Hiring a Web developer to build an e-commerce site from scratch can cost at least $5,000, and often far more. But there are cheap alternatives for those willing to do much of the setup themselves — many of which don’t require much time or technical savvy.

For an e-commerce novice, an all-inclusive service may be most sensible. Yahoo Inc.’s Merchant Solutions, for instance, lets users get a domain name and choose one of 12 predesigned Web-site templates.

You could save money by picking an all-inclusive service without sales-transaction fees. GoDaddy.com, owned by the Go Daddy Group, offers an e-commerce site-building and hosting service called Quick Shopping Cart, which has plans starting at $9.99 a month for sites with up to 20 product listings.

The Wall Street Journal

Number 5: Your client mistakes your daily rate for an hourly one.

Number 4: You’ve won every job you’ve ever pitched for.

Number 3: New clients are always asking what “the catch” is.

Number 2: You never run out of work, yet you are subsisting on beans and ramen noodles.

Number 1 sign you may be charging too little: Companies are calling from India wanting to outsource their work to you.

freelanceswitch.com

Now is a good time to borrow the money to buy a franchise, say small-business lenders. Banks and finance companies are “flush with capital,” which puts start-up franchisees in a good position, says Reginald Heard, national accounts manager for CIT Small Business Lending in Livingston, N.J. Many local bankers who shied away from franchise loans only a few years ago are granting them today.

Here are three tips for those seeking loans to fund a franchise purchase.

1. Get to know your banker.
2. Find out if an expedited approval process is possible.
3. Don’t give up after one rejection.

Read complete article on startupjournal.com

Without credit, I had to come up with a fresh approach to funding my cosmetics startup.

The bill was more than $60,000, due in 30 days, and I had no idea how I’d cover it. There was no way the contract was going to pay off by then, but there was also no way I could turn that contract down.

Read the story of Mascara Plus.

If you only need a small amount of money to start your business, one option to consider is to obtain a microloan.

Originally intended as a way to fight poverty by lending small amounts of money to entrepreneurs in developing countries, microlending is becoming a popular source of capital for startups launched by middle-class entrepreneurs in the U.S.

Since 1994, the U.S. Accion Network–a nonprofit organization founded in part by Accion International, one of the world’s largest microlenders–has loaned more than $154 million to more than 16,000 businesses nationwide, including caterers, florists, hair salons, day-care centers, even online publishers.

First-time loans range from $500 to $25,000, with terms of up to 60 months, filling a void for startups that may not have access to traditional bank credit. The maximum loan amount for new businesses is $10,000 and generally requires a business plan.

Accion charges an annual interest rate of 12 percent to 16 percent on its loans (plus a 5 percent origination fee) and tries to help its clients qualify for traditional bank financing after building their businesses and credit track records. Accion looks at the borrower’s character and business experience, not just the credit score.

Entrepreneur.com

You work hard for your money. So why hand it over to the Internal Revenue Service when you don’t need to?

Many entrepreneurs overlook perfectly justifiable — and legal — tax deductions simply because they are unaware of them. So before the 2006 tax season begins, take the time to review the deductions to which you are fully entitled. To help you get started, here are the top five tax deductions that most small business owners often overlook:

1. Equipment expensing | Buying computers, telephone systems, furniture or other equipment instead of leasing it entitles a business to write-off their cost, usually over a fixed number of years using depreciation. However, small businesses that are profitable can benefit from a so-called Sec. 179 deduction. This means a business can deduct up to $108,000 of cost for a single piece of equipment or in various items as long as equipment is placed in service before the end of the year. This deduction limit will rise to $112,000 in 2007.
2. Commercial buildings that go green | New for 2006 is a deduction for commercial building owners whose buildings meet certain energy standards. The deduction is as much as $1.80 per square foot for buildings that achieve a 50 percent energy savings target.
3. Domestic production activities | This deduction enables businesses to lop off 3 percent of their net profits from domestic production activities from their income — resulting in significant tax savings for owners without spending a single additional penny to receive the write-off.
4. Accelerated depreciation for building components. | The cost of commercial buildings (exclusive of land) usually can be depreciated over 39 years using the straight line method (i.e., ratable depreciation). However, parts of the building that are not viewed as structurally integral can be separately depreciated over much shorter periods (typically five or seven years) using an accelerated depreciation method. The more rapid the write-off, the greater the up-front savings to the building owner due to the time value of money.
5. Vehicle use | Business use of an owner’s personal car can be deducted using the IRS standard mileage rate (44.5¢ per mile in 2006) or the actual expenses related to this use. Dollar limits cap annual depreciation write-offs. Higher dollar limits apply to light trucks and vans.

   SUVs weighing more than 6,000 pounds are not subject to the usual dollar limits on depreciation. The top limit on the Sec. 179 deduction for these vehicles is $25,000; additional cost can be depreciated under usual depreciation rules.

Barbara Weltman at Inc.com

Bringing small borrowers and small lenders together is the idea behind the online social lending venture called Prosper.com.

Prosper, based in San Francisco, offers unsecured loans of up to $25,000 at a fixed rate for three years. Anyone with money can lend on Prosper, in increments as small as $50.

The system works a little like eBay, except that the bidding is to lend money at lower interest rates.

Since last year when it went live, Prosper has grown to more than 140,000 members and has originated about $33 million in loans.

Star-Telegram