Q&A: Georgia expert talks smart ways for small businesses to get funded

Gwinnett County, Georgia, is part of the metropolitan Atlanta area and home to nearly 880,000 residents, many of whom own local small businesses.  NerdWallet recently spoke with Nick Masino of the Gwinnett Chamber of Commerce in Duluth, Georgia, about the outlook for small businesses in the county.

As the chamber’s senior vice president of economic development, Masino has helped build and lead a community-focused initiative called Partnership Gwinnett, which has brought thousands of jobs and nearly a million dollars in investment to the county, according to the chamber. Here’s what he had to say:

NerdWallet: How common are small businesses in the county?

They make up about 85% of the companies in Gwinnett County. Small businesses are the lifeblood of our community and integral to our economy.  If each small business in our community hired just one person, it would top the recruiting efforts of a Fortune 500 company.

How do local chambers help small businesses?

Many chambers have workshops on how to get funding, host opportunities to connect with customers and have awards programs that provide publicity for businesses.  Chambers can also put you in touch with professionals who’ll help you evaluate your startup idea to see if there’s a market for it.  They usually have resources to help you learn what you need to do to establish a business in your community, and they can help you network with other entrepreneurs.

If you don’t have experience pitching your company to an investor, or explaining why your business should receive a bank loan, you could find help at your local chamber.  Some have programs where entrepreneurs can practice presenting their ideas to a group of executives, who then provide feedback.

What specifically does the Gwinnett Chamber offer?

Gwinnett County actually has a director of entrepreneurship who helps promote small business in the county.  Through this office, the chamber publishes an entrepreneur resource guide, which describes the steps an entrepreneur in Gwinnett can take to go from having a great idea to creating a business.

We also have an annual Amazing Entrepreneur Contest, which awards a $10,000 cash prize for the best startup idea.  (Existing businesses started no earlier than three years ago can enter a separate established-business category.)  In addition, the Gwinnett Chamber has a roadshow that travels to every corner of the county to celebrate small businesses and let owners know about the resources and programs we have available.

Probably most important of all, we offer several opportunities for small-business owners to network and meet with people from organizations that can help them get funding, including banks, angel investors and loan organizations.  I’ve been seeing more lending activity recently, from SBA loans to traditional non-SBA loans. We’re even seeing more mezzanine funders, which are helping to close real estate deals.  In addition, we have a lot of angel investors.  I think things are as good as they’ve ever been in Gwinnett County to get funding.

How do small businesses get approved for funding?

The building blocks of any successful small business involve having a business plan that clearly shows a return on investment. For a bank loan, you should show a budget that forecasts revenue, expenses and profit for at least three, four or five years down the road.  Show that you’ve done your research and have a pretty good idea of what the next five years will look like for your company.

You also have to able to describe what your company will do.  Few people are willing to lend or invest money in a business idea unless they can understand the company concept.  You may not be able to explain every little detail about your business, but a loan officer or investor should be confident that they generally understand the purpose of your startup and how it meets its customers’ needs.  You have to be able to say, “This is what I want to accomplish, and this is what I know to be true in this market.”

Sometimes, I see people focus way too much on the company concepts, but not their ROI [return on investment]. Or they do the opposite, focusing way too much on the ROI, but they can’t explain what their business does.  A company that gets funding can do both successfully.

You also have to be concise.  Be able to clearly explain what your company does and how it will make a profit, preferably within five minutes.  That may be all the time you have to present a PowerPoint deck or give a speech to lenders.  If you can’t quickly tell someone what your company does and how it will make money, then you’re at a disadvantage.

Presentations? Speeches? This seems intense.

It’s not like the shows you see on TV where there’s pressure to make an immediate decision. In real life, it’s much more professional.  You can follow a process.  You’ll have time to describe your company, hear from the lender or investor and eventually agree on terms.  It may even be easier than in the past, because business plans don’t need to be as detailed as they used to be.

I’d say that five to 10 years ago, more research was expected in your business plan.  But today, people understand that the business environment can change quickly, especially with influences from social media and the Internet.  In most cases, you’re OK with a solid outline, ROI and budget that matches.  But you do have to make sure your business idea is a good one. You have to ask yourself if there are customers for your business.

