By Dani Babb and John Rutledge | MainStreet.com

Inquisitive entrepreneurs and small business owners can find inspiring insights and common sense answers from two industry pros on MainStreet.

Each week Dani Babb, a small business expert and the dean of Andrew Jackson University’s College of Business in Hoover, Ala., and Dr. John Rutledge, the chairman of private equity investment firm Rutledge Capital, offer their advice to scores of entrepreneurs and small business owners. They are also frequent commentators on Fox Business News.

This week they respond to a question from Mary from Arkansas about small business startup funds.

Mary: “How do I get money to start my business?”

Babb and Rutledge: Mary, there are many ways to get money to start your business!

Even though credit is tight there are still lots of options. The right source of money for each entrepreneur depends on the business, the amount of money needed and the potential return.

Try the Small Business Administration for starters. We always recommend that a business check into the SBA, which has a lot of options for individuals wanting to start businesses. They offer loans of up to $500,000 with 10% collateral under the new rules.

However, getting money these days isn’t as easy with tightening lending standards. If you do go the SBA route, be sure you have the business documents required by the SBA before you hit the bank.

If you’re starting a business as a sole proprietorship, you’ll need good credit. If your personal credit score isn’t so hot, Mary, consider creating a new LLC that will let you “start over” in many respects with regard to your financing options.

Another option is to BYOB, or be your own bank. Do you have an attic, closet or garage full of stuff you aren’t using? Many businesses, particularly online businesses, can be started with less than $5,000. Sometimes you can sell enough stuff on eBay (Stock Quote: EBAY) to start your new venture and avoid owing money to anybody. Do this before you approach other sources of capital—it’s always your lowest cost source of money. We helped a business owner two weeks ago that found more than $7,000 worth of “knick knacks” in her closest was able to get her online business started. In about three months she will have an e-commerce store!

Be careful when you approach family and friends. Many business owners say their first round of funding started with friends and family, and yours ma,y too. Those who are closest to you may be the best chance to raise capital; but its cost can be much more than the interest rate. To avoid family tensions, be sure to get an agreement in writing because even the best of businesses can be derailed rather quickly if family money issues come into play. Family holidays can become unenjoyable events. Keep business about business!

If you have a home with equity, you have yet another option—to take out a mortgage. There are a few ways you can do this. One is to get a home equity line of credit. The interest rate is usually variable but you can draw from the line as you need it. Another option is to take out a second mortgage on your home to finance your business, and a lot of people do. Usually, you’ll have the money up front, which means you will need to pay interest from Day One. Money is fairly inexpensive these days. Just be prepared to pay this loan back, whether your business is successful or not.

Credit cards are another option. More than 15% of businesses, including both of ours, started at least in part with personal credit cards. This is OK if you expect to be able to pay it back quickly or can lock in a good deal (a low rate for 12 months or longer) from the bank. If you have an LLC, be sure you take the credit cards out in the name of the LLC and use its employee identification number (EIN) instead of your personal Social Security number. But for startups banks will want a promise that you as an individual will pay off the balance, even if your business cannot.

Many people believe that venture capitalists (or VCs) are the answer. In fact, while VC money gets all the press, it’s not right for most simple businesses. VCs work with less than 1% of businesses and primarily invest in “bugs and drugs:” software, biotechnology, pharmaceuticals and green technology. The best way to get into this community is referrals from others who have received money from a VC. But chances are, if you are starting small and aren’t going green, you won’t get much help from these guys.

Finally, Mary, consider angel investors. Angels are usually local rich guys and gals who back early stage ventures for an ownership stake in your business. Angels invest their own money, unlike VCs. They want very high returns and the potential to earn five to 10 times their original investment within five years. Be cautious here: They will want an equity stake in your business or they will want you to have a plan to take it public. This may not fit your needs.

Good luck!

By Bob Feeman | MainStreet.com

Running a company during a recession can pose major challenges to their owners. But it also offers them an opportunity to revamp their businesses and find new avenues for success.

Here are six strategies for small-business owners who are struggling to survive in a weak economy:

Exercise your bargaining power: Recessions can take a toll on a company’s cash flow. If you’re having difficulty paying your suppliers, work with your vendors to create a payment plan that’s more manageable. You might be able to use the economic crisis as a bargaining chip to renegotiate your contracts and get better terms.

