by dorraadmin | May 24, 2022 | Blog- Financial
Do you want to start a small business? If so, you need to find the right property. You need to choose a location that is easy for your customers and clients to find, but you also need to select talking to that will serve as a valuable investment. What are a few important factors you need to consider if you are looking for commercial real estate? Remember that you can also rely on professionals to help you.
Location Is Everything in Real Estate
First, you need to think about the location of your property. Where do you want your business to be located? Of course, you need to select something that is easy for your potential customers and clients to find. On the other hand, you should also put your business in a safe location. Who lives in that area? Do they have enough money to spend on your products and services? Think about the location of your business first.
Consider Your Industry
Then, you need to think about your industry. Does your industry have any special requirements? If you work with dangerous chemicals, do they need to be stored in a certain way? If you have a lot of networks and servers, do you need extra protection for these valuable items? Are there any regulatory requirements you need to follow? Every industry has its niches, and commercial real estate is no different.
Think About Your Property’s Scalability
Finally, think about the growth of your company. If you select the right property, your business might quickly. If your business expands, can that property accommodate that growth? Or, will you need to sell that property and find a new one? You don’t want to sell your real estate too quickly after its initial purchase. Otherwise, you could lose money. Make sure that property can accommodate your business if it expands.
Find The Right Commercial Property
These are a few of the most important factors you need to think about if you are looking for a location for your business. Commercial real estate is changing quickly, and it could have an impact on your ability to run your business. Location is the most important factor, but you also need to think about your industry and the future growth of your business. If you are having a hard time finding real estate for your company, reach out to a professional who can help you.
by dorraadmin | May 17, 2022 | Blog- Financial
Knowing the amount of working capital a company has available is vital to its success. After all, this figure determines how far into the future a company can viably operate into the future. If your working capital is low, you may need to act fast to liquidate assets or take out a loan with a lender.
Assets and Liabilities
The first step in figuring out your working capital is knowing your assets and liabilities. Assets would include the cash you have on hand as well as any outstanding invoices and inventories that can be exchanged for cash.
Your liabilities are your debts, including utilities, taxes, rent, the money you owe vendors, and loan payments. All expenses related to payroll and employees are also liabilities.
Calculating Working Capital
The formula for determining your working capital is simple. Working capital equals your assets minus your liabilities. If your current assets are $20,000, but your liabilities are $10,000, then your working capital is $10,000.
It’s ideal to keep your working capital out of the negative, but you also don’t want too much working capital. If you have too much working capital then you could be missing out on growth or investment opportunities.
To determine the best working capital number for your business, you’ll want to calculate your working capital ratio. To do this, divide your assets by your liabilities. Using the same numbers above, dividing $20,000 by $10,000 gives you a ratio of 2.
A ratio of 2 is a good working capital ratio. Anything below to could signal trouble, while anything above 2 could mean you’re holding on to too much cash.
Part of owning and operating a business is keeping everything in balance. This is why it’s important to track everything that comes in and out of your company.
You can keep a good working balance by following a few good business practices:
- Always negotiate the best payment terms from suppliers.
- Make payment terms clear to buyers.
- Keep inventory in balance, which means don’t overstock or understock.
- Make payments on time to avoid paying interest.
- Make it a habit to regularly calculate your working capital as well as your ratio.
- Make adjustments based on your ratio.
These calculations are simple tricks that accountants use daily. Using them regularly will help you make smart business decisions as well as allow you to better manage how you spend. In time, calculating capital will become second nature.
by dorraadmin | May 14, 2022 | Blog- Marketing
An innovator with a great product can sell it and make good money. An entrepreneur with a solid business can establish an organization. But a visionary with a brand can create generational influence. Follow these pointers on crafting a brand identity.
Let Your Customers’ Desires Guide You
Business owners often fall into the trap of solely promoting and defending their product or company too much. Everyone can say that they’re the best and unique. What gets customers to attach to your brand is when you stop talking about yourself and focus on them. Sell a vision of what your product or service can do for them. Paint a picture of the feelings you’ll create so prospective clients can visualize themselves enjoying what you offer.
When spreading a brand message, limit the time explaining why you’re better than someone else. Instead, talk about the customers’ motivations and reactions. If your copy is always full of “we” instead of “you,” you’re probably going to miss the mark.
Research and Imitate Successful Methods
Don’t look far to find how to communicate your message. Reverse engineer how successful brands communicate with their customers and follow suit. Don’t blatantly rip off other methods but adapt the trends to fit your needs. Check what competitors do to stay relevant and analyze what companies in different industries are doing.
Pivot as Needed
Every enduring company has to change a tagline or a logo when it becomes outdated or passé. While you may have affection for what you’ve built, your organization needs to evolve and grow to stay alive. Sometimes you may have to alter your identity entirely.
