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| Top 5 Hiring Trends for Small Businesses Posted: 02 Oct 2019 10:21 AM PDT By Chad Warner In no time at all, a new year will be upon us. Many entrepreneurs view the start of a new year as an opportunity to reevaluate company goals and to hire new employees to help their businesses grow. Staying up-to-date on emerging workplace trends is crucial in order for a company to stay competitive. Here's what to expect hiring wise next year. Hiring trend #1: New workplace demographicsThe country's largest labor force is now comprised of millennials (individuals born between 1981-1996). This group of employees is well-known for its desire for annual raises and career advancement. Once reputed for their job-hopping tendencies, millennials are now projected to stay in their positions for at least six years. Although this group desires long-term stability, patience is not a key trait—so look out, employers. If millennials are not progressing at their current workplace as desired, they are not afraid to jump to a better career opportunity. But millennials are not the only generation of worker in 2020 workplaces. With the average employee now working for more years, there are now four generations of workers in the workforce. Each generation features its own diverse background, but individuals must work together in collaborative teams. Their conflicting views, expectations, and priorities can present challenges to employers. Increased globalization also brings in a new pool of talent and cultural diversity. As a result, internal interactions within companies will need to incorporate a broader set of values that includes cultural differences. Hiring trend #2: "Work-life balance" is replaced by "work-life integration"Recently sought-after "work-life balance" is being replaced by "work-life integration," a new term that recognizes that work and life coexist together. Millennials are seeking this integration which will require employers to get more flexible with work perk offerings and employee benefits. Gone are the days when an employer's wellness program could be simply an on-site gym. Now, workshops, yoga classes, gamification, and more are being provided in new holistic wellness initiatives. Employees want to be able to customize their benefits packages to their unique needs—and employers are listening. The creation of cafeteria benefit plans enables employers to allocate money to specifically requested benefits that better suit a particular employee. Other examples of requested work-life integration include unlimited paid time off, the ability to work remotely, non-scheduled work hours, ongoing performance assessments, and professional development opportunities. Hiring trend #3: Increased flexibility in work locations and work hoursGone are the days of traditional work hours involving sitting at a desk. Employers who recognize this shift are asking employees about workplace flexibility. Besides having more content employees, flexible work arrangements can provide cost savings, too. When employees are presented with the opportunity to work remotely, employers may no longer need the expense of large office space rentals. But just because employees may not be working in a traditional office setting, it doesn't mean they're not working. In fact, remote workers are known to be both happier and more productive when they get a say in where they spend the majority of their workday. Work hours are changing, too. Employees want the ability to incorporate their work into their day—around household and family responsibilities. And as long as the work gets done, many 2020 employers are open to this request. Integrating a learning management system (LMS) has become increasingly important to help employers coordinate their teams of freelance, full-time and remote workers. With the creation of a fair remote-working policy and the implementation of an LMS, increasing the flexibility of work locations and schedules can be a win-win for both employer and employee. Other Articles From AllBusiness.com:
Hiring trend #4: More incorporation of technologySimilar to recent years, technology will be well integrated into the 2020 workplace. Besides providing workers with the ability to check on work while they’re away from their desks, it will continue providing companies with the ability to offer remote work. Social media will also play a large role in our workplaces. With the majority of the workforce being comprised of digital-savvy millennials, it will be difficult for a company with a "No Social Media" policy to attract talent. Instead, social media will play a predominant role in the recruitment process itself. It will be widely used in recruitment methods, throughout workplace cultures, and during online training. More and more employees will start sharing relevant company content on social media networks including Facebook, Instagram, and Twitter. Traditional forms of employee newsletters will be replaced with news on a company's internal Facebook site or on Slack, an online, instant messaging system. With the increased integration of social media in the workplace, setting limits around social media usage has become necessary. With the creation of social media policies, employers can outline rules associated with an employee's online usage. Hiring trend #5: Popular recruitment methodsBesides affecting how we work and where we work, technology is also determining how we hire in 2020. Most interviews will be conducted one-on-one, with the second most popular interview method being over the phone. The increase in remote workers will mean that phone and video interviews will rise in popularity. Even though technology will play a huge role in the recruitment process in 2020, a human factor is still required to ensure a candidate is a good fit. Viewed as the most important candidate attribute, cultural fit will be determined through a combination of personality and cultural assessments. The bottom lineWith more work-life integration, an increased use of technology, and flexible work arrangements and schedules, 2020 hiring trends are predicted to be unlike any other. To be successful as an employer, having an openness to change and the ability to work collaboratively with diverse teams will be essential. RELATED: 13 Key Employment Issues for Startup and Emerging Companies The post Top 5 Hiring Trends for Small Businesses appeared first on AllBusiness.com The post Top 5 Hiring Trends for Small Businesses appeared first on AllBusiness.com. Click for more information about Guest Post.  |
