Category: Business

Don’t Dig Yourself a Deeper Hole A.K.A. Does a Business Loan Make Sense?

Business Loan Make Sense


Need money to start or expand your business?

The traditional approach is to go to your bank and ask for a business loan. Be prepared to bear your soul to your ‘friendly’ banker-he or she will ask many questions and will require all your financial records and a current business plan.

Regardless of your status as a ‘start-up’ or as an ‘established’ business you should have a carefully constructed plan of activities that is factual, well documented, and realistic for your market, area, and capability (management).

Even in these troubled times, a ‘real’ business can obtain funding, one way or the other a traditional loan, factoring, investors, or venture capital. Don’t be afraid to ‘shop around’ as individual lenders have different terms, conditions, and amounts they’ll loan-always ask for more than you need!

If you are lucky, you’ll get a loan without odorous attachments such as liens and personal guarantees: based on the past, present, and future business potential.

When Does a Short-term Business

More commonly you’ll get your loan but with restrictive covenants, liens, attachments, and periodic reviews by the bank or their agents. Avoid putting your house up for collateral, as the bank will take it if there is a default it’s bad enough to lose your business without also losing your home!

For those who have an immediate, if not urgent, a requirement for money I offer my condolences as the more you need the money, the less likely you are to get it!

This is unfortunate and depressing but the truth. A desperate need for money raises serious questions about your business. Your chance of finding proper and favorable funding is drastically reduced-bankers love to give you money when you don’t need it!

Faced with a desperate business, a lending officer will have critical questions that must be answered before any loan can be issued. Questions like:

  • Why is funding needed so quickly?
  • Has the market, for the business, stagnated?
  • Has a competitor entered the market and reduced the potential income stream for the business?
  • Has the company’s infrastructure deteriorated to the point where the corporation can no longer effectively compete?
  • What happened to management, budgets, forecasting, and foresight–why weren’t the present circumstances anticipated and planned for?
  • The desperate need for capital points to, at a minimum, bad management and, more than likely, a floundering business.

Bankers and investors never put money into a sinking ship unless they have substantial collateral that can easily be captured and liquidated-capital assets vs. non-capital. Even in that unlikely situation the ‘hassle factor’ comes into effect, and most lenders will decline to fund.

I know that the last paragraph will upset some people especially those who are heavily invested in their business regarding capital, time, and emotions. Those people will find it difficult to believe that others (banks et al.) can’t see the potential and future prospect of their business.

The best thing in any person’s life is honest feedback, the more, the better. The ability to pragmatically deal with the real world is an absolute requirement for any individual in business.

When bankers or investors tell you that your business is failing don’t get insulted, upset, or depressed. They are giving you honest (brutal) feedback. If you’re lucky, they may indicate that the problem(s) can be solved and possibly proffer some solution(s)-make sure you carefully analyze their advice and act on it if at all possible.

How To Make Sense Of Business

By saying ‘No,’ they are doing you a favor!

Seeking funding to prolong the existence of a floundering business is foolish. While capital will buy you time the eventual fate (failure and possible bankruptcy) will be the same except all the new capital will be added on to the old debt.

Don’t dig yourself a deeper hole, get out of the one you’re in!

While the strain of stopping a business is considered the sooner you do it, the quicker your agony will end, and the process of healing can start.

Many successful people have failed in business and have learned valuable lessons the school of hard knocks. These painful lessons enabled them to reestablish themselves in a more successful venture or career!

Can a Motivational Speaker Hurt Your Business?

Motivational Speaker

The stereotypical motivational speaker comes blazing onto the stage, standing tall as they speak words of wisdom with the fervor of an evangelist, and tell everyone in the room how to change their lives. They sign copies of their book at the end of their speech, collect their paycheck, and move their caravan to the next town. While there are certainly motivational speakers who earn every penny they charge, far too many leave more empty promises than results as they drain your company’s account.

If you’ve made the decision to hire a motivational speaker for your next staff meeting or engagement, take a minute to review the type of speaker you’d be engaging thoroughly. There are many different variations, but generally, they fall into one of two categories.

  • The first type and the one you should do your best to avoid is the kind that relies on the power of speech alone and nothing else. Although they sound knowledgeable at first, the words that come from this type of speaker hold very little substance and aren’t grounded in reality.
  • They’re great at giving your employees a pep-talk with anecdote-laced exclamations and persuasive speeches, but if you ask those same employees after the meeting exactly what they’ve learned, you’ll usually receive a generic response involving how they feel rather than any practical knowledge they can use in the future.
  • The other category will be far more useful to both your staff and your business. They might speak with the same fervor as members of the previous group, but these speakers have the solid content in their speeches to back up their words. Their methods are tried and true, with a proven track record of success behind them. Your employees should come away with concrete ideas that have substance, not intangible pipe dreams.
  • When deciding to hire a motivational speaker, look for someone who actually offers something concrete for their listeners to hold onto. Ideally, you’ll have a good idea of what the speaker will discuss ahead of time, and they should be able to let you know not only what information they’ll be imparting to your employees, but how those employees can apply that knowledge practically in their work. If your prospective speaker can’t offer this before you pay them, chances are you’d be better off continuing your search.

Great Motivational Speakers

Finally, always be wary of those who claim to be experts in their given field. With the invention of the internet, nearly anyone can consider themselves an “expert,” spouting half-baked advice as though it were absolute truth. Real “experts” won’t need to promote their expertise more than a sentence or two to establish authority, so if your prospective speaker touts themselves a little too much, it’s a good sign to keep looking.

Common Business Notes

business notes

Business notes refer to legal contracts used to record the purchase or sale of a registered company. These documents record details of the transaction, owner contact information, and details of business assets transferred in the sale or used as collateral to secure financing.
Business notes are essential when business owners sell the company using seller carry back financing. Owner-financing is often used when buyers cannot obtain 100-percent financing through banks.

