10 Questions Banks Will Ask When You Need A Business Loan

Entrepreneurs, new to the business world or old players, one thing that you all will need for the growth of your business is enough capital. Many people around us never get the chance to turn their business plans into reality just because they don’t have sufficient capital or, they are never able to unleash the true potential of their business and grab the opportunities they want to expand their business. The best-case scenario is; you have all the money you need to start with your updated business plan or capital to invest in your business to increase its volume or tap new opportunities.

But what if you do not have the desired amount of money and you are courageous and confident enough to take risks for your business ideology? A loan is your way out for sure, there are several types of loans available in the financial and banking sector that are broadly classified into Secured Business Loans and Unsecured Business Loans. Secured business loans are backed up by collateral hence provided with low-interest rate whereas unsecured loan involves great risk of default at the end of lender that is why they are charged with high-interest rates but are a great deal for borrowers because of the limited liability.

With Secured or Unsecured loans bank is going to give you a real tough time that you will start wondering, Do I really need this loan? But not to worry about that is what we are here for? We will discuss the 10 most crucial questions that banks ask while giving business loans that will help you to succeed in the most intense interrogation session.

1: What is the exact amount of money you need?

This question sounds very basic and easy to answer but it has the most important answer hidden in it; that is do we really need the amount of money we are asking for? Is there any possibility that we can settle for less amount? Are we exaggerating our business need and potential? All these questions are hidden in one question, what is the amount of money you need? You have to quote the amount with complete rationale, a well thought upon figure should be your answer not just a random ballpark figure.

2: What business belongings do you have?

Wondering what bank has to do with your collateral?  Banks are always interested to know what will be the other options for recovery in case you default. This might sound horrible to you but banks have to keep every aspect into consideration. If your business is new, and they are not sure about the exact potential, they need some fixed assets’ security that back your business. Usually, for small businesses or startups, personal assets that include a house or land ownership keep as collateral.

3: What is your business plan?

In this scrutiny, your business plan will play the most crucial role. Banks need to see. Does your business plan have what it takes to stand out? They will not demand a pile of documents, they rather need a brief business plan through which they can see prospects and potential of your business. It is one of the most crucial steps and you need to be very well versed with all market conditions in which you operate, to get through this.

4: Does your business have the potential to survive in the market?

Must be wondering how many times you have to prove your potential? You have to reassure banks in every question that you are capable and your business is capable of the growth that you have chalked down on the paper. Be ready to answer every tiny detail not only related to your own business but related to your competitors as well.

5: In what ways you will utilize the money?

You have to be categorically certain that in what ways you will be using the money you are borrowing. You cannot give them vague answers. Vague answers will make them doubt the genuineness of your needs. Tell them if you need to buy some machinery, equipment or a bigger workplace along with all the possible positive impacts they will bring to your business.

5: Complete credit details of your business:

Your credit details will tell the lender about the financial stability of your business. With the help of business credit details, they will be able to learn about your reputation in the business market, your track records. In other words, credit reports enable banks to evaluate the probability that how on-time you will pay back the loan.

6: All details of your business; account receivable and payable:

If you think this information is quite confidential to disclose to any third party, you better not. Banks when sanctioning the loans they act as your partner.  There is nothing that you can keep confidential from your partner, similarly, banks need to know everything to come up with a final stance about the financial stability of your business.

7: Is your business insured?

If everything turns out to be perfect, still, some factors can yield unfavourable results to your business and banks have to keep this into consideration as well. Any natural calamity, fire eruption or any unfortunate incident of the same nature can turn the situation upside down. For this banks need assurance that your business is insured and their money is recoverable in such incidents.

8: What are your personal belongings?

Your personal belongings are your private matter for sure but, if you are going for secured loans you have to disclose them to the bank. These details give banks the assurance that you are a reliable borrower and have strong grounds to pay back the loans.

9: What will be the future ratios to help decision making?

The most important part that covers the future possibilities to pay back the loans and decide the terms on which your financial stability will be accounted for. Laying down terms and conditions before the agreement is made between both the parties is very important for impartial disposal of the affairs.

