Business Education

How Entrepreneurs Can Establish Good Business Credit

When you open a small business, you have the opportunity to build credit separate from your personal credit. The better your small business’ credit, the better terms you can get with supply vendors and lending institutions, like banks. This means being able to borrow at a better rate to finance expansion in the future.

Why Building Good Business Credit is Important

Like personal credit, business credit is monitored and reported by credit bureaus. “The major business credit bureaus that compile and provide copies of the reports are: Dun & Bradstreet, Experian Business, Equifax Business, and Business Credit USA,” according to one credit expert.

By having a business credit history separate from your personal one, you can minimize the effect negative events on one might have on the other. For example, if you have some financial missteps that impact your personal credit history and score, they shouldn’t impact your small business credit if you have established a clear separation and vice versa. —Biz Filings.com

Building business credit is essential to a company’s reputation and success. Establishing good business credit is done through a combination of practices. Your small business will have to observe these to build a solid commercial credit record.

How Entrepreneurs can Establish Good Business Credit

When you start a company, you’ll probably need corporate credit for a number of things. Keep in mind, though, these are ultimately your personal responsibility. So, make sure you understand the terms. Here’s how entrepreneurs can establish good business credit:

Secure a debt instrument in the business’ name. A “debt instrument” is simply another term for “loan” or “line of credit”. It means you are borrowing money in advance or taking on debt to purchase necessities for your business, like fixtures, equipment and supplies. Apply for a business loan, line of credit, or vendor credit that does not check your personal credit score or history. You are attempting to obtain credit in the business’s name only. Commercial lenders may waive personal credit checks in lieu of providing collateral or a down payment. Another method for securing a debt instrument is to apply for a credit card in the name of your business. Terms and reporting procedures will vary by credit card companies, but in general, the monthly payments will reflect on your business’ credit profile.
Build your credit history. Make credit line and business loan payments on time. Schedule automatic payments debited from your business checking account for business loans and lines of credit. Or make payments on recurring credit lines or loans at least three to five business days in advance of the due date. Get in the habit of making payments larger than the minimum due.
Check your business’ credit files for errors. Request copies of your business credit report from each of the corporate credit monitoring bureaus, six to 12 months after securing a commercial loan or line of credit. Review each report for accuracy and dispute any errors directly with the agency reporting the erroneous items. If errors are disputed to no avail and are not legitimate, consider having your attorney contact the reporting agency to resolve the situation. Like personal credit reports, business credit reports may be adversely affected by incorrect trade lines being reported.

How have you established business credit? What mistakes would you avoid? Please share your thoughts and experiences!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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How New Business Owners and Startup Entrepreneurs can Deal with Holiday Stress

December 21, 2022 No Comments

Although the holidays are usually fun