Government Funding Can Elevate Your Business: But Know What You’re Getting Into

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StrategyDriven Managing Your Finances Article |Government Funding|Government Funding Can Elevate Your Business: But Know What You’re Getting IntoFunding is always at the top of mind for small business owners. From startup costs to expansion, your current cash flow dictates how you structure your business and plan for the future.

There are as many different funding stories as there are businesses. Venture capitalists, self-funding, crowd-funding, and loans can all be a good fit at times, but in some industries, government grants are the easiest, fastest way to grow.

There are pros and cons to working with government funding, but if you go into the process armed with facts and flexibility the pros generally outweigh the cons.

The upside to government funding

Government funding is appealing for obvious reasons. It’s generally free to apply for and, unlike a loan, doesn’t need to be paid back. Most government programs also offer some form of mentoring service or access to research and development opportunities. With more resources at your fingertips, you can level up your skills as a business owner.

Government grants also provide instant credibility to your organization. Having the backing of a state, federal or national agency shows that you have a solid plan and beat out other proposals. That vote of confidence can go a long way in attracting customers and investors.

Do your homework

As with most things in business, working with government funding is complicated.

Finding grant opportunities is generally as simple as searching the internet, but finding the right opportunities is a different matter. Government grants generally have a focused set of goals and strict requirements. Applying for grant money that isn’t a good fit is a waste of time.

Once you’ve identified a solid funding opportunity, it’s good to do some background research on the grant process in general. Things move fast in the corporate world, but the government operates a little differently. Expect the process of applying for and being awarded funding to take at least 6 months.

You should be prepared for the complexity of the process, as well. Missing technical details can disqualify your application. Plan on turning everything in ahead of schedule, so you have time for last-minute additions and corrections.

Know the cost

While government grants don’t drain your financial resources directly, don’t be fooled into thinking there is no cost associated with them.

Once you get through the application process, if you’re awarded a government grant, there are conditions attached. You’re expected to provide regular reports, which means a lot of paperwork and a large time investment. You are responsible for the administration of the funds, and must stick with the plan you outlined in your application.

In some cases, you might also be asked to participate in PR efforts, giving press interviews or meeting with government officials. Think of these events as opportunities to put your business in front of new audiences.

An influx of cash is always welcome, but when it comes through bureaucratic means, you will be pulled into some red tape.

Have a plan B

When working with the government, you are at the mercy of the political landscape. This means that the people you work with, policies and procedures, and departmental goals can change every couple of years.

An awarded grant is like a contract––the money that you’ve received or are due to receive over the course of a year or two won’t be affected by every election. That said, you need to be aware of politics, shifting legislation and administrations when working with government agencies. Electoral results can definitely have implications for future funding opportunities.

Grants also run out after a set period of time, and it’s not guaranteed to be renewed. Using government funding to add to your business is a good plan, but relying too heavily on that money can set you business up for failure if it falls through. Plan ahead, and have an exit strategy if you don’t receive grant money in the future.

Conclusion

Government grants are an incredibly useful tool for small business owners, but navigating the process takes patience and real work. Understand the advantages and disadvantages before diving in, have a backup plan, and you’ll be well prepared to take advantage of the valuable programs available to small business owners.

About the Author

StrategyDriven Expert Contributor | Tim CarterTim Carter is an entrepreneur and the owner of Discovery Tree Academy, a top rated childhood development center with locations in Springville and Payson, UT. Tim began his entrepreneurial journey at the young age of 19. He has experience in sales, professional cooking and is even a licensed pilot. Weaving his diverse talents together, Tim is on a mission to create a better childcare model. His passion lies in helping kids thrive, including his own daughter and twin toddlers at home.

5 Ways Outsourcing Your IT Will Save Your Company Money

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StrategyDriven Managing Your Finances Article |Outsourcing|5 Ways Outsourcing Your IT Will Save Your Company MoneyLet’s face it: there are tons of web pages that describe the benefits of outsourcing specific functions of your business to external third-party companies. But, when it comes to IT or Information Technology, does it actually save your company money?

The thing is, you could quite comfortably streamline your IT processes and run a lot of them in-house. However, the downside is there are hidden costs to keeping your IT management within your business. Here are five ways outsourced IT services will save your firm money:

1. Staff Costs

As your business grows, you will undoubtedly hire new people to perform various functions within it. After all: you can’t do everything yourself, and telling yourself that you can is both unrealistic and foolish!

