Business Information for Entrepreneurs by an Entrepreneur

Like many business owners, you may be hesitant to purchase a high-line software package with expensive licensing fees, which also require you to hire additional personnel as local network and software administrators.

However, what if your business absolutely needs a specific type of software that just cannot be found on the shelf of Office Depot?

There is good news for small business owners who wish to purchase software packages without the high cost of administration, and it comes in the form of cloud computing, also known as Software as a Service (SaaS).

What is Cloud Computing?

If you have an email account with popular hosts like Yahoo! or Gmail, you are already familiar with cloud computing. Your email account is accessed via an internet connection and a browser to the Yahoo! or Gmail server. You simply bring up the website, enter your password information, and voila! Your account and all email services are there for you.

Although an email account is a simple example, cloud software delivery operates on the same premise. You simply use an internet connection to access the software from the developer’s own server. All your computing is completed through the internet. There is nothing for you to manage at your own business, which means no extra computer servers or extra IT personnel.

How Can Your Business Benefit from Cloud Computing?

There are many benefits from using remote software packages, but the main benefit that most businesses see is cost savings. The money you can save on not having to buy the software, install it, and administer it is substantial. In addition, here are just a few other benefits:

• Easy Data Transfer – You can easily transfer your existing data with the help of a SaaS provider.

• Improve Your Productivity – There will be no more downtime while IT “fixes” the server. Your SaaS account is available at all times from most any computer. You can even work from home.

• High Level of Security – Cloud computing providers establish a high level of security for their servers, providing you and your customers with peace of mind that information will not get stolen or hacked.

If you are in need of quality software applications but do not have the resources to administer it, consider cloud computing. It could save you money and time and provide your small business with the high-quality software it needs.

Do you think you live in a state that encourages and supports entrepreneurism?  You simply need to ask the Small Business & Entrepreneurship (SBE) Council.  Recently, the SBE Council released data announcing the top states that have the best climate for entrepreneurs to excel – and the results may surprise you!

The SBE’s Take on the Small Business Environment

Who is the SBE Council?  The SBE Council is a non-partisan, non-profit small business advocacy group whose mission is to protect small businesses and promote entrepreneurship.  Part of their mission is to educate lawmakers and elected officials, as well as the public, to advance policies and laws that make entrepreneurship easier.

The SBE Council report states that the economic climate has not been kind to entrepreneurs over the last two years.  In addition, federal and state policies have not been entrepreneur-friendly either.  For instance, the SBE Council noted that 11 states raised their personal income tax rates in an effort to patch budget shortfalls, while 10 states raised the capital gains tax rate on individuals.  Since most small business owners pay an individual tax rate on business income, these are certainly features that hinder the progress of small business success.

How the States Were Judged

The SBE Council judged how states promote entrepreneurship based on a comprehensive list of criteria.  They looked at a broad range of industries and types of small business.  In addition, states were judged on how friendly their policies and decisions were toward small businesses.

The ten best states were, in order:

1. South Dakota
2. Nevada
3. Texas
4. Wyoming
5. Washington
6. Florida
7. South Carolina
8. Colorado
9. Alabama
10. Virginia

In contrast, the 10 worst states for small business policy were:

1. Hawaii
2. Minnesota
3. Massachusetts
4. Rhode Island
5. Maine
6. Vermont
7. New York
8. California
9. New Jersey
10. District of Columbia

High startup costs, high taxes, and high regulation make it much more difficult for an entrepreneur to make a business a success.  Check where your state falls.  If you find you’re not in the top ten, talk to your local lawmakers about changing policies that would help small businesses thrive.

Today’s financially stringent lending environment leaves business owners with few funding options. However, your company needs capital to upgrade your equipment, expand your inventory, or launch new marketing campaigns.

Thankfully, even in today’s curtailed banking environment, microloans can be just the solution to your cash flow woes. These typically have fewer requirements and less underwriting than larger sum loans.

SBA Microloans

The Small Business Administration (SBA) has been helping new business start and grow for decades. One way they help small business is through loan guarantees. Although the SBA does not fund loans, they do provide incentive for private banks and other lenders to make loans to qualified small business owners.

The SBA microloan program helps make funds available to local, non-profit intermediary lenders, who in turn make small, short-term loans to small businesses and non-profit child care centers. The lending intermediaries usually are organizations that have experience in lending and granting money, and they have experience providing managerial and technical assistance to small businesses.

Loans are capped at $35,000, but the average microloan amount is $13,000. These funds may be used as working capital, or to purchase capital equipment, inventory, supplies or furniture. As with any loan, small business owners must meet a lender’s credit requirements.

Peer-to-Peer Microloans

Since the advent of Web 2.0, more and more individuals are connecting together – even to lend and borrow money! Another microloan source for small businesses is through peer-to-peer loans, such as those found on Prosper.com.

With the help of the internet, small businesses can find peer sites that pool private investor money to help entrepreneurs meet small financial obligations. Entrepreneurs can apply for small loans, and those who meet credit requirements receive bids from borrowers. If the borrower receives enough bids to meet the loan, then the funds are transferred. Private lenders get the benefit of helping other small business owners and making a reasonable return. Entrepreneurs avoid the high cost and red tape of bank loans.

The good news for entrepreneurs is that money is available to help get a business started or growing. If you are a small business owner in need of a little cash, consider applying for an SBA guaranteed microloan, or work through a peer site and apply for funds from other business owners just like you.