You should also look for ways to reduce inventory to keep overhead costs down. And be sure to bill customers right away, which can help speed payments and keep cash flowing.

Focus on the profit-makers: When the economy is flying, it’s easy to get sidetracked by adding ancillary products or services that might broaden your company’s appeal but water down profits. Take a critical look at everything your business offers and concentrate on the efforts that will bring in the most cash. Weed out time- and labor-intensive services that are less profitable.

Explore the art of the deal: Customers still spend during recessions, but they’re more cautious and sensitive to bargains. If you provide services, consider bundling some together under a lower price. Try offering reduced prices for groups. Look for underserved customers and lure them with discounts. Special prices might hurt in the short term, but attracting new clients will help you generate revenue after the economy rebounds.

Improve customer service: It’s important to retain the customers you have. Show them your appreciation through discounts, special events and gifts. Take the time to talk to them. Provide them inside information about your products and services. If you do it right, they’ll remember you after the economy improves.

Evaluate your rivals: A recession can become an opportunity to attract clients from your competitors. Try offering services that help you stand out in the field, such as free delivery or package deals.

Adapt and get creative: Revisit your original business plan and ask yourself if your vision is still viable in this economy. If it’s not, look for ways to adapt by tapping into new markets or targeting other groups of customers. Consider taking a new marketing approach or changing the packaging of your products. Minor tweaks can create major improvements.

By Stephen Dalton | MainStreet.com

Dontcha know? North Dakota has the most job opportunities, per capita, in the country.

Last month, we showed you the most financially happy states when we released the MainStreet.com Happiness Index. Now, we’re bringing you this inaugural edition of the MainStreet.com Job Opportunity Index to show you where the jobs are.

According to the MainStreet.com Job Opportunity Index, the jobs are not in the most populous states such as New York and California but are in the less densely populated middle of America. North Dakota, the 3rd least populous state in the U.S., took the top spot on the Index while New York came in at #35, Illinois ranked #36, and California landed at #44.

The Job Opportunity Index, which ranks all 50 states and the District of Columbia, looked at two factors in determining which states offer the greatest employment opportunity: available jobs in a given state (relative to state population), and the unemployment rate in each state.

To estimate the number of available jobs per state, MainStreet partnered with Indeed.com, one of the most comprehensive job search sites on the web. Indeed.com aggregates millions of job postings from thousands of web sites and serves more than 12 million job seekers a month.

In the face of a rising national unemployment rate, the Job Opportunity Index illustrates that companies are, in fact, hiring and points to the states which represent the best markets for job hunters.

“The most important thing to know is that there are jobs out there,” says Paul Forster, CEO and co-founder of Indeed.com. “Even though there may be no net growth in jobs through the economy, companies are always looking to replace people who have left. People should remain optimistic, because there are jobs available as you’ll see from any search on Indeed.com.”

But, not all job markets are created equal.

North Dakota finished first with the 10th highest number of job opportunities in the nation and the lowest unemployment rate in the U.S. Wyoming (#2) and Virginia (#3), also featuring high numbers of opportunities and low unemployment, followed closely behind. (Given that our Happiness Index suggested that Nebraska, Iowa and Kansas are the most financially happy states, we here at MainStreet won’t be surprised if there is a population surge in the heartland!)

Meanwhile, Michigan, due to the troubled auto industry and continuing layoffs, was at the bottom of the list, preceded by Oregon (#50) and Indiana (#49).

One metropolitan area, the nation’s capital and surrounding states, represented mixed and interesting results. Washington D.C., Virginia and Maryland have the highest numbers of available jobs but, while Virginia (#3) and Maryland (#5) finished close to the top of the Index, Washington D.C. finished in the middle at #22. Washington D.C., even with the largest number of job openings per capita by far – thanks, in part, to the large volume of government jobs the region enjoys – was weighed down on the Index by one of the highest unemployment rates in the country.

For a deeper analysis into a comparison of the country’s largest national metro areas showing the most job opportunities, take a look at Indeed’s latest job trends heat map.

See the chart below (and our accompanying Job Opportunity Slideshow with images of the 10 worst and the 10 best states) for the full breakdown of the MainStreet.com Job Opportunity Index and be sure to check back next month for an update.

