How to Open & Operate a Financially Successful Staffing Service Business by Kristie Lorette

Author:Kristie Lorette
Language: eng
Format: epub
Tags: staffing service business, staffing, business, starting a small business, costs, risk, temporary staffing service, long-term staffing service, planning, business owner, business plan, entrepreneur
Publisher: Atlantic Publishing Group
Published: 2012-06-03T00:00:00+00:00

Some ways you can give back to the community are to set up your business in an economically depressed area, to hire special needs or high-risk employees, volunteer in your community, or mentor others. The financial benefits for your company and your community can be substantial. In addition, being a good citizen never hurts your company’s brand and community image.

Credit card financing

When used carefully, credit cards can supply supplemental or emergency cash flow. The buy now, pay later philosophy can work well for businesses that might not have the capital needed to pay bills but expect to soon. Many businesses will try to finance their entire operation using personal and business credit cards. It is not recommended. The interest rates are high, and once you have reached your limit and you no longer have adequate cash flow, you could be out of business.

Using a personal credit card to help fund a business is a viable option that thousands of companies use. Instead of using a personal credit card, however, it is better to use a business credit card account. Once you have established your business, you will notice scores of credit card offers. Banks that would never give a small business a loan for $100,000 will extend a $100,000 credit line to the same small business. The interest rates, anywhere from 5 to 25 percent, are much higher. The rates are rarely fixed, and if you fall behind on payments, they rise immediately. Using a business credit card keeps your personal and business finances separate, which is easier for budgeting, expenses tracking, and filing tax.

Still, these interest costs are often lower than the bank’s loan fees, which drives many businesses to use credit cards in lieu of bank loans. This extends the time it takes to pay off the credit card and saves money by swapping for another card with a better interest rate. Credit cards should be used primarily for fast capital that will be repaid after a short amount of time. The longer it takes you to pay off the existing balance, the more the money you borrowed costs you.

Credit cards can be advantageous and disadvantageous for companies. When handled correctly, they can supply a great deal of emergency and short-term funding sometimes less expensively and more easily than other sources of capital. Using them incorrectly can cause the business to suffer and irreparably damage the founder’s personal credit history.

To sum up, the good points of credit cards include:

They are easy to obtain.

The lines of credit can be as high as $100,000.

They are accepted almost everywhere.

The money is immediately available for emergencies.

The incentive programs, such as frequent flyer miles, can save money on other expenses.

There is little paperwork and no extensive forms to complete.

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