Import From China Business

A practical guide for starting a small business

2010-2012  Copyright import-from-china-business.com

Import from China
Sell on eBay

Sandra Kell
Ontario, Canada
Baby Products
Profit This Year: $10,400

“I started with $1,000 and began importing baby products from China. I sell them on eBay, Facebook and in my local stores.  After 8 months, I am earning $400 a week.  I finally quit my day job!”

Learn How

Small Business Bank Accounts

Can Friends be Small Business Bank Accounts?

Banks vary greatly in terms of the type of services that they offer to small businesses.  So take your time and evaluate your options carefully.  One word of caution.  Once word gets around that you are about to open a small business, you will have lots of people who want to be your friends and sell you things.  There are many examples of financial scams preying on the vulnerable small business owner such as interest free loans.  Let the cliché slogan be your guide:  "if it sounds too good to be true, then it probably is".

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Small Business Bank Accounts - Commercial Banking

• Start with Your Personal Bank - if you have a relationship with a bank for many years and you have been a good customer, they would be thrilled to hear from you.  Even if you don't know the Bank Manager, they have your information on file in terms of how long you have been a good customer.  In the banking world where service matters, you will find your bank very helpful.
• Commercial Loans Anyone? - do they provide business loans or are they only into personal loans? Sooner or later, you'll need funding.  Keep this in mind as you are shopping. Does the bank have programs specifically for a small business owner?  
• Merchant Credit Card Services - even fast food places these days take VISA, Mastercard or American Express.  It's the cost of doing business in a cashless society.  So make sure that your bank has this service available. Once you authorize the customer's payment, the amount will be deposited in your bank account within 24 to 48 hours. In return, you will need to pay a fee of about 3 to 4 percent of the purchase amount.  That's a small price to pay versus going through the hassle of taking a customer's check. Have you seen any bounced checks lately?
• Types of Commercial Accounts - check out the different commercial accounts offered by the bank.  Cash flow is the number one killer of small businesses. So read the fine print. Is there a holding period on deposits? How much does the deposit amount have to be before it is held for a period?  Is there overdraft protection?  How much will that cost? Is there a minimum amount of deposits required per month? What interest do they pay out (if any)?
• Is it classified as a Federal Depository Bank?  When you pay employees over a certain amount, you will have to make deposits in a Federal Depository Bank?  Having the Federal Depository bank the same as your commercial bank would be much more convenient.
• Electronic Banking Services - in the internet world, the ability to move money around online is a given.  But you should double check to make sure that the bank is not antiquated.

Steps to Opening Small Business Bank Accounts

1. DBA (Doing Business As) - Be sure that you have filed for a DBA which is your business name without using your personal name.
2. Pick a Check Style - Unless you are going into the arts or design type of small businesses, don't get carried away with fancy check styles. Pick a professional style.  Remember the way your checks look also communicates who and what you are as a business.
3. Quantity of Checks - purchase the minimum quantity for now until you get a feel for how many you go through per month and you are certain that you will not change your company information on your check.  If you are starting from your home but you plan to move out in a year, then that's a good reason not to produce a lot of soon to be outdated checks.
4. Other Things to Remember - Get an ATM card to have access to your account 24 X 7.  Invest in overdraft protection.  Having personal bounced checks may be an embarrassment for you but having bounced business checks could prove to be fatal to your business.