What other advice do you have for entrepreneurs?

Use your network, and use your resources like the Chamber of Commerce.  We can help you reach out to people and find clients.  Also, get in touch with potential customers.  We see many entrepreneurs who are passionate about their product or service, but they haven’t taken the time to see if there is a market for it.  You need to be in touch with your customers and make sure you are focusing on their needs.

Finally, don’t open a small business because you only want to work 40 hours a week. When you open a company, you become the CEO, CFO and administrative assistant.  It should be something you enjoy doing, because with a new business, you work 70 hours a week, not 40.

For more information about how to start and run a business, visit NerdWallet’s Small Business Guide. For free, personalized answers to questions about starting and financing your business, visit the Small Business section of NerdWallet’s Ask an Advisor page. 

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How to Do Weekend Spending Right in San Francisco

When you’re young and living in San Francisco, you might be broke or you might be flush, but you’ll always seek weekend adventures. No matter the size of your wallet, there’s plenty to explore in the foggy city.

Whether you’re looking for rugged outdoors experiences, urban exploration or just love the nightlife, here are some weekend activities for every budget that won’t break the bank.

For the nature lover

The Bay Area is a gold mine for nature lovers. You can find wooded excursions, ocean views and countless opportunities for walking, hiking, biking and exploring right in San Francisco’s backyard.

Things to do for free:  $0

• Land’s End Trail for great views of the Golden Gate Bridge. While you’re there, check out the Camera Obscura and the old Sutro Baths.
• Fort Funston is a favorite hiking trail for local dog owners. It’s also one of the best places in the country for hang-gliding.
• Twin Peaks offers picture perfect 180-degree views of the Bay Area.
• Watch the surfers and have a legal bonfire at Ocean Beach.
• Explore tide pools and hike at Fitzgerald Marine Reserve.
• Picnic and enjoy the day in Dolores Park.
• See the buffalo roam at Golden Gate Park.
• Catch views of the Golden Gate Bridge — along with biking, walking, running and more — at Crissy Field, the opening to the Presidio.
• Watch the sea lions sunbathe at Pier 39.
• See the Mount Davidson Cross at the highest point in the city.

If you’re on a moderate budget: $10 to $30

• Walk the trails at the San Francisco Botanical Garden.
• Get a ticket for the ferry to Angel Island for a picnic and hiking.
• Shell out a few bucks for tolls and drive to nearby Rodeo Beach in the Marin Headlands and look for semi-precious stones. Or, go to Stinson Beach and search for sand dollars.
• Hit the trails at Muir Woods, just 20 minutes from the city, and feast your eyes upon ancient redwood trees.
• Sail San Francisco Bay.

When you can splurge: $50 or more

• Take a tour of wine country just north of San Francisco.
• See the city by helicopter.
• Charter a boat to sail around the bay.
• Kite the bay.

For the urban explorer

If you find yourself touring your own city on the weekends, you’re probably an urban explorer. From popular attractions to hidden gems, there’s plenty to experience in San Francisco if you know what you’re looking for.

Things to do for free: $0

• Go to the California Academy of Sciences on the free neighborhood weekends.
• Bike ride on Sundays in Golden Gate Park when the streets are closed to auto traffic.
• Get to the Mission and browse Clarion Alley between 17th and 18th streets off Valencia for its rotating street art.
• Walk across the Golden Gate Bridge.

If you’re on a moderate budget: $10 to $30

• Climb to Coit Tower, check out the views then go down to Telegraph Hill and see the wild parrots.
• Visit Musee Mecanique at Fisherman’s Wharf for the free museum and old arcade games, which range from 1 cent to at $1 a pop.
• Wander around North Beach and check out the famed beat-generation hangout: City Lights Bookstore.
• Visit art museums throughout the city for less than $20 including the Legion of Honor Museum; De Young Museum; The Cartoon Art Museum; and Asian Art Museum.
• Thrift for treasure at flea markets around the Bay Area, but especially the Alemany Flea Market in Bernal Heights, open every Sunday from 7 a.m. to 3 p.m.
• Wander the streets of Chinatown and grab some authentic dim sum.
• Shop at the farmers market at the Ferry Building.
• Sample food truck fare throughout the city.