It is easy for all of us to get so caught up in our daily routines that when a big change happens, such as a downturn in the economy, it is extremely hard for people to adjust. However, with the current economy the way it is, everyone needs to make some changes and shift with the times. This may mean becoming more open-minded to accomplish this task.

Non-Brand Names – What is it that makes people so drawn to products just because of the brand name written on the box? With people beginning to cut back their spending and trying to save more, they are being more open to which products they buy. Before the turn in the economy, many people would not buy anything unless it had a brand name on it. But with the current downturn, grocery stores and other retailers have been pushing the cost savings of their store brand products to draw customers in. As consumers make the switch to generic and store brands to save money, it is questionable as to whether they will switch back once the economy turns back around.

Other Career Options – You might have graduated with a specific degree from college, but with the economy pushing back and jobs being difficult to find, people are looking towards other avenues for their careers that they would not have considered before. Being more open-minded in your career search broadens the amount of jobs that you can apply for and the amount of job offers you may get. Now is not the time to be super picky, especially if you are a recent college graduate without any experience. You should take jobs that you can get in order to get the experience. Once the economy starts to look up, then you should really focus on finding that job or field that you love.

Satisfaction with Current Situation – Making the best of your current situation (whatever that may be) will help you get through things until the economy brightens and you are able to stabilize your life. Many people who were unhappy with their jobs a year ago are now just happy to have a job and are finding ways to adjust to their situations at their current job. This may mean people are trying harder, finding things that motivate them, turning the negative things into positives, and seeking out ways to progress in their career at their company in order to keep their job.

Finding Other Ways to Save – If you or your significant other has lost a job, you have had no choice but to find other ways to save. This means you are becoming more open to cutting things out of your life that you were not willing to give up in the past. Although you may not have a choice, being open-minded makes the transition go smoothly. If you think that things will turn around for you in the future, then you can give something up and hope that it will return when the money starts coming in again. Finding alternative ways to save such as a CD, high interest savings account, or putting additional money in your 401(k) may also benefit you greatly. Putting money away somewhere that you cannot blow through really quickly will help you continue to save money for your future even though times are tough now.

Without making slight changes and being more open-minded, people would be finding themselves in an even worse situation. Although many are struggling to make ends meet, being more open-minded allows you to breathe a little bit and make the best of the economy and things you cannot change. Being open-minded in such tough times allows you to manage your fears and stay in control.

— By Hannah Waters, Geezeo.com

Photo by: Alvimann

This Sunday is Mother’s Day, so let’s hear it for Mom!  It is easy to show her how much you care, without even cracking open your wallet.

1.    Make a card – the old fashioned way.  Grab some colored paper, scissors and glue and get those creative juices flowing!  Old pictures are always good if drawing isn’t your strong suit.

2.    Make a card – using the computer.  Are you a pro at Photoshop?  Make Mom a funny card.  Put her head on the body of a supermodel, she won’t complain.

3.    Create a photo montage.   Again, if you’re tech savvy, create a slide show of photos of you and Mom.  Be sure to save it in a format she knows how to use, so she can watch it over and over on her own.

4.    Create a photo album.  If you have access to old photos, take a few and create a small photo album of some important moments with you and Mom.  Be sure to write notes telling her how you remember those days

5.    Make Mom a simple dinner.  Your house or hers, just use the stuff you have and make dinner together.  Mom can always whip something up with what’s at hand.

6.    Go on a walk.  Enjoy the spring weather with a stroll with Mom.  If she doesn’t live in a walk-friendly area, take her for a drive to somewhere scenic.  Connect with Mother Nature as you connect with your Mother.

7.    Go window shopping.  Even when the economy is dragging, window shopping is free!  Take a walk through a mall (outdoor if possible) and you may even get some hints about what Mom would like for her birthday.

8.    Go to church.  Mom will love to show you off next to her at church.  Put on your nicest church clothes and get ready to sing the hymns as loud as she does.

9.    Clean the garage.  If Mom has a garage, odds are it could use a tidy.  If she’s not one to part with clutter, don’t force the issue this time.  Just pull out the cars and the garbage cans and give the space a good sweep then hose it down.  She’ll be thrilled every time she gets out of her car.

10.    Clean out the basement/attic.  If there’s no garage, or if mom doesn’t drive, there’s always the basement or attic.  Let Mom know you want to help her clean and organize this extra space.  Plan the time to do it together and you may uncover even more memories.

