Category: Growing a Business

What Is the Formula for Cost of Debt?

What Is the Formula for Cost of Debt?

When you take out a loan, your primary focus is probably on having working capital to grow your business or to steady your cash flow. But there’s something else to consider: your cost of debt. If you’re just focusing on your loan’s monthly payment and not diving in deeper to analyze the true cost you’re paying, you might be spending more than necessary on your debt. What Is Cost of Debt? In simplified terms, cost of debt (or debt cost)… Read More
A Simple Checklist for a Successful Small Businesses Budget

A Simple Checklist for a Successful Small Businesses Budget

John McCartney takes budgeting for this small business seriously. Every year he reviews previous year’s expenses for his business, Jmac PR, a tech PR agency that specializes in providing comprehensive PR services to companies in the technology industry, including digital agencies. He then uses that information as a benchmark to help him create a budget for the current year. “I pride myself on being data-driven and intentional about curbing expenses to maintain the financial health and stability of the business,”… Read More
Looking for a Business Loan? 3 Reasons a Business Plan Is a Good Idea

Looking for a Business Loan? 3 Reasons a Business Plan Is a Good Idea

Unless you’re looking for a loan at the bank or applying for an SBA loan you won’t need a formal business plan to get a small business loan. That being said, it can be a powerful tool to help you think about what your business does, what your business goals are, and how a small business loan can help you achieve them. Regardless of whether your lender will require it or not, creating a business plan is a good idea.… Read More
Should I Go To College? Considerations for a Small Business Owner

Should I Go To College? Considerations for a Small Business Owner

Elaine Rubin is the Senior Contributor and Communications Specialist at Edvisors. She has worked in higher education finance for more than 10 years, and provides information and advice from both personal and professional experiences. Elaine holds a degree in Political Science with a concentration in Public Policy and Administration from Northeastern University. There are no degree requirements to start a business. But you may wonder why you should consider college. Our current economy has forced a number of business owners… Read More
Pro Forma Financial Statements: What They Are and Why You Need Them

Pro Forma Financial Statements: What They Are and Why You Need Them

So your business is chugging right along, and you’ve had great financial results for years. You have no problem proving to a potential investor or lender that your company is doing well. But...you’ve got big things in the works. Maybe you’re selling off part of the company, or acquiring another. Now you need an accounting tool that will help you see how the numbers will change with this transition. But generally accepted accounting principles (known as GAAP) only look at… Read More
1099 vs. W-2: The Difference Between Employee and Contractor

1099 vs. W-2: The Difference Between Employee and Contractor

If you’re managing your small business’ HR and payroll, you might struggle from time to time, especially if you’re not a human resources professional (which you likely aren’t). From hiring new workers to filing taxes, there’s a lot that goes into the HR role, and you have other responsibilities pulling you in a million other directions. One question many entrepreneurs have as employers is whether to hire a full-time employee or a contractor. There are benefits (and drawbacks) to each… Read More