When you can splurge: $50 or more

• Tour Alcatraz.
• Go to a Giants game.
• Catch jazz performances at the San Francisco Jazz Center.
• Get a yearly membership to museums or music centers throughout the city for insider events and free admission.
• Take a Segway tour through the city.

For the night owl

Night owls enjoy making the most of their nights then sleeping in until brunch. Luckily the city has a variety of clubs, bars, restaurants and evening events to fuel your nights on the weekends.

Things to do for free: $0

Look for cover-free nights:

• Blues music lovers should definitely check out The Saloon in North Beach: live music most nights and no cover charge; drinks are inexpensive, too.
• The Mint Karaoke Lounge has pretty much the biggest most awesome library of songs you could ever hope for. No cover, just a two-drink minimum on busy nights.

If you’re on a moderate budget: $10 to $30

• Hit up the all-ages DNA Lounge for the weekly Saturday late-night dance event, Bootie.
• Start your weekend early at the Academy of Sciences on Thursday evenings for its Nightlife event, or go to After Dark at the Exploratorium.
• Bar hop in the Mission. Check out El Rio, Elbow Room, Knockout Room, Make Out Room and more for small covers.
• Grab a seat at The Castro Theatre for movies, festivals and special events.

When you can splurge: $50 or more

• Go to Foreign Cinema to eat outside in the courtyard and watch old French films.
• Catch touring Broadway musicals, comedy, plays and concerts at the Curran, Golden Gate, Orpheum or Palace of Fine Arts theaters.
• Visit the San Francisco Opera.
• Hear the San Francisco Symphony at Davies Hall.

Anna Helhoski is a staff writer covering personal finance for NerdWallet. Follow her on Twitter @AnnaHelhoski and on Google+.

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Blue Bell Creameries Recalls All Products Due to Listeria Scare

Ice-cream maker Blue Bell Creameries has issued a recall of all of its products, citing possible listeria contamination.

The voluntary recall goes for all Blue Bell ice cream, frozen yogurt, sherbet and other frozen snacks.

“We’re committed to doing the 100 percent right thing, and the best way to do that is to take all of our products off the market until we can be confident that they are all safe,” said Paul Kruse, Blue Bell CEO and president, in a written statement. “We are heartbroken about this situation and apologize to all of our loyal Blue Bell fans and customers.

“Our entire history has been about making the very best and highest quality ice cream and we intend to fix this problem,” Kruse continued. “We want enjoying our ice cream to be a source of joy and pleasure, never a cause for concern, so we are committed to getting this right.”

The company, based in Brenham, Texas, said the problem was caught by its own sampling program. Chocolate Chip Cookie Dough half-gallon containers produced on March 17 and March 27 were found to contain the bacteria. That was on top of previous findings on several dates at several different Blue Bell locations that had lead to partial recalls.

Five people in Kansas and three in Texas have been treated for listeria possibly related to eating Blue Bell products, the company said.

Listeria monocytogenes is an organism that can cause serious and sometimes fatal infections in children, frail or elderly people, and others with weakened immune systems. Healthy people may suffer short-term symptoms such as high fever, severe headaches, stiffness, nausea, abdominal pain and diarrhea.

Listeria infection can cause miscarriages and stillbirths among pregnant women.

Blue Bell says it is implementing a strategy called “test and hold.” All new batches of ice cream and other products will be tested after they are made and only released after tests show they are clear of listeria.

“At every step, we have made decisions in the best interest of our customers based on the evidence we had available at the time,” Kruse said. “At this point, we cannot say with certainty how Listeria was introduced to our facilities and so we have taken this unprecedented step. We continue to work with our team of experts to eliminate this problem.”

Anyone who has bought Blue Bell products my return them to the place of purchase for a refund. For more information, consumers may call 1-866-608-3940 or go to bluebell.com.

Doug Gross is a staff writer covering personal finance for NerdWallet. Follow him on Twitter @doug_gross and on Google+.

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Start-Ups Lenda, SoFi Reconfigure Mortgage Refinancing

Few money moves are as complicated as a mortgage refinancing. And even fewer are as important.

