Dunamis Unlimited Enterprises

What can a SBA (Small Business & Administration) Loan do for me?

It's that time of year again - to review your...Credit Score.

The topics we will discuss as follows:
• Understand credit and why it is important.
• The purpose of a credit report.
• Protecting, correcting and maintaining your credit report.
• What is the FICO Score?
• What is the SBSS Score?

Understand Credit and Why it is Important
Credit is simply borrowing money, making a promise to pay it back with interest - payments.
Credit is important as follows:
• For large purchases (e.g., Cars, homes, tuition, businesses, equipment, etc.).
• Satisfying useful emergencies.
• To serve as credibility checks for prospective employers, landlords, insurance companies, vendors, and other purchase/financial needs.
The Purpose of a Credit Report
A credit report contains the history of one’s credit and financial behaviors, including:
• Inquiries from prospective lenders/creditor that have been authorized to view one’s report.
• Public records, collection accounts, bankruptcy filings, foreclosures, tax liens, court-ordered judgements, child support payments, and other public record information from courthouse records.
• A credit score, (e.g., FICO 300 to 850) that helps prospective lenders/creditors determine credit worthiness, or how much of a credit risk one would be.
• Scores are calculated on an algorithm using a combination of the following:
1) Payment histories detailing the occurrences of on-time and/or past due payments.
2) Outstanding debt balances.
3) How long one has had credit.
4) New applications
5) Types of credit.
• Federal law prohibits personal information (e.g., ethnicity, religion, gender, or marital status on one’s FICO score).
• Different scores from different credit reporting agencies (CRAs) can be a result of different information that the CRAs receive. Therefore, it is imperative that you should obtain a copy of your report from each respective CRA once a year.
• When it comes to getting a loan, obtaining a job, getting insurance, bank account, or other “credibility checks” commonly done in the business world today; the higher the score will result in a more favorable outcome.
Here are two locations where one can receive their Free “Annual” credit report.
• www.annualreditreport/ 1-877-322-8228
• www.ftc.gov/credit/

If you are not able to get a copy of your “free” credit report, the following three major CRAs are updated by most of the credit issuing companies
• Equifax www.equifax.com/ 1-800-685-1111
• Experian www.experian.com/ 1-888-397-3742
• TransUnion www.transunion.com/ 1-800-916-8800

Protecting, Correcting, and Maintaining Your Credit Report
• Protect your SSN, credit/debit card account numbers, PIN (Personal ID numbers), passwords and other personal information.
• Protect your incoming and outgoing mail.
• Use direct deposit.
• Keep your financial trash clean – Invest in a crosscut shredder. Thieves will pick through your garbage for pieces of paper containing SSN, bank account info, and other personal information.
• Keep a close watch on your bank and credit card statements for any unauthorized transactions.
Maintain your credit report on an ongoing basis by:
• Disputing any credit report errors. Familiarize yourself with each CRA’s dispute process for your required follow-up.

1) The FTC.GOV site has excellent guidance on correcting errors and maintaining credit reports. Put your hard-earned tax dollars to use by not reinventing the wheel? Go to - www.ftc.gov/credit/
2) Try this sample letter - www.consumer.ftc.gov/articles/0384-sample-letter-disputing-errors-your-credit-report/
• Pay bills on time.
• Contact creditors for “work-out” payment arrangements if you are in the arrears with them. Make a request to those lenders/creditors that your credit file be updated with notes detailing those arrangements that have been made.
• Shop for a reputable monitoring company that provides immediate updates and alerts regarding modifications to your credit profile.
• Be patient. It took some time for one to arrive in a credit challenge, allow some time to come out of it. Healing and restoration of anything usually is a process and not a quick fix.

What is a FICO Score?
The FICO (Fair Isaac Co) score is the primary method lenders use to assess how deserving you are of their credit. A FICO score is calculated using a computer model that compares the information in your credit report to what is on the credit reports of thousands of other customers. FICO scores range from about 300 - 850. The higher your score; the better your assessment.