11.    Help with her garden.  Spring is the time to plant bulbs, clean out winter waste and get ready for the summer growing season.

12.    Clean her fridge.  Beyond the obvious benefit of a free meal for you, help Mom check the dates on old salad dressing, toss unidentifiable leftovers, and help her wash down the shelves.

It’s all about spending time with Mom.  Show her that you have been thinking of her, and it will be present enough.

– By Michele Steinberg, Geezeo.com

By Ann Evanston | WomenCo.

I often hear people say: “I want to work from home,” or “I’d love to be my own boss.” Even better? Some say, “I have a great idea for a business.” But do they have the right mindset? I’ve also heard people say, “I have an entrepreneurial mindset.” But what does that really mean? Do they have what it takes to become not just entrepreneurial, but a successful entrepreneur? Find out here!

1. Are you a risk taker?
You must be willing to take chances, explore new concepts, ideas, people, and places in order to be successful as an entrepreneur.

2. Do you take advantage of opportunities?
Being able to see opportunities and seize them right away — and not later — is extremely important for an entrepreneur.

3. Do you feel fear and move through it with excitement?
Fear is a part of any entrepreneur’s life, but entrepreneurs usually thrive in this environment, even if it feels a bit scary. And, if they don’t, they feel the fear and do it anyway.

4. Are you willing to learn?
Entrepreneurs are not afraid of learning new things, trying new concepts, stretching themselves, and getting out there, because initially they often have to do it all themselves.

5. Do you adapt to change quickly?
The world is moving fast. Technology seems to change faster than the speed of light! And you have to be willing to change with the needs of your customers and technology in your business.

6. Are you self-disciplined?
An entrepreneur does not have a boss watching over them. An entrepreneur has to be able to get up and do what needs to be done, when it needs to be more, whether they want to do it or not.

7. Do you enjoy sales?
Let’s face it — you can’t be in business and be afraid of sales. So learning about sales and how to close business is important. You must also be comfortable with sales and enjoy doing it, because you love what you sell.

8. Are you influential?
There are many businesses doing exactly what you do (or want to do). You have to have the personality and presence that will influence others to want to be a part of what you have, in person and online.

9. Are you a connector?
Highly successful entrepreneurs have a network of connections that they refer to all the time.

10. Are you results-oriented?
Entrepreneurs need to have the ability to know what their goals are and how they are going to achieve them, and measure those successes so they can continue to move to the next level.

11. Do you understand the intrinsic motivational factors?
Motivation is the key dynamic of how you attract people to your business and close sales; understanding and studying it will make you more successful.

12. Are you willing to expand by hiring help?
Do you know the single biggest mistake that a person who thinks he or she is an entrepreneur makes? Thinking they can do it all. Your business cannot grow if you do not eventually get some help! These 12 factors will help you become more entrepreneurial in what you do. Evaluate where you are. See these traits in yourself and know that if you do these things well, your business will skyrocket.

How will your geographical location play a role in your lifetime earning ability?

Richard Florida is a researcher and author of best-selling books such as “Rise of the Creative Class”, “Flight of the Creative Class” and most recently, “Who’s Your City?”.

You might be familiar with his concept that places that show the greatest economic and cultural growth share three social features: talent, tolerance, and technology. A familiar example is that cities that welcome maligned groups and encourage the arts tend to have the most expressive and robust economies. Reviewing articles about Florida’s latest book, “Who’s Your City”, it appears Florida goes a step further when it comes to finding the best geographic places to live and work.

I haven’t read the book yet but it appears that Florida maintains a specific prediction about the future. His prediction based on research? In order for individual cities (and the people in them) to compete in the coming years they’ll need to join forces, quite literally, with their economic neighbors. Regionalism will grow in importance. Large industrial cities and smaller ones will need to merge into regions that can compete globally. This, in turn, makes transportation such as fast rail or other public transportation between cities and towns even more critical.

Above is his map of the “spiky” world he describes. I look forward to reading more!

At 11am EST we’ll feature reporting from WomenCo.com about the top 25 American cities with the best forecasted economic growth. If you’re considering a move, check out this list.

By Althea Chang | MainStreet.com

Looking for a career in an industry that’s projected to grow instead of shrink? One that can survive recessions both deep and shallow?