That’s why companies like Lenda and SoFi have come up with faster and cheaper ways for consumers to refinance their homes.

While a $300,000 refi using a traditional lender can drag on for months and typically cost 3% to 6% of the loan value, the average spent on a Lenda refi is about $800, according to the online-only operation’s website. Completing a refinancing can take just two to three weeks.

For borrowers like Kevin Wofsy, a San Francisco homeowner who turned to Lenda for his fifth refi in 13 years, the result was a more streamlined, enjoyable experience.

“It feels weird to say, but it was actually a pleasure to go through the process,” Wofsy says.

Accelerating the process

Over dinner with a friend who planned on refinancing a home loan later that week, Dan Macklin, a SoFi co-founder and its vice president of business development, suggested his pal needn’t wait. He urged him to try the SoFi site and apply on the spot.

“So he took out his phone, and literally within 60 seconds, received a rate,” Macklin says. He says his friend was amazed that SoFi had a loan at a rate that was 0.5 percentage point lower than what he was paying at the time.

Like Macklin’s friend, SoFi users can apply for loans using a desktop or mobile device to enter personal information and submit an application in as little as a minute. They are then presented with instant, individualized rate quotes.

The company uses a unique evaluation process that takes into consideration borrowers’ credit history, income, educational background and employment status. Highly qualified customers can borrow as much as 90% of a property’s value up to $5 million using SoFi.

SoFi is a marketplace lender, meaning it’s open to accredited investors, both on the individual and institutional level. However, SoFi self-funds the majority of its products, including student loan refinancing, personal loans and more. It’s the country’s largest provider of refinancing for education debt and has issued over $2 billion in all types of loans.

All-digital process lowers fees

Lenda, meanwhile, has digitized the entire refi process, enabling borrowers to compare loan options, apply and upload documents on its website. By bringing the entire experience online, the platform has sharply reduced its overhead. It doesn’t have to pay for physical branches or hire loan officers. These factors all contribute to lower fees for borrowers.

Lenda also provides the kind of around-the-clock access to its products that bricks-and-mortar lenders simply can’t offer, a huge plus for busy consumers.

“Imagine if you were a person who works the night shift, and you’re just on a different schedule,” says Jason van den Brand, Lenda’s co-founder and CEO. Most of these workers can’t exactly take a day off to apply for a loan.

What’s more, as complex as these platforms’ underlying technology may be, SoFi and Lenda both pride themselves on being easy to use.

“I’ll say it this way: If you’ve bought an airline ticket online, you can use Lenda to get a home loan,” van den Brand says.

For Wofsy, the San Francisco homeowner, using Lenda was a breeze compared with his earlier lenders.

“My previous experiences had made it seem like banks saw it as their job to find any reason to deny your application,” Wofsy says, adding that Lenda clearly laid out everything that was needed from him, leading to what he says was an “unbelievably smooth” refi.

Creating better alternatives

“Like finance in general, the mortgage space is a highly regulated industry and it’s hard for a newcomer to do things differently,” Macklin says.

But that hasn’t deterred him or van den Brand. And it hasn’t stopped a handful of other start-ups from tackling a mortgage industry that both entrepreneurs say is in desperate need of a tune-up.

A staunch supporter of other mortgage start-ups like SoFi, Expedite, and OnDeck, van den Brand says that he’s a “big fan of anyone who’s pushing the envelope for consumer behavior and who’s letting them know that there’s a better and faster way of doing tasks like loans.

“All these different models are better than what exists today,” van den Brand says. And what traditional lenders offer now may not be the status quo for much longer, he says.

“We can’t for one second think that in 20 years from now we’re going to be lugging paperwork down to the corner bank to get a home loan,” he says. “That’s just not going to happen. And that’s actually not going to happen in the next three years.”

Tony Armstrong is a staff writer covering personal finance for NerdWallet. Follow him on Twitter @tonystrongarm and on Google+.