10: What will be the possible ways of paying back the loan?

Technically this question should be asked initially but banks put more of their time in scrutinizing how genuine your case. Terms and conditions are usually preset according to the bank’s policy but there is always room for negotiation that you must avail.

Applying for bank loan is something everyone is afraid of, there is a general concept that after going through all the long-tiring documentations and detailed scrutiny banks still turn down loan requests and all the efforts and time you put go in vain, I won’t say it is not true but before taking your application to the bank do your personal scrutiny with all the points we have discussed above, this will surely increase your chances of getting your loan approved.

What is a Payday Loan and How does it Work?

The global economy is going through a phase of contraction right now. And for the masses, this is not good news. For most people, it implies that the cost of their day to day expenditure is going to rise while their disposable incomes are not. It is tough to manage day to day expenses regardless of how much your net income is and people are spending a large portion of it on food and utilities which previously was not the case. And this imbalance of relatively low income and high expenditure is getting worse with each passing day.

Sometimes when you are under the pressure and when things are not working out and you land yourself in a critical situation where a financial emergency strikes while you face a cash crunch and with no options to go, what would you do? Your expenses are ever-increasing and a fall in the cash leaves you stranded, and unable to sustain the interest payments of your credit cards and other debt, how are you going to manage?

These are the questions that you need to answer and fortunately for you, we have one that is Payday loans. They are your answer to the situation when you are short on cash and out of all options.

What is a Payday Loan?

A payday loan is your cash advances, usually offered for a short-term basis. These short-term loans are given out for a period of one or two. They provide you with the option of low balance borrowing when most of your options are exhausted. They can be extremely helpful especially when you get through a rough period. Their simple structure makes the terms of agreement quite easy to understand, and they are to be repaid till your next payday.

Moreover, with all its benefits comes there are some downsides attached to it as well. Although these loans work at times, however with the exorbitant interest rates make them an unattractive option to the most customer. And their hidden charges and added fees don’t do them any favors either. These predatory features are usually the ones that the customers are not made aware of at the time of the borrowing and they come as an unpleasant surprise when once you have borrowed the money.

So how do they work?

These loans offer you a quick cash relief usually up to five to six hundred dollars and they are to be repaid once you get your next pay. To opt for a payday loan, you have to first fill in a form, mentioning the amount you are borrowing and submit it with a post-dated check along with the fee surcharge that the lender might charge you. Once, your application is approved you are good to go. After the borrowing, you would have to check in with the lender sometimes again later, to repay him again.

If you are unable to do so then you have the chance to roll the loan over until the next due date. However, its drawback is that even though you might get the loan extended however the fee keeps on getting aggregating and this can turn out to be a honey trap for most customers.

Overall, these loans are generally expensive, and their annual percentage rate happens to be a lot higher than these conventional loans which you borrow from a bank. This can be understandable since it does have higher default risk. Even though their exposure might be less since the borrowed amount is low, most of their loans have a poor credit rating. These loans are usually offered without checking credit history or background, and such is the case that individuals opt for this even if they had a really poor credit score.

Cost of the Payday

The biggest issue with these loans is their exorbitant cost. Even though they might provide you with short-term relief, however, they cannot solve your long-term financial woes. And given that they charge high surcharge fees, your financial problems are set to aggravate even further. And if you are in a situation where there is a need to consistently rely on payday loans then this is not good news. You need to reconsider your strategy and look out for another option. These loans are not meant for your long-term cash woes.

If you keep continuing with it, they might even land you in trouble. Alternatively, you could talk to your supplier and ask for an extension or maybe even approach a bank and see if somehow you could get a traditional loan.

Role of Banks:

Higher revenue and in turn profits have attracted the banks to move into the industry as well. For a conventional loan, your credit history, your bank account, and your financial assets and your income details are what you need to submit to apply for it, however, these requirements are not so important when you apply for a payday loan from a bank. The only mandatory requirement is that you have a bank account that you are applying to. Moreover, these payday loans are not any better from the ones that other institutions and stores, who provide them. These loans have predatory features installed in them and they too are quite risky and unsustainable for the long term.