What is a SBSS Score?
“In short, your FICO SBSS (Small Business Scoring Service) score is calculated by reviewing personal and business credit history. Other business financial information also comes into play like the age of your business, number of employees along with other financial data, like revenue and assets. The SBSS score ranges from 0 – 300 with the higher your score, the better. This score is one factor that helps lenders determine how likely your business is to make timely loan payments and ultimately pay back the loan in full.”

In summary, credit reporting and scoring are not only done for obtaining loans but may determine one’s “credibility” for basic consumer and business essentials (i.e., cell phone service, bank accounts, other utility services, promotions on the job, business opportunities, and the list continues to grow). You may not be denied, but you may have to pay a higher price for those essential services. Also, you may miss out on those new job, promotion, or business opportunities. Obtaining and maintaining a good credit profile should be a top priority. Lastly, “A good name is to be chosen rather than great riches...”
We believe that you should not have to pay for credit report enhancement services that you can do yourself. Improving, monitoring and maintaining your credit profile is simply;
• Reviewing your reports.
• Disputing any errors.
• Contacting any creditors for required settlement arrangements.
• Executing a corrective action plan (if required).
• Monitoring your credit profile. And;
• Being patient for your expected favorable outcome.
Consider NAV: https://creditera.7eer.net/6vYq as your personal and business credit monitoring service provider.
Need any further business consulting services? And are you considering any financing services to grow your business? Please visit us at www.jhk2.com/

Here to help your business prosper!
Joseph H. Kennedy II

Planning to grow your business in 2019, yet skeptical that some sites may overpromise and under-deliver in terms of a streamlined origination process, pricing and terms? Check-out www.jhk2.com/

Hello everyone! Check out the new face of my landing page and share your thoughts. www.jhk2.com/

Also, Merry Christmas and Have a Happy Holiday Season!😄

www.jhk2.com

Make a Good Impression for those Business Lender Appointments

November 8, 2018

We are all familiar with the term, “First impressions are lasting”.
Do you remember going on those first dates? Everything had to be perfect. Clothes, teeth, hair, makeup, nails, perfume/cologne, breath, and car all glistened, all passed the sniff test. Wonderful thoughts perused through your minds, “This is the one!”
Every day is a day of preparation.
The same is true for those initial business loan appointments. You must be prepared for a possible skeptical audience. Lender teams can be a very nervous bunch. You must do all you can to be prepared for them; just like you did for that significant other back in the day.
Here are 5 points you need to consider
1) Check your Character
2) Check your Numbers
3) Check your Industry and Marketplace
4) Check your Core Skills and Abilities
5) Check how much Available Cash is On-Hand to bring to the Table
We have a limited free offer for you, a Single Page Business Plan Microsoft® Word template w/ an imbedded Microsoft® Excel worksheet calculating your projections and/or a trend analysis. Here’s what you can do:

• Present to lenders and investors what they are really interested in knowing: Who are you (Principle and Company Name)? The Purpose of the Plan (I need financing for $$$). A brief description of your company (Company Background). What are you selling (Product and/or Service)? Where and who else is selling it (Marketplace & Competition)? Who are the key principles of your company and their position (Management & Organization)? A summarization of your company’s current financial status and most importantly; how will the lender (or Investor’s ROI) get their money back (Financial Summary)? The embedded worksheet is optional to further describe trends in historical and/or projected performances. From my prior experience as a banker, I would strongly suggest that this embedded worksheet be completed. You can print both in duplex mode – Sticking to your single page statement.
• You can provide the extended version of your plan later upon request. This tool would be an excellent for going to those Access-to-Capital meetings, Lender Fairs, and Angel Investor Roundtables. Also, you will minimize your printing expenses by emailing your expanded business plan later upon request. Lastly, what a great marketing tool to add with your business card!
• If you are interested, type “Plan” in the “My Interest” section within my landing page – www.jhk2.com/
• The following is just an example using sample information.
Continuing…
1) Check your Character
So, you are saying, “I know my character!” That’s great! Never let a lender advise you of any adverse information listed on your credit files as well as other public database information concerning you or your business. Or, websites that don’t work, emails that bounce back, businesses listed as “Inc.” or “LLC” but are not registered or updated within your respective operating State. What will your prospective lender/investor see on your social media pages? They won’t tell you this, but believe me, they do look. Make sure your voicemail boxes are not full for messages - A major turn-off, along with out-of-office greetings such as, “You have reached 123-456-7890…and that’s it”. Lastly, always return calls (especially your lender/investor) ASAP. Be a step ahead of these realities and be prepared for your responses and/or corrections as needed.
2) Check your Numbers
Nothing puts a chill up the spine of a business lender/investor than speaking with a business owner, asking questions concerning their financial statements or projections, and getting “the deer caught in your headlights” response. This is where your CPA or experienced Accountant comes in. Have them to give you feedback on what they’re seeing regarding your business. Rehearse back to them what you are seeing and settle on the right narrative to share with your lender/investor. A lender/investor is much more comfortable hearing from you regarding any challenges in terms of your financial performances rather than advising you of them.
3) Check your Industry and Marketplace
Are you selling ice igloos in South Florida? If so, you will need to provide an extensive explanation of how that marketplace would be successful to venture into, with industry trends and performance data supporting your next steps. Otherwise, you need a succinct convincing statement describing a more familiar marketplace, and that your product/service will satisfy a certain niche interest that you have discovered within it. That should be enough for your lender/investor to consider for that initial meeting. Further explanations would be available within your extended business plan sharing beautiful data charts supporting your next steps.

4) Check your Core Skills and Abilities
Most lenders/investors consider it a challenge to consider seriously key principles within your company that do not have the hands-on experience in moving your product and/or service within your marketplace. You should anticipate these concerns and be prepared to submit resumes certifications, and a skill set inventory list later.

5) Check how much Available Cash is On-Hand to bring to the Table
One hundred percent of term loan financing does not exist in the commercial lending world. If I’m incorrect, I ask for somebody to correct me. If you need either a facility (a building), equipment, or inventory, you need to know this term LTV (Loan-to-Value). For example, you are interested in a facility, its cost is $100,000. The valuation supports the asking price, and the average LTV for a commercial facility is 75%. Therefore, your financing will be $75,000, requiring you to bring $25,000 to the closing table. Your lender will be become very nervous if it is discovered that you do not have the additional $25,000 required to close your loan (if approved) within your first meeting with them. Always check your available Cash on-Hand before meeting with your lender to determine the required LTV coverage to close your loan.

Every day is a day of preparation. Understanding those 5 simple steps can make that first impression with your lender/investor a lasting and memorable experience.

Here to help your business prosper!

We have a fantastic offer for your continued success…

A Free Weekly-Flash-to-Budget Report – Dunamis Unlimited Enterprises, LLC has a nifty tool that will assist you in your cash management planning. We firmly believe that cash should be managed on a daily or minimally a week-over-week basis, especially if your business is planning to manage any anticipated cash flow challenges.
This report has been designed as a Microsoft ® Excel ® Spreadsheet and provides the following benefits:

• Serve as a perfect tool to work alongside your existing accounting system; you can focus on your week-over-week activities within a calendar month.
• List key cash flow line items; and monitor their Actual-to-Budget transaction activities week-over-week. This can be critically important to view any sales and expense categories whose activities continue to be contrary to your strategic plan.
• Utilize the spreadsheet features to assist budget-planning before inputting the results within your accounting system.
• Avoid costly overdraft fees by reconciling your bank accounts on a week-over-week basis, guaranteeing that your available balances are accurate for your “use of funds” expense management.
• Navigate other week-over-week analysis activities that are available at your discretion. For example, you can tailor the use of the spreadsheet to track specific variable line item costs to determine the minimum level of VC resources needed to sustain your level of operating activities. We look forward in providing further consultation services that would assist your specific business model - We are here to help your business prosper!

