ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Basics Of How To Run A Successful Business - The Bottom Line

Updated on July 31, 2010

When putting together the business plan, it is very important to get as much detailed information as possible. With companies, you've got to be detail oriented. Detailed information will assist in a timely approval of the loan. When fielding information for your competitor analysis, try calling competitive companies and questioning them like you are a prospective client.

Other details to include are:

  • When doing a market analysis, assume that when you open your doors you'll be at minimum capacity. Some companies overestimate this number and don't include money to cover working capital until the company reaches to breakeven.
  • Make sure to include an advertising expense.
  • When making an acquisition, include financial statements and a current interim statement within 90 days of the application. For an acquisition, looking at the existing financials, how well that business is doing, operating income size, and gross revenue.
  • For new companies, allocate 1.5 times what you think is it is going to take to build the company and add on 15%. Most people think they can build in six months. They're wrong. Always add a 10% contingency fund in order to allow for changes in the project scope.

Considerations For Bottom Lines

After you have collected all of your information, take a step back and calculate how much money and time that will be included in paying back the loan. You have to look at what you are financing. The amount of time to pay back the loan should be calculated in your business plan and can be worked out with your loan officer. So what loan is best for you?

There are several loans that are accessible from SBA. Here are some of the descriptions of what's most popular for small businesses:

7(A) Loan Guaranty Program:

The 7(a) Loan Guaranty Program is acknowledged as a primary SBA lending program. It supplies loans to the small business owner who is not able to obtain financing on even remotely reasonable terms via the conventional lending channels. The 7(a) program functions through a group of private-sector lenders which fund the loans, which are fully guaranteed by the SBA due to the fact that the agency does not handle funds intended for direct lending or non repayment grants.

For most SBA loans there is no legislated limit to the total amount of the loan that may be requested from the lender. Keep in mind that the maximum amount that the SBA can guarantee is usually one million dollars. Thus, with a lender requesting the maximum SBA guarantee of 85%, the total loan amount available under this program generally would be limited to around $1 million. However, there are some exceptions in the specialized loan programs.

SBA considers the borrower's repayment ability from the cash flow of the actual business a main point in the SBA loan decision procedure along with many other considerations. All owners of 20% or more must personally guarantee the loans they receive from the SBA loan program.

SBALowDoc Loan Program:

The maximum loan for this program is $150,000, but if money is needed quickly, this program will get you a response from the SBA within 36 hours of the complete application. It allows a SBA guarantee of up to 80% for loans up to $100,000, and up to 75% for loans over $100,000 up to $150,000, although these levels do change.

Continued in The Basics Of How To Run A Successful Business - SBA Loans

Back To Start


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)