How can managed IT services save you money from an employee perspective? Firstly, the fees you pay for outsourced IT means you don’t have to pay for each employee that works on your business networks.
Secondly, you don’t need to incur extra costs, such as arranging tax payments, insurance policies and complying with various employment laws.

2. Training

As you know, the technology world moves at such a rapid pace that yesterday’s innovations could become tomorrow’s obsolete products. Each year, software and hardware vendors release new tools – many of which you use daily within your business functions.

Whenever there’s something new to the market that your business needs to use, your employees will need training, so they know how to manage any new processes. Training is seldom free or cheap, especially when it comes to IT training.
The beauty of using an outsourced IT partner is they incur such training costs. You don’t have to pay any extra fees.

3. Outdated Technology

When you pay a company to handle your organization’s IT needs, part of the deal will almost certainly involve upgrading your software and hardware when they become outdated. That’s because current technology will ensure your business runs as efficiently as possible.

If you handle all your IT, you would need to cover the cost of any software and hardware upgrades separately. However, outsourced IT services management can include provision for annual upgrades, and you’ll pay a fixed monthly or yearly price for those services.

4. Smaller Premises

Outsourcing your IT also means your organization doesn’t have to lease or buy large premises to house various computer equipment and the employees that manage them. That’s because most of the services provided get conducted remotely.
Smaller premises equate to cheaper leases or purchase prices, and that also means your business will have more money in the bank to invest in other areas and grow.

5. Expert Advice

Lastly, the problem with having a small in-house IT team is they might not necessarily know the best ways of streamlining your technology processes and saving your organization money.

Outsourced IT service management providers work with businesses and organizations of all sizes. Part of their job is to research and provide proof-of-concept of efficiency changes and cost-cutting measures to their clients.
As one of their customers, you can benefit from their expert advice and end up with a more efficient IT setup that saves you money.

IRS TAX Debts: What It Is And How To Get Rid Of It For Good

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StrategyDriven Managing Your Finances Article |Tax Debts|IRS TAX Debts: What It Is And How To Get Rid Of It For GoodAccording to a report released by IRS, nearly 10 million Americans face tax penalties every year.

When someone owes taxes to the IRS, the usual course of action is collecting penalties or liens. However, the number of liens has fallen more than 50% since 2010, there is still a huge population in America that is burdened by tax debts.

Wait…what??

What Are Tax Debts?

As the name suggests, the taxes that someone owes to the federal agency is accountable for their tax debts.

It could be due to any reason – from missing deadlines to filing wrong taxes.

If you have also received a legal notice from the IRS regarding tax debts, then this article is for you.

How To Get Rid Of IRS Tax Debts?

As already mentioned, the tax debts could be due to several reasons, but, notably, all are resolved by paying off the debts only. Indeed it is a no-brainer, you need to pay off your debts in order to get rid of it.

But, how do you do it when you owe taxes to the IRS? Do you simply pay the cheques or are there any legal formalities that need to be fulfilled?

Keep reading to know more.

IRS Fresh Start Program

As a response to the 2008 financial recession, the IRS brought in a tax relief plan for taxpayers to cope up with unemployment and reduced earnings. As mentioned here, https://silvertaxgroup.com/everything-about-irs-fresh-start-program/, the program is rather a series of changes to the tax code. But, notably, not everyone can enjoy the benefits of this program. There are certain eligibility criteria in place to allow only the citizens who cannot make their own taxes.

Delay And Pay With Penalties

The easiest of all the courses is to delay the tax payment. Ideally, it would also mean that your taxes would be coupled with penalties to be paid. However, in some cases, the IRS may waiver off the penalty. It usually depends on reasoning and proof. You would need to prove that you were unable to afford minimum living expenses, be it if you would have paid the taxes or otherwise.

Offer In Compromise

In some cases, the IRS may consider an “offer in compromise” settlement for taxes that you owe. It literally means that you could pay less than what you actually owe to the IRS and start afresh with a blank canvas. However, when seeking an “offer in compromise” you might need to prove your financial hardships.

When it comes to taxes, there are a lot of formal applications and paperwork, apart from legal conformities. Failing to meet any single one of them can easily land you in trouble with the IRS. Not only it is important for your business’s financial health but for your personal finances too.

A rather easier and more sophisticated way to deal with tax problems is to have an experienced attorney by your side. The professionals would be better equipped with all the knowledge and information that you need to get out of the tax troubles.

