Tag: start up

Tattoo Shop SWOT Analysis

Tattoos have received mainstream acceptance in most places in the world, and as such these businesses have sprung up in popularity especially over the past 20 years. One of the  strengths about owning and operating a tattoo shop or tattoo parlor is at the margins generated from services are very high. As this is a service based business, the real underlying cost for providing a tattoo is simply the cost of ink as well as any credit card charges that are rendered by third parties. In some cases, the other underlying cost associated with a tattoo is whether or not tattoo artists are considered to be independent contractors of the location. This is true for most tattoo parlors and tattoo shops allow third-party artists to render services at their facilities. The cost associated with starting a new tattoo shop are also very low. Typically, these businesses can be started for as little as $20,000 provided that the owner is going to be one of the initial tattoo artist rendering services to the general public. All that is really required is a retail location that is suitable for providing tattoo art for people.

One of the weaknesses faced by tattoo shops is that there is always a substantial amount of competition not only from other locations but also from independent artists that travel to their clients locations to do a tattoo. Additionally, there are certain liabilities associated with rendering tattoos to people given that age verification systems need to be put in place as well as sterilization procedures to make sure that these locations are operating within the letter of the law. One of the other issues that can be considered a weakness among tattoo shops is that during times of economic recession – these businesses may have a decline in the revenue given that tattoos are not considered a necessity. However, this risk is ameliorated by the fact that most tattoo do not cost very much money and people will continue to get them in any economic climate. This is especially true for among people I consider tattoos very much a part of their lifestyle.

Most tattoo shops can expand by simply establishing new locations. There are a substantial number of opportunities that are available for tattoo shops to increase the revenues. First, they can establish mobile locations where people can have a tattoo completed from the comfort of a truck or in a person’s home. Mobile services as it relates to tattoo artists have become popular in the past five years. Additionally, many tattoo shops will hire artists that are very well known that will render tattoos to their customer base. This substantially boost the billings of the business on a yearly basis. Usually, the tattoo artist receives a revenue share of 70% to 80% of the total fee for rendering service. Rendering services such as piercings is another way that tattoo shops expand their revenues.

As it relates the threats, there’s really nothing that is going to impact the way that tattoo shops operate. Tattoos have been done for millennia and they will continue to be in demand among people of all ages. Really the only threat that is faced by a tattoo shop is a substantial and ongoing recession that would impact the amount of money that a person can spend on getting a tattoo. Also, although it is a very limited risk – pieces of legislation could impact the way that tattoo shops operate especially from a sterilization and safety perspective. However, this risk is very limited and it would be expected that most tattoo shops could alter the way they do business if there was any additional regulations implemented in regards to providing tattoo artist services to the general public.

Drug Rehab Center SWOT Analysis

One of the unfortunate things that occurs in life is when an individual becomes addicted to drugs or alcohol and requires treatment for substance abuse. As such, one of the key strengths for a drug rehabilitation facility is that these services are in demand on an ongoing basis. Even during times of economic recession, drug rehab centers typically see a uptick in their revenues given that economic recessions do cause people to have substance abuse issues as shown by a number of different studies.

The startup costs for a new drug rehab center are considered to be moderate and typically range anywhere from $200,000 to about $1 million depending on whether or not the treatment facility is going to be an inpatient facility, outpatient facility, or mixture of both. One of the other strengths to a drug rehab center is that there is a very high educational requirement for the practitioners that will render services to people that are in need of help. Generally, a medical doctor needs to be on staff in order to assist people with a detoxification process as well as through appropriate counseling to help them with their substance abuse issues.

The barriers to entry are also very high given the substantial amount of licensure requirements by states that allow individuals to own and operate drug rehabilitation centers. The revenue centers generated from services come from patient payments, as well as through private insurance. Typical stay at an inpatient facility for someone has a substance abuse issue runs anywhere from $15,000-$50,000 depending on the type of care being offered.

As it relates to weaknesses, liabilities associated with treating people that have substance abuse issues is very high. Also, the operating expenses that are associated with these types of businesses are also very high given that the personnel on staff includes a medical doctor, psychologists, nurses, and other people that can properly care for those that have substance abuse issues. In any given market, there’s usually a moderate amount of competition among drug rehabilitation centers. As the number of people with substance abuse issues in the United States increasing – especially with the explosion of the opiate crisis – competition is expected to remain moderate to moderately high. However, at the time of this writing, there is currently much more demand than supply within the market.

