Is it Better to Borrow or Give Equity to Grow?

starting a businessWhen starting a business, most of the startup costs will be paid by the business owner from savings, retirement accounts, long hours, and hard work. Banks will not lend to start-ups, and those who will do so at incomprehensible rates, and investors will not give money to an unproven business owner. But at some point, after the first few bumpy years have passed, those businesses which succeed will have to make a decision on how to grow. They can continue to self-fund their growth, accelerating only as fast as their profits will let them, or the can look for cash from a third party to help offset costs to expand. For those businesses which go with the second option, there are two primary ways to do this: with debt, or equity.

Taking on debt through borrowing can be a great option for some companies. The owners do not have to give up any ownership, meaning long-term profits should be higher. And depending on the amount borrowed, the debt could be gone in a matter of years, after which profitability increases. Borrowing is usually a good option if you know exactly what you need to expand, or if you are using the funds to buy a piece of equipment or a building, as you will usually get better rates. On the flip side, most lenders will require you to sign a personal guarantee, meaning you are on the hook for the total cost of the loans, even if the business fails. …

Establishing Policies and Procedures for Lockout Tagout

lockout tagoutWhen attempting to establish policies and procedures for lockout tagout, it is important to consider a number of things. First, you need to consult OSHA Standard 1910.147, which is the standard which governs lockout tagout requirements. Next, you need to consider the machinery, layout, and affected personnel at the facility for which you are creating the lockout tagout policies and procedures. Finally, you need to consider what future updates or changes may need to be made to the lockout tagout policies and procedures – you do not want to create something that is not going to be malleable with your company’s future needs.

To create these plans, many companies hire third party lockout tagout auditing firms to help. Standard 1910.147 is extremely complicated and technical, and can very easily be misinterpreted. Unfortunately, hiring third party lockout tagout auditing firms to assist in this process can be very expensive, and the ongoing maintenance and review can be extremely costly.

But so is the cost associated with an OSHA finding. Or worse, a settlement with an injured employee. So when Macomb Heating and Cooling determined how to create policies and procedures for lockout tagout, it was important for them to consider both the short and long term costs. Fortunately, there is now a product which offers the peace of mind of utilizing a third party lockout tagout auditing firm with the control of self-monitoring and none of the inflated costs.

Our Factory Solutions Software is a web-based program which allows you to …