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Roommates in San Francisco Can Boost Your Budget, Social Life

If you’ve just spent your college years shacked up with a bunch of roommates, it can be tempting to want to strike out on your own. Living alone means no messy roommates to clean up after, or loud music playing in the next room. There are some circumstances, though, that make it a good idea to share your housing costs and social life with roommates, especially as a college grad new to San Francisco.

What’s your budget?

Before you start the long and arduous apartment hunt, pick a firm maximum amount you’re willing to spend on rent. Take this opportunity to create a monthly budget, useful for any recent grad. Dig up your recent pay stubs and calculate how much money you take home after taxes each month, a figure known as your net pay (gross pay is the amount you make before Uncle Sam gets to it).

The financial experts here at NerdWallet recommend spending no more than 30% of your after-tax income on rent. If you bring home $3,000 a month, your maximum rental budget should be $900. The median price of a one-bedroom apartment in San Francisco was $3,120 as of June 2014, according to Priceonomics. So if you can’t afford $3,120 for your own place, splitting rent with roommates is the right move for you.

How will you pay for other housing costs?

Don’t forget to include utilities like heat, electricity, cable TV and wi-fi in your rental budget. San Francisco consumers paid 60% more for electricity than the national average in February 2015, according to the Bureau of Labor Statistics, so it’s worth considering splitting those costs with roommates. You should spring for individual renters insurance to protect your valuables, which will run you an additional $185 a year on average.

Moving into a new place also means buying furniture, decorations, kitchen accessories and cleaning supplies. Depending on your budget and how many of these items you already own, an apartment shopping spree could run you a few hundred dollars. Roommates will split these costs with you or might have stuff of their own to contribute.

Do you have friends in the area?

Even if you can afford to live on your own, living with roommates you get along with is a solid way to have a built-in friend network in a new city. You’ll have friendly faces to come home to after a long day of work and a crew to go out with on the weekends. Living in a studio or a one-bedroom in San Francisco could feel isolating without a big community around you, especially if you’re a social butterfly.

Put a call out on Facebook, Twitter and Instagram to see if any friends or friends-of-friends are moving to San Francisco, too. San Francisco is a popular city for recent graduates to live and work in — it even made it high on NerdWallet’s list of best cities for college grads. So it’s likely some of your friends from college might end up there. If not, roommates can fill the void.

Will you feel safe in the neighborhood?

Sometimes working within a tight budget means sacrificing the chance to live in a chic neighborhood. If you’re looking at apartments in areas that might be less safe, living with roommates is smart so you have friends to walk around the neighborhood with at night. Trulia’s San Francisco crime map includes regularly updated information on thefts, assaults and other crimes by neighborhood. Consider living with roommates for safety reasons if areas with higher crime rates are on your shortlist.

Going the roommate route in San Francisco? These resources can get you started.

• Roomidex: This new service, available only in San Francisco and New York City, links with your Facebook profile and connects you with people in your social network who are also looking for a roommate.
• Flatmate Meetup SF: This Meetup group plans events, usually at a local bar, for people in San Francisco to meet others looking for roommates. It’s a great way for you to scope out potential roommates in real life, rather than through online services. Check the website regularly for updates on upcoming events.
• Alumni networks: Get in touch with your college’s alumni coordinator and see if there are any listservs or housing boards you can post on. Chances are there’s someone from your alma mater who has an open room or who also needs a roommate in San Francisco.

Brianna McGurran is a staff writer covering education and life after college for NerdWallet. Follow her on Twitter.

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Short-Term Saving Tips for Summer Vacation

With summer drawing closer, your vacation may arrive before you’ve got the money to pay for it. But there are some quick changes you can make now to save or raise money for your trip. Consider these tips:

Open a designated savings account

After estimating the overall cost of your vacation, set up a savings account just for the trip. This will help separate that money from your regular savings and make it easier to track progress toward your goal.

Contribute weekly

Look at last month’s account statements from your financial institution to see what you spend in a given week. Then determine how much you can contribute to your vacation fund each week. Making it weekly instead of monthly will make this more of a priority in your life.

Track spending with a budgeting app

To pinpoint what’s going out of your account, let a budgeting app be your guide. Many popular apps let you categorize transactions and see overviews of your daily spending in a few taps or clicks.