Furthermore, in certain situations, they might even be considered worse than the usual payday loans. To qualify for a payday loan from a bank, you have to sign a waiver which allows the bank to pull off funds from your bank account at the time when the payment is due. This leaves you stranded as you don’t have the control of your account or the money that flows in there anymore. Whereas, when you go for a payday loan from an external source, other than the bank, at least you have the option to choose when the money goes out and when it doesn’t.

What are your options then?

If you are consistently heading in this direction, you need to rethink it. There are several things that you can do which include cutting down your expenses, delaying the payment of your utility bills or if nothing else that maybe do a short borrowing from friends or family. There are several alternatives to it and anything is better considering that you are not opting for a lifetime battle of never-ending loan repayment cycle.

Conclusion

Payday loans might be a fast and easy way to get you cash but these loans shouldn’t be your long-term strategy. They might work for you once or twice for a short while, but they won’t in the long run. Before opting for such loans, you need to rethink and revisit all the options. They might look attractive from the top but on the inside, they aren’t so great.

Why A Small Business Line Credit Is Better Than A Regular Loan

The purpose of the credit line may be different. Such a banking service may be needed both by small enterprises and private individuals. It can be issued to finance a long-term government project, to replenish the working capital of a commercial company or to solve the current problems of an individual. In the situation with private borrowers, the role of a credit line is most often played by a credit card with a renewable limit.

A credit line is a limited amount of borrowed funds of a bank, which are withdrawn from the account at a certain moment. In simple words – this is a loan that can be taken from the bank at the moment when it is needed most. The borrower pays interest only for the actual period of use of money. While taking a regular loan, the client pays interest on the entire amount, even if part of it has not been used up.

Lines are secured and unsecured. With long periods and large amounts of limits, the bank prefers to secure its own finances and insists on obtaining liquid collateral. Most often, the property is suitable for this purpose, which can be easily realized when making up for losses. When a credit line is secured, the lender offers a lower interest rate and loyal terms than under unsecured contracts.

The main differences of a credit line from a loan

A loan and a small business line of credit can be considered similar banking products. But most often, when analyzing them, two main differences are taken into account:

  • Whether renewal of the limit is required;
  • Money is needed now or later.

Credit lines are often used by law firms. They are drawn up to obtain an additional source of financing to reduce financial risks. The credit line becomes for the company an additional source of financing for core and current activities. For individuals, banks offer this product in the form of credit cards with a renewable limit.

Advantages of credit lines over regular loans

There are several advantages that distinguish credit lines:

  • ease of use of the loan: money can be taken in installments, and you do not need to conclude separate agreements each time;
  • the size of each loan is determined by the client himself – within the bank limit;
  • the method of receiving funds is agreed individually – you can choose the type of credit line;
  • interest is paid only for the actual time you use the money (unlike a loan, for which you pay interest in full, even if you used only a small part of the amount, and the rest is waiting for its time);
  • The interest rate for credit lines is usually lower than for a regular loan. For large CFs, the rate is calculated separately for each of the tranches, depending on the size of the amounts provided (the larger the amount and the shorter the period, the lower the rate), this allows you to save on interest.

As part of the credit line, the borrower can withdraw the entire available amount at once or take the money in installments at the moments when they are most needed. Calculation rules, interest rates, available limit and other conditions are established individually and prescribed in a bank agreement.

A credit line is a kind of promotion of loyal customers with high solvency and a positive financial reputation. As a rule, this product is characterized by certain amenities for the client, compared with the classic target loan. But young companies or individuals with low solvency or without any credit history may not approve such a product.

Credit line classification

Credit lines issued by banks are of several types. Some types may mix. Others are found only in pure form.

Non-revolving credit lines or simple

If you explain in simple words, then with this type of lending, the borrower gets the opportunity to withdraw money once within a specified period within the limit. Issuance of funds on a non-revolving credit line occurs only once – in one tranche.

In practice, this happens as follows: for example, a company purchases a large batch of goods and turns to the bank for a credit line. A financial institution signs a contract with a borrower. The client is looking for the best supplier, concludes a contract with him and after that transfers the payment from borrowed funds. Now the borrower pays the lender as under a classic loan agreement. After interest and the total amount of debt is paid, the credit limit for this type of lending does not resume and money cannot be withdrawn again.

