6 Free Square Tools To Make Running Your Small Business Easier

If you own a business, you don’t need anyone to tell you about the value of time-saving tools. Personally, whenever I uncover something that unexpectedly makes business run more efficiently, it can almost feel like winning the lottery — time is that important to me. If you juggle a lot of responsibilities during your day, you probably feel the same way. That’s why I was pretty stoked to pull back the curtain and see what’s really behind the scenes when it comes to Square — one of the most popular payment processing apps available. 

In this post, we’ll discuss some of the tools you may not have heard about that are available with any standard Square account. While I also get pretty excited about some of the premium options on offer (like Square’s email marketing and CRM tools), we are going to stick with the freebies in this post. Keep reading to learn about tools you can start using today that may help you do business a little smarter.

Note: Keep in mind, we’re not touching on all of the free software and tools you get with Square — just some of the most valuable ones. Check out our in-depth Square review for a closer look at everything Square has to offer.

Inventory Management

When we talk about what is waiting when you open up a free Square account, one of the most important tools is your inventory management. Good inventory management is so important to keep your customers happy and ultimately help support your bottom line. Understanding what is most popular and identifying your best sellers can help you not only maintain the right amount of stock but support your promotional efforts as well.

So let’s start with the basics. After you enter in an item in your Square dashboard or the POS app, you can add the current stock amount, enable tracking, and set up a low stock alert right from the same screen. Whether you ring up the item from your POS, virtual terminal, or send an invoice, Square adjusts your stock automatically.

You can add item variants as well. Add different price points for sizes, add-ons, or customize however you like. Just name the variant, set the price, and add a unique SKU if needed. And if you sell in bulk, you can use Square’s variable price point feature to leave the price open based on the weight/quantity sold. 

Need a customizable option like a topping change, a special dietary adjustment, or another type of swap-out? You can create modifiers for that, too! Unlike item variations, modifiers don’t decrease inventory accounts. You can opt to assign a price to your modifier, however.

When it comes to managing your physical stock, it is worth mentioning that the free POS account isn’t set up to print barcodes for your SKUs. Some business owners use a Dymo label printer as a workaround. If you have a lot of inventory and need a more robust solution for advanced inventory management (including barcode scanning and printing) in one solution, Square for Retail may be worth your while. Check out our full Square for Retail review for pricing and a better look at all the extra inventory-related features included with the POS. 

Customer Directory

small business loyalty program

When you use Square’s customer directory, the amount of data you have access to automatically builds with each sale. With just a swipe of the card, your list collects data such as your customers’ names, when they visited which location, and their visit frequency. During the sale, your customer may also have entered in their email address with you to get a digital receipt. Of course, if you are feeling bold, you can also ask your customers one-by-one for their email addresses so you can start building a healthy list.

Square’s customer database is accessible through Square Point of Sale or through the Square Dashboard. Under each customer in your directory, you can add a note, upload a file, view any feedback they have left you on their receipts, or create an invoice to send directly (more on that below).

When all of these customer insights build over time, you can start to get a clearer picture of who your loyal customers are, who has visited more than once, and who hasn’t visited you in a while. You can also see what their favorite products are — all of which is useful data for your business in general, and especially for marketing purposes. 

Again, the Square Customer Directory is entirely free to use, and it syncs with all of Square’s other tools — that includes paid software options such as loyalty and email marketing. The Square email marketing tool lets you segment customers, then customize email campaigns based on their habits. Square has pay-as-you-go pricing at 10 cents an email, or you can opt for a monthly subscription to send unlimited emails. Square offers a 30-day free trial for an email marketing subscription, and pricing starts at $15/month for up to 500 customers.

Card On File

deferred interestYou can make it easier for your repeat customers to order by phone or for a future invoice by saving your customer’s credit card information using Square’s Card on File feature. Be aware that your customers have to “sign off” so you can appropriately save their card on file, however. If you are completing a sale on your computer through Square’s Virtual Terminal, you will be prompted to print out the approval release and have your customer sign it. Keep this document in a safe place, because it proves you received their permission to store their card and can protect you from chargeback issues.

If you are at your free Square POS app, your customer can approve saving the card on file by entering in their zip code at the permission screen. After that, you can process their payments quickly and easily with no need to present the card. While it costs nothing to store a card on file or use the feature regularly, keep in mind that you will pay a little more with each transaction (3.5% + $0.15 per transaction instead of 2.75% per swipe/dip/tap) because they process as card-not-present, rather than card-present.  

Is Card On File Secure?

What’s the Difference Between Chip-and-PIN and Chip-and-Signature Cards

Square lets you store your customer’s credit card information with their approval, and yes, it’s fully compliant with the payment security standards set up by the PCI-DSS. That’s because when you enter credit card data, it is only going through the secure Square app. Also take note that when you enter in credit card data — whether during a sale or saving a card on file, the full number isn’t viewable to your or your staff once it’s entered in the system.

Securely saving customer card data is vital to your financial protection as a business and prevents very costly fraudulent risks. For more about Square’s security, check out our related post, Is Square A Secure Way To Accept Credit Card Payments?

Gift Cards

Gift cards may not be the first thing you think of when it comes to business tools, but here are some pretty neat statistics for you: In a 2018 press release, First Data shares a study that found that consumers, on average, spend $59 over the original value of the gift card they receive. Not only that, but shoppers plan to spend 55% of their annual gifting budget on gift cards. That is no small potato when it comes to amping up your revenue.

If I’ve piqued your interest, I have some more good news. Square’s digital gift cards are completely free for you to sell. If you want to offer physical gift cards, you could start with a stock of 20 for $40 or opt for higher quantities with a significantly lower cost with each tier. When your customer pays for the gift card using a credit or debit card, standard processing fees will apply. (There’s no charge for payments made with cash.) When it comes time for the gift recipient to spend with you, you won’t face any additional costs. Square treats this transaction like cash, and they only deduct the amount of the sale from the card. And it’s great that you don’t need to pay any monthly fees to accept gift cards — you just pay the cost of the physical cards (if you want them) and any associated payment processing when purchased. 

Invoicing & Installments

Square Invoice Tutorial

When it comes to invoicing clients, Square makes it pretty easy. First, you can send an unlimited amount of professional-looking invoices for free. And instead of your customer having to call you with their number or waiting for a paper check, they follow the prompts and pay securely online. You can also send files, images, contracts, or attach information along with the invoice.

If you sell larger ticket items and want to finance your customers, you may also be interested in Square Installments. With this service, you can let your customer pay over time, while getting all of the funds upfront from Square. That’s because Square takes the risk by checking their credit and approving or denying the purchase. To find out more about letting your customers pay by installments, check out How Does Customer Financing With Square Installments Work?

If you want to assume more of the risk or set up a layaway program, however, you can also send out a regular invoice to request a down payment or partial payment as well. There is simply a lot of flexibility afforded with invoicing and installments. Read our Square Invoices Review to find out more about this tool and how to use it for your business.

Virtual Terminal

 

Don’t have a card reader handy? Does a customer want to pay over the phone? You can accept payments securely at your own computer when you log into Square dashboard and go to your Virtual Terminal. There are many scenarios when taking payments at your virtual terminal can empower your business model — and it makes for a great backup if other devices are misbehaving. 

In any case, you can still take payments quickly via Square’s Virtual Terminal. You can manually enter in the credit card information, or you can pull up a customer in your directory and charge a card you have saved on file. If you have a Mac or Chromebook, you can still connect a basic magstripe reader and swipe the card at your computer, too! 

Square charges no software fees to use the virtual terminal and it’s included with all free Square accounts, but you will still have to pay transaction costs. With keyed entry, you’ll pay 3.5% + $0.15 per transaction, or 2.75% for swipe transactions.

Square Card

At first glance, the Square Card may seem like just another line of credit, but it isn’t. The Square Card is a debit card that gives you instant access to any of the funds that are in your Square account in real time. So why are so many business owners stoked about the Square Card? For one, it can help manage and organize cash flow. One way to separate business expenses from everything else is to keep all of your business expenses on your Square Card. It makes sense because you’ll also always have an itemized list of exactly what you spent at the Square app under “Card Spend.”

Keep in mind that once you get the ball rolling with your Square Card, your funds are automatically going to sit in your Square balance unless you manually transfer funds into a different account. You can do so at any time and Square will deposit funds in the next 1-2 business days. If you want your funds deposited into your main bank account faster, you can also opt for a same-day instant deposit for the fee of 1% of the total amount.

When it comes time to spend your balance, the Square Card is a debit card accepted at any merchant that takes MasterCard. As far as cost, the Square Card is completely free with no annual or usage fees whatsoever. The other cool bonus is that you get a 2.75% discount at all other Square merchant locations. If you have a Square account, you can request your free Square Card under Deposits at the Square Dashboard. Note that Square doesn’t automatically send you a card when you open your account.

Is Square Right For You?

There is no doubt that Square offers an abundance of tools and add-on software apps that can help you run your business more efficiently. Utilizing inventory management tools can help you stay on top of the ebb and flow of demand, and payment processing options offer flexibility when you need it.

We’ve only scratched the surface when it comes to Square’s tools because there are many layers to Square’s solutions. Check out our Square Review to get even more details about features and pricing so you can make the decision that’s right for you. You can also set up a free Square account and play around in the dashboard and check out the tools yourself.

The post 6 Free Square Tools To Make Running Your Small Business Easier appeared first on Merchant Maverick.

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Site123 Review: Pros & Cons of using Site123 Website Builder

Site123 Review

Site123 is a fast-growing, independently-owned, website builder based in Israel focused exclusively on DIYers. They claim to be “the most intuitive and easy to use website builder on the market”.

Check out Site123’s Current Plans & Pricing

Recently, I gave Site 123 a try for a small project after receiving a few reader questions. But before I get into the pros and cons of my Site 23 review, let’s consider a bit of background on building a website in general.

There are so many considerations to take into account when choosing a website builder — and really, there are a thousand ways to get what you want in the end in terms of functionality, convenience, pricing, etc. The thing to remember is: whether you’re building a simple personal website or running a business, the way you build your site has a lot of consequences.

In the long-term, it affects your versatility, functionality, and, of course, your brand. In the short-term, it can certainly add/take away a lot of headaches. That said, just like choosing a physical house or office, there is no such thing as an absolute “best” or “top” choice. There’s only the right choice relative to your goals, experience, and circumstances.

What Is Site123?

On the wide spectrum of website building solutions, Site123 lives on the end that is all-inclusive and provides everything you need to get started and grow your website. It contrasts with solutions where you buy, install, and manage all the “pieces” of your website separately. I wrote a post on Website Builders, Explained for more background.

Using Site123 is sort of like leasing and customizing an apartment in a really classy development instead of buying and owning your own house. You’re still in control of decor, cleaning, and everything living-wise – but you leave the construction, plumbing, security, and infrastructure to the property owner. That point is key because there’s usually a direct tradeoff between convenience and control with all software, but especially with website builders.

Everything may fit together just right with a website builder like Site123, but that may or may not be what you’re looking for.

As far as competition, Site123 competes with all-inclusive hosted website builders like Weebly, Wix, Squarespace, Gator, and WordPress.com.

Compared to their direct competition, they focus on speed and ease by providing done-for-you templates and designs so you can focus solely on content.

Instead of operating like a traditional drag-and-drop website builder, Site123 has you pick your niche and then customize a curated template based on that niche, which appeals to beginners who have no design or development experience (think DIY-ers who need to create a website ASAP without having any website experience).

One other quick aside – a disclosure – I receive referral fees from all the companies mentioned in this post. My opinions & research are based on my experiences as either a paying customer or consultant to a paying customer.

Pros of Using Site123 Website Builder

Here’s what I found to be the pros of using Site123 — not just in comparison to other website builders, but as an overall website solution.

Straightforward Signup Process

One of Site123’s best features is how quickly you can get up and running. Signing up for the platform is a simple, three step process (hence the name Site123), and it’s straightforward, easy to understand, and efficient.

Site123 Set Up

Plus, Site123 builds in education through a simple, step-by-step tutorial that walks you through how to customize your assigned theme and add content to your website, which is an excellent feature for users who haven’t customized / built a website before.

Site123 Tutorial

Simplicity

Site123 is also seriously simple to use. As I mentioned before, Site123 provides you with a template based on your selected industry and type of business/website within that industry.

Site123 Template Selection

While the website builder is not drag and drop, you can choose from a menu of page elements to change the design within your selected theme.

Site123 Select Page Elements

The whole setup is like painting by numbers.

There are obvious drawbacks to this setup, which I will cover in the disadvantages, but it is a real advantage to having limited but accessible design options.

The site layout is mobile-friendly and maintains an acceptable look/design no matter what you do to the design options.

Product Integration

Another benefit of Site123 is their extensive list of product integrations. Aside from offering DNS and hosting services, Site123 also offers several plugins (software that you can “plug in” to your website to get additional functionality). From advertising software to analytics tools to marketing + support, their library is extensive.

Site123 Product Integration

Site123 also offers ecommerce functionality. One thing to note here though — to use the integrations, you have to have a paid plan.

And to get ecommerce functionality, you have have to choose between the two higher-priced tiers. We’ll talk more about pricing in a moment, but just know that you could get the same (or better) functionality for less elsewhere.

Cons

But of course, no review would be complete without looking at the downsides. Every piece of software will have complaints. Here are the cons I found with using Site123

Pricing

Site123’s paid plans start at $10.80/month, which includes a free domain for a year/the ability to connect your domain, 10 GB of storage, 5 GB of bandwidth, and the ability to send 100 email messages (side note – who counts email messages?) to your mailing list per month. It also removes the Site123 branding that comes with the free plan.

Site123 Pricing

But compared to their direct competitors like Wix and Weebly, Site123 is much more expensive and offers much less. At each stage, Site123 doesn’t even allow unlimited bandwidth or storage.

And compared to self-hosting (piecing domains, hosting, and email separately) – it’s not a good value at all.

If you’re using Site123 for more than a few months, it’s going to be more expensive than going with a competitor (and more restricting due to the design and technical limitations – more on that shortly).

Limited Feature Set – Design

With any technology product, there is almost always a trade-off between convenience and control.

And you can really see this trade-off with the Site123 website builder. The convenience of their design setup is great. It’s straightforward, fast, and not confusing. It puts your focus solely on getting your content onto the premade template by generating a curated template for you.

But here’s the thing — if you don’t like the template you’re given, changing it up is a pain. If you want to go anywhere beyond the basics of design, you are very limited with Site123.

For your theme, you can edit the color, the font, and the general ‘feel’/structure of the design.

Site123 Theme editing

With pages, you can choose certain layouts from pre-made choices.

Site123 Page Layout Editing

But you cannot change the layout. You cannot drag and drop. And you certainly cannot edit the HTML and CSS, much less add any other design element.