| How Much Money Can I Get From a Business Loan? Posted: 02 Oct 2019 10:14 AM PDT At some point or another, you may want to obtain a business loan for your small business. Business loans are one of the more common methods for entrepreneurs to get financing, and typically give access to more money than you might get from asking friends or family members. But how much money can you get from a business loan? Can you just walk into a bank and ask for a million bucks? If that sounds crazy, does $500,000 sound more reasonable? If you're not familiar with the world of debt financing, it may not be clear what factors will dictate your business loan amount. As you might imagine, it depends on a number of things, including your needs, your financials, your industry, and more. Here's an overview of how much money your business can typically get from a business loan. What goes into determining loan amount?It's rare for two loan offers from two lenders to come out to exactly the same number. Different lenders (traditional banks, online lenders, alternative lenders) evaluate a variety of factors, have different algorithms, and may place more emphasis on different aspects of your business history. If you're interested in obtaining the best loan possible and at the best possible rate, then start working now on improving these factors:
In addition to that, when applying for a loan, you may be asked to present some or all of the following documentation and information:
Unsurprisingly, the stronger your business (and personal) financials are, the more likely lenders are to deem you eligible for large loan amounts. Just passing the minimum requirements for some of the factors (such as a 650 personal credit score for bank loans) won't get you as much money as elite scores. Other Articles From AllBusiness.com:
How much can you generally get from a business loan?The exact amount of money that a business lender will give you depends on your annual gross sales, as well as your creditworthiness and any existing debt you already have. A business that does $100,000 per year in annual sales won't have the same needs as one that does $10 million in the same time span, and lenders won't want to lend a large amount of money to someone with a poor credit history—they prefer responsible borrowers. Generally, however, the rule of thumb is lenders won't extend more than 10-30% of a business's annual revenue in a loan. If you want more money, you'll have to make more money first. How much can you get from each lending option?Not all lenders and loan products are the same. Long-term business loans and business lines of credit will typically net you more than short-term loans, equipment or invoice financing, or business credit cards. Here's a quick rundown of what each lending option can offer your business: Bank term loans or SBA loans: $5,000 to $5 millionBanks have the strictest minimum requirements for a small business loan and often won't want to go through the trouble of underwriting a loan for as little as a few thousand dollars. SBA loans, however, are bank loans partially guaranteed through the Small Business Administration—and these loans can range in size from $5,000 microloans to million-dollar, long-term real estate loans. Business line of credit: $10,000 to $1 millionBusiness LOCs are similar to credit cards, in that you can draw on your line and repay each draw separately, replenishing your total credit pool as you do. Some LOCs give you access to as much as $1 million. Short-term loans: $5,000 to $500,000If you have an immediate funding need or less-than-stellar business financials, you're probably looking at acquiring a loan from an online lender on a short-term basis. These loans often max out at $500,000. Business credit cards: Up to $100,000You can use a business credit card as you would any other financing option—taking out a certain amount to pay your expenses and repaying that debt on a schedule that works for you, provided you can afford the interest payments. Most business credit cards have a limit of $100,000. Equipment or invoice financing: Varies depending on amount neededIf you need a specific piece of equipment, or have been waiting on a customer to pay off an invoice, you can look into equipment or invoice financing, respectively. With these products, the lender gives you the exact amount you need (or close to it) to cover the cost of the equipment or recoup your owed profits. These financing options are self-secured—the equipment or invoice acts as the collateral. Typically, you'll see equipment financing limits of around $250,000 or so, but invoice financing/factoring limits can be for millions of dollars, provided your contract is with a major corporation or brand that is bound to pay off the debt. How much do you need?At the end of the day, you should never take out more money than you need with a business loan. Take the time to identify what your capital needs are and then see which option might help you acquire those funds at the most affordable rate. RELATED: 10 Key Steps to Getting a Small Business Loan The post How Much Money Can I Get From a Business Loan? appeared first on AllBusiness.com The post How Much Money Can I Get From a Business Loan? appeared first on AllBusiness.com. Click for more information about Meredith Wood.  |
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