Revolving or renewable

Such credit lines allow the borrower to borrow money within the established limit when he needs it before the expiration of the contract. In addition, the client can pay off the debt in installments or the total amount. When making payments, the limit is restored and becomes available again to the borrower.

This type of credit line is suitable for financing long-term contracts. For example, to purchase expensive equipment that will be supplied in parts. The bank draws up a credit line, and the borrower pays the supplier from each tranche. At the same time, the client pays the bank only for using the amount that was required at the moment, which reduces the cost of borrowed money.

Other types

Framework. The Bank opens a credit line for a specific project and all tranches that will be issued within the framework of the loan are specified in the initial framework agreement.

On- line credit lines – in this type the limit is restored to the original. If the borrower approved a line for 2 million, and he withdrew only 500 thousand and paid them off, then again all 2 million are available to him.

Contract Accounts. In this case, the credit company opens a single active-passive account for the borrower, all tranches come from it and all repayments come here. The client carries out all operations on one current account and it is convenient for him to analyze the income-expense within the approved limit and the entire duration of the contract.

The bank representative, together with the borrower, evaluates which type of credit line is most suitable for solving the tasks, and only after that draws up the contract.

Conclusion

So, to summarize, we can briefly remind ourselves that the Credit Line is a long-term loan issued in parts when a need arises.

The credit line provides for the establishment of a certain credit limit by the bank – the amount over which the client can no longer take one turn of the loan. And within the limit, the client can take a loan without additional negotiations and registration.

When a credit line is opened, the type of loan, the period of validity, the maximum amount of the loan are indicated in the loan agreement, and the settlement and money documents are listed that will be paid by using the credit line or the contract is indicated for which the credit line is opened to pay for deliveries. One important detail – when opening a credit line, the contract must indicate the maximum loan amount.

There are restrictions in credit lines, and in different types of credit lines, they can be different. For example, there are lines of credit with a limit on issuance or with a limit on total debt.

Credit line with a limit on total debt – in this case, we mean the total amount of all debt, which if the client pays on time and in full, then he is entitled to use the loan in the future. Or, if the borrower returned part of the money to the bank, then the volume of lending is restored – this is a revolving credit line.

A credit line with a disbursement limit is the total amount of all possible loans that a client can receive all the time when he uses a credit line. In this case, the repaid debt cannot increase the lending limit, therefore – this credit line is classified as non-revolving.

In general, this lending option is very convenient for both the bank and the client for several reasons. The bank, although not immediately, but still begins to make a profit from the loan issued, and the client gets the right at any time to use the reserve amounts in the account in case of a lack of equity. Thus, the borrower receives advantages and more freedom in managing their cash flows, which, undoubtedly, significantly increases its capabilities and allows the company to grow and develop.

Car Title Loan Requirements: What It Takes to Borrow via Title Loan

What do you need to get set up with a title loan? Learn the car title loan requirements in this guide to the essentials you need to have before borrowing.

Could you cover a sudden emergency expense of $1,000? 60% of Americans would go into debt if faced with such an expense. If you face an emergency expense, you have options, one of them is a car title loan.

Knowing what the car title loan requirements are before you apply can make the application process easier. It can also improve your chances of getting approved and speed up the application process.

Use this guide to prepare your car title loan application.

Live in the Right State

Before you attempt to get a car title loan, you need to confirm you live in a state that permits them. Some states allow them but put a cap on the interest rate.

Some states have loopholes that allow car title loans. Then other states totally prohibit or heavily restrict car title loans.

Required Documents

To be successful in getting cash through a title loan, you need to gather all of the necessary documents. They will prove your ownership of the car and your identity.

  • Original title showing sole ownership
  • Government-issued ID
  • Proof of residency
  • Vehicle registration
  • Proof of insurance
  • Proof of income
  • Valid references
  • A working copy of the vehicle key

Most lenders will have you fill out an application and provide the necessary documents. They will also want to verify the condition of the vehicle before approval.