Site123 Page Editing Example 2

It’s even difficult and near impossible to edit the menu without changing other design elements on the website.

Site123 Menu

The best way to describe it is a ‘paint-by-numbers’ set up. It’s great to have the basics, but if you want to do anything extra or outside of bounds, then you’re out of luck.

If your website is growing, or becoming a bigger part of your business, the design limitations can be crippling. And unlike other website builders that attempt to solve this issue through apps, extensions, or access to the website code or HTML, there is no outlet for a Site123 website builder website.

Limited Feature Set – Technical

The limitations on design also bleed over into technical limitations. Technical limitations are features and functionality that you don’t know that you want until you want them, and then you find out you can’t have them.

These are things like integrations with Facebook, Pinterest, Twitter, Google Ads, social sharing options, blogging, and a whole host of every intermediate to advanced marketing tools on the internet. Now as I mentioned above, Site123 does offer additional features through plugins and apps, but due to the control you give up with the website, you’re fairly limited in how much you can integrate, add on, or even edit within the tools provided.

For example, let’s look at simply editing SEO elements on a page. With the Site123, I can add in a meta description and site slogan, but that’s about all I can do aside from adding header tags inside the content editor. Even basic SEO needs more than that.

Think of it like the difference between cooking in your own kitchen and building your own burrito at a fast food restaurant.

With Site123, you can certainly choose the ingredients that go into your burrito, but your choice is really an illusion because you’re limited to the ingredients that are offered by the restaurant. Like the design, that can be a good thing if you need something simple, and will always need something simple. But if you ever need to upgrade or do something unique or custom, it can be very limiting.

Culture & Lock-in

After looking at a lot of companies across domains, hosting, VPNs, website builders, ecommerce, and more – I’ve noticed that company culture, structure, and policies can speak more about a customer’s long-term experience than a feature matrix.

A website builder is inherently a global business. Every Internet company has remote employees and worldwide data centers. But I’m never a fan of companies not sharing their story or what they are all about. Site123 is incredibly vague about their story, their policies and your relationship to them as a customer.

For example – here’s their about page.

Site123 About Page

It’s a sales page. Here’s a couple answers to FAQs –

Site123 Data Export

Site123 Moneyback

Now – I get that they are a free, hosted website builder. Most website builders have trouble with website export. But their messaging is quite stark with no offer of help scraping or downloading even image files and text.

And the cancellation policy is very odd because it conflicts directly with the purported difficulty of providing a website download. A hosted website builder service should be able to be cancelled at a click of a button. There should be no manual reviews of forms.

Again – this point isn’t meant to raise a potential non-issue for no reason. Site123 might provide a fantastic long-term experience. However, difficult cancellation policies and vague about pages tend to correlate with less than ideal long-term experiences.

Site123 Review Conclusion

Site123 certainly makes getting a website up and running easy, especially if you need something that’s done-for-you and requires little customization. They have a straightforward user-experience and easy-to-use editor that makes getting your content out there a breeze.

Check out Site123’s plans here.

However, there are trade-offs to consider with an all-inclusive website builder — specifically functionality, customization, and control. And this is where Site123 falls short when compared to other all-inclusive website builders. If you’re looking to create a website with a base template but still have some flexibility over design and functionality, Site123 may not be the best option for you.

Not sure Site123 fits your needs? Check out my quiz to find what the best website builder is for you based on your preferences.

The post Site123 Review: Pros & Cons of using Site123 Website Builder appeared first on ShivarWeb.

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How To Use Square To Accept Credit Cards In Person

Square has carved out quite a spot for itself in the world of payment processing. When it comes to accessibility, there are few rivals. With no credit checks, sign-up fees, monthly fees, or cancellation fees, and a very transparent pricing model, it’s no wonder why Square remains the go-to option for business owners who want a no-hassle choice.

In fact, it’s so easy to get started, that you can usually start taking payments immediately after setting up your Square account! That being said, it helps to get a bit familiar with the process before ringing up your first customer — and there is more than one way to do it. If you are interested in weighing your options, this post is for you.

We are mainly going to focus on taking payments with physical cards in this post, so if you have an eCommerce shop, you may want to check out our Square Online Store and eCommerce Review. If, however, you want to know how to ring up your sale and get some important details to help you choose the best options, keep reading.

To start us off, here is a short list of the ways you could accept payment with Square:

  • Your device + Square Point-of-sale (POS) app +  Square card reader
  • Keying in credit card information in the Square POS app
  • Square POS hardware (e.g., Square Register)
  • Accessing the Square Virtual Terminal from your laptop

Below, we are going to start by explaining how to accept payments with the Square Reader. After going through some different scenarios, we’ll also explore Square’s POS hardware for those of you with a physical storefront. By the end of this post, you should feel confident navigating your options and finding the best solution (or solutions) for your business processing needs.

But first, a note on Square’s payment security.

Square & Payment Security

Right out of the gate, we need to take a quick minute to cover payment security. It’s that important. Regardless of how you accept a payment — whether that is keying in a card,  swiping with a magstripe reader, a dip or tap, etc. — Square provides secure and PCI compliant payment transactions. That is to say, Square is fully compliant with the latest Payment Card Industry Data Security Standard (PCI-DSS). And that also means you won’t have to pay additional PCI fees or hire a team to manage ongoing compliance, either.

This out-of-the-box payment security is just one reason Square is such a powerhouse for the millions of small business owner who trust it.

Let’s take a look at the Square reader options next.

How To Use A Square Reader For Mobile Payments

We’ll start with the obvious: the Square reader. Assuming you have already downloaded the Square app, it’s effortless to accept payment with your reader.

  • Step One: Open the app on your device. You will already be at the screen you need to make a charge. No fumbling required!

Taking a Payment with Square

  • Step Two: If you have entered inventory into your Items list, find the item and click what you need. The total will automatically update.
  • Step Three: Tap the Charge button when you’re ready.
  • Step Four: Swipe or insert the card, or tap your connected reader. You can also manually enter the card number (keyed entry) if necessary.
  • Step Five: Your customer will sign their name and the sale is complete!

Don’t have a connection? Suffering from a spotty connection? Square’s offline mode helps you avoid losing the sale. Your customer’s data is securely saved in the app and the transaction will process when you connect your device to the internet again (WiFi or cellular connection). You must reconnect within 72 hours, though, or the transaction will cancel.

It’s really that easy. To see how Square stacks up next to other mobile credit card processors, check out our Mobile Credit Card Processing Comparison table.

Square Transaction Fees & Mobile Reader Costs

As stated at the start of the post, Square offers very transparent pricing. If you use Square Point of Sale on a smartphone or tablet with a mobile card reader, you’ll pay the standard processing fee of 2.75% per swipe, dip, or tap. And keep in mind that no matter what type of card your customer hands you, Square charges the same fee per transaction. If for some reason you need to key-in the credit number, you will pay 3.5% + 15 cents for manually-entered transactions. We will revisit the types of card-not-present transactions later in the post.

Let’s talk a little more about the Square Reader, because you do have some choices that go beyond the free magstripe device. The good news is that Square readers work with nearly all Android or iOS devices running the latest updates. If you’re in doubt, Square offers a compatibility tool so you can look up your device and see for yourself.

After signing up for a new Square account, you can choose which free Square reader you would like — and they’ll ship it directly to you for free. Depending on your device needs, you can choose between the lightning adapter for iOS or the standard 3.5mm headphone jack reader. The other option you have is to shell out $49 for the Contactless + Chip reader.

The free magstripe card reader is great for getting started, but I recommend considering the upgraded Contactless + Chip Reader for improved payment security in processing. (It also offers your customers more ways to pay you.)

Square Reader

Square also sells a small charging dock so you can keep your contactless reader fully charged through the day. If you opt for the contactless reader, you can also purchase a specially designed Otterbox case from Square. You can slide the contactless reader on the back of the case if you’re on the go. Unfortunately for Android users, the case only fits an iPhone 7 or 7 plus, but I have a hunch there will be more options for this one when the demand grows.

Can You Use A Square Reader With Multiple Devices?

You may be wondering about the possibility of sharing a reader between different devices — or maybe even switching readers. Good news! You can do either of those things! If you have more than one device, decide to upgrade a device (or reader for that matter), need to swap a device, or hand your Square reader to a different team member for them to plug into their phone, you can do so without an issue.

That’s because your account is anchored to your Square POS app, not to a specific reader. When you or your team member signs into the Square POS app, transactions go into the system automatically. You can use the same reader across different accounts, too. So if you have two businesses, or you have more than one Square POS app (like Square Retail or Square Restaurants), the reader works interchangeably with those as well.

Keep in mind that when you choose your reader, you may limit your usage. For example, you can only use the lightning reader with iOS, but the standard 3.5mm headphone jack reader is compatible with multiple devices. Of course, you can always purchase more readers to suit your needs and keep up with a growing team. As long as they are signed into your Square account, all sales will be synced to your account.

How To Use Square’s Countertop POS Systems

Square Register

If you are considering how you can use Square’s countertop POS systems to make business flow, here are your options:

Square Stand for Contactless and Chip:

When you use the Square Stand with the free Square Point of Sale (POS), you will need to bring along your own compatible iPad (most recent model) or purchase an iPad to go into your stand. The magstripe reader is built-in if you must swipe, but we recommend utilizing the Square Reader for contactless and chip payment for the latest payment security protections. The Square Stand also comes with a dock to keep the contactless reader charged and stable.

When it comes time to ring up an order, you’ll complete the sale just as you would through your mobile device, as the free Square POS app is still the engine that’s running the whole thing. The Square Stand for Contactless and Chip makes a great choice if you are looking for a more prominent, bonafide countertop POS option. It has a simplistic design with minimal cords and offers more screen real estate to find inventory and add to your sale.  

Square Stand for Contactless and Chip

With the Square Stand, you can run your Square POS app or the premium options created just for retail and restaurants. Find out why these might be a better option for you (and see the fee differences) by visiting our Square for Retail or Square for Restaurants reviews.

Square Terminal: 

The Square Terminal is a great all-in-one choice if you want a little more portability than the Square Stand offers. You can swipe, dip, or tap credit and debit cards, and it even has a receipt printer built right in. Terminal runs the free Square POS app, so it’s easy when it comes to ringing up a sale. You can also access features such as your customer directory, reports, and inventory tools.

If you are running Square for Restaurants, you won’t have access to all of the bells and whistles, but Square Terminal does have limited compatibility with the Restaurants POS. For example, you can pull up an open ticket and settle payments right at the table — complete with a receipt! When all is said and done, The Square Terminal can hold its own as an excellent countertop solution, but it’s also lightweight enough to use as a mobile solution. And because Square POS has an offline mode built right in, you don’t have to worry about losing connection. Transaction data is all saved safely with Square and ready to process when your device is back online.

Square Register:

They built the Square Register with both your and your customer’s ease of use in mind. There’s one 13.25-inch screen for you, and one for 7-inch display customers, complete with magstripe, chip card, and contactless payment processing built in! Square Register runs Square POS and supports Square Loyalty and other software add-ons. The Square Register also supports the back-end features of the premium Square for Retail software, such as the advanced reporting and inventory features, but can’t run the POS app itself. 

Not sure what you need? Check out A Guide To Square Credit Card Readers And POS Bundles to compare and explore your options. Below, we’ll break down the cost of the hardware we just talked about, and discuss the transaction fees associated with each.

Square POS Hardware Costs & Transaction Fees

As always, Square pricing is very straightforward. Below we’ve listed prices for the hardware and what it will cost you to process payments.

  • Square Stand for Contactless and Chip:  The cost for this one is $199.00. If you want to add an iPad, you can do so for $329.00. Note that the stand is only compatible with an iPad (2017, 2018), iPad Pro 9.7”, or iPad Air (1, 2). You’ll pay a flat 2.75% per swipe, dip or tap transaction at the Square Stand so long as you are running the free Square POS. Square For Restaurants and Square for Retail process at different rates — 2.6% + $0.10 for Restaurants and 2.5% + $0.10 for Retail.
  • Square Terminal: To get your business a Square Terminal, you’ll pay $399.00, shipping included. You can also opt to add on 20 rolls of terminal print paper for another $20.00. Your payment processing fee is 2.6% + 10¢ per swiped magstripe cards, swiped or inserted chip cards, and contactless payments.
  • Square Register: Square Register costs $999.00 to purchase it outright. Shipping is free, and it arrives in seven business days or less. It’s ready to start processing payments right out of the box, so there’s no fuss when it comes to launch time. Contactless payments, swiped or inserted chip cards, and swiped magstripe cards processed through cost 2.5% + 10¢ fee.

If you add on specialized software, such as Square for Restaurants or Square for Retail, you will have an additional monthly charge (both starting at $60/mo). Both of these premium POS systems are geared towards specialized businesses and include features such as advanced reporting (for retail), and table mapping (for restaurants).  

How To Accept Card-Not-Present Payments with Square POS  

Small Business Owner Using Square Customer Service

There may be some situations when you need to take a payment from your customer, and you can’t swipe, dip, or tap the card. Maybe you don’t have your reader with you, or you want to take an order over the phone. Whether the card is physically present or not, if you manually enter in the card information, it’s considered a card-not-present transaction.

In the next section, we will lay out the payment processing costs for such transactions. But first, let’s discover the ways you can process a card with Square if you don’t have your reader (or the card) in hand.

Virtual Terminal

If you log into the Square Dashboard from your computer, you can key in manual payments from your Virtual Terminal (not to be confused with the Square Terminal hardware). You won’t need additional hardware to complete the transaction. You simply go into the terminal and enter the amount, credit card information, and even add a note to describe the sale. Then you hit “Charge,” completing the transaction. You can also take “Card on File” payments from the Virtual Terminal (more on that below). If you have a Chromebook or Apple laptop, you can connect a basic magstripe reader to swipe transactions. In that case, you’ll pay the standard swipe rate instead of the keyed entry rate.

Card-on-File Transactions

Whenever you ring up a sale, you can also opt to save your customer’s card number on file for future use. After that, you always have the option of selecting “card on file” to complete the sale. However, keep in mind that whenever you ring a card-on-file transaction later and don’t swipe, dip, or tap, you have entered into “card-not-present” territory and slightly higher processing rates apply. 

Security Concerns with Card On File 

The Square app only reveals the last four digits of your customer’s credit card on file and does not save CVV card data to remain PCI compliant. Any time you make a transaction with Card on File, Square automatically sends a receipt to the customer so they have a record of the transaction, to help minimize the risk of unauthorized charges.

You should never save your customer’s card data unless it is stored with PCI-compliant software (such as Square). Businesses that store customers’ payment data improperly put everyone in danger of a breach, and the company can be liable for the breach, should it occur. Small businesses are targeted by fraudsters looking for unsecured data, and it is a lot more common than you may think. If you save the card on file through Square POS or Virtual Terminal, keep in mind that Square also requires you to obtain written consent to store the card on files — the site provides a form you print off and store somewhere secure. Also, your customer can revoke their consent to keep their card on file with you at any time.