If interested in this limited time offer; type “Flash” within the “My interest” line on the sign-up form – http:www.jhk2.com/

Cash Is King and Queen!

Why Cash flow Planning needs to be a driving force within any business

Five Simple Steps in Understanding the Principles of Cash for your Business


Cash within an operating cycle of a business, simply means monies that are generated and/or injected into it to sustain its operating activities.
Cashflow principally means the measure of gross sales (specifically; the collected revenues generated from sales) in relation to the business’ total operating expenses. The goal for both is that gross sales and its available revenues exceeds (i.e., profit), or at minimum, meets (i.e., break-even) the total operating expenses required to keep your business on a sustained course. The only other outcome is a loss, but it should be realized and managed within your operating cycles.
Good cash flow management principles should always be done by every business owner. For example, the world’s royals past and present require attentive staffs, counselors, and advisors to ensure that they are presented to the world in the best light possible. Cashflow management should receive this same measure of attention - Treat cash as royalty, or as King Solomon says in his Book of Proverbs, it will take “wings as an eagle and fly away”. The Cash portion of your balance sheet details the level of position and attention you have royally provided for your business.
Before going any further, we have a fantastic offer for your continued success…
A Free Weekly-Flash-to-Budget Report – Dunamis Unlimited Enterprises, LLC has a nifty tool that will assist you in your cash management planning. We firmly believe that cash should be managed on a daily or minimally a week-over-week basis, especially if your business is planning to manage any anticipated cash flow challenges.
This report has been designed as a Microsoft ® Excel ® Spreadsheet and provides the following benefits:
• Serve as a perfect tool to work alongside your existing accounting system; you can focus on your week-over-week activities within a calendar month.
• List key cash flow line items; and monitor their Actual-to-Budget transaction activities week-over-week. This can be critically important to view any sales and expense categories whose activities continue to be contrary to your strategic plan.
• Utilize the spreadsheet features to assist budget-planning before inputting the results within your accounting system.
• Avoid costly overdraft fees by reconciling your bank accounts on a week-over-week basis, guaranteeing that your available balances are accurate for your “use of funds” expense management.
• Navigate other week-over-week analysis activities that are available at your discretion. For example, you can tailor the use of the spreadsheet to track specific variable line item costs to determine the minimum level of VC resources needed to sustain your level of operating activities. We look forward in providing further consultation services that would assist your specific business model - We are here to help your business prosper.
If interested in this limited time offer; type “Flash” within the “My interest” line on the sign-up form – http:www.jhk2.com/

Treat Cash as Royalty, or it will take wings as an eagle and fly away.
By providing close attention to your Cash coming-in and going-out of your business; you can avoid overdraft fees on bounced checks, make sure those tax payments are paid on time, avoid forced store closures for non-sales tax payments, make sure your employees are paid, prevent your suppliers from cutting you off key inventory purchases. And most importantly, making sure you pay yourself.
Did you know that the cost for an unplanned restart of your business can far exceed what your normal operating day’s expenses would be? This is just a small list of the possible outcomes; and represents a departure from making sure that your business is represented in the best light possible.
Here are five simple steps to ensure that the above would not be your experience(s) These steps should be reviewed every 90-days to sustain the financial stability of your business.
1. Tracking and Estimating Gross Sales levels.
2. Tracking and Estimating Variable Costs (VC)
3. Tracking and Estimating Fixed Costs (FC)
4. Understanding Sources of other Cash
5. How to utilize a Line of Credit

1. Tracking and Estimating Gross Sales – Are your revenues generated-sales from an established business documented as a Sole Prop, Partnership, or Corp./LLC? If not, you just have a hobby. However, if you are annually filing tax returns that represent the cash flow of your business, you should actively track and estimate revenues from sales, with the costs that are associated with its estimate. Most importantly, a review process should always be in place to analyze Actual to Plan scenarios over time for any projected adjustments that need to be made.