Sole Ownership

You need to own your vehicle outright and be the sole owner listed on the title. There can’t be any liens. Upon approval, the lender will place a lien on the car’s title.

Proof of Identity

You need to be able to prove who you are and where you live. Make sure your name on your ID matches your application. Then provide a utility bill with a matching name and address.

Proof of Insurance

The lender will want to know that the return on their loan is safe. This means having the collateral (the car) insured. If there’s an accident and the vehicle is lost, the lender will collect on the insurance payout.

GPS Tracker

Some lenders require a GPS tracker placed in the car. This enables the lender to track down or even remotely shut down the car should the borrower default on the loan.

What You Don’t Need

Because the value of your car secures the loan, the lender isn’t concerned about your credit score. While they want you to repay the loan, if you fail to, the lender can take possession of the car to collect the outstanding balance of the loan.

Satisfy the Car Title Loan Requirements

If you’re facing a sudden emergency expense and you don’t have savings to cover it, then a car title loan may be a solution. Use this guide to gather the required documents and get your application ready.

By meeting all of the car title loan requirements, you give yourself the best odds for approval.

Browse our blog for ideas on how to generate more income and strategies for saving.

 

Should I Become an Airbnb Host? (And Other Important Questions!)

So, you have a home that you’re thinking about listing on Airbnb.

Maybe you travel a lot and aren’t home often, so you want to make some extra cash by renting out your space. Or perhaps it’s a vacation home that you rarely use, and thus, is always available for others to enjoy.

Regardless of your situation, you know you want to become an Airbnb host. The only problem? You’re not exactly sure how to get the process started.

If this sounds like you, wonder no longer, because we’re here to help! In this article, we’ll tell you how to become an Airbnb host, as well as a few things you need to keep in mind throughout the process.

Now then, let’s get started!

Why Sign Up for Airbnb?

If you’re not super familiar with Airbnb and how the process works, you may have some questions about why people would sign up for Airbnb in the first place. The idea of letting strangers stay in your house is kind of insane, right?

Well, if you do things the right way, becoming an Airbnb host is not only safe, but it can also change your life for the better, too.

Of course, you can make some extra cash by renting out your house. And if it’s a vacation home that you don’t use often, you can even make enough to pay that extra mortgage, plus other expenses, which can be quite helpful.

If you’re not in your home a lot, you may be worried about someone noticing that it’s vacant and breaking in to steal your things. Having folks constantly coming in and out can help reduce that worry, which can give you some peace of mind while you’re away.

How to Sign up with Airbnb

Of course, before you can start making money with Airbnb, you first need to sign up and get your house listed. Doing so is as simple as going to Airbnb’s website and clicking the “Become a Host” section located at the top of the page.

It’s worth noting that Airbnb doesn’t just let anyone host. You’re going to have to provide a lot of information about your home and answer quite a few questions, which is understandable.

How to Have a Good Profile

Once you’ve been approved, and your home is listed on Airbnb’s website, you’re going to want to make sure you have a good profile setup. Having a profile that people want to click on and explore can help you keep your house rented, which is what you want.

Having good photographs is without a doubt the best thing that you can do for your profile. Things like lighting and decluttering your home are key to making your photos look appealing, so take some time to make sure your home is photo-ready first.

Also, be sure to be fair and honest with your price. Take a look at other houses in your area and be honest about whether or not your home is better or worse than some of those options. Listing your home too high will price you out of a lot of people’s budgets, and pricing too low can attract the wrong kind of attention, both things you don’t want.

Understanding the Risks

It goes without saying, but letting strangers live in your home for a brief period of time does indeed come with some risks. With that being said, Airbnb will help protect you and hold your guests accountable for anything that may go wrong.

Protecting Yourself and Your Home

While there are some risks that come with listing your home on Airbnb, there are some things that you can do to protect yourself and your home. Again, Airbnb does a wonderful job of holding guests accountable. But you should still keep some of these ideas in mind if you plan on becoming a host soon.