As it relates to opportunities, many drug rehabilitation centers will seek to open additional locations outside of their current target market. This is really one of the key ways in which these businesses are able to expand the revenue streams. Additionally, mental health professionals and allied health professionals can be hired in order to boost the billings of the business on a month to month basis. Outside of these methodologies, there’s really no other way that a drug rehab center will increase the revenues outside of the establishment of new locations or hiring of additional medical personnel that have a specific training for dealing with people that have substance abuse issues.

As it relates to threats, the primary challenge faced by the drug rehabilitation centers is that changes in private insurance reimbursement can cause a shift in the profit and loss statement. However, with the continually increasing demand for quality substance abuse issues – this is considered to be a moderate threat. Any business that is involved with healthcare has to face this challenge on a yearly basis. Additionally, there is some issue with medical malpractice liability as a relates to rendering the services to the general public. However, these businesses are immune from negative changes in the economy given that drug use is prevalent within the United States. As such, there is expected to be very little change in the way that drug rehabilitation centers operate for at least 1 to 2 decades.

Private Equity Firm SWOT Analysis

Private equity firms are some of the most profitable types of businesses to operate given that they are able to produce revenues from a number of different investments among a number of different sectors. One of the key strengths of a private equity firm is that they are almost always able to remain profitable and cash flow positive given that they place their funds in a number of different diverse investments. This is especially true among companies that invest in economically immune industries such as healthcare, transportation, and certain types of technology.

The costs of starting a new private equity for private equity firm are considered to be moderate. Generally, the legal fees associated with having a private placement memorandum developed as well as all the necessary incorporation fees are usually the most difficult aspect to starting a new private equity firm. As a rule of thumb, a new private equity firm typically requires around $100,000 to $500,000 in order to be able to accept investments via subscription agreements. Of course, these costs can be substantially higher if the individual is seeking to immediately raise hundreds of millions if not billions of dollars for their private equity limited partnerships.

One of the key weaknesses to a private equity firm is the substantial amount of regulations that need to be adhered to at all times. Generally, most private equity firms offer their limited partnerships as private securities so that they are not subject to the same ongoing reporting requirements as if they were a publicly traded company. However, there are still substantial fees are associated with the quarter to quarter and year to year accounting that must be done for the private equity firms limited partners. Ongoing legal expenses are also very high for these types of businesses. Additionally, the biggest expense associated with these types of firms is typically the payroll. Private equity firms require highly skilled employees that have a substantial understanding of capital markets, private investments, the legal structures of investments, and marketing. These costs typically are the vast majority of the expenses incurred by a private equity firm. Additionally, new regulations frequently take hold and as such the ongoing legal expenses in order to remain in compliance with the law is one of the weaknesses of these types of businesses.

For opportunities, most private equity firms seek seek to establish multiple series of limited partnerships in order to expand the capital base which they used to make private investments. Additionally, some private equity firms will obtain large-scale credit facilities so that they can leverage their equity in order to increase their rates of return for their private investors. In some cases, private equity firms will acquire third-party firms that operate in a substantially identical capacity in order to expand or operating infrastructure. The acquisition of additional capital for private investment is typically the way that most private equity firms expand their operations.

For threats, during times of economic recession private equity firms may have issues obtaining new investment or they may have investments at decline in value. However, a very well diversified private equity firm will typically deal to balance the risks associated with an economic recession against capital appreciation and dividends. Of course, as any person who is in business understands an economic recession is a risk faced by all businesses. The other common threat faced by private equity firms is increasing or changing regulation which again can impact a profit and loss statement of the firm given the complexity or need to change their business model. However, private equity firms have remained very popular among wealthy investors given that they are able to have access to a number of specialty investments that are not normally offered to the general public. As such, while there are some legal threats and economic environmental threats that can occur – these firms are typically almost always able to remain profitable.

