SA Business Planning Seminar Series - How we promoted it

If you want to replicate the success we are having with promoting the SA Business Planning Seminar Series Launch, here are a few greta tools. Weve had great success with the marketing of the event, and most of itis free. Thats the secret behind the low cost of the events itself. Obevious you know by now that we are using this blog as one of our main strategies, not only because of our many readers but also as its well indexed on Google. Search for Business Planning event on google and see how easy you find us.

In adition, The SA Business Planning Seminar Series Launch is broadcasted on the Open Press website this week. A great free PR tool for businesses promoting events or news the Open Press can be used by anyone with something newsworthy to say about their organisation.

This is a great free tool for small firms especially. We also used a number of other sites to get the word out such as Free Press Release as well as South Africa's premier PR website, Biz Community.

So the great thing here is that just because you may have a limited marketing budget because you want to maximize value vs price for your clients, it does not mean that you can not get the word out very fast and effectively.

Till next time,
Ben

Business Plan Workshop

For those of you who are regular readers in South Africa , as well as those who may have stumbled accross the blog from annother site or search engine, come and join us for a business planning workshop in a city near you.

Here is a shortened version of the blurb:
Come and write your business plan with us. Our team of accountants and ex business bankers know exactly what you have to do to gain funding for your business. Having worked with hundreds of business owners to successfully draw up business plans that work, the people at this workshop will help you to walk away with a winning recipe and business plan that will work for you. You come away inspired and, most significantly, you leave carrying brand new insights to dramatically enhance your own success.

Hope to see you there,
Ben

Getting business finance from the bank

A large number of start-up businesses call on their bank to borrow money. If you're reading this blog then you may be one of them or certainly may be planning to be. Banks offer long-term finance in the form of loans and mortgages, and short-term finance through authorised overdrafts. But before you approach your bank, you should first work out why you need the money and for how long.

For long-term purchases – new machinery or premises, for example – then a loan or commercial mortgage may be best. Leasing or hire is another option if it’s equipment you need.

Short-term day-to-day running costs (such as buying stock, or tiding you over until cash comes in from a customer) are often best met by authorised overdrafts or short-term loans. When looking at these options, obtain written quotations for each, so you can accurately compare total costs, including bank charges.

Loans
If you need the money for more than a year, for a specific purchase or planned expenditure, a loan is a good solution. You agree to pay back a set amount each month over a specified period.
For long-term borrowing they’re often cheaper than overdrafts – usually around 2.5 per centover base rate (an overdraft can go as high as Seventy per cent of small businesses call on their bank to borrow money.

Banks offer long-term finance in the form of loans and mortgages, and short-term finance through authorised overdrafts. But before you approach your bank, you should first work out why you need the money and for how long. For long-term purchases – new machinery or premises, for example – then a loan or commercial mortgage may be best.

Leasing
Leasing or hire is another option if it’s equipment you need Short-term day-to-day running costs (such as buying stock, or tiding you over until cash comes in from a customer) are often best met by authorised overdrafts or short-term loans.

When looking at these options, obtain written quotations for each, so you can accurately compare total costs, including bank charges.

Loans
If you need the money for more than a year, for a specific purchase or planned expenditure, a loan is a good solution. You agree to pay back a set amount each month over a specified period.
For long-term borrowing they’re often cheaper than overdrafts – usually around 2.5 per cent over base rate (an overdraft can go as high as

What you should be aware of:

The bank can call in an overdraft at any time

You may still have to provide security

If borrowing to fund a long-term purchase, an overdraft will probably cost more than a loan

If you exceed your overdraft limit, you could pay high interest rates and penalty charges and your cheques could be bounced

Overdrafts have to be regularly reviewed


Costs involved
Whether you choose a loan or an overdraft the amount you pay back depends on the interest rate charged, the amount you have borrowed, any fees or repayments. The interest rate will be fixed or variable. With a fixed rate, the interest remains constant throughout your repayment period. With a variable rate of interest, the interest fluctuates with changes to the Bank of England base rate.

Repayment schedules
It may take from one to 15 years to repay your laon. The longer the payback period the more interest you’ll end up paying. When comparing different loans and overdrafts, look at the annual percentage rate (APR). This is the rate it will cost annually once all charges are accounted for. Check the small print for hidden costs. For example, if you want to pay the loan off early, are there penalty charges? Do you need payment protection insurance?

What the bank looks for
The banks we speak to say that banks look at three key areas when deciding to say yes or no to a loan or overdraft request.
Most commonly, they will look at the business and the business plan. In adition, the person asking for finance, the impression they make and their record as a business or personal customer. Then the proposition: will the investment generate sufficient cashflow to repay? This becomes more crucial the bigger the deal is in relation to the size of business and the amount of experience the prospective borrower has.

These are some of the issues you need to take into concidderation when approaching the bank for finance, most of which we cover at our business planning workshops, held regularly accross the country. Visit our website for details or fill one of our contact forms in and we will be in touch.