight about what worked well and what did not. In addition, it will help you plan for the next nine months.

When you review the first quarter results, I recommended looking at the following 5 items:

1. Revenue. Did you generate more sales in March than January? If not, why? Is your business seasonal with a lot of sales taking place in January or February? They say the economy is in a slow recovery. Do your revenues show this to be true? If you have the ability to see revenue by customer, which customers generated the most sales in the first quarter? Do you expect this trend to continue? How can you keep them coming back to buy more? Which customers did you spend a lot of time on, but didn’t generate much revenue?

2. Accounts Receivables, if applicable. How many days does it take you to collect payment from your customers? Is this trend increasing or decreasing? Do you have the ability to offer discounts for early payment? For slow paying customers, consider creating a repayment schedule and hold them accountable for paying you on time.

3. Accounts Payable. Do you seem to owe your vendors more in March than what you did in January? Why the change? Are you carrying more accounts payable or did you order more inventory or services in the month of March? It is easy to let the amounts you owe others increase when cash is tight, but be careful of using your vendors as a line-of-credit.

4. Miscellaneous Expenses. Take a look at some of the basic expenses, such as office supplies, meals and entertainment, travel, outside consultants, and telephone/cellphone. It is very likely that you can streamline and reduce the amount spent on some of these items a little more than you already have.

5. Prior year. Compare your first quarter of 2010 to the first quarter of 2009. Look at both your Income Statement (aka Profit and Loss Statement) and the Balance Sheet. How are the two years similar? How are they different? Make a list of 5 items where your business could do better, either by increasing sales or decreasing costs. With this list create 2 action steps you can take over the next 2-4 weeks to implement those ideas.

A review of the first quarter is a great place to assess how you are doing and help you create a course to meet your 2010 goals.

It has been a few years since I have reviewed and updated my resume. It is not always easy to translate a project or accomplishment onto paper. But doing so allows us to recognize our own achievements, something most of us do not do enough.

I have been teaching undergraduate and graduate classes for six years, yet I had never written a Teaching Philosophy. I had to do a little research to determine what a teaching statement/philosophy was and review some samples so that I could write my own. What I found is that a teaching statement is a fairly formal document approximately 1-2 pages in length. At first I thought it was going to be impossible write more than one paragraph, but found my words flowing effortlessly on paper.

A teaching statement or teaching philosophy is used as a hiring tool by colleges and universities. It allows the hiring managers to assess the applicant to see if they have similar philosophies on what the classroom experience should be for students. This can be both bad and good for the applicant.

The more I think about the teaching statement, though, the more I like it. If a college hires me as an adjunct faculty member it will be because they agreed with my approach to teaching. In the long-run the use of the teaching statement during the hiring process should help establish a good fit between the faculty and the school.

Could a tool like this be used for traditional hiring for a business? Would prospective employees be honest in their essay about their work ethic and expectations from the employer? Such an exercise would weed-out the candidates who are not really serious about working for YOUR company. You would have to check with your HR department to see if this is a tool you could use during the hiring process. Or if you cannot use it during hiring, maybe have your staff write a paragraph or two about what their expectations are for the next 12 months and how they plan to help your company achieve it’s goals.