Trucking Company Business Loans

Trucking company business loans are moderately easy to obtain given that a substantial amount of the capital that is being sought is going to be specifically used for the acquisition of trucks and trailers. Given the ongoing demand for interstate and intrastate trucking services, most financial institutions are willing to extend substantial amounts of credit – either in the form of a business loan or a line of credit – in order to commence revenue-generating operations. One of the nice things about a trucking company is that they are usually able to generate revenues immediately given that these businesses can partner with freight brokerages that will provide them with the ongoing orders for merchandise transportation.

This is a very important thing to note within any documentation that is going to be presented to a financial institution given that they want to see that the business will be producing income very quickly from the onset of operations. One of the key things to also explain to a loan officer is that almost 90% or more of the capital needed will be used specifically for the acquisition of vehicles, trucks, trailers, and equipment that is normally used in conjunction with the rendering of trucking services. At the time of this writing, most trucking companies charge somewhere between $1.90 to two dollars per mile for long-haul merchandise transportation services. One of the things it also needs to be shown to a financial institution is the fact that a economic recession only has a modest impact on a short-haul or long-haul trucking companies ability to generate revenues. This is primarily due to the fact that many businesses are immune from negative changes in the economy, and they’re going to continue to need to have their goods and wares transported from one location to another regardless of whether or not there is economic prosperity or an economic recession.

A business plan specific for a trucking company is also going to need to be provided given that was all financial institutions require this type of documentation for any business loan that is over $10,000 to $50,000 – depending on the financial institution. This business plan needs to have an overview of the services that will be rendered to the general public and business public while concurrently showcasing the anticipated revenues, operating expenses, profits, cash flow, and balance sheet. For many entrepreneurs, the development of a trucking company business plan is typically the most difficult aspect of obtaining a business loan given that this is a very large-scale document that needs to be properly produced and shown to either an individual loan officer or a lending committee. For anyone is having trouble developing this type of documentation, many certified public accountants as well as qualified business plan writers are able to provide this service for a moderate fee. Generally, the fee for developing a business plan specific for trucking company ranges anywhere from $600 to $2000 depending on how in-depth the lending institution wants the document.

A modest amount of information regarding how the trucking company will market its services to the general public should be included as well. However, as discussed earlier – most trucking companies and related merchandise transportation firms typically are able to generate revenues by establishing ongoing relationships with freight brokerages as well as companies that have ongoing trucking needs. Given the complexity of merchandise transportation, many companies almost always outsource their needs to third parties given the complexity of hiring direct employees to render trucking company services.

In lieu of obtaining a business loan for the development of a new trucking company, many entrepreneurs will use specialty leasing programs instead of buying their trucks out right. In many cases, this can be beneficial given that there is no need to have a very large undertaking as a relates to the monthly pay down of a loan. However, leasing is very much akin to renting and very little equity in fact no equity is produced from the monthly payments that are made to a leasing company. When he be specific for a truck is undertaken, a interest rate is applied to the depreciation of the truck over a specific period of time. As such, it is wholly up to the entrepreneur to determine whether or not they want to build equity in a depreciable asset or if they want to simply maximize their profits and keep their balance sheets clean by leasing.

As time progresses, we are to continually add new information to this website as it relates specifically to financing for merchandise transportation and trucking businesses. As this is one of the largest industries in the United States, trucking companies generate in excess of $500 billion a year of revenue, this is one of the key topics that we’re going to discuss as many people have asked us for it.

Business Loans and Private Investors

Today, we’re going to discuss the difference between a business loan and an equity investment from a private investor. Many people make the mistake that private investors will generally provide a business loan for the development or expansion of a new business. However, most private investors are seeking to a choir a percentage of a business in order to receive dividends and capital appreciation from the stock as the business grows. The risks that are associated with the business loan as well as the moderate interest rates that are normally associated with this type of investment are geared far more towards financial institutions, lenders, and banks. Credit unions are also an excellent source of small business loans as it these groups are funded almost exclusively by their member base. A private investor is going to want at least 20% to 50% (sometimes more) in exchange for the capital needed in order to launch business operations. Many private investors could simply invest in quality blue chip stocks or ETF funds in lieu of putting their money in a high risk small business. As such, and with limited exceptions – most people that work the private investors can expect to sell a certain portion of their business in exchange for the money needed.