Industries that provide services will see a boost in jobs compared with industries that produce goods in the next several years, according to projections by the U.S. Bureau of Labor Statistics. Here are a few industries that are expected to grow:

A Healthy Workplace
With an aging overall population, there’s high demand for healthcare and social assistance services including work in assisted living facilities. On the other end of the social services spectrum, the demand for child care is increasing.

“Healthcare, certainly for lots of reasons, has withstood the stresses of this recession,” says John Challenger, CEO of executive search firm Challenger, Gray & Christmas. For example, he says, “there are some extraordinary scientific developments going on. Identifying the human genome has led to new product development.”

More than three out of every 10 new jobs created in the U.S. between 2006 and 2016 will either be in healthcare, social assistance or public and private educational services, the Bureau of Labor Statistics says. And there’s always a need for good nurses. If you’re looking for a nursing job, try AccessNurses.com.

Services for the Young and Old
Education and health services jobs are expected to grow nearly 19%, adding nearly 5.5 million jobs. Jobs for those providing public and private educational services are expected to grow by 10.7%, adding 1.4 million new jobs through 2016.

If you’re looking for a teaching job, try EducationAmerica.net. Most teaching jobs require a master’s degree in education, though if you haven’t gotten your master’s or you’re working on it, you can try PublicCharters.org or USCharterSchools.org to find teaching jobs that don’t require a master’s degree.

Keeping Informed
Newspapers may be a dying industry, but other sectors related to the dissemination of information should see a rise in employment in the next several years. Jobs in the information sector are expected to increase by 6.9%, and information tech jobs employ a wide range of skills. In this arena, software publishing is expected to grow 32%, Internet publishing and broadcasting could grow more than 44% and wireless telecommunication carriers are expected to increase their staffs by 40.9%. The growing industry also includes movie production and broadcasting, cable service, high-speed Internet connections, and software industries.

As businesses increasingly rely on information technology and require system and network security, professional, scientific and technical services will grow by 28.8%, adding 2.1 million new jobs by 2016, according to the Bureau of Labor Statistics. Even better, computer systems design and related service jobs will grow by more than 38.3%, the bureau says. And management, scientific and technical consulting services will grow at 78%. To search for technology jobs, try Dice.com.

A Little Escapism
The leisure and hospitality sector is also expected to grow in the short and long term. In the near term, discount hospitality companies and, possibly, services that let you forget about your economic woes will grow.

McDonald’s (Stock Quote: MCD) is doing particularly well, as well as beer companies and beer distributors, Challenger says, adding that people tend to drink more in a bad economy. “It’s not something people stop doing.”

Overall employment in leisure and hospitality is expected to grow by 14.3% by 2016. Arts, entertainment and recreation will grow by 30.9%, and 79% of these job openings will be in the amusement, gambling and recreation sector. For jobs in hospitality, try searching HCareers.com.

The Bright Side of the Decline
Automakers like General Motors (Stock Quote: GM) are suspending manufacturing at some U.S. plants this summer and car dealerships seem to be closing left and right. But, Challenger says, “People servicing the cars are in a great time.”

Consumers are holding onto their cars and other expensive items longer, Challenger explains. So in addition to mechanics, retailers selling replacement auto parts and people who fix computers and other gadgets are also doing well.

Manufacturing jobs are expected to decline by 10.6% as automation and other updates improve manufacturing productivity. However, employment in pharmaceutical and medicine manufacturing is expected to grow by 23.8% and add 69,000 new jobs by 2016.

“And people are going to continue to buy food, just not upscale food,” Challenger says. That means many food product companies and grocery store chains will continue to do well.

In the long term, however, employment in agriculture, forestry, fishing and hunting is expected to decrease by 2.8% due to rising costs of production, increasing consolidation and more imports of food and lumber. Crop production will see the largest job loss, with 98,000 fewer jobs in 2016 than in 2006.

Among other industries that are expected to see a decline in the next few years, production related occupations could decline by 4.9% and employment in mining could fall by 1.6%.