Manually Keying-In Credit Card Information

In addition to the Virtual Terminal included with Square, you can always opt to enter credit card information manually with the Square POS app. Because there is a higher chance of fraud when you don’t capture the electronic data, it’s going to cost you a bit more to process. However, sometimes it is necessary to take these types of payments. Use your discretion with these types of transactions, and swipe, dip, or tap the card if at all possible to reduce your fees (and your chargeback risk). However, if a card is particularly worn down, the card reader is just misbehaving, or you don’t have your Square reader handy, it’s good to know you have a backup option to accept payments. 

Invoices

If you are looking for yet another workaround when it comes to processing payments, don’t have your reader handy, and you don’t want to key in the amount, you always have an option to send an invoice. Your customer will get the invoice via an email right away. From there, they can open their email and follow the prompts to enter in their credit card information from their own device. This is especially good for higher-value transactions where keying in the card number might send up a red flag. 

Check out our Square Invoices review for a more in-depth look at Square’s free software, but for now, what you need to know is that you can link your inventory to invoices, allow customers to send tips, take down payments, and even enable installment payments.

Square Keyed-Entry Transaction Fees

As we covered above, there are several scenarios in which you may want or need to key in your customer’s credit card information and more than one way to do it. Here’s how much it’s going to cost you to process these types of payments:

  • Keyed Entry Payments (Square POS Or Virtual Terminal): 3.5% + 15¢
  • Card-On-File: 3.5% + 15¢
  • Invoicing: 2.9% + 30¢

Is Square’s Credit Card Processing Right For You?

Square offers several solutions for businesses at every stage. That means that if you’re a one-person shop now, you don’t really have to worry about finding a new solution when you grow because Square offers so many scaleable hardware options. When it comes to taking payment at your storefront or on the go, there are many ways to go about it. And with a transparent pricing model, there are no surprises on the back end. Because Square offers an all-in-one solution with payment processing and PCI compliant security built right in, you don’t need to worry about jumping through hoops to keep up with the latest global payment security regulations.

So is Square right for you? Sometimes the best way to find out is to see for yourself! Consdier setting up a Square account and playing around with the possibilities. It’s free to set up a Square account, and there are zero commitments or contracts required.

If you are still weighing all of your options when it comes to processing, check out this Mobile Credit Card Processing Comparison table for a quick side-by-side view of some top-rated companies.

Reader eCommerce Retail Food Service
Free App & Reader Square eCommerce Square for Retail Square for Restaurants
Get Started Get Started Get Started Get Started
Free, general-purpose POS software and reader for iOS and Android Easy integration with popular platforms plus API for customization Specialized software for more complex retail stores Specialized software for full-service restaurants
$0/month $0/month $60/month $60/month
Always Free Always Free Free Trial Free Trial

The post How To Use Square To Accept Credit Cards In Person appeared first on Merchant Maverick.

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How To Start And Finance An Auto Body Shop Business

You’re an experienced mechanic that’s been working for someone else for your entire career. You’re ready to spread your wings and fly (or drive) right to your own auto body shop. Sound like you? If you’ve been bitten by the entrepreneurial bug, then maybe it’s time to set out on your own.

Even if you’re the best at what you do, venturing out into the small business world can be scary. If you’re an employee at a collision center, you probably feel like you have some stability. Why risk a “sure thing” to start your own shop, especially if you don’t have any previous experience running your own business?

Starting your own business is risky and it takes hard work (and a lot of it). But opening your own auto collision shop can be an extremely lucrative venture. The automotive collision repair market brings in billions of dollars in revenue each year, and studies show that revenue will only continue to grow in the years ahead. Isn’t it time you got your share?

If you’re thinking about starting your own auto body shop, this guide is for you. We’ll go through all of the steps of starting your own business, from creating a business plan to finding the right lender. We’ll review potential costs, hiring employees, and other critical steps to building a successful business. If you’re ready to take the next step into entrepreneurship, read on to find out how to get started.

Create A Business Plan

You’ve made up your mind: you’re ready to open your own collision or auto body center and you have an idea of how to do it. That’s good enough, right? Actually, you need to be more prepared before you even begin to move on to other steps in building your business. The best way to be prepared? Create a detailed business plan.

Let’s illustrate the importance of a business plan with an example. You’re going on a hike in the woods. There are lots of paths to choose from. Some of these paths may bring you out of the woods — your end goal — but there may be additional challenges along the way, like steep terrain. Some paths may be wrong altogether … and you’ll have to backtrack to right your course. In short, you can enter the woods without a map and risk getting lost. Or you can get a map ahead of time, plot out your course, and set out only after you’ve planned your route and know what to expect.

A business plan works in the same way. A good business plan outlines how to get from your starting point (launching your business) to your goal. Every entrepreneur has a different goal. Maybe yours is to run a successful local business that sets your family up for life. Maybe you have bigger goals — starting your own chain of auto body shops, for example. The most important thing is to set a concrete goal and create a map of how to get there.

Not only will a business plan keep you on the right track, but you must have a plan to present to investors or lenders when you’re seeking capital.

New to writing a business plan? At a minimum, here’s what you should include:

  • Executive Summary: A concise summary detailing each section of your business plan
  • Overview: A description of your business, including the legal structure, location, and type of business
  • Market Analysis: An overview of your market and a definition of your target market
  • Competitive Analysis: Strength and weaknesses of your competition
  • Management Team: The members of your management team and their responsibilities within your organization
  • Financial Projections: A forecast of the financial future of your business

Find A Location

As realtors say, “Location, location, location!” As you plan your own body shop, location is key, but there are a few other considerations to weigh before you put your name on that lease or mortgage.

You want to make sure that you purchase or lease the best location you can afford. Sure, that commercial property on the outskirts of town is much cheaper, but your customers have to be able to find you. Find a property that’s convenient for your customers and is located in a high-traffic area or at least off of a major road.

Another consideration is whether you’re going to buy an existing business or start from scratch. Buying an existing business comes with definite perks, including an established clientele, equipment, and even licenses and permits. However, there are a few drawbacks. This is one of the most expensive options, especially if the business is successful. You may also have to put additional costs into the business for renovations, like replacing outdated equipment.

If you start from scratch, you’ll rack up costs with the price of equipment, licenses, and building renovations.
Unsure of which to choose? Build a business plan looking at both options, calculate costs, and determine which makes the most sense financially, both in the short- and long-term.

Another option to consider is opening a franchise. With a franchise, you have less flexibility in terms of designing your brand and shop. However, you’ll have a working business model that takes a lot of the guesswork out of owning your own business.

Register Your Business

Before you open your auto body shop to the public, you need to register your business. Not only will you be seen as a legitimate business by your customers, but registering is also required when you want to hire employees, protect your assets, or seek capital from investors.

To register your business, you need to first determine what form of business entity to establish. There are several structures to choose from, including:

Sole Proprietorship

A sole proprietorship is the simplest business structure. This is best for businesses with just one owner. Sole proprietors can file their business profits and losses on their personal income tax returns. No paperwork is required to register as a sole proprietorship. However, this structure isn’t without its drawbacks. Raising money as a sole proprietorship is difficult, and you are personally responsible for the liabilities of your business.

Partnership

A partnership is a good choice for companies that will be owned and operated by two or more people. There are several different partnership types to consider:

  • General Partnership: Doesn’t require filing with the state and has few requirements
  • Limited Partnership (LP): One partner has unlimited liability and the others have limited liability. The personal assets of the limited partners can’t be used to satisfy the debts and liabilities of the business.
  • Limited Liability Partnership (LLP): Used by professional service businesses, this type of partnership offers personal asset protection for all partners.

Limited Liability Company (LLC)

An LLC has several benefits for business owners. With an LLC, a business owner will receive liability protection without paying the high tax requirements of corporations.

Corporation

This is the most complex and expensive business structure. More regulations and tax requirements are put in place for corporations. This structure is best for businesses that plan to raise capital through the sale of stock.

The type of structure you select for your business varies by the number of owners that you have and the future plans for your business. In most cases, however, single owners of auto body shops lean toward LLCs, while businesses with more than one partner select the partnership business structure. Before choosing your business structure, talk to your accountant and/or lawyer to find out which makes the most sense for your business.

Once you’ve determined your business structure, you’ll need to select a name for your business. Choose a name that reflects your brand and the services you offer. You also want to choose something that’s catchy and/or easy for customers to remember.

Your business will need to be registered with city, state, and federal governments. You’ll need to sign up for an employer ID number through the Internal Revenue Service if you plan to hire employees. To learn about the specific business license and permit requirements in your area, contact your local Chamber of Commerce, Department of Revenue, or Small Business Administration office to learn more.

Calculate Your Startup Costs

Every new business has one thing in common: the need for capital. In order to start your own collision center, you need money. The big question, though, is how much do you need?

One of the first steps to starting your own business is to calculate your startup costs. In order to do that, begin by making a list of everything you need for your business.

One of the biggest expenses for your new business will be equipment and tools. While your list may look a little different, some of the most common equipment and tools in this industry include:

  • Hydraulic Lifts
  • Hand Tools
  • Pneumatic Tools (Air Tools)
  • Air Compressors
  • Diagnostic Machines
  • Wheel Balancers
  • Paint Guns

Additional startup costs to consider include your business licenses and certifications, insurance, hiring employees, and shop rental or mortgage fees. You should expect to spend at least $50,000 to get your shop up and running. However, as you make a list of your costs and research pricing, this number could potentially rise.

Before you seek funding for your business, a good rule of thumb is to always overestimate your costs by about 30 percent. For example, if you calculate that your expenses will be $200,000, plan to seek $260,000 in funding. In other words, always plan for the unexpected.

Seek Funding

Now that you’ve calculated your startup costs, it’s time to figure out how to pay for it all. If your bank account looks a little low, don’t worry. Most entrepreneurs don’t have the funds to cover these costs out-of-pocket. Instead, they turn to a lender to get the financing they need. Consider these loans and other funding options when you need capital to start your new body shop.

And if you can’t find the option you’re looking for here? Check out more recommendations in the post, Business Loans For Auto Repair Shops.

Personal Savings

If you have money in a savings account, consider using these funds to pay your startup costs. There are several benefits to using your own money. You won’t be indebted to a lender, so there are no monthly or weekly payments to worry about. You also won’t have to pay interest or fees. On the downside, though, if your business fails, you risk losing your savings.

Friends & Family

If you have a friend or family member with extra money to invest, consider pitching your business to them. Present your business plan and tell them why they should invest in you.

There are two ways to go about this. You can stick with traditional debt financing. This means that you would take a loan from your friend, family member, or colleague and pay it back over a set period of time, along with interest and fees.

You may also consider equity financing. Instead of taking out a loan, you’d receive capital in exchange for ownership in your business. The investor would get their money back over time through a share of your profits. While the risk falls on the investor and you wouldn’t have to begin paying back money immediately, you would have to share your profits and lose some control over your business.

Unsure of which option is right for you? Learn more about debt financing vs. equity financing.

Personal Loans For Business

One of the biggest challenges a new business owner faces is meeting the requirements for a business loan. Many lenders – especially the ones with the lowest rates and best terms – want to work with established businesses with high revenues and solid business and personal credit histories. If you haven’t even opened your doors to a single customer, meeting these requirements is impossible.

However, if you have a high personal credit score, you can take out a personal loan to use for your startup costs. Time in business, annual revenue, and business credit history aren’t required to qualify for personal loans. Instead, you use your personal credit score and your own income to qualify.

If you choose this option, it’s important to make sure that your lender doesn’t have any restrictions prohibiting you from using funds to pay startup costs or other business expenses. Most personal loans don’t have restrictions and can be used to purchase equipment, hire employees, pay operating costs, or use as working capital.

Recommended Option: Lending Club Personal Loans

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Lending Club is a peer-to-peer lender that provides personal loans up to $40,000 to qualified borrowers. Repayment terms are 3 years or 5 years with APRs starting at 6.95% for the most creditworthy applicants. APRs for less creditworthy borrowers go up to 35.89%.

To qualify for a Lending Club personal loan, you must meet these minimum requirements:

  • Be at least 18 years old
  • Be a U.S. citizen, permanent resident, or live in the U.S. on a long-term visa
  • Have a verifiable bank account
  • Have a personal credit score of at least 600

In some cases, Lending Club may recommend adding a co-borrower to increase your chances for approval. If you meet all requirements, you can get funded in as little as 7 days.

As you grow a more established business, you can later take advantage of Lending Club’s business loans. Lending Club offers up to $300,000 in business funding with terms of up to 5 years and fixed monthly payments.

Lines Of Credit

A line of credit is a form of financing you should consider if you want instant access to cash without having to wait for lender approvals. Once you’ve been approved for a line of credit, you can make draws as needed to inject cash into your business.

Here’s how it works. You apply for a line of credit with a lender. The lender looks at a number of factors, such as your personal credit score or business performance, when determining whether to approve your application. These factors will also be considered when setting your credit limit.

Once you’ve been approved, you can initiate as many draws as you’d like from your line of credit up to and including the credit limit. Funds are typically transferred to your bank account immediately, and you can access the money in 1 to 3 business days with most lenders.

As you repay the borrowed funds plus fees and interest charged by the lender, the funds replenish and become available to use again.

Lines of credit are useful for unexpected expenses, emergencies, or to fill revenue gaps. Having a line of credit allows you to access money when you need it without having to go through the application and approval process over and over again.

Recommended Option: Fundbox

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Fundbox offers lines of credit up to $100,000 for qualified businesses. The lender charges a one-time fee for each draw that starts at just 4.66% of the draw amount. Terms of 12 weeks or 24 weeks are available, and automatic payments are drawn from your bank account each week. You can save by paying your loan off early, as Fundbox will waive all remaining fees.

There are two ways to qualify for a Fundbox line of credit. The first is by linking your business bank account or submitting bank statements. These will be used by the lender to evaluate the performance of your business. If you have unpaid accounts receivables, you can use these to qualify. All you have to do is link your supported accounting software.

Minimum requirements to receive a Fundbox line of credit are:

  • Business checking account
  • U.S.-based business
  • At least $50,000 in annual revenue
  • At least 3 months of transactions in a business bank account OR at least 2 months of activity in accounting software

Once you’ve filled out Fundbox’s quick application and have linked your accounts or submitted documentation, you can be approved in just minutes. Then, you can instantly put your line of credit to work for your business.

Business Credit Cards

Another option for fast funding is a business credit card. Once you’ve been approved for a business credit card, you can use it any time. You can use your card as often as you wish provided you stay within your set credit limit.

Business credit cards can be used anywhere credit cards are accepted. You can make purchases online or in-person. You can also use your card for recurring payments, such as utility bills, which is even smarter when you use a rewards card that gives cash back or other perks.