First, be sure to have all valuables locked away in a private area of the home. In fact, it’s wise to limit the number of valuables that you do have in your home, as it’s the best way to protect them.

If you can, you or someone you trust needs to walk through the house after ever stay. That way you can confirm everything is in working order, and if it’s not, you’ll know which guest caused the issue.

Speaking of guests, don’t be afraid to be picky about who you rent to. You can turn down any request, so track them often and shut down any guests that have a poor profile or question marks.

Also, you can limit the number of guests that are allowed per stay, or prohibit pets, to better protect your home. In fact, it’s wise to familiarize yourself with a few basic tips for Airbnb owners before letting your first guest through your doors.

How to Become an Airbnb Host: A Guide

Well, there you have it! That is a basic guide on how to become an Airbnb host, including a few basic ideas that you need to keep in mind throughout the process.

Remember, signing up with Airbnb is simple and easy. All you have to do is go to their website, answer some questions and provide some basic information about your home.

When making your profile, be sure to take good photos and provide accurate information about your home. That, combined with a good price point, can help you keep your house booked year-round.

Once you start having guests, be sure to protect your home and your valuables. Keep everything important out of the house or locked up, and check in after each guest to make sure nothing was damaged during their stay.

Looking for more ways to make a few extra bucks? Check out our blog!

Reasons Why You Should Hire an Accountant

When starting a business, entrepreneurs often tend to perform every task by themselves, including the financial end of things. As a business continues to expand, there may come a time when the accounting needs of your business outgrow your capability as an entrepreneur. A proper accounting structure may be key in helping you maintain accurate financial records. Here are further details on the reasons why you should consider hiring a certified accountant for your business.

Frees up Your Time

Business owners and managers usually have a lot to do, even without having to deal with payrolls, tax compliance, leases, insurance and internal operations. It would be best if you preferably were spending more of your productive time focusing on income generation rather than preparing financial statements or signing checks. Hiring professional accounting services in Vienna, VA may take over these critical, yet time-consuming operational duties. This will be helpful in freeing up your mental space to concentrate more on innovating products, extending your market reach and establishing strategic partnerships.

Sort out Your Tax Matters

When your enterprise was small, you may have been capable of easily making quarterly payments and filing annual returns on your own. As your business expanded, the payrolls and taxes likely became more complicated due to more variables and regulations seen on a local, federal, and state level. For businesses that operate in the international market, the taxes may be even more complex. Tax accountants are usually tasked with keeping up with any legislative changes, which helps ensure your business remains tax compliant. In addition, they may provide insight on how to minimize tax bills and maximize deductions, thus saving you money.

Jumpstart Stalled Business Growth

A business may suffer from a slowdown in its growth at some point during its formative years. During this slump, hiring a financial advisor, such as an accountant, may help your business in restructuring its debt and identifying unprofitable lines within your business. They may also offer advice on how to realign and adjust the prices of your commodities after carrying out a review of the prevailing market rates. Professional accountants may essentially provide a solid work plan that would propel you into growth mode.

From freeing up your time, handling your tax matters, and propelling the growth of your business, seeking professional accounting services is often a smart business step. It may cost you dearly if you try handing your finances personally as your business continues expanding.

Tips for Improving Business Presentations

Most business professionals will find themselves giving a presentation at some point in their careers. For some, presentations are a routine experience. Whether it’s a one-off experience or done on a regular basis, giving a business presentation requires the ability to successfully share insights and information to an audience of people. Failing to do so can result in time wasted, lost sales, or worse.

With this in mind, let’s take a look at some of the best ways to improve the potential of business presentations: 

Tell a story

The best way to keep an audience engaged in what you’re saying is to tell them a story. More importantly, it’s got to be an interesting story. Take a look at the information you’re presenting and identify the main characters, the conflict, and how the two interact. Make that the focus of your presentation. What’s more, take the audience on a journey from point A to point B, wherein the characters have undergone change and transition. Introduce problems and provide solutions for solving them. Storytelling is a timeless method of making people interested in what you have to say, making it a go-to technique for transforming a presentation into an adventure.