Observe what missteps other groups make and endeavor to avoid those errors. Still, don’t let the mistakes of others stifle you into inactivity. Try to make a bold statement about what you do for customers. Riches are still in the niches, and you have to differentiate by being unique and not by trying to be all things to everyone.
Putting your message out all over social media and the web can be intimidating. Acknowledge that errors will come. If you don’t make mistakes, you’re not trying hard enough, and your brand is probably bland. Don’t hold back from establishing a presence everywhere you can. There’s indeed a lot of noise to cut through, so you must persist.
More than ever, customers want to connect with brands they can identify with. Craft a captivating brand identity and continue to refine it to become a formidable market competitor.
by dorraadmin | May 10, 2022 | Blog- Financial
Growing your business is an ongoing process. To grow and prosper, your business must acquire new customers and retain existing customers. Brand licensing is one strategy that can help you achieve these objectives. If you have an established business and are looking for ways to reach more customers and make more sales, brand licensing may be your next step.
What Is Brand Licensing?
Brand licensing is an agreement between your company and a third-party licensee that allows the licensee to produce products with your trademark in exchange for a royalty fee. Through your licensing agreement, you can control what products are produced with your trademark and how long the licensee may continue using your brand. Many people associate brand licensing with the entertainment industry, but it can be a powerful tool for business growth in many other sectors.
Why License Your Brand?
With brand licensing, you can expand your brand to include products that your customers want but your company can not produce by itself. For example, if your company manufactures power tools, customers who already use and trust your products might be eager to purchase work clothes, gloves, or home appliances bearing your brand name. Your company likely does not have the means to manufacture these products; this is where the licensee comes in. By letting the licensee handle the production, you can explore new product markets with minimal financial investment.
Brand licensing promotes business growth by offering new products to your existing customers, but it also helps you reach new customers. Licensed products can reach people outside of your original target market, increasing your visibility and name recognition. Licensing also allows you to offer products at a variety of price points, which can be a useful business growth strategy for higher-end brands.
How Should You Approach Brand Licensing?
Brand licensing must be approached thoughtfully. While the goal is to expand your reach into new markets, it’s important to maintain the integrity of your brand while doing so. The products you choose should complement your current product lines and reflect your company’s identity, and the licensees you work with must be able to meet your company’s standards and uphold your hard-earned reputation. Remember that a licensed product might be a new customer’s first experience with your brand, so it needs to be a positive one.
When it comes to business growth, there are many different strategies. If you want to grow your customer base and offer new products while maintaining the image you have worked hard to build, brand licensing can provide new opportunities for your company.
by dorraadmin | May 3, 2022 | Blog- Financial
When your company relies on heavy equipment to provide services to clients, it’s important to keep that equipment up to date. It can be tempting to put off purchasing new equipment. You may be concerned about heavy equipment financing, or you may be wondering whether the cost is truly worth it. There are many reasons not to hesitate when it’s time to upgrade your company’s equipment.
1. Make Your Workplace Safer
Working with outdated equipment often means working with fewer safety features and increased accident risk. Your company may save money in the short term by continuing to work with old equipment, but the potential for injuries and workers’ compensation claims is not worth it in the long run. Providing a safe environment for employees should be a top priority, so if your equipment does not have the newest safety features, start considering equipment financing options to upgrade to newer, safer equipment.
2. Reduce Operating Costs
A heavy equipment breakdown costs your business time and money. Using the latest equipment can pay off in the long term by reducing maintenance expenses and improving productivity. New equipment is generally more fuel-efficient as well. This can lead to significant savings when fuel prices are high.
3. Improve Your Company’s Image
Investing in new technology shows that you are serious about growing your company. Your newly upgraded equipment will inspire confidence in both clients and employees. You invest a great deal of time and money in training your employees, so you should ensure that they have the right tools to put their skills to use. With newer and more efficient equipment making it easier for your employees to do their jobs, both productivity and morale will improve.
4. Finance Your Purchase
The cost of new equipment can be daunting, especially to small businesses. However, there are many equipment financing options to help your company get the equipment it needs. If you are concerned about your company’s ability to qualify for a traditional loan, you might consider an alternative like asset-based financing, using your current assets as collateral. With a variety of financing options available, upgrading your equipment does not have to be a huge financial burden to your business.
In order for your business to thrive, having the right equipment is essential. Although the cost is significant, it is generally outweighed by the benefits, especially when you take advantage of your equipment financing options. By investing in new equipment, you can reduce your everyday operating costs and enjoy a more profitable business.
Here at Dorra Financial Group, we are confident we have a commercial finance solution or other small business loan product that will fit your needs perfectly. We structure our business loans to meet the needs of both established businesses and businesses that are less than two years old. Our goal is to provide you with the financing you need even if your bank won’t.