Like lines of credit, business credit cards are revolving forms of credit. This means that as you pay down your principal balance and interest, funds will become available to use again. Once you’re approved for a business credit card, your card is ready to use immediately whenever you need it. This makes it a great payment option for emergency expenses, purchasing supplies or inventory, or for paying recurring expenses.

Recommended Option: Chase Ink Preferred

Chase Ink Business Preferred



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Annual Fee:


$95

 

Purchase APR:


18.24% – 23.24%, Variable

If you have excellent credit, consider applying for the Chase Ink Preferred card. With this rewards card, you can receive 3 points for every dollar spent on combined purchases in travel, shipping, cable, internet, phone services, and advertising. Even though earning three points on these purchases is capped at $150,000 per year, you can still earn one point per dollar spent with no limitations on all purchases.

If you’re approved for the Chase Ink Preferred card and spend $5,000 within 3 months of opening your account, you’ll receive an additional 80,000 bonus points. Points can be redeemed for rewards including vacation packages, gift cards, Amazon purchases, and cash back.

This credit card comes with a variable APR of 18.24% to 23.24%. A $95 annual membership fee is required.

To qualify for Chase Ink Business Preferred, you must have good to excellent personal credit.

Rollovers As Business Startups (ROBS)

Withdrawing retirement funds may be tempting, but who wants to pay penalties and taxes for early withdrawal? Luckily, there’s a way that you can leverage these funds to put capital into your new business. This method is known as rollovers as business startups, or ROBS.

How does ROBS work? The first step is to create a C-corporation. Then, a new retirement plan is created for the C-corp. Next, the funds from your existing retirement plan are rolled over into the new plan. These funds are used to purchase stock in the new C-corp, giving you access to the capital you need to get your business running.

Sound too complicated for you? Then consider working with a ROBS provider. A ROBS provider will get everything set up for you legally and ensure you maintain compliance. In exchange, you’ll pay a one-time setup fee and a monthly maintenance fee with most ROBS providers.

When you use this type of financing to fuel your business, you don’t have to worry about repaying a lender. After all, you’re using your own funds. However, be aware that if your business is unsuccessful, you risk losing your retirement funds.

Recommended Option: Guidant Financial

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Guidant Financial is a ROBS provider that can help you leverage your retirement funds. All you need is a qualifying retirement or pension account. Qualifying accounts include:

  • 401(k)
  • 403(b)
  • Traditional IRA
  • TSP
  • SEP
  • Keogh

Qualifying accounts must have a minimum of $50,000. You must also be an employee of the business.
By working with Guidant Financial, you can receive funds in as little as 3 weeks. The setup fee is $4,995. You must also pay a Plan Administration fee of $139 per month.

Unsure if a ROBS plan is right for you? Don’t worry — Guidant Financial offers other business financing options including:

  • SBA 7(a) Loans
  • SBA Working Capital Loans
  • Unsecured Business Loans
  • Equipment Leases

Purchase Financing

If you’re looking for a way to pay your vendors that frees up some of your cash flow, purchase financing might be the solution you’re looking for. With purchase financing, your vendor gets paid immediately for your purchases – think tools, fluids, and other critical shop supplies. In the meantime, you’ll get additional time to pay. Instead of paying off the full balance of your purchase up front, you’ll be able to split it into more affordable regular payments.

Purchase financing gives you more control over your cash flow, freeing up funds and allowing you to pay back on a schedule that works best for your business. Of course, like with other financing, you do have to pay interest and fees for this service.

Recommended Option: Behalf

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Behalf offers purchase financing of $300 up to $50,000. You’ll receive up to 6 months to repay the lender and can choose between weekly or monthly payments.

Monthly fees for the service start at 1% and are based on creditworthiness. There are no additional fees for using Behalf’s financing.

There are no time in business or revenue requirements to qualify. However, Behalf performs a hard pull on your credit, considers business credit history, and looks at other business performance factors to determine if you are eligible for financing.

Choose Business Software

Small Business Online Accounting Software

To keep operations flowing smoothly, you need to pick the right business software for your repair shop. Business software helps you more efficiently run your business, from keeping up with customers to tracking your finances for tax purposes.

Accounting Software

Accounting software allows you to perform various accounting functions so that you can track and record all financial transactions. With accounting software, you can track accounts receivable and accounts payable. Most modern accounting software also offers additional tools including bill payment, payroll, and invoicing. You can purchase accounting software or pay a fee to subscribe to an online service.

Accounting software not only allows you to keep track of your finances at any time, but it also can be used to run financial reports that may be required to receive financing. These reports will also serve you well when it comes time to do your taxes.

No experience in accounting? Don’t worry — we have you covered. Check out our free eBook “The Beginner’s Guide to Accounting” that breaks complicated accounting concepts into ones that are easy to understand.

Auto Repair Invoice Software

Accounting software often has a feature that allows you to create and send invoices. However, you might want to invest in specialty software for auto body repair shops.

Auto repair invoice software includes a variety of tools that can be used to track service requests, create invoices and estimates, track leads, and manage inventory and orders.

Payment Processing Software

No longer do we live in a cash-only world. Now, customers almost always make their purchases using debit cards, credit cards, and even smartphones.

In order to be able to accept these forms of payment, you’re going to need a payment processing service. The payment processor serves as the communicator between your customer’s bank and your own bank, allowing you to process credit, debit, and other forms of payment.

For your auto collision business, you might want to consider getting a point-of-sale system. With POS software, you’ll be able to process credit cards, scan barcodes, print receipts, track inventory, run reports, and perform other functions. For a fee, your business can receive the software and hardware needed to best serve your customers.

Hire Employees

While you may start your collision center as a one-man operation, you have to hire employees if you want to grow.

One of the first hires you’ll make is a mechanic that will work on repairing vehicles. According to the Bureau of Labor Statistics, mechanics make approximately $39,550 per year. An auto body and glass repairer averages around $40,580 annually.

As you bring in more employees, you’ll also want to hire a manager to oversee them all. Salaries for managers vary widely based on experience and how many employees they will be overseeing. Managers may bring in anywhere from $45,000 upwards of $60,000 per year.

Eventually, you may also want to hire a front-desk receptionist. The role of the receptionist is to greet customers, answer the phone, and make appointments. This employee may also take payments from customers and handle some of the company’s bookkeeping. The average salary of a receptionist is around $27,000 per year.

Do some research to find out more about salaries in your area, as these numbers can vary. You also need to take into consideration that there are additional expenses associated with hiring employees including:

  • Onboarding & Training
  • Background Checks
  • Drug Testing
  • Taxes
  • Benefits

When you’re ready to hire an employee, there are a few ways you can find quality candidates. The first is to ask for referrals. If you know someone in the industry, ask if they know of any potential employees. Even if you don’t have connections with anyone in the industry, ask around among your friends, family members, and colleagues.

You can also post your jobs on online job boards. Make sure that your job listing has an overview of responsibilities and requirements for all candidates. As resumes hit your inbox, you can set up interviews and hire new employees for your business.

Bolster Your Web Presence

Before you even hold your grand opening, you need to start your marketing efforts. The best place to start is the internet. When researching new businesses, most people use their laptops or smartphones. If you don’t have a web presence, how will your customers find you?

Getting your business online is easy. Start with these simple steps.

Create Social Media Profiles

It seems like everyone’s on social media these days, from your teenage nephew to your grandmother. Social media doesn’t just connect friends and family members, either. It’s also a great place for users to find new brands and businesses.

Setting up your social media profiles is free and easy. Consider starting with Facebook, Twitter, and Instagram. Add your logo, contact details, and important information like services provided and hours of operation. As you build your business, you can update your profiles with specials, coupons, photos of your completed work, and other information.

Create A Website

You also want to make sure that you have a website that provides important details to your customers such as your shop hours, specials, and services provided.

No web design experience? No problem. These days, any small business owner can create a professional website with easy web builders that feature templates, drag-and-drop design, and other tools to create a website in just minutes.

Your website should be a reflection of your brand, so make sure to choose templates, photos, and colors that best represent your shop. Your domain name should also represent your brand, so make sure it’s easy to remember and avoid numbers, symbols, or very long URLs.

Your website shouldn’t be overly complicated, and it should be easy to navigate. You don’t have to load down your site with lots of information. Start off by including key info such as hours of operation, services performed, and contact information. Also make sure to highlight any features that make your shop stand out, such as certifications, free estimates, or rental car/shuttle services offered to your customers. In the future, you can add additional features such as a signup option for email newsletters or online scheduling.

This is all just the tip of the iceberg. Learn more about creating and maintaining an online web presence for your business.

Advertise Your Business

Your website and social media profiles are a great way to start advertising your business, but in order to grow and scale, you can’t stop there. You need to plan a marketing and advertising campaign to get the word out about your business.

Consider paying for social media ads or pay-per-click ads on search engines, or sign up with Yelp For Business. These options can be affordable for new businesses and are easy to set up.

You can also look beyond the internet to advertise your business. Consider placing flyers or door hangers in the area around your business to bring in new customers. Before you take this route, though, make sure to understand the local laws in your area regarding the posting of flyers on public and private property.

As your business grows and becomes more successful, you can explore options including radio and TV advertisements and mailers. However, these ads are typically quite expensive, so hold off on these options until your business is bringing in steady revenue.

One of the most important things to remember here is that word-of-mouth advertising is one of the best forms of advertising. If you perform a great service, your customers will tell others about your business. Keep customer satisfaction high to increase those referrals and draw in more revenue for your body shop.

Final Thoughts

While you may be itching to get your auto body shop off the ground immediately, a business isn’t born overnight. Take the time to plan out your business, and you’ll increase your chances for success. The hard work doesn’t stop after your grand opening, either. You’ll need to continue working hard to bring in customers, increase your revenue, and become a successful entrepreneur.

The post How To Start And Finance An Auto Body Shop Business appeared first on Merchant Maverick.

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How To Use PayPal In Stores (And Other PayPal Questions)

The name PayPal is synonymous with P2P payments and digital wallets for consumers, but over the years PayPal has also dabbled in creating options for users to pay with their PayPal balances in stores. Despite a few failed attempts, PayPal seems to finally have worked out the kinks in the process. PayPal users can now use near field communication (NFC) technology to spend their balances at brick-and-mortar shops.

Wondering “how do I pay with PayPal in stores?” Do you have other questions about PayPal payments or how PayPal works in general? The answers aren’t always easy to find. Thankfully, Merchant Maverick is here to help. Let’s take a look at the answers to these questions and more and set the record straight about all things PayPal!

How Do You Pay With PayPal In A Physical Store?

If you have a PayPal balance and you want to spend it in a brick-and-mortar store, you actually have two options: NFC-based payment using your Android phone, or a PayPal-issued card (of which there are several options).

It’s also important to know that PayPal has discontinued two in-store payment options it previously offered: payment codes and the mobile phone + pin method. (Support ended for both on March 31, 2018.)

Let’s start with looking at the card options PayPal offers, and then we’ll talk about NFC payments with PayPal.

PayPal offers MasterCard-backed debit cards for business and personal users, depending on what type of account you have. For consumers, there’s even a prepaid card that allows you to load your PayPal balance in set increments, among other perks. These cards are linked to your PayPal balance and even allow you to withdraw cash from ATMs at no charge from PayPal (the machines themselves may still charge a fee).

PayPal also offers two branded credit cards (though, apart from depositing cash back rewards into your bank account, these cards have very little to do with your actual PayPal balance). The PayPal Cashback MasterCard (read our review) and the PayPal Extras MasterCard (read our review) offer different perks and incentives for their users.

Can You Use PayPal Credit In Stores?

Currently, PayPal doesn’t support the use of PayPal Credit in stores. Note that PayPal Credit exists separately from PayPal’s credit cards. PayPal Credit specifically applies to online purchases and offers 6 months of no-interest financing on purchases.

Where Can You Pay With PayPal In Stores?

There’s no specific list of businesses or locations that accept PayPal payments in-store, because the debit and credit cards are accepted by any merchant that can process MasterCard, which… is just about any business that can process credit cards to begin with. Likewise, to accept NFC payments, merchants need to have the appropriate hardware — specifically, an NFC-capable credit card reader or terminal.

How Do You Set Up PayPal NFC Payments?

At the time of writing this (February 2019), PayPal doesn’t currently support NFC payments from directly within the app itself. Instead, PayPal has opted to form a partnership with Google to allow Android phone users to connect PayPal to their Google Pay accounts and even make it the default payment option. That means in order to pay with PayPal in stores, you need an Android phone that supports Google Pay.

However, you can connect your PayPal balance to Google Pay from within the PayPal app. PayPal will ask you to set a PIN and also specify a top-up amount if your PayPal balance drops below a certain threshold or your PayPal balance doesn’t have enough funds to complete a purchase. (You should also open the Google Pay app and make sure that all of your settings are as you would like on the Google end of things.)

Samsung Galaxy users can also add a PayPal account to Samsung Pay if they prefer. Both options are easily accessible within the Settings menu of the PayPal mobile app.

Can You Add PayPal to Apple Pay?

Unfortunately, PayPal does not currently support NFC payments with Apple devices, and you cannot link your PayPal balance to Apple Pay or Apple Pay Cash. That may change in the future, but for now, it’s not an option. You won’t see an option to link PayPal in the Apple Pay wallet setup, or in the PayPal app on an iOS device.

However, Apple does allow you to link your PayPal balance to your iOS account so that you can use PayPal to pay for iTunes purchases, as well as iCloud and Apple Music subscriptions. By enabling PayPal’s One Touch feature, you can eliminate the need to log into your PayPal account to authorize each purchase.

How Can Merchants Accept PayPal Payments?

The good news is you don’t have to be a PayPal merchant to accept payments from PayPal customers in stores. (If you want to accept PayPal payments online, that’s another story and I suggest you check out our PayPal review to see whether the company’s merchant services fit your needs.)

Keep in mind that customers have two ways to pay with PayPal: using one of PayPal’s MasterCard-backed debit or credit cards, or NFC payments. The good news is that if you already accept debit or credit card payments, you don’t need to do anything more to accept PayPal cards. As long as your agreement includes MasterCard processing (and it almost certainly does), you’re good to go! If you don’t currently accept credit/debit cards and are considering making the leap, we recommend checking out our top-rated credit card processors as a starting point!

For most customers to pay with NFC via Google Pay, you (the merchant) need to have NFC-enabled hardware. Look for the contactless payment symbol on your credit card reader/terminal, or check the specs in the user manual or online. Samsung Pay users can use a nifty feature called MST (magnetic secure transmission) to emulate a card swipe even if the terminal doesn’t support NFC hardware, but you likely won’t see this feature used very often.

Now What?