Create an automatic savings plan

If you still find it difficult to save regularly, set up an automatic transfer from your checking balance to a savings account. This way you can allocate a percentage of your income and remove the temptation to spend money that should be going into vacation savings.

Reduce leisure spending

If vacation is the time to splurge, make the weeks before you go more restrained in your lifestyle. Minimize your trips to coffee shops, restaurants and movie theaters. Instead, brew your own coffee, cook more meals and watch films in your living room.

Get a side job

If you find yourself with extra time in your week, consider taking on a part-time job. See if you can watch any neighbors’ pets or homes while they’re away, or baby-sit. If you’re an avid writer or an academic, look into freelance writing or tutoring. Even a few hours of paid work a week can add up.

Sell unwanted belongings

To raise money more quickly than through a job, go through your home and collect anything you don’t need, from old books to furniture. Then sell your stuff online or in a yard sale.

Preparing for your summer vacation with these seven tactics can help ease the stress of funding all your travel expenses. This way you can stay in control of your finances and have no financial baggage when you return.

 

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Here’s a Post-Wedding Name-Change Guide

From raucous bachelor and bachelorette parties to the subsequent — and perhaps more peaceful — honeymoon, tying the knot can be an unforgettable milestone.

As much as you’ll want to simply enjoy the entire experience, remember that there are a handful of administrative tasks that’ll require your attention. One such chore, for those altering their surnames, involves notifying various organizations and institutions that you’ve made that change.

Don’t fret; this process is relatively straightforward. You just need to know what steps to take and whom to tell. Aside from friends and family, here are some of the most important things to do and places to share the news.

Keep an eye out for your marriage certificate

Obtaining your marriage certificate is a vital first step in initiating the name-change process. You can expect to receive this document in the mail within a few weeks of getting married.

Remember: A marriage license is the document that essentially gives you the green light to get married; the certificate legally documents your union. You’ll need the certificate when going to places like your bank or credit union and state agencies to have your new surname recorded in their systems.

Social Security

Before you do anything, you’ll need to update your Social Security information. Although you can’t do this online, making the change is free. You’ll need to fill out the appropriate forms and provide a couple forms of identification, as well as an official copy of your marriage certificate. You can either drop these off at the nearest Social Security office, or mail them in. You’ll need to send original documents, but the Social Security website says that these will be mailed back to you.

Failing to notify the Social Security Administration about your new surname can delay tax refunds and lower your future benefits, so this isn’t something to put off.

Driver’s license, passport

Next, you’ll need to get your state driver’s license updated. Depending on where you live in, this may cost you anywhere from $10 to $30.

You’ll also need to apply for a new passport by filling out several forms and sending them in by mail, along with your current passport, the original marriage certificate, and a color passport photo. When booking honeymoon trips abroad, keep in mind that it can take the U.S. State Department six weeks or more to process your application, during which time you won’t have a passport, limiting your travel options. Be sure to photocopy any original documents you send in, just in case something goes missing in the process.

Financial services providers

Be sure to notify your bank or credit union, as well as other financial services providers, about your name change, especially if you’ve recently opened a new account or taken out a loan or plan to in the near future. The easiest way to do this will be to visit the office closest to you with your marriage certificate and new driver’s license in hand. While there, look into ordering new checks and getting an updated debit card. Don’t neglect contacting your credit card issuer and charge account providers about the change as well.

Other parties worth informing

You’ll also want to notify the U.S. Postal Service, your employer, insurers and your doctors. Again, simply showing these various parties your marriage certificate and updated driver’s license should be sufficient to get them to record the change. It’d be worth calling ahead first, to see if you can get the information updated online instead of in person.

The takeaway

If hunting down the necessary paperwork sounds too stressful, consider investing in a so-called “name change kit,” which generally costs $20 to $30. These kits include all the forms and documents you’re likely to need, along with instruction and labels for envelopes. Although tackling the name-change process on your own is totally possible, these kinds of services can save you some of the hassle of figuring out which forms you need to fill out.

If you change your name after getting married, it’ll be important to spread the word. All it takes is a little organization, time and energy. Before you know it, you’ll be able to turn your attention back to your other half.

This article originally appeared on US News here.

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