Conversely, a business loan is a specific term credit facility that is granted by a bank that requires monthly payments of principal and interest are made until the loan is completely repaid. Business loans, mortgages, car loans, and similar financial instruments all follow pretty much the same method of loan is granted and then monthly payments are paid back over a certain specific term and with a specific interest rate. If an entrepreneur does not want to give up a significant portion of their business than they can turn to using a business loan. Often, many entrepreneurs will stay away from using a business loan if they have had significant issues with their credit, or if they do not have collateral, or they are operating a business that is not to produce revenue for a significant period of time.

For instance, a technology business is not necessarily a very good candidate for a business loan given that it can take two years to five years before revenue generation occurs. Almost all financial institutions want to see that revenue generation will occur within six months and they will begin receiving repayment of the principle very quickly. As such, as it relates to specialized businesses – like technology companies – business loans are generally reserved specifically for companies that are already in operation, per our producing revenue, and can support a significant financial obligation.

One of the key things to know when working with a private investor is how much control it they want of the business. For much wealthier angel investors, these individuals typically are hands off of the most part. However some angel investors are tremendously more hands-on and want to have a say as it relates to the day-to-day operations of the business. This is something that we will continue to touch upon as it relates to business lending, investments for small business, and related information regarding business development and expansion.

On a final note, anyone that is working with a private investor should retain an attorney to make sure that a proper contract is written when working with these individuals or groups. This is primarily due to the fact that during a dispute – a properly written contract can assist the entrepreneur with ensuring that the terms were clearly spelled out at the time of the investor was made. There have been numerous instances, lawsuits, and settlements where the terms of an investment were made in a more offhand manner and have cause significant issues as it relates to the capital structure of the business. As always, having a properly qualified attorney as well as a certified public accountant working with your business can be an invaluable source of information and assistance as you progress through business operations.

Dental Practice Business Loans

While no one likes going to the dentist, these businesses are able to provide a very important service to the general public. Dental practice business loans are very easy to obtain given that the practitioner is a licensed medical professional who can receive their payments not only through patience but also from publicly funded health systems and private insurance.

Unlike most other types of business loans, can carry a much higher loan to value percentage given the extensive economic stability of the revenues produced by a dentist. In fact, there are some specialty lenders out there that will provide nearly 100% of the financing necessary in order to establish a new dental practice or acquire an existing one from a practitioner. Within any documentation that is going to be provided to a financial institution, a full list of the equipment that is going to purchase with the funding should be provided. This includes an overview of dental equipment, chairs, surgical tools, x-ray machines, computers, dental practice software, and other assets that are normally purchased in conjunction with the development of a dental practice. Also, a financial institution, bank, or lender is going to want to see the resume of the dentist in order to ensure they have graduated from an accredited dental school and are properly licensed in the state in which the practice is going to be located. These are all pretty straightforward pieces of documentation to provide to a financial institution. Generally, the prior two years of tax returns from the dentist is also going to be required as part of the overall loan package.

A business plan specific for a dental practice may also need to be included especially if the dentist is seeking a small business administration loan or conventional business loan. This business plan should feature a five-year financial statement that includes a profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. A substantial portion of this business plan should have information regarding the demographics of the target market.

This generally includes taking a look at household income, population density, percentage of people are covered through dental insurance, and the growth of the population over a tenure.. This is going to be one of the common things that a dentist needs to be aware of as they expand their practice within any specific market. One of the other components that is going to be needed within the business plan is a pretty large scale marketing plan that showcases how the dentist will specifically differentiate themselves from other practitioners in the market. Given that in any market there are usually a number of dentist in practice – both as solo practitioners as well as group practices – it is important to have a high-impact marketing campaign that will ensure that people are going to come to the dentist on a yearly basis for their tooth care needs.

One of the key things to discuss with any financial institution or loan officer when seeking a dental practice business loan is to make sure that an overview of the cash flow is provided as well. As with most healthcare related businesses, there is usually a 60 to 120 day timebframe from which services are rendered to which the dental practitioner receives their payment. This is due to the fact that there is a  complicated bureaucracy as it relates to processing medical claims. As such, keeping a close eye on cash flow is one of the be aware of when they launch business operations. In some cases, much like medical practices, a dentist will also take out a working capital line of credit that is secured by their accounts receivables. There are a number of companies out there that will factor these invoices, but this is a very expensive form of financing especially for a medically focused business that is almost guaranteed to receive these payments. A medical billing company can be hired to assist a dentist with managing the complicated cash flow issues that occur on a monthly basis.