PayPal offers an almost dizzying array of payment tools for both consumers and merchants, and it’s likely we’ll see the features list grow even longer in the future. Will we see NFC support in the PayPal app directly, or added support for Apple Pay? Currently, that’s an unknown, but in the meantime, we can all appreciate the fact that the future has finally arrived and we can actually spend our PayPal balances in stores — not just online.

The post How To Use PayPal In Stores (And Other PayPal Questions) appeared first on Merchant Maverick.

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The Best Mobile Credit Card Readers For iPhone and iPad

If you’re in the market for a mobile card reader and a credit card processing app, there’s no shortage of options. The trick is finding the right option for a given business. One of the big factors that determine which apps are suitable is what kind of smartphone or tablet you have. Fortunately, if you have an iOS device — that is, an iPhone or an iPad — you have plenty of options.

Our Top Picks For iOS-Based Credit Card Readers & Mobile Apps

The first decision when choosing a card reader and mobile processing app is selecting the device itself. For the most part, iOS-compatible mobile apps and readers support iPhones and iPads alike with no major issues. But after you’ve narrowed down the list of apps based on supported devices, you’ve still got several other factors to consider — transaction costs, monthly fees, essential features, whether you want a standalone mobile app or something that supports invoicing and online payments… and that’s just to get the list started! The cost of the card reader and accepted payment methods are just as important as app features when you’re dealing with mobile processing.

So without further ado, here’s a list of our favorite card swipers and mobile apps for iPhones and iPads, as well as why we like them.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

Payment Depot (Swipe Simple)

Payment Depot (read our review) offers a subscription-based pricing model for its merchant accounts, with a host of software options for businesses to choose from (including Clover). Standard pricing plans for Payment Depot start at $49/month, with transactions processing at interchange + $0.15. However, if you’re looking for a mobile solution that runs on an iPad or iPhone, Payment Depot offers the Swipe Simple app, and Merchant Maverick readers can get access to special pricing that’s competitive even for low-volume merchants.

With this exclusive plan, you’ll get the Swipe Simple app and payment processing at 2.6% + $0.10 per transaction, with only a $10 monthly account fee. Remember, this is a Merchant Maverick exclusive, so you’ll need to use our link in order to get the special pricing.

Swipe Simple is a very functional credit card processing app. It runs on iPhone and iPad devices, as well as Android hardware. It even comes with a demo mode so you can test out the app before you sign up, which is always nice to see. There’s limited inventory management, but you can track stock counts. There’s even an offline mode. Check out our Payment Depot Mobile/Swipe Simple review for a closer look at the software.

In addition to the app, Payment Depot offers a choice of two readers. The Swift B200, a Bluetooth-enabled reader that supports magstripe and chip card transactions, is available to merchants for free. If you’d like to add contactless payments, you can get the Swift B250 for just $25, which is a fantastic price for an all-in-one card reader.

Shopify Lite

Shopify (read our review) is mostly known for its ecommerce platform, but it has also developed a quite powerful POS app that integrates with its online shopping tools. Shopify POS is included for free in all standard Shopify ecommerce plans, but if you don’t plan to sell online or only need some very basic online sales tools, there’s another option: Shopify Lite (read our review), which lets you create “buy” buttons and run a Facebook store for online sales, as well as giving access to the Shopify POS.

Shopify Lite will run you $9/month and 2.7% per transaction, which is a reasonable cost. The POS app runs on both Android and iOS, but an iPad offers the best user experience and access to the most features. However, keep in mind that the Lite plan is still limited even with an iPad; specifically, there’s no support for a cash drawer, barcode scanner, or receipt printer. That feature is only accessible with the Shopify Basic plan, which costs $29/month and includes a full web store with unlimited products.

Shopify also offers a free Chip & Swipe Reader for its merchants. It retails for $29 normally, which is still a great price for a Bluetooth-enabled chip card reader. We’ve reviewed the Shopify Chip & Swipe reader already, and you can check that out for a closer look.

Square

Square’s mobile point-of-sale app, simply called Square Point of Sale, gets a lot of love, and rightfully so. The app is free to use and you only pay a per-transaction fee of 2.75%. Square’s pricing makes it very attractive for low-volume and startup businesses, and there is an assortment of hardware options available. The Square Point of Sale app supports both iOS and Android devices, but certain features are not universally supported. An iPad gives you access to the vast majority of these features, but the iPhone supports all of the core features and many of the secondary, non-universal features. Check out our in-depth Square POS review for a comprehensive look at the free POS app and its features. For a closer look at the rest of Square’s products, check out our complete Square review.

As far as hardware goes, let’s start with the basics. Square has been offering a free basic magstripe reader for a long time, and it still does. (Note: you can also get the Square reader in some retail stores for $10.) However, the removal of the 3.5mm headphone jack from newer iPhone models has complicated matters somewhat. Square responded by rolling out a Lightning port magstripe reader. When you sign up for your free Square account, you can choose which model of reader you need. Square no longer offers multiple free readers; after the first one, you’ll pay $10 per reader.

However, it’s important to also consider accepting EMV chip cards, especially if you’re doing a consistent volume of business or large transactions. Square’s Contactless + Chip Reader supports both EMV and contactless NFC payments. It includes a separate magstripe reader for swipe transactions.

The Contactless + Chip Reader sells for $49, but Square does offer financing for hardware purchases that cost at least $49 (convenient, isn’t it?). You can also purchase cash drawers, receipt printers, and even tablet stands directly from Square.

Want to know more about Square’s hardware? Check out A Guide to Square Credit Card Readers & POS Bundles for an in-depth look at your options.

Fattmerchant Mobile

Fattmerchant Mobile isn’t an option that I talk about a lot, mostly because it’s best targeted at high-volume businesses. However, until recently, it was an iOS-exclusive, and even now, the iOS platform is more robust than its Android counterpart. Fattmerchant (read our review) offers customers their own merchant accounts, which translates to a high degree of account stability. Its Omni platform, which includes the mobile processing app, invoicing, and a customer database and inventory management, combines many core features in a single platform. Check out our Fattmerchant Mobile review for a more comprehensive look at the app and its features.

Fattmerchant operates on a subscription pricing model, with a monthly fee that starts at $99/month. Mobile and invoice transactions cost interchange fees + $0.15 per transactions — there’s no percentage markup at all. However, if you opt for the mobile credit card carder, you’ll get the card-present rate of interchange fees + $0.08 per transaction. You can simply key in all the transactions if you prefer — just know that you’ll pay higher interchange fees in addition to the $0.15 markup.

Fattmerchant offers a choice of two different card readers, the BBPOS Chipper BT and the BBPOS Chipper X2 BT. The Chipper BT model supports both magstripe and chip card transactions and connects to your device via Bluetooth. It goes for $75. The Chipper X2 adds contactless payment support to the magstripe and chip card readers and also connects via Bluetooth. It goes for $100.

Honorable Mentions

While I have no qualms with saying the four options I’ve presented are the best of the best, there are a couple of other mobile apps and card readers that are good options for iPhone and iPad users. So let’s talk about them!

PayPal Here

PayPal Here integrates with the rest of PayPal’s services so that you can sell online and in person seamlessly, much like Square. While it doesn’t offer quite as many features as Square, it’s still a very functional mobile app. Check out our PayPal Here review for a closer look at all the features.

PayPal Here processes payments at 2.7% per transaction, with keyed entry at 3.5% + $0.15. PayPal no longer offers a free card reader. Instead, you’ll need to shell out $15 to get its magstripe reader. PayPal will also place limits on your account if you opt for the magstripe reader, making it viable mostly for very low-volume businesses. As an alternative, PayPal offers two Bluetooth enabled cardreaders, starting with the Chip and Swipe reader, for $24.99.

If you also want contactless support, PayPal’s Chip and Tap Reader (retail price $59.99; bundle with stand $79.99). However, there’s another option for iPad users who want a more robust software option: Vend (read our review) with a PayPal integration. You’ll get PayPal’s 2.7% rate for payment processing with no monthly fee from PayPal. Of course, you’ll have to choose your Vend plan as well — and get the appropriate hardware. You’ll need the PayPal Chip Card Reader, which goes for $99.

PayPal + Vend POS
Advanced POS software
Easy credit card processing integration
Get Started For $0

SumUp

SumUp (read our review) isn’t quite as complex or feature-laden as some of the other options on this list, but if you just need an iPad or iPhone credit card reader and app, SumUp will get the job done. Payments process at 2.65%, and there’s no monthly fee to use the software. For a better idea of how SumUp stacks up against the competition, I suggest checking out our Square vs SumUp comparison.

SumUp’s cardreader, at $69, is definitely a little expensive, but it’s a beautifully designed piece of hardware. It’s Bluetooth enabled and supports magstripe, chip card, and contactless payments. You can also occasionally catch it on sale for a reduced price. I suggest checking out our SumUp unboxing review for a closer look at the reader.

Which iPhone/iPad Credit Card Swiper Is Right For You?

In payment processing, especially mobile processing, it’s impossible to take a one-size-fits-all approach, so it’s really important that you, the business owner, spend some time figuring out what features you need in a credit card processing app. You should also consider what kind of pricing model works best for your business, and do the math to see what you’d really pay with each option on your short list. And of course, there’s the card swiper, too. While a free magstripe reader might be enticing, you should really consider upgrading to a chip card-capable reader to protect your business.

App Name Square Shopify Lite Payment Depot Mobile Fattmerchant Mobile

Payment Depot merchant services review

Review

Visit Site

Review

Visit Site

Review

Visit Site

Review

Visit Site

In-Person Transaction Fees

2.75%

2.7%

2.6% + $0.10

Interchange + $0.15

Monthly Fee

$0

$9

$10

$99

Monthly Minimum

$0

$0

$0

$0

Type of Processor

Third-Party

Third-Party

Merchant Account

Merchant Account

Account Stability

Good

Good

Excellent

Excellent

Card Readers

Free magstripe reader (Contactless + Chip Reader $49)

Free Chip & Swipe Reader (retail price $29)

Free Swift B200 reader (chip and swipe)

BBPOS Chipper BT (chip and swipe, $75; swipe, chip and contactless, $100)

The takeaway is that there is no shortage of great credit card processing apps for iPhone and iPad users! And you’ll get a great assortment of credit card readers to go with. Don’t forget to check out our companion article, The Best Credit Card Reader Apps to Android.

Thanks for reading! What’s your favorite credit card processing app and mobile card reader for iOS devices?

The post The Best Mobile Credit Card Readers For iPhone and iPad appeared first on Merchant Maverick.

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The Complete Guide To Stripe Pricing And Costs

Are you curious about what makes Stripe different than other third-party processors like Square and PayPal? And if the costs are comparable? Come along as we explore Stripe — a lesser-known payment processing option that has definite potential when it comes to eCommerce.

Even though Stripe has less name recognition than competitors Square and PayPal, Stripe has likely processed many of your recent online shopping transactions without you even realizing it. That’s because Stripe powers payment processing behind the scenes for some of the biggest retail chains around — places like Target, Lyft, Facebook, Adidas, and Under Armour. Yes, Stripe has one of the most respected and well-trusted platforms in the world, but instead of providing branded, customer-facing tools like its peers, it focuses on delivering developer-friendly solutions with extensive code libraries and lots of customization options.

If you are looking for a ready-made, polished solution for eCommerce payment processing, Stripe may not be the ideal choice. A solution like Square may be much better suited to your needs. If, however, you want to build your payment processing platform from the ground up (and have the technical resources to do so), you’ll find a range of robust, world-class developer tools.

In this post, we’ll talk about what kind of payment processing Stripe provides (and why it matters), and then dive into costs associated with transactions and/or other handy tools you may need.

Overview Of Stripe

Stripe is a third-party payment processor — just like PayPal and Square. Traditional merchant account providers vet and approve each individual merchant, creating a single account for that business. Third-party processors, on the other hand, make it much easier for a business to quickly access payment processing services because they combine many business accounts together into one giant account. Stripe’s processing model relies on maintaining account volume to reduce risk for the group as a whole; for that reason, it can become a bit of a numbers game for them to remain profitable. If something looks fishy, they are more likely to terminate, freeze, or put an account hold on a business without a lot of warning.

Now, most of us feel a bit squirmy when we imagine our hard-earned revenue potentially held ransom in a purgatory account, but the truth is, freezes and holds happen only to a tiny percentage of businesses — and typically only after certain red flags have been raised. If you want to learn more about how to avoid waving some of these red flags, check out our post: How to Avoid Merchant Account Holds, Freezes, and Terminations. The majority of business owners will not have to worry about a freeze or hold, so it’s important to keep that whole issue in perspective.

Now back to the good news. Stripe has a lot of features and benefits for a growing small business, such as:

  • Transparent pricing
  • No monthly or termination fee
  • Payment security using advanced machine learning  
  • Libraries in every language
  • Display multiple currencies (add 1% for automatic conversion)
  • Versioned API changes
  • Test-friendly environment
  • 24/7 live chat and phone support
  • iOS and Android dashboard apps

And when it comes to creating the finished solution, you don’t have to do it all. There is a workaround for those of us who may not have all of the coding skills (or time!) to build it all from the ground up. Stripe has established platform partners to integrate a range of small business tools from accounting, automation, form building, CRM, inventory management, and booking — just to scratch the surface.

One thing we like about Stripe is that, unlike some companies, Stripe offers support for safe and PCI compliant migration of credit card data whether you are coming or going. Some third-party processors don’t support exit migration at all, so this is a nice touch.

Now that you are a bit more familiar with this platform, let’s check out the costs associated with processing payments.

Stripe Payment Processing Costs

Most savvy business owners want to cut to the chase. “Great, so how much does it cost?”

Stripe’s payment processing costs are straightforward, but your per-transaction costs will largely depend on the type of transaction you’re processing. Discounts and some pricing differences apply, so stick with me as we go through some different scenarios.

Online Transactions

For any eCommerce transaction (including in-app and mobile web payments), you are going to pay 2.9% + $0.30 per successful card charge. It doesn’t matter whether you process Visa, MasterCard, American Express, JCB, etc. — all cards cost the same to process. You also pay the same price whether you build your own site or connect to a third-party shopping cart.

Another great thing about Stripe is that you can accept international cards (for an additional 1%). If you need to convert the currency, however, you’ll have to pay another 1% on top of that. This is great for businesses that sell internationally, especially combined with Stripe’s ability to present prices in the customer’s local currency. 

Stripe also allows merchants to accept more than just credit cards, providing the tools that allow you to manage ACH and other payment options. Here is what it’s going to cost you:

  • ACH Credit: Starting at $1.00 per ACH credit payment
  • ACH Direct Debit: 0.8% per transaction, capped at $5
  • Wire: $8.00 per wire payment

Stripe also allows you to verify your customers’ bank accounts at no extra charge. That’s a nice touch. However, if payment doesn’t go through, you are looking at $4 for failed ACH direct deposit payments and $15 for disputed ACH direct debit payments.