2. Tracking and Estimating Variable Costs (VC) – Variable Costs are expenses that varies in relation to changes in the volume of your sales activity. For example, you have a boutique, so you need a supply of clothing and other related units for sale to stock your shelves and racks. That supply is called inventory, and subsequently, you sell that item at your cash register at an amount that covers its costs (i.e., wholesale), plus an additional mark-up amount. Both cost components comprise your price that your customers are willing to pay. Replace “clothing”, with “food produce” for restaurants, “hair, face and body beauty items”, for beauty supply stores, “produce, convenience, and produce items” for your general community stores, etc. There are many other examples that covers the distribution and manufacturing industry sectors, with manufacturing having a more elaborate process in calculating the costs of a single widget’s direct labor, raw materials, and production overhead expenses required for its assembly – Hint, “unit costs”. Most service/professional businesses do not have VC, because “widgets” usually are not their product line item up for sale. One exception may be Construction companies that have VC and may list them as “job costing”, or “project start-up expenses”.
Profit and loss statements summarize and detail most VC as a “Cost of Goods Sold” or “Cost of Sales” line item. These costs are considered flexible (variable) because they are in relation to the volume of sales and should be monitored. Once Cost of Goods are determined; they are subtracted from Gross Sales, resulting in what is defined as “Net Sales” or “Gross Profit”.
3. Tracking and Estimating Fixed Costs (FC) - Fixed Costs are expenses that must be paid by a company, independent of any business sales activity. Historically, it has been known as, “Selling and General Administration Expenses” within your profit and loss statement. For example, rent, loan principle and interest payments, salaried employees, utilities, insurance, payroll taxes, etc. Generally, FC is subtracted from Net Sales or Gross Profit, giving you a picture of your potential profit or loss within your current operating cycle. FC is not limited to sales volumes and will put your company out of business quick, fast, and in a hurry if they are not managed.

4. Understanding Sources of other Cash - So you have $10,000 in sales, $5,000 in total costs, and yet cash available in the bank is minus $5,000? This is a cash flow problem. This is an extreme example though, but what if you saw this projected? Understanding Sources of other Cash (or Sources and Uses of Cash) is very important for a cash injection alternative and can include the following call-to-actions: you; speed-up collection on account receivables, draw on personal savings, sale other business assets, ask family/friends, draw on an available line of credit, or enquire on other forms of creative financing. Most importantly, you’ve planned for it and you are treating cash as royalty by being prepared to execute a cash flow management strategic plan.

5. How to utilize a Line of Credit – By understanding the four previous points; a Line-of-Credit is one source of Cash (as a Loan) that will sustain your business on a short-term basis until revenues are enough to satisfy the required minimum “uses of cash”. Our rule-of-thumb is that Lines of Credits should have available balances to maintain a minimum 90 days’ worth of total operating expenses; providing that the revenues from sales and available cash in the bank are not enough to cover them. In addition, your company should have the capacity to pay the entire Line-of-Credit balance off within a 12-month operating period – Hint, short-term. You need to be further prepared (capitalized) for your next cash crunch, and your Line-of-Credit is now available for you.
In summary, “Know the state of your flocks and herds…” (Prov 27:23, 24). That’s managing “Cash” folks, it may have been mooing and bleating back in those days, but it was valued as royalty, “for a crown is not secure for all generations” (vs. 24). Knowing the state of your business then ensured that you and your family were “warm and filled” during the winter. Today, cash speaks in two colors, black and red, with red screaming “I’m out of here!”. Understand these 5 simple steps, and you may be able clip the wings of cash, so that it continues to stay nestled in your bank account and grow.
One final thought, we have Virtual Assistant services at affordable rates if you prefer someone else to complete your spreadsheet(s), accounting, or other office administrative services. Just put, “Virtual Assistant” within the “My interest” line on the sign-up form and we will be in contact with you – http:www.jhk2.com
Thanks, and we are here to help your business prosper!
Joseph