As we face these tough economic times a new scene is emerging: indie crafts.  Handmade is more hip than designer.  A new breed of outdoor craft fair will hit most cities this summer; like the Renegade Craft Fair and the Handmade Market.   Using what you have and applying your own creativity is a great way to conserve, save money, and even earn some extra cash.   Here’s how you can get in on the fun:

Make it!
The heart of the craft movement is, of course, to make it yourself.  If you don’t have the natural flair for knitting, cross stitching, or sewing, think about things you use and can make easily:  create iron-on images for tea towels or t-shirts; make greeting cards; grab a canvas or random piece of wood and paint your own art; try your hand at hand-made jewelry.  A visit to your local craft store should start the inspiration and provide you with inexpensive base materials to use for practice.

Bake it!
Stop going out for dinner and bring back the dinner party.  Or luncheon, or high tea, or brunch.  Invite your friends over for pot luck.  Cooking and baking are some of the easiest ways to get involved in crafting.  And don’t forget the decorations!  Make your own centerpieces, decorate napkins, or fashion napkin holders.  Another great way to get started is to bake cookies for friends – but don’t forget to decorate the platter to deliver them on!

Grow it!
Spring is the prefect time to work on your green thumb.  Grow outdoor flowers that you can cut and display indoors.  Decorate flower pots and plant colorful bulbs inside.  Even the smallest balcony (or windowsill) can be the perfect outlet for growing your own herbs for cooking.

Swap it!
Once you’ve made your masterpieces, what better way to show them off than to trade your creations with friends?  This notion can go beyond your projects, on your next vacation think about swapping your home with someone in another city.  It will save you money on hotel costs and give you a real taste of a local.

Sell it!
If your projects are hugely popular in your social group, think about cashing in on your creativity by selling your wares.  In addition to the big craft fairs, churches often hold smaller ones which can help you get your feet wet.  If you’re ready to graduate to selling, but not ready to pay for a booth, set up shop online.  Beyond making your own site, utilize the obvious ebay or specialty marketplaces like Etsy.

Craftiness is the new bling, especially when it’s edgy, cheeky and well done.  Magazines like Ready Made are catering to this growing crowd.  Grab your glue gun and join in the fun!

– By Michele Steinberg, Geezeo.com

When your home begins to look tired and worn, it is natural for people to want to make some changes. But the truth is, home renovation can be extremely expensive and time consuming. With the economy in a tight spot and people struggling to make ends meet, sometimes money has to go towards the necessities and home renovation may fall behind. However, keeping up on your home maintenance before it becomes too overwhelming is still very important.

Here are some ways you may be able to improve your home without spending a lot of money…

Painting Rooms – If you are tired of the dirty looking paint or the white-washed walls you have in your home then doing a little bit of a paint job can make rooms look 100% different and updated. Although you will have to spend money for the paint that you buy, this is much cheaper than having someone come into your home and paint the walls for you. You just need to find the time to be able to paint the walls which honestly can take one day if you put some hard work in.

Planting Flowers – Ever wonder how some of your neighbors have great looking gardens? It really is not that difficult. Pulling out the weeds and planting the flowers just takes time and care. Having a nicer garden will help you enjoy your home more than if it is full of weeds and overgrown plants. If the outside looks nicer, you might be surprised by how much more confidence you have with the inside of your home.

Eliminate the Clutter – Clutter is typically unnecessary throughout your home but is sometimes difficult to get in charge of. Making sure to organize all your mail, paperwork, and toys, etc. that is lying around your home can make all the difference. Make sure the whole family takes part in this to keep it clean and clutter-free. All clutter does is take up space and make you feel as though your home is messy. Cleaning out the clutter costs you nothing but can make you enjoy your home that much more!

Add Decorations – Adding pictures, rugs, or other decorations throughout your home can make it feel as though someone actually lives there. Make sure you give it your own personal touch to make it look more updated and fresh. Pictures add personal style and flair to a house that could otherwise look very drab. Make sure you go to thrift stores, garage sales, and off-price retail locations to find great decorations and save a lot of money.

If you never want to have friends or family over because you feel as though your home doesn’t look up to par, making some changes will give you the confidence to share your home with others! These tips are just a few ways to update your home for less. Although renovating your whole kitchen or bathrooms can also change the look of your home, they cost a lot more money than some of the smaller tasks.

Do you want to become more energy efficient as part of your renovations? See how much it will cost you and what the benefits are!

— By Hannah Waters, Geezeo.com

Photo by: Seemann @ Morguefile.com