In-Person Transactions

 

Stripe POS

Want the same customization for your pop-up shop or brick-and-mortar store that Stripe brings to your online presence? Introducing the Stripe Terminal!

For in-person payment processing with the Square terminal, you’ll pay 2.7% + $0.05 for each successful card transaction. But before you get too excited, Stripe Terminal’s programmable point of sale is currently in beta and available upon invitation only. You can request approval now, and if you are approved, you can buy a developer kit to run in test mode until they begin supporting transactions in live mode (this is expected to roll out very soon).

When it comes time to choose your reader, you can integrate with the Stripe Terminal through a combination of an iOS SDK and mobile reader or a JavaScript SDK and countertop reader. Stripe suggests the latter if you’re looking for a fully branded experience and have a strong developer proficiency.

Payment Security Note: As far as payment security and PCI-DSS compliance go, the Stripe Terminal is EMV Levels 1,2, and 3 pre-certified. So it can help a wide range of businesses get started without having to dedicate extra resources to payment security. But for now, you’ll have to wait to process live payments until it graduates from beta testing.

Does Stripe Offer Alternative Pricing?

QuickBooks For Nonprofits

We do get a lot of comments about the fact that Stripe (and other third-party processors) can be expensive for some businesses. Fortunately, Stripe does offer volume-based discounts for large businesses. In addition, you may be able to qualify for custom pricing if you run a nonprofit or have a unique business model. Stripe doesn’t give any hard and fast details about alternative pricing, however, so you’ll have to contact the sales team and discuss your business model with them directly.

Does your business process very small transactions ($10 or less) on a regular basis? The $0.30 per-transaction fee might be prohibitively expensive, and an alternate payment model catering to these microtransactions can save you money. Here’s what Stripe says about support for microtransaction payment processing:

Microtransaction support varies from market to market. If you process more than $100,000 per month or have a unique business model such as marketplaces, microtransactions, or unusually large order values, reach out to us, and we can discuss availability and options. In markets where microtransactions aren’t available, a common approach is to batch together multiple transactions from the same customer and submit them as a single, larger charge.

Stripe Pricing For Other Tools

Stipe offers a healthy selection of additional tools and add-ons. Below, we break them down for you and include information about pricing to help you make an informed decision.

Billing

Stripe Billing offers recurring payments and subscription tools built around the customer experience. For the recurring business model, you will have a lot of tools to help you engage customers and reduce turnover (more on that below). And as far as billing your customers with one-off invoices or setting them up for automatic recurring payments, there are no limits on how many invoices you can send, ever.

To be clear, all Stripe Billing fees are charged in addition to the processing fee (2.9% + $0.30 per successful charge).

If you’re only expecting to process a small volume of recurring payments, or you’re new to Stripe, the Starter Plan has everything you need. Your cost for using the Billing tools is 0% for the first $1 million of recurring charges, and then 0.4% after that. Stripe doesn’t charge anything extra for one-off invoices. 

For businesses that are billing at large volumes and want advanced features to manage billing from order cash, Stripe offers the Scale plan. You will pay 0.7% on recurring charges, in addition to the payment fees of 2.9% + 30 cents per successful charge to a card. However, Stripe also offers discounted ACH to businesses on the Scale plan, so there are potential cost savings.

Here is a screenshot from Stripe’s comparison of their Starter and Scale packages:

Stripe

The above is a long list of out-of-the-box tools you can put to use pretty quickly. Even just the business analytics, reporting, recovery tools, and webhooks make a compelling case of high value to cost ratio. Stripe touts that its recovery tools have “reduced payment declines for users by 45% on average and increased revenue by 10% on average.”

All-in-all, any SaaS or subscription-based business could benefit from the features in Stripe Billing — and Stripe offers a free trial with no setup or fixed monthly fees, so there doesn’t seem to be a downside to trying it out.

Connect

Connect is “the payments platform for platforms.” If you are a marketplace or a platform, you can utilize Stripe Connect to accept money and pay third parties. Connect is API-first, meaning you have the freedom to design a unique experience including onboarding, set payout timing, and integrated financial reporting, to name a few.

Connect has three account options including Standard, Express, and Custom. The cost for Connect Standard is included with Stripe — you have no additional platform-specific fees to add payments to your platform. Additionally, you’ll get a full Stripe Dashboard, dynamic risk-based KYC/AML checks, international support in over 25 countries, and hosted onboarding and verification.

Custom and Express Connect costs $2 per active account per month + 0.25% of account volume. With these accounts you can do things like build branded onboarding flows, control payout timing and funds flow, automate 1099 tax form generation and delivery, and have a platform management dashboard. The difference between Express and Custom is revealed in the names themselves. Express is a faster option requiring low integration effort to onboard recipients quickly and at scale (e.g., an on-demand marketplace), while Custom is an option for platforms to completely customize the user experience.

International connected accounts will run an extra 0.25% cross-border charge on monthly account volume. Additional fees also apply if you utilize Connect tools such as account debits (1.5%) and payouts ($0.25 per payout). However, as with Stripe’s other pricing models, the company is always up for discussing volume pricing for large platforms and alternative pricing options for low volume accounts. And if you’re a startup affiliated with Stripe Atlas Network, you can contact Stripe to learn about their custom startup package.

Stripe Connect

Sigma

Sigma connects you to your business data with a wide range of applications from business operations to finance, data analysis, and product management. Sigma doesn’t require any setup or ETLs; all you need to do is write SQL queries to create the custom reports on your dashboard. Pricing for Sigma is based on how many charges, authorizations, and application fees your business processed in the previous month. Fees start at $0.02/charge for 1-500 charges and incrementally decrease with charge volume.  

Radar For Teams

While all of Stripe’s payment processing software is fully PCI compliant and therefore meets global payment security standards, Radar is available as well. Radar bolsters your defenses through advanced machine learning. Radar learns from “hundreds of billions of data points across the Stripe network to help millions of businesses fight fraud.”

Radar is included with your standard and custom pricing plans. However, Radar for Fraud Teams is also available for an additional cost of $0.02/per transaction. Radar utilizes data and tools that support the detection and blocking of fraud, and it can decrease the false positives that block legitimate customers, too. Stripe has done a very good job at creating layers of security and data insights into their product — and you don’t need to dig into the code to make use of it because it all happens at your dashboard!

Is Stripe A Good Fit For You?

It’s pretty clear that Stripe goes far beyond your run-of-the-mill payment processing solution. The real meat of Stripe is its rich developer tools that give you the power to customize everything about the payment experience while giving you deep insights and analytical data you can use right away.

Businesses that want a fully branded, ready-to-scale solution — as well as subscription-based businesses, marketplaces, and tech-focused companies — will likely find all the tools they need and then some. However, for the eCommerce business that simply needs a reliable and secure payment processor, Stripe may be overkill. If you don’t have the technical expertise or don’t have developers on staff, you may never tap into Stripe’s potential. An option like Square may be a better fit. Square offers fast setup, no recurring fees, and up-front pricing that suits most small businesses nicely. Additionally, Square provides an extensive dashboard that reveals basic business and financial analytics with no integration required.

Not sure what you need? Check out our Stripe vs Square comparison or read our Stripe Review for an in-depth analysis. Or if you want to explore your options even further, check out How to Choose an eCommerce Merchant Account.

The post The Complete Guide To Stripe Pricing And Costs appeared first on Merchant Maverick.

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How To Find Out If You Are Prequalified For A Credit Card

So you’ve decided your business needs a new credit card. Unfortunately, you’ve heard that the credit card application process can negatively impact your credit score, and since credit history can impact your business’s ability to make financial moves in the future, you don’t want to apply for a card unless you’re sure you’ll be approved.

Luckily, many issuers offer checks to see if you’re prequalified for their credit card offers. This will give you a chance to see if you should go through with applying for a card. Once you’re prequalified, you’ll have the confidence needed to go through the full-on application process.

For everything you need to know about prequalification, keep reading. We’ve got you covered!

What Does “Prequalified” Mean?

Prequalified means that you’ve been selected as potentially “qualified” by a credit card issuer for a particular card offer. Usually, the issuer has done a soft pull on your credit score and found that you’ve met the certain criteria necessary to qualify for the credit card. This soft pull should not affect your credit score.

In some cases, you may also be deemed prequalified because an issuer bought your information via a marketing list from a credit bureau. In this case, the issuer may check if you are on their list to see if you are prequalified.

If you are prequalified for a credit card, you have an 80% to 90% chance of actually qualifying for the card should you go through the application process. It’s worth adding that you don’t need to be prequalified in order to apply for a card—you can still be approved without prequalification. This process just gives you extra confidence before actually applying.

Note that by actually applying for a card, the issuer will likely perform a hard pull on your credit history. This will show up on your credit history. In most cases, a hard pull won’t be a problem long-term because having a credit card should only help your credit into the future (as long as you follow the best practices for a credit card). However, you’ll want to avoid applying for too many cards in quick succession as frequent hard pulls in a short span may lower your credit score.

How To Get Prequalified For A Credit Card

There are several ways to get prequalified for a credit card. Here are the most common:

  • Online: By far, the best option is to go to an issuer’s site and check for prequalification via their own checking tools. In most cases, this will take only a few minutes. Plus, you’ll be able to see if you qualify for a card offered by an issuer you already like. In addition, some of our favorite credit scoring-checking websites also have prequalification tools readily available for you to use.
  • By mail: Issuers frequently send out credit card offers to people who have met their prequalification criteria already. As such, if you’re looking for your next card, simply opening up your mail might be a quick and easy option. Of course, this method doesn’t offer much flexibility when it comes to what you’re preapproved for.
  • In-Person: Many physical bank branches offer prequalification checks. Note that you may already need to be a member of the bank beforehand, however. Additionally, you might be able to go to a retail store and find out during check-out if you’re prequalified for that store’s co-branded credit card.

Most major credit card issuers let anyone check online for prequalification:

  • American Express
  • Bank of America
  • Capital One
  • Chase
  • Citibank
  • Credit One
  • Discover
  • U.S. Bank

Other issuers—like Synchrony Bank, Wells Fargo, or USAA—either don’t have an online prequalification service or only let current members check online.

FAQs About Prequalified Credit Card Offers

Will getting prequalified hurt my credit score?

In almost all cases, no. This is because issuers do a soft pull on your credit history, which does not impact credit scores. Note that actually applying for a card (which causes a hard pull) will affect your credit history.

Can I get prequalified if I have bad credit?

Yes. Different issuers have different requirements when it comes to prequalifying someone for a credit card. So just because you weren’t prequalified for a particular card doesn’t mean you won’t be prequalified for another one.

Curious which credit cards are aimed towards people with bad credit? Merchant Maverick has your back.

Is there a difference between being pre-approved and prequalified?

Yes, although the difference is very slight. If you’ve been prequalified for an offer, it means that your credit score likely falls within the recommended range for a particular card. If you’ve been pre-approved, however, the issuer has targeted you more specifically for an offer.

Do I have to get prequalified before applying for a credit card?

No, becoming prequalified just gives you extra confidence before actually applying. You can still be approved for a credit card without being prequalified.

Final Thoughts

Prequalification processes can help give you peace of mind before applying for a credit card. They can potentially shield your credit score from an unnecessary hard pull and save you hassle, letting you focus on what matters—your business.

Did a check but didn’t get prequalified? Find out how to improve your credit score. Did get prequalified but want to know if that card is the right choice? Read up on our favorite business credit cards.

The post How To Find Out If You Are Prequalified For A Credit Card appeared first on Merchant Maverick.

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The Best Alternatives To Credit Karma

Credit Karma is one of the most well-known—if not the most well-known—websites for checking personal credit scores. The site offers one of the simplest and quickest ways to check your credit score—and it’s pretty accurate, too.

But it’s far from the only site. When it comes to checking your credit score before applying for your next loan or credit card, you want to make sure you have the most accurate score possible. This way, you’ll know if you can apply right away or if you need to improve your score before seeking a loan. Even though Credit Karma is fairly accurate, the best option is to hunt around and get second and third opinions as well, giving you a well-rounded view of your credit history.

Of course, with so many sites advertising credit score features, which ones stack up best against Credit Karma? Keep reading to find out the best alternatives to Credit Karma!

Site Name Price Credit Score Source Credit Score Update Frequency

Discover Credit Scoreboard

Free Experian Monthly

WalletHub

Free TransUnion Daily

Credit Journey from Chase

Free TransUnion Weekly

Credit Sesame

Free TransUnion Monthly

Credit.com

Free Experian Every two weeks

PrivacyGuard

$9.99 per month Equifax, Experian, and TransUnion Daily

What Is Credit Karma & What Does It Offer?

How Much Does Credit Karma Cost?

Credit Karma itself is free to use. In fact, we’ve named it one of our favorite free credit-checking sites. The site does not charge users a fee for signing up and using the site, nor does it require users to link a credit card.

Instead, Credit Karma uses “personalized offers” to make money. These offers are more-or-less targeted advertisements for various products based on your credit profile. Example ads could include credit card offers or loan refinancing options. It is not required that you accept any of these offers to keep using Credit Karma.

Services Offered By Credit Karma

Credit Karma’s primary service is providing users with estimated credit scores. In terms of credit reporting bureaus, Credit Karma draws information from both Equifax and TransUnion to calculate credit scores, but it does not use the third major bureau, Experian. To tabulate your results, Credit Karma uses data from VantageScore (like most free credit-checking sites), a scoring model that can be compared to FICO scores (what’s used by many creditors).

This part of Credit Karma also gives users the option to monitor their score, dispute errors on their credit report, and simulate potential changes to their score.

Credit Karma offers a tax service that lets you e-file your federal and state taxes for free. It also provides access to various financial articles, as well as loan finder tools for personal and auto loans. Additional tools include a search helper for credit cards, an unclaimed money finder, reviews, and a financial advice forum.

Top Sites Like Credit Karma

Discover Credit Scoreboard

  • Price: Free
  • Credit Score Source: Experian
  • Credit Score Update Frequency: Monthly
  • Other Services Offered: Credit report breakdown.

Run by credit card and banking company Discover, this service does not require users to be Discover customers to sign up. As one of the few free sites that pull data from Experian, Discover also gives you access to your FICO score, a rarity for a free credit-checking site.

Note, however, that because FICO offers numerous types of scores, the score you see through the Discover Credit Scoreboard may differ from what a potential creditor might use. Still, this is beneficial knowledge from an educational standpoint — and makes for a great general credit monitoring tool.

WalletHub

  • Price: Free
  • Credit Score Source: TransUnion
  • Credit Score Update Frequency: Daily
  • Other Services Offered: 24/7 credit monitoring, full credit reports, credit card offers, and credit improvement algorithms.

WalletHub’s big draw is that it is the only free credit-checking site to offer daily credit checks. This is a very nifty feature because most sites only update monthly and only a few check in weekly. WalletHub’s data is derived from TransUnion via VantageScore. This service is completely free and does not require a credit card.