due4you

What is a Virtual Bookkeeping Service?
Virtual Bookkeeping Services (VBS) provides you the convenience of maintaining the financial management of your company either by utilizing a cloud-based software accounting application, or a traditional bookkeeping online service provider. Both services are cloud-based, with files and software resident on the cloud (or optionally on your computer). Also, your management reports will be provided within your own secured portal for viewing and business decision-making.
While both services are excellent choices for maintaing the financial stability of your business, both options address the specific need of two type of business owners and/or managers. They are:
• A hands-on business owner/manager who is comfortable and familiar with both the accounting functions and proccesses along with navigating the accounting software that perform them.
• The business owner/manager who does not have the time nor inclination to learn both the accounting process; and the accounting software navigation that perform them.
• I will devote the remaining portion of this article to address this second need.
VBS for the Busy Business Owner/Manager
Try as they may, no software and/or service can make a bookkeeper/accountant out of a butcher, baker, and candlestick maker – if they do not want to be one. They are only interested in the bottom-line, and that is; Am I making any money? Are my bills being paid on time? Can I meet payroll? Therefore, they are only interested in the minimum amount of input required on their part to get the maximum amount of reporting benefit from their VBS software and/or service provider.
“No software and/or service can make a bookkeeper/accountant out of a butcher, baker, and candlestick maker – if, they do not want to be one.”
Most importantly, they want to know that their information is accurate, secured, protected and available wherever and whenever their mobile devices can reach out for it. Online dashboards are nice, but if the input required to keep them updated requires an inch-thick user manual, and several hundred dollars of additional hours of training - a simple current P&L (profit and loss statement) with a matching balance sheet, along with a cash flow statement are just fine (refer to the above illustration I have provided you).
VBS provides the technical tools for a company to thrive. This is especially true for those who are only interested in their current financial position. By only providing a bank statement with other minor source documents such as reciepts, invoices, and credit card statements, the business owner will scan that information and upload it within their own secured portal. There, a dedicated bookkeeper will download that information and input it within an accounting system. Finally, monthly, quarterly, or annual financial statements will be uploaded to the same secured portal for the business person’s viewing.
Here are the most important benefits and features of an effective VBS:
• The lack of planning and control of cash resources is one main reason for the failure of many small businesses. A VBS, or any bookkeeping system is critical in sustaining your business on a stable financial footing and to help relieve the business person from the anxiety of not knowing the unknown which may be; “Am I guiding my business in the right direction and taking control of my cash flow?”
• A VBS alternative frees-up hours of time required for the input and navigation of a software application that can now be devoted to key activities in managing your business such as;
1) Calculating the cost of goods (or services) and labor.
2) Gauging the interplay between supply and demand.
3) Establishing competitive pricing to get a return on investment (ROI). And;
4) Factoring in the costs of maintenance and equipment.
• The busy business owner is more inclined to enhance their understanding of these key activities as opposed to learning how to navigate an accounting system and/or learning the differences between a debit and a credit. A VBS alternative would be perfect for the business owner demanding; “Just give me the facts (current financial statements) please so I can make my business decisions!”
• Lastly, the savings in time and travel expenses in meeting w/ your bookkeeper can be minimized; and in many cases – eliminated.
Dunamis Unlimited Enterprises, LLC would like to offer our VBS services that provides the same; plus, additional features such as:
• If you are uncomfortable sharing your financial information on a cloud-based portal, we have a perfect solution for you. We have designed an Excel spreadsheet that you can master in 15 minutes for you to provide your own information within your portal. This spreadsheet should only take a minmum of 5 or 10 minutes per day to update.
• Also, this spreadsheet provides a dual service; while you are inputting your transaction data, weekly cash positions of your bank account(s) are made available as well for your business decision-making.
• We have an additional spreadsheet that provides your weekly “actual-to-budget” expense category comparatives. This is an optional service that we will update for your viewing.
• Lastly, we believe in speaking a Deuteronomy 28:8 “Blessing” over your business for its continued success!
Our limited offer - One month free and waiving all set-up costs (a savings of nearly $150). If interested; type “VBS” within the “My interest” line on the sign-up form –

www.jhk2.com