Getting Your Personal Finances On Track Before You Start A Business

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StrategyDriven Managing Your Finances Article |Personal Finances|Getting Your Personal Finances On Track Before You Start A BusinessAre you thinking about setting up your own business? We recommend that you do work to clean up your finances first. If you fail to get your finances under control then you will look weaker to potential investors. If you need to borrow money to get your business up and running you could also struggle to find the right deal. So, how can you get your finances under control? Here are the suggestions we recommend.

Set Up A Budget

Our first recommendation is that you set up a personal budget. Experts recommend that you should be doing this, regardless of how much you are earning each month or each year. It’s always a smart idea to have a safety net that you can fall back on. This doesn’t need to be a massive amount of money. It just needs to be enough to keep you in a comfortable situation and hopefully free from the problems of debt.

Pay Off Your Debts

If you already have debts hanging over your head, then you need to make sure that you are working to pay them off right now. There are various strategies that you can explore for paying off debt that you have accumulated. For instance, you might want to think about taking out a debt consolidation loan. A debt consolidation loan can be useful but only if you get the right interest rate. If your interest rate is higher or more or less the same you’ll need to look at other choices. You could use a service like Improved Data Services collections. They help people who are in debt reach a swift resolution with their creditors, essentially acting as a middle man to keep everyone on the right page.

Improve Your Credit Rating

If you’re planning to borrow to set up your business, then you do need to make sure that your credit rating is at a healthy level. Be aware that a credit rating can change based on a variety of different factors. Paying off any debt that you have accumulated will help but it’s definitely not the end of the story. You should also think about borrowing money that you know you can afford to pay back.

Diversify Your Investments

Finally, you might want to think about exploring the different options that you have with investments. If you are already saving money then it makes sense to invest this in different areas. There’s a range of options worth exploring depending on the amount of money that you have accumulated. For instance, you could invest in property or you might want to think about looking at stocks. Even penny stocks could provide you with the extra cushion of cash you need when setting up your first company.

We hope this helps you understand everything that you need to know about getting your finances under control. If you take the right steps here, then you’ll be in the perfect position to start your own company and get things on the right track from day one.

5 Ways to Prevent Potential Chargebacks

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StrategyDriven Managing Your Finances Article |Chargebacks|5 Ways to Prevent Potential ChargebacksChargebacks, especially frequent ones, can significantly affect the profitability of your business. There can be many reasons why a customer may want to request a chargeback after purchasing a product from you or receiving a service. In some cases, such activity can also be fraudulent. Merchant chargeback protection is definitely something that shouldn’t be taken lightly. In this article, you can find some ways to prevent this problem.

Why does a customer request a chargeback?

To put it simply, a chargeback is when a customer requests their bank to reverse a transaction after paying for a certain service or product. It is a consumer protection tool but it can often be misused by some individuals. Some of the reasons why a person may request a chargeback include such:

  • A product arrived damaged
  • A product got lost while shipping
  • Technical problem
  • A customer didn’t receive the service or product
  • Billing problem (duplication, failure to cancel it, etc.)

How can you avoid chargebacks?

If you want to prevent potential chargebacks as much as possible, it’s important to minimize the instances when customers can be dissatisfied with services or products. The steps you can take include the following:

Ensure proper customer service

Customer service should always be in place to address the potential concerns of customers. This includes answering emails and calls as promptly as possible. It’s essential to always get back to your customers because miscommunication leads to chargebacks. You should have clear time frames when your customer service works so people know when they can contact you and get their answers.

Provide detailed descriptions

One of the best ways to prevent chargebacks is to be upfront and transparent when describing your products or services. You should provide clear images and explanations so that people know exactly what they pay for.

Create an extensive refund policy

Whether you have an online or offline business, you should have information about your refund policy readily accessible for clients. There you can state when returns are possible, during what time, etc.

Provide detailed shipping information

Customers often get frustrated when products don’t arrive in several days, and this is when chargebacks can happen. To avoid this issue, make sure that you describe all the shipping terms in full detail.

Always pay attention to previous chargebacks

If there is a repeated reason for chargebacks, it’s time to make changes. You may need to change a shipping company to make sure your products arrive faster. Or, you may have to improve a certain product if there are specific complaints.

Deal with chargebacks before they occur

Chargebacks are a constant problem for every business, but most cases can be prevented by establishing good business practices. This includes being honest about what you sell and making sure that your customers feel heard.
What do you do to prevent chargebacks? Please, feel free to suggest your methods in the comments and tell us how you deal with this problem. Share the article with those who may find it interesting.