The site also offers other robust credit history tools, from full credit reports to an algorithm that identifies ways for you to improve your credit score. You’ll get access to customized credit card recommendations and savings alerts as well.

Credit Journey from Chase

  • Price: Free
  • Credit Score Source: TransUnion
  • Credit Score Update Frequency: Weekly
  • Other Services Offered: Email alerts, score simulator, and credit history tracker.

Even though Credit Journey comes from a credit card and banking company, it’s free to all users, not just Chase customers. You can expect the site to generate a VantageScore for you using a TransUnion report.

Chase also offers a credit simulator (like Credit Karma) within their Credit Journey service. This lets you estimate how various financial actions might affect your future score. On top of this, the service provides email alerts and a basic credit history tracker.

Credit Sesame

  • Price: Free
  • Credit Score Source: TransUnion
  • Credit Score Update Frequency: Monthly
  • Other Services Offered: Credit monitoring, ID protection, credit report analysis, money-saving advice, credit card offers, and loan offers.

For Credit Sesame, you’ll get a TransUnion-based VantageScore. Like many other sites, Credit Sesame is completely free and you won’t need to hand over a credit card number.

Other features you can take advantage of with Credit Sesame include analytic tools to help find specific credit cards or loans that match your credit profile. You’ll also receive a full credit report analysis as well as monthly credit monitoring.

Credit.com

  • Price: Free ($21.95 per month option available)
  • Credit Score Source: Experian (plus options for Equifax and TransUnion)
  • Credit Score Update Frequency: Every two weeks
  • Other Services Offered: Credit monitoring, personalized credit report card, credit repair service, and loan offers.

Credit.com is one of the few free sites to generate your score based on a report from Experian. The score they calculate is tabulated via VantageScore.

Your Experian VantageScore is always free with Credit.com, but if you want more details, the site offers a paid option to buy your FICO score, alongside reports from all three major bureaus. These additional features are offered in conjunction with Experian’s CreditWorks service. It costs $1 for a seven-day trial and then you’ll need to pay $21.95 per month afterward.

PrivacyGuard

  • Price: $1 for the first 14 days, $9.99 per month after
  • Credit Score Source: Equifax, Experian, and TransUnion
  • Credit Score Update Frequency: Daily
  • Other Services Offered: Identity theft protection, 24/7 credit monitoring, credit score alerts, credit score tracker, credit dispute assistance, identity fraud support, and a toll-free credit hotline.

If you’re looking for one place to monitor all three major bureaus on a daily basis, PrivacyGuard is a great option. Unfortunately, they only feature a paid service that goes for $9.99 a month after a $1 two-week long trial. It’s worth noting that PrivacyGuard does not use VantageScore or FICO for their credit score calculations. Instead, this site uses CreditXpert as its primary credit score provider.

Beyond simply accessing your credit score, you can also take advantage of identity theft protection and credit dispute assistance if you notice an error on one of your credit reports.

Should I Pay For Credit Monitoring?

In most cases, paid options are unnecessary. While you won’t actually see what creditors might see when it comes to your credit score, free sites will still give you a reasonably accurate ballpark figure.

On top of this, getting your score checked at free sites should not negatively impact your score. This means you can compare scores across a range of sites for no cost. Doing so will enable you to get data from all three major credit bureaus while also finding out scores from both VantageScore and FICO.

However, if you want to take advantage of other fraud management tools, a paid service may be the way to go. Free sites will generally provide rudimentary features like a simple credit score, while paid sites (such as PrivateGuard) provide a more robust set of fraud protection options.

How To Get Your Credit Reports For Free

There is another way to get your credit report for free. By U.S. law, Equifax, Experian, and TransUnion are required to share a free copy of your credit report every 12 months. If you request a copy of your credit report, you’ll get the full report, not the limited version you’d get from a credit-checking site.

To request a free credit report, visit AnnualCreditReport.com.

Note that these reports do not include actual credit scores. They’ll simply show your credit history, allowing you to check for potential errors. To access credit scores, you’ll need to sign up for either a free or paid website that pulls scores for you.

Final Thoughts

Ultimately, credit-checking sites can only give you estimates of what creditors might be looking at when it comes to your credit score. While you might get fairly accurate estimates, it’s not always possible to see exactly what a potential credit card issuer or loan provider sees after you fill out an application.

As such, it’s rarely a bad idea to sign up for multiple credit-checking sites. There are numerous free options available and checking your history shouldn’t actually harm your score. By looking at different sites, you can access data from the three major bureaus and scores from both FICO and VantageScore. Getting this holistic view of your credit history will enable you to apply for your next loan or credit card with confidence.

The post The Best Alternatives To Credit Karma appeared first on Merchant Maverick.

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How To Start A Lawn Care Business

Can you picture making a profit by keeping the lawns of homes and businesses in your area looking their best? You’re not alone. For many aspiring entrepreneurs, starting a lawn care business sounds like a practical and achievable way to make money and be their own boss — a dream come true, in other words. If you’re reading this, you’re ready to take the next step toward making that dream a reality.

Starting a lawn care business seems easy. Just grab up some lawn equipment, find a couple of guys willing to do physical labor, and get started, right? Not exactly.

Like any other small business, building a successful lawn care business takes careful planning and hard work. You have to be willing to put in the time, effort, and money required to start and grow your business. A lawn care business may have low overhead and lower initial risk than other types of businesses, but it isn’t a cake walk. However, over time, you’ll begin to see the fruits of your labor through the beautiful lawns in your city or town and the profits sitting in your bank account.

In this guide, we’ll break down the steps for starting your own lawn care business. We’ll start off with the importance of your business plan and what it should include. We’ll go over what you need to get started — and it’s more than just lawn equipment. We’ll talk about the costs you’ll encounter and how to get the financing to cover those costs. We’ll also discuss ways to bring in customers … and profits.

Let’s get started!

Create A Business Plan

Every business is different, but all businesses need one thing to be successful: a business plan. Your future lawn care business is no exception. Even if your business concept seems simple, having a solid business plan in place is a necessity.

Think of your business plan as a roadmap of your business. You wouldn’t go on a long trip without a map or GPS, or put together a complicated piece of furniture without instructions, right? View your business in the same light.

Your business plan outlines your goals for the future. In other words, how will you get from where you are now — a startup business — to your goal? Every entrepreneur has a different goal. Maybe yours is to make $1 million in revenue within five years. Maybe it’s to expand throughout your state. Maybe you want to build a franchise that will go nationwide. No matter what your goals are, they need to be outlined in a solid business plan.

All business plans are different, but there are a few key sections that should be included in all plans. Those include:

  • Executive Summary: A short summary of your business plan and the value proposition of your business
  • Business Description: What does your business do? Include your mission statement and when your business was formed.
  • Organization: Who are your team members and what do they do within the organization?
  • Market Analysis: Include information about the market and your competition
  • Marketing Strategies: How do you plan to market your business to draw in customers and bring in profits?
  • Financial Projections: Use revenue growth and market trends to project the financial outlook of your business

Not only is your business plan critical to the growth of your company, but it’s also an absolute necessity if you plan to seek funding from outside sources — such as investors or banks — in the future.

Determine What Equipment You Need

Selecting equipment

To operate a lawn care business, you need to have the right tools and equipment for the job. While you may start off small and add to your inventory as your business grows, there are a few critical pieces of equipment you need to get started. For most lawn care businesses, major equipment includes:

  • Riding Lawnmower
  • Push Lawnmower
  • Edger
  • Hedge Trimmer
  • Leaf Blower
  • Truck
  • Equipment Trailer

For your business, you’ll also need equipment that’s less expensive but just as critical to operations. This includes:

  • Lawn Tools
  • Hand Tools
  • Lawn Bags
  • Eye/Ear Protection
  • Gloves
  • Gas Cans
  • Oil
  • Garden Hoses

You should expect to spend approximately $30,000 to $40,000 for the equipment you need to start your business. As your business grows, of course, you’ll need additional capital for the purchase of more equipment. For example, you may have just one truck, trailer, and mower for now, but if you have additional crews taking on jobs all over the area, you’ll need more equipment.

You may even opt to offer additional services — installing sod, laying mulch, or planting flowers — all of which require additional equipment and supplies. For now, however, focus on the equipment listed above. Those items will be most critical to getting your business off the ground.

Calculate Startup Costs

With an idea of the type of equipment you need to launch your business, you can now begin calculating startup costs. This will include the cost of your equipment, plus other necessary expenses to keep your business operating smoothly.

Your equipment will make up the bulk of your costs, and you should budget approximately $30,000 to $40,000 for these purchases. You may be able to get started with a smaller investment by purchasing used equipment. However, purchasing used does come with its risks. Older trucks can break down and previously-owned lawn equipment may immediately require servicing or repairs. While you can save money in the short term by buying used equipment, you may rack up additional expenses over the long term, so consider your purchases carefully.

When purchasing your equipment, shop around. Look online and visit local retailers to get estimates of costs. Determine what equipment you really need now and what you could add as your business grows. You may even consider starting with basic equipment (do you actually need that fully-loaded riding mower right this minute?) and upgrading your equipment when your business starts bringing in revenue.

Beyond the equipment we’ve already discussed, you’ll need additional supplies for your business. This may include chemical weed killers, pesticides, fertilizer, and other supplies. You may purchase these supplies upfront, or you may purchase them when needed. If you plan to keep inventory, you may incur additional costs if you rent storage for your supplies and equipment.

Another big startup cost to consider is the cost of insurance. You will need to have auto insurance on your truck. You will also be required to carry liability insurance. If you hire employees now, additional costs may include workman’s comp insurance and payroll taxes. Other startup costs include fees for permits and licenses. We’ll discuss obtaining licenses and permits a little more in the next section.

If you’re starting small as a one-person operation, your primary startup costs will be your equipment, supplies, insurance, and marketing costs. Just remember to take your time to do your research, plan, and budget to keep startup costs under control.

Register Your Business

Before you begin operating, you’ll need to register your business. There are several steps required to register a new business:

Choose & Register Your Business Name

While you may choose to operate your business under your own name, most small business owners choose a trade name. This name will need to be registered in the state where you will operate.

When choosing your name, you want to select one that is a reflection of your brand. You will also need to make sure that you select a name that is not registered by someone else in your state. You can find your state’s registration database with a quick online search.

Choose Your Legal Structure

One of the first steps in setting up your business is determining your legal structure. Your legal structure determines how much you pay in taxes and your personal liability for your business. Legal structures include:

  • Sole Proprietorship: This gives you full control over your business. You do not have to register this type of entity, so you skip over all the paperwork. However, this structure does not separate your personal assets and liabilities from those of your business. This means that you can be held personally liable for all debts and obligations of your business.
  • Partnership: This structure is the simplest structure for businesses that have two or more owners. A limited partnership (LP) gives one partner unlimited liability, while other owners have limited liability and limited control over the company. A limited liability partnership (LLP) gives limited liability to all owners, protecting each against the debts of the business and the actions of other partners.
  • Limited Liability Company: A limited liability company (LLC) protects you from personal liability from business debts and obligations. For example, your house, vehicle, or savings accounts will be untouchable if your business faces a lawsuit or files for bankruptcy.
  • Corporation: Corporations pay higher taxes and are more expensive to form. However, corporations can also raise money through the sale of stock. This structure is best for businesses that need to raise high amounts of capital or want to go public in the future.

Most lawn care business owners will register as a sole proprietorship or LLC, but consider the number of owners you have, protecting yourself from personal liability, and the future goals of your business before you make your decision.

Register With The IRS & State Revenue Agency

If you plan to have employees now or in the future, you will need to register for an Employer Identification Number. You’ll also request estimated tax vouchers from both the IRS and your state revenue office to file with your quarterly tax payments.

Obtain Licenses & Permits

The licenses and permits that you need for your business are based upon the laws of your municipality and what your business will do. For example, simply mowing lawns only requires a standard business license in most areas. However, if you plan to spray chemical herbicides, an additional license may be required. You can find out more about license and permit requirements by contacting your state’s Department of Commerce.

Seek Funding

We’ve already discussed the potential expenses you’ll encounter when opening your own lawn care business. Now, the big question is: how do you pay for it all? Like most aspiring entrepreneurs, your personal bank account likely isn’t bursting at the seams with more money than you know what to do with.

If you’re scratching your head trying to figure out finances, you’re certainly not alone. Most small business owners don’t have the funds needed to start and operate a new business. This is where small business funding plays a role.
There are more lenders than ever that are ready to give you the money you need to get your business off the ground. The trick is knowing what type of funding is best for your business and exactly where to find it.

Personal Savings

If you’ve socked away money in personal savings through the years, this money could be used to fund your new business venture. The best thing about using your own money is that you aren’t indebted to anyone. You don’t have to worry about loan payments, fees, and high interest rates. On the downside, if your business fails, it takes your savings with it.

Friends & Family

If you have a friend, family member, or colleague with money to invest, consider pitching your idea to them. Present them with your business plan and give a presentation just as you would give to a banker or other lender.

There are a few ways you can go about getting capital from someone you know. The first is a loan. Agree to rates, terms, and the borrowing amount and get it all in writing. Then, you’ll repay the borrowed funds plus interest over a set period of time, just as you would any other loan.

Another option is equity financing. You’d receive capital for your business and in exchange, your investor would own part of your company. You wouldn’t pay back the money immediately like you would a loan, but the investor would be able to take a share of your profits at a later time. Learn more about debt financing vs. equity financing.

No matter which way you go, keep everything professional and make sure everything is in writing. One thing that can sour a good relationship fast is a business deal gone bad.

Personal Loans

As a new business owner, walking into your bank to get a business loan is pretty tough … if not impossible. Banks look at your business and personal credit score, annual revenues, and your time in business. These lenders want to work with small businesses that are established and have the lowest risk. If you’re new to the game, many lenders won’t give you a second look.

This doesn’t mean that you’re only stuck with high-interest, short-term loan options. If you want a long-term loan with low rates, consider a personal loan for business. With these loans, you can qualify based on your personal income and credit score – no business information required.

You can apply for a personal loan for business through your bank, credit union, or an online lender. The most creditworthy borrowers will qualify for the best rates and terms and highest borrowing limits. A personal loan for business is a great option for larger purchases that you’d like to pay off over a longer period of time, like expensive equipment.

Recommended Option: Upstart

upstart logo

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Through Upstart, you can receive a personal loan of $1,000 up to $50,000 to use for your startup costs. APRs range from 8.09% to 35.99%. Your loan will be repaid over a period of 3 to 5 years.

Upstart is different from other lenders in that they look at more than just your credit score. While the lender does consider your credit score, education, years of credit, and job history are also factors used to determine if you qualify for a personal loan.