When sellers carry full or partial financing, customers remit payment installments over a predetermined time frame. Owner will sell contracts generally extend for 2 to 4 years but can be established to meet the needs of all parties involved. Upon completion of the purchase contract, buyers obtain bank financing for unpaid balances.

  • It is recommended to get legal counsel when entering into seller carry back financing contracts to ensure loan documents are a legally-binding and proper recording of the sale. Business notes usually consist of several documents including the following:
  • Sales Contract Purchase Agreement: This is the most common arrangement used when buying a business entity. The purchase agreement records details about the firm; description of business assets transferred to the new owner; and contact information for each person involved in the transaction.
  • Sales contracts document financing details including purchase price, payment amounts, payment schedule, interest rate, and late fees. Business sale contracts should always include a default clause outlining consequences if buyers default on loan terms.
  • Promissory Note: Records the buyer’s promise to pay and contains information about finance arrangements. Promissory notes include information similar to sales contracts such as purchase price, payment terms, interest rate, and contract termination date.
  • Security Agreement: Records details of business assets used as collateral for financing. Features include property descriptions, purchase date, purchase price, and each asset make, model, and serial number. Security agreements are also used to record duties and obligations of both buyer and seller to commence with the sale.
  • Recorded UCC-1 Statement: The Uniform Commercial Code (UCC) governs statements that include personal property used as collateral to secure financing. The UCC-1 statement protects sellers’ rights to reclaim the collateral property if buyers default on loan terms.
  • This report records property transfers included in the sale such as office equipment, business equipment, and personal property owned by the seller. UCC-1 statements must be registered with the Secretary of State.
  • Lease Agreement and Assignment: When business owners lease space from a third party they must assign the rental agreement to the new owner to be released from their financial obligation. The buyer assumes the contract and is responsible for future payments. Contract assignments are also required when sellers own the building and lease space to new owners.
  • Closing Statement: Used to record ownership transfer and property title to the buyer. This document summarizes closing costs and records the party responsible for paying settlement fees.

Additionally, business purchase documents should be accompanied by accounting records, company tax returns, and a business insurance policy issued in the buyer’s name. Each report in the business notes package should be signed, notarized, and recorded through appropriate courts.


If you’re new to Network Marketing and looking for ways to cut to the chase and figure out how to make a great income Right Now, or if you have been in the business for a while but tired of not getting any Results, then you’ve come to the right place.


So why is it that so alot people fail at MLM?

Well, it’s simple… nobody teaches the right methods of marketing.

So many people in the MLM industry fail just because their Upline doesn’t teach them the correct ways they need to know to grow their business in the real world. With the Internet, it is not hard to grow an online business these days, yet so many people fail to use this leverage.

Today you will learn some of the most tested and proven methods to increase your downline and maximize your business’ growth.


Let’s get started …



#1. Become The Expert. No more 3-Way-Calls, No more edifying your upline, No more “I’d Like To Introduce You To Mr. So-and-So.” You are now an Entrepreneur of your own Business. Therefore you are the expert in your field, so act like it! Begin to “Edify Yourself” starting Today.

To become the expert in your field you need to know your stuff. Do your research, know your products, and know your MLM company so that when prospects do come to you with questions, you’ll know how to give them a compelling direct response.

Become The Expert

#2. Stop Marketing Your MLM Opportunity! This may sound to be the exact opposite of what your upline is telling you, but trust me on this. A business opportunity is too hard to sell up-front.

Your asking people to invest their time and hard earned money into something they’re not really prepared for and they really don’t know what the outcome may be.

Nine times out of ten MLM quality signups Do Not come from marketing your company’s opportunity. Selling the opportunity will cost you more time and money and cause people to drop out faster than they come in.

Marketing Your MLM Opportunity

#3. Market Your Product. That’s Right … By selling your product first you are generating your own quality prospects, you are pre-qualifying those “quality prospects” (satisfied customers) into joining your business, and in return building yourself a downline.

But … for you to build a successful Network Marketing business, you’ll need to create Lots of Quality Signups. Don’t be discouraged … This Is Possible!

MLM success does not happen with 3 or 4 sign ups like your company tells you. You need to build your downline as if everyone was to drop out Tomorrow.

This is also why your MLM prospecting process has to be “Fully Automated, 24-7, 7 days a week” and the best way to do this is via the internet, but we’ll get to this in more detail a little later.

Market Your Product

#4. Find A Person’s Need. To successfully get people to buy your product, and in return generate “Quality Prospects” you have to determine a person’s need and then “fulfill it.” To fill that need you have to know the benefits of your product.

One of the most important steps to building your MLM business is understanding the benefits of what you’re marketing. To get people to buy your product you need to know your products’ benefits … not the features … the benefits. The benefits are what sells the product, people want to know “What’s In It For Me.”

For example: Let’s take a look at some of the benefits of Product “X”:

– Increases Energy Levels
– Anti-Aging Properties
– Improves Mental Clarity
– Lowers Cholesterol

Now, what you need to do is focus on one particular benefit, like “Increases Energy Levels,” and market your product towards people who are looking to “Increase Their Energy Level.”

Find A Person's Need

#5. Get A System. You cannot sell your products to hundreds of prospects by yourself. You need a well put together system that will combine all 5 of these methods together and make them flow, 24-7, non-stop.

Get A System


This is the only true and tried way to build any successful Network Marketing Business online. This is why you need an automated system that will do all of this for you. “You need a system.” Whether you buy into one or create one yourself, it will become the life and bloodline of your business.

This step is critical to your success. The few who are wildly successful in this industry making Thousands, and in some cases, Millions of dollars will tell you that they invested themselves and their business into a system that propelled their business to a whole new level.