As with any type of financial undertaking, a certified public accountant should be retained in order to make sure that the dentist isn’t getting over their head when taking out a large loan in order to develop or expand a new practice. This CPA can also be instrumental as it relates to ensuring that the documentation that needs to be seen by the financial institution is properly prepared. This is especially important as a relates to any prior your tax returns that the bank is going to request as part of the overall lending package.

Overall, obtaining a dental practice business loan is very straightforward and can be obtained very easily and in any economic climate. The ongoing demand for these services ensures that dental practices can continue to satisfy debt obligations even during times of economic recession. Additionally, if the dental practice does not work out then the dentist can find a job at a hospital or group dental practice that will allow them to continue to repay their debt obligation even if the business does not go as planned.

Barber Shop Business Loans

In any economic climate, someone is going to need a haircut. As such, barbershops are almost always able to remain profitable and cash flow positive in any economic climate. Obtaining a business loan for a barber shop is a pretty straightforward process given that not too much equipment or capital is needed in order to launch this type of business. Of course, unless the individual entrepreneur is looking to establish a very large scale barber shop from the onset of operations – most barbershops are able to launch their revenue-generating operations with about $25,000 to $100,000 of capital. For an entrepreneur that is seeking a business loan for a barbershop the recommended down payment is going to be about 20% of the total capital required in order to commence revenue-generating operations. One of the nice things about these businesses is that they generate high gross margins  from their services, they are nearly immune from negative changes in the economy, and they can produce income that can easily satisfy any underlying debt obligation.

When developing a business plan that is appropriate for a barber shop, especially one that is geared for a business loan – a full list of the furniture, fixtures, equipment, inventory for almost all business loans exceed $10,000, a business loan is going to be required. This business plan should have a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and other financial metrics are common to a business plan specific for a debt facility.

If an individual who is seeking a barber shop business loan does not know how to develop a business plan then we recommend that you speak with a certified public accountant or properly qualified business plan writer to assist in this process. This can be somewhat of a difficult undertaking given that these documents typically range anywhere from 25 pages to 40 pages depending on the requirements of the lender.

One of the key things the lender is going to want to see when applying for a barber shop business loan is that they want to make sure that a substantial portion of the capital they are lending is collateralized. Again, it is very important that the documentation provided to a lender clearly showcases what equipment is going to be purchased with the financing. The financial institution may also request the specific vendors from which the equipment is going be purchased in order to make sure that the money is going where the entrepreneur says it’s going.

In some cases, a barbershop business loan may actually take the form of a working capital line of credit. This is primarily due to the fact that barbershops have moderate to moderately low operating expenses, and they typically do not need all the money that they need upfront in order to commence revenue-generating operations. As such, some entrepreneurs will take to using a line of credit to the other not paying a substantial amount of interest on a large capital commitment and only paying interest on the funds that are drawn down as needed. Of course, this is only a determination that can be appropriately made by the individual entrepreneur, their business advisors, as well as their certified public accountant. In some of the new articles that we will be providing over the next few months, we’re going to touch on what types of businesses typically fare better when using a business loan rather than a working capital line of credit.

When applying for a barber shop business loan, the entrepreneur should have their tax returns for the last three years ready to be shown to the bank as well. These days, most financial situations, banks, and related lenders want to see substantial amount of documentation before the issue a business loan. This is primarily due to the fact that the housing and credit crisis that started in 2008 and ended in 2011 has caused these businesses to want significant documentation in order to keep their loan losses to a minimum.

Barber shops also make very good candidates for small business administration loans. The SBA is very keen to provide guarantees for this type of financing given that barbershops are always in demand, providing number of jobs to the community, and can be readily expanded any time. The high gross margin generated from haircuts, hairbstyling, and related services is almost always enough to cover a monthly debt obligation to a financial institution.

Overall, obtaining a business loan specific for a barbershop is a pretty easy process. This is something that only a qualified barber can do, and the moderately high barriers to entry – primarily due to the license and educational requirements of the barber – ensure the competition is kept moderate in any given market.