Archive for the ‘Frequently Asked Questions’ Category

ASBTDC is a university-based economic development program that assists Arkansas entrepreneurs, both new and seasoned. We help with every aspect of business creation, management and operation. Through our seven offices around the state, ASBTDC works with all types of for-profit businesses, from home-based to high-tech. Our knowledgeable staff can provide guidance, recommendations, and resources that […]

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Does the ASBTDC give business loans or grants?

January 13th, 2014 by Gwen Green

No, Arkansas Small Business and Technology Development Center does not provide loans or grants for small businesses. See Small Business Grants.

What do I need to do to start my own business?

January 13th, 2014 by Gwen Green

One of the most important things to do before starting your own business is to determine whether or not your business idea is feasible. You must research your idea to ensure that your business has a favorable chance for success, will meet your expectations, and will provide an adequate reward for the risk involved. It […]

Typically, new businesses are based on the owner’s interest or passion, since business ownership requires a big investment of time and resources. Having previous skills or knowledge relevant to a particular trade or industry is also a plus when considering what kind of business to start. Regardless of the type of business, you must determine whether […]

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As with any other business, you should first determine whether or not the business idea is feasible. A special consideration for home-based business is proper zoning approval and a business license. Check with the city or county clerk to find out the zoning laws for your particular area and licensing requirements. In addition, since your […]

What do I need to do to obtain a business license?

January 13th, 2014 by Gwen Green

Most Arkansas businesses will be required to obtain a license. Review Business Startup – Licenses and Permits for a basic overview of requirements. For more information, contact your local city or county clerk’s office. Some occupations and industries in Arkansas further require specialized licenses and permits. For example, restaurants must seek approval from the Arkansas […]

A Doing Business As (DBA) Certificate is required for any sole proprietorship or general partnership operating under a fictitious name or business names other than the owner’s. Register in the county where the business is located. The DBA Certificate records the full name and address of the business owner, and the fictitious name and is […]

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I need a business plan. What do I do?

January 10th, 2014 by Gwen Green

If you need to write a business plan, you are in the right place. The ASBTDC has a wealth of information regarding business planning, and we are here to help you every step of the way. A great place to start would be to attend our business plan training seminars that we offer throughout the […]

The length of time needed to craft a business plan and get a loan varies from plan to plan and person to person. Several factors that affect how quickly your business plan can be completed include the scope of the research required for the plan and the length of time a bank will take reviewing […]

How do I estimate my startup costs and cash flow?

January 10th, 2014 by Gwen Green

Financial projections are estimates of the financial future of your business. Creating financial projections is an important step in determining the feasibility of your business. To ensure sufficient cash is available for operations, you must be aware of your business’s current and future financial position. Additionally, financial projections are a critical part of your business plan […]

How can I receive grant money for my small business?

January 10th, 2014 by Gwen Green

To our knowledge, there is no grant money available for starting a small business. In some cases, grant programs may be available to existing small businesses or entrepreneurs for a particular industry serving a specific purpose, such as a lunch program for a day care or research and development for technology businesses. However, these programs are […]

Obtaining a small business loan is not the same as getting a personal loan. It is much more challenging to obtain a loan for a small business than a loan to purchase a home or car. You should not assume that just because you easily obtained a personal loan that you’ll be able to obtain […]

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The ASBTDC can help you throughout the business loan process. We can assist you with preparing a loan proposal containing the information that lenders (and SBA) need as they consider your loan request. We can also provide information about what lenders consider when evaluating a potential small business loan and can guide you through the […]

What is a SBA loan and how do I get one?

January 10th, 2014 by Gwen Green

An SBA loan is a loan that has been guaranteed (backed) by the U.S. Small Business Administration. The guarantee assures the lender that it will be repaid a portion of the money it loans even if the borrower fails to repay the loan. As a business owner, you will make a request to a lender […]

How much you can borrow is a decision that rests with your lender. Some criteria your lender will consider are how much money your business plan says the project will require, how much collateral or personal investment you are willing to put into the business, and, to some extent, your personal credit history. As you develop […]

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When making a decision on a small business loan request, lenders consider a variety of factors, including cash (equity), amount of loan request, collateral, credit, business plan, repayment ability, and project feasibility. Each of these factors is important and can influence the loan decision.                       […]

When making a decision on a business loan, your lender will consider your personal credit history. Poor personal credit can be the basis for declining a business loan. Consider getting a copy of your personal credit report to gain a better understanding of your credit history. If you have credit problems, you may want to […]

Can I get financing for buying an existing business?

January 10th, 2014 by Gwen Green

Your ability to obtain financing, such as a bank loan, to purchase a business depends on a variety of factors. These include your personal financial situation, the cash flow of the business, available collateral, business history and expectations for the future, and business purchase price. The lender will analyze the business, the borrower, and the […]

While deciding whether to purchase an existing business, you must thoroughly investigate the business and obtain information from the seller. See ASBTDC’s Buying a Business Checklist as a starting point for the investigation process. You need accurate financial statements/tax returns on the business in order to make an informed decision about buying it. Should the seller tell […]

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You should obtain a copy of the franchise agreement and review it carefully. You should also determine if you’ll be required to pay the entire franchise fee, transfer fee, royalty fees, or advertising fees. In most cases, the franchise will have to approve the transfer or sale of the franchise. If you are seeking SBA […]

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What should I consider when hiring employees?

January 10th, 2014 by Gwen Green

Making the decision to hire employees is a big and often necessary step for any business. As an employer, you must consider many critical issues to ensure compliance with employment rules and regulations. Key issues to consider when hiring employees include obtaining an employer identification number (EIN), verifying employee eligibility, recognizing the difference between employees […]

The Arkansas Procurement Assistance Center (APAC) is an organization through which you can learn about and access the government marketplace. APAC offers consulting and information to help in becoming a successful government contractor. For more information, contact APAC at 501.671.2390.