To qualify for an Upstart loan, you must:

  • Have a personal credit score of at least 620
  • Live in a state serviced by the lender
  • Have a regular source of income
  • Have a bank account 

Equipment Financing

Equipment financing is a type of funding used to purchase equipment. Instead of paying the full cost of your equipment up front, you’ll make a smaller down payment. A lender will cover the rest of the cost, which you’ll pay back over time along with fees and interest.

There are two different types of equipment financing: equipment loans and equipment leases. If you take out an equipment loan, you’ll typically pay 10% to 20% of the total purchase price as a down payment. Borrowers with high credit scores may qualify for 0% down financing. Once the down payment is paid and the loan is in place, you’ll be able to immediately take possession of your equipment. You’ll pay for the total purchase price of the equipment plus interest over a set period of time — typically around 5 years. Once you’ve made all payments as agreed, the equipment is yours to keep, trade in, or sell.

An equipment lease is more like renting. You’ll pay a down payment and take immediate possession of the equipment. You’ll make payments to your lender over a shorter period of time, usually 2 years. Once your lease period ends, you’ll return the equipment and sign another lease for newer equipment. Some lenders may allow you to pay off your balance if you want to keep the equipment you’ve been using.

Learn more about equipment loans and leases and which is right for you.

One of the best things about equipment financing is that you don’t have to put up collateral to secure your loan. Instead, the equipment itself serves as the collateral and can be repossessed if you default on your loan or lease.

With equipment financing, you can purchase any type of equipment you need for your business, including lawnmowers, edgers, trimmers, or even a commercial vehicle.

Recommended Option: Lendio

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Lendio is a loan aggregator that connects you with multiple lenders with just one application. Through Lendio, you can apply for equipment financing from $5,000 to $5 million with repayment terms of 1 to 5 years. Interest rates start at 7.5%.

To qualify for equipment financing, you must meet the following requirements:

  • Annual revenue of at least $50,000
  • Personal credit score of 650 or higher
  • Time in business of at least 12 months

If your credit score falls below the 650 minimum, you may be able to qualify with proof of solid cash flow and revenue for the last 3 to 6 months.

Even if you don’t meet these requirements, you could still qualify with certain lenders. Simply fill out Lendio’s free application or contact a personal funding manager. If you don’t qualify for equipment financing or have other financial needs, you can also apply for Small Business Administration loans, short-term loans, startup loans, and Lendio’s other financial products.

Lines Of Credit

If you want a flexible form of financing, a line of credit might be right up your alley. You’ll be able to initiate draws from your line of credit, and the lender sends the funds immediately to your bank account. You can make one or more draws from your line of credit up to and including your set credit limit.

Since a line of credit is revolving, your funds will become available to use again as you pay down your balance. Interest and/or fees are charged on the borrowed portion of funds. If you don’t use your line of credit, you won’t pay interest to the lender. Many lenders also won’t charge any fees if you haven’t used your funds.

A line of credit is a good option when you need immediate access to cash, such as to purchase supplies or to pay for an unexpected expense, like repairs to your vehicle or equipment.

Recommended Option: Fundbox

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You can qualify for up to $100,000 when you apply for a Fundbox line of credit. Fundbox fees start at 4.66% of the borrowing amount. You only pay when you use your funds, and you can save by repaying early. Payments are made weekly over a period of 12 or 24 weeks. You may receive a line of credit based on the performance of your business or for your unpaid invoices.

To qualify for a Fundbox line of credit, you must meet the following minimum requirements:

  • Be a U.S.-based business
  • Own a business checking account
  • Have at least $50,000 in annual revenue
  • Have a bank account with transactions for at least 3 months OR at least 2 months of activity in supported accounting software

Qualifying through Fundbox takes just minutes. If approved, you’ll be able to initiate draws on your line of credit immediately for deposit in your account as quickly as the next business day.

Rollovers As Business Startups (ROBS)

Do you have a retirement account? If so, you may qualify for a unique type of funding known as Rollovers as Business Startups (ROBS). You probably already know that early withdrawal from your retirement account results in penalties. But there is a way to access these funds without being penalized, and yes, it’s completely legal.

A ROBS plan allows you to roll over your qualifying retirement funds into capital for your new business. Here’s how it works:

  • A new C-corporation is created
  • A new retirement plan is created for the C-corp
  • Funds are rolled over from your existing retirement plan to the new retirement plan
  • These funds are used to purchase stock in the C-corp, giving you the capital you need to start or grow your business

Even though it’s just four steps, there are some legal issues to be aware of. This is why entrepreneurs that leverage their retirement funds in this way turn to a ROBS provider. A ROBS provider will handle everything for you, from setting up the new C-corp to maintaining compliance. In exchange, you pay a setup fee and a monthly maintenance fee.

Funds from your ROBS plan can be used for any business purpose. One of the best things about a ROBS plan is that you won’t be making payments with interest to a lender. You also don’t have to worry about traditional borrower requirements like personal credit score or annual revenues. As long as you have a qualifying retirement plan, you can set up a ROBS plan. The main drawback, however, is that if your business fails, you lose your retirement funds, so be aware of this risk before setting up your plan.

Recommended Option: Benetrends

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Benetrends is the creator of the innovative Rainmaker Plan, the original ROBS plan. Benetrends can get the funding you need for your business in as little as 10 days. You will have access to your retirement funds with no penalties with Benetrends’ easy four-step process.

There are no credit score, time in business, or revenue requirements. Most retirement plans with at least $50,000 qualify.

A setup fee of $4,995 is required to start your ROBS plan. After paying this initial cost, you must pay a service fee of $130 per month. This fee covers compliance, audit protection, and other services.

Purchase Financing

When you start your lawn care business, you’ll likely develop relationships with vendors. You can pay these vendors out of pocket when you receive your invoice, or you can break your purchase down into smaller, more manageable payments with purchase financing.

With purchase financing, a lender will pay your vendor up front. You’ll repay the lender the borrowed amount plus fees and/or interest through smaller payments made over a longer period of time. This is an excellent way to purchase supplies and other items critical for the success of your business when you’re facing cash flow issues or just need a little extra time to pay.

Recommended Option: Behalf

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Behalf offers purchase financing, allowing you to pay any merchant with terms up to 6 months. With Behalf, you can borrow between $300 and $50,000. Monthly fees start at just 1%, and there are no origination fees, membership fees, prepayment fees, or maintenance fees.

There are no minimum time in business, revenue, or personal credit score requirements. However, a hard pull of your credit is performed by the lender and will be used to determine if you’re eligible to receive funding, as well as your monthly fee.

Business Credit Cards

A business credit card is a great way to cover expenses or make purchases without waiting for approval from a lender. Once you’re approved for a credit card, you’ll be able to spend up to and including your credit limit anywhere credit cards are accepted.

Once you’ve made a purchase using your credit card, you’ll be required to make a monthly payment until you repay your balance, plus interest charged by the credit card issuer. This is a type of revolving credit, so as you repay, funds will be available to use again. Once you’re approved for a credit card, you don’t have to wait for approval to make a purchase. You can make one or multiple purchases up to and including the credit limit set by the lender.

You can cover an emergency expense or purchase supplies using a business credit card. You can also use credit cards for recurring expenses, such as gas for your truck and machines. With a rewards card, you can even get cash back or perks just for using your card.

If you don’t qualify for a business credit card, consider applying for a personal credit card to use for business expenses.

Recommended Option: Spark Cash For Business

Capital One Spark Cash For Business


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Annual Fee:


$95 ($0 the first year)

 

Purchase APR:


18.74%, Variable

The Spark Cash card from Capital One offers unlimited 2% cash back that you can redeem anytime. New cardholders can earn a $500 cash bonus just for spending $4,500 within the first 3 months of opening their accounts. This business credit card has a 19.24% variable APR. There is no annual fee for one year, and the fee is $95 after the first year. Employee cards are available at no additional cost.

To qualify for this credit card, you must meet these requirements:

  • Excellent personal credit score
  • No bankruptcies
  • No defaults on loans
  • No payments over 60 days late on a credit card, loan, or medical bill for the last year
  • A loan or credit card for at least 3 years with a credit limit above $5,000

Recommended Option: Chase Ink Preferred

Chase Ink Business Preferred



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Annual Fee:


$95

 

Purchase APR:


18.24% – 23.24%, Variable

Another business credit card to consider is the Chase Ink Business Preferred card. With this card, you’ll be able to rack up points just by making purchases for your business. All travel, shipping, advertising, internet, cable, and phone purchases yield three points for every dollar spent for the first $150,000 spent annually. You’ll receive one point for every dollar spent on all other business purchases with no limitations.

You’ll also be eligible to receive a bonus offer of 80,000 bonus points if you spend $5,000 within 3 months of opening your account. Points can be redeemed toward cash, gift cards, or other products and services.

Chase Ink Business Preferred has a variable interest rate of 18.24% to 23.24%. The card has an annual fee of $95. Other benefits are also provided for cardholders, including cell phone protection and free employee cards.

To qualify for this card, you must have good to excellent credit.

Bolster Your Web Presence

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The internet has made life easier than ever for small business owners. After all, you can do your accounting online, shop for supplies and equipment, and communicate with customers. Perhaps most importantly, you can market your business online. Bolstering your web presence is a quick and easy way to reach your target market, helping you bring in new customers and boost your profit potential.

Set Up Social Media Profiles

Social media has morphed into something much bigger than just chatting with family and friends. These days, people are using social media to find and connect with new brands and businesses. Shouldn’t your new business be included?

One of the best things about social media is that it’s free to set up your profiles. Add your business to Facebook, Twitter, Google+, Instagram, LinkedIn, Yelp, and/or Pinterest. With these social media profiles, you can share information about your business such as operating hours and services provided, post photos of completed jobs, promote specials, or share news about your business. On sites like Facebook, satisfied customers can even post reviews and ratings.

Want to learn how to get the most out of your social media pages? Take a look at our Guide to Social Media Marketing.

Build Your Website

Most people turn to the internet when they’re looking for a service provider, which is why it’s so important to have a website. No experience with web design? Don’t worry — there are a variety of web builders that do the hard work for you. Check out some of our top picks.

Your website doesn’t have to be complicated. Make sure that your design fits your brand and provides the most relevant information that customers need, including a list of services provided, your service area, and your contact information. You can even take it a few steps further by adding photos of jobs you’ve successfully completed, price lists, special promotions, and news and updates.

One last thing to note is that when you choose a domain name, make sure that it reflects your brand and includes your business name. However, you also want to make sure that it’s short and easy to remember. Avoid using symbols and numbers to make it easier for current and future customers to find you online.

Check out more tips and tricks for creating and maintaining your web presence.

Choose Business Software

Small Business Online Accounting Software

Every business — including your new lawn care business — needs business software to keep operations running smoothly. You can use business software to keep track of appointments, store customer data, process payments, create invoices, and keep up with your financials. Let’s explore a few types that would be useful for your lawn care business.

Accounting Software

Managing your finances is one of the most important aspects of running a business. Accounting software makes it easier than ever to track your finances. With this type of software, you’ll be able to keep up-to-date on the money that you receive, what is owed to you, and what you owe. In addition, using accounting software also makes it easier for you to run important financial statements and file your taxes.

Today’s accounting software comes with more features than ever, including cloud-based storage, online invoicing, automatic payment reminders, and mobile apps for tracking on the go. Unsure of which software is best for you? Check out some of our recommendations. If you’re new to accounting or need a refresher, make sure to download our eBook, The Beginner’s Guide to Accounting.

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A great choice for freelancers needing some extra help managing their business

Payment Processing Apps

Very few businesses today are “cash only.” This is because credit cards, debit cards, and even mobile devices make it easier than ever for consumers to pay for their purchases. To make payments more convenient for your customers, consider using a payment processing app.

Payment processing software transmits data between you, your bank, and your customer’s bank, allowing you to accept credit cards, debit cards, and other forms of payment. Many payment processors also include the hardware needed to accept these methods of payments. This hardware may be included in your subscription cost or for an additional fee.

Worried about bulky hardware? Don’t be. There are devices that easily affix to a mobile phone or tablet, so you can take payments anywhere — from your own office to your customer’s front yard.

Best Overall Mobile POS


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Highlights

  • No contract or monthly fee
  • Instant account setup
  • Retail upgrade available
  • Restaurant upgrade available
  • For iOS and Android mobile devices
  • 2.75% per in-person card swipe

Retail POS: Free trial ($60/mo value)

 

Restaurant POS: Free trial ($60/mo value)

 

Square POS: Always free

Field Service Management Software

Another type of software to consider purchasing for your business is field service management software. This software allows you to keep up with everything from your customers to your employees. There are even programs that are specific to lawn care companies.

With this type of software, you can keep up-to-date records on your customers, from their contact information to their history of appointments. With this software, you can easily schedule new appointments and dispatch employees. Other features may include automatic invoicing, route optimization, easy estimates, and GPS tracking.

Advertise Your Business

business loans for HVAC

In order to make your business successful and profitable, you have to have customers. And you have to reach customers by spreading the word about your business.

While bolstering your web presence is a good first step, don’t stop there. Consider purchasing paid ad space on social media platforms or search engines to reach a broader audience. Yelp for Business is an excellent way to advertise yourself while gaining street cred with potential clients.

You can also utilize free online sites like Craigslist to advertise your business. Just remember to follow the rules before posting and avoid spamming the website.

Moving beyond the web, never underestimate the power of “old school” marketing techniques like flyers and door hangers. Post flyers in areas that get a lot of foot traffic, such as retail shopping centers, and put door hangers around your neighborhood and surrounding areas. You can design and print these yourself, or you can pay an additional fee to a professional printer. Either way you go, this is a very affordable way to market your lawn care business. Before you use this method of advertising, contact your city government office to learn about any restrictions and always make sure to get the permission of the property owner before distributing flyers on private property.

You can also use your work truck to advertise your business. Make sure that your business name, telephone number, and/or URL are prominently displayed and easy to read. Online printers can create custom vinyl decals featuring your logo, name, and contact information at a very affordable price.

Finally, word-of-mouth advertising is one of the most effective methods of advertising in this industry. If your customer likes your service, they’ll tell their friends, family members, neighbors, and colleagues about your service when recommendations are needed. They may give you a glowing review on your website or social media page, which could lure in additional customers. Always make sure to provide the best service to your customers so they’ll refer you to new customers in the future.

Final Thoughts

Your new lawn care business won’t be up and running overnight, but taking the time to go through each step ensures a better chance for success. Every business is different, and you may need to tweak some of these steps to better fit the vision for your lawn care business. Maybe taking the steps in a different order makes more sense for your business, or maybe there’s a step that isn’t relevant to your future goals.

No matter how you picture your future, you’re now armed with the knowledge of what it takes to start your own lawn care business. Now, it’s up to you to determine what steps you’ll take next to become a successful entrepreneur.

The post How To Start A Lawn Care Business appeared first on Merchant Maverick.

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