Show instead of tell

Most people assume a good presentation hinges on what they have to say. However, more emphasis should be put on what they show their audience. For example, rather than explain how a competitor’s website is better optimized for sales, use a capture web page tool to have it available to view when you need it. By accessing the site pages during your presentation, you’re able to show your audience exactly what you’re trying to get across. The findings can be supplemented by your narration, rather than the other way around.

Take advantage of technology

Storytelling has often benefited from advances in technology. For example, the development of photography ushered in the age of motion pictures, which remains the premier method of telling stories to modern audiences. With this in mind, harness the power of technology for your presentation. While your budget probably doesn’t have room for movie production, consider whiteboard animation as a means of providing your audience with a fun little video showcasing the story you’re trying to tell them.

Know your audience

The best live performers are those who can read their audience and act accordingly. What works for one group of people might not succeed with another. Use this to your advantage when preparing your presentation. Does the audience consist of coworkers who know you personally? If so, feel free to insert inside jokes into your presentation. Is it going to be executives from out-of-town? If so, you might want to stick to family-friendly forms of breaking the ice.

Prepare to answer questions

Many people tasked with giving a business presentation make it their mission to explain everything they can, in order to prevent members of the audience from having to ask questions. Not only is this impractical, but it also inhibits an organic form of audience engagement that presenters can use to their advantage. Rather than try and cover every base, engineer your presentation to lead to specific questions, and prepare your answers ahead of time. In the event nobody asks the questions you planned to answer, include the information as a postscript afterthought before concluding your presentation.

Presentations are the fact of life for most business professionals. Even if they’re only an occasional responsibility of yours, the stakes involved typically call for giving it your best. By taking steps to improve the power of your presentation, you’re more likely to reach the goal you’ve set out to achieve.

Starting a Marijuana Business: How to Sell Marijuana Legally

If you’re wondering how to sell marijuana legally, the answer is simple.

Marijuana is something that many people talk about because it’s cemented itself into mainstream culture. In recent years, it became legal to use marijuana recreationally across several states.

The recent legalization of marijuana has encouraged many business owners to start dispensaries. While a dispensary can be a great way to earn passive income, it requires a few more steps than a regular business does due to marijuana being the main product.

Read on to learn more about how to make money selling weed legally.

Get Insurance

One of the first things you’ll need to do if you want to make money with weed is to get your business insured. After you’ve chosen the location where you’ll operate out of, you’ll need insurance to cover the building in case it suffers from damage. No matter what kind of insurance you go for, you need to ensure that your employees will be insured if they’re hurt.

While associations like the National Cannabis Risk Management Association don’t offer insurance products themselves, they do sanction and examine various insurance products. Visit them for more information on their operations.

Get a Business License

The next thing you’ll need to do is get a business license. All businesses need this kind of license because it lets the government know that what you’re doing is safe and legal. Without a business license, there’s a good chance you’ll get fined.

You must also ensure that you’re selling marijuana in a legal state. If you’re not, you could end up going to jail and get charged with several felonies. However, it’s unlikely you’ll make it this far if you’re in a state where cannabis isn’t legalized.

Most cannabis businesses will get multiple licenses to allow them to do various things. For example, you need to get an extra license if you’d like to produce cannabis. One popular cannabis business, Planet 13 Holdings, boasts about having six cannabis licenses.

Hire Certified Budtenders

Budtenders are those that produce cannabis and interact with customers. For anyone wondering how to make money selling weed, having certified budtenders is one of the best things you can do.

All budtenders are required to have a budtender certification, which essentially proves that they know a lot about cannabis. Certified budtenders will be able to make educated recommendations to customers and they’ll know how to maintain your company’s cannabis.

Now You Know How to Sell Marijuana Legally

Opening a cannabis business can be one of the most profitable things an entrepreneur can do. Now that you understand how to sell marijuana legally, we encourage you to open a dispensary. You’ll make money a lot quicker than you would with most businesses and the process is simple.

Should you decide to open a dispensary, start by creating a business plan. Decide where you’ll set up a shop and go from there. After choosing a location, you can start looking into insurance, licenses, and hiring the right people.

Browse our articles if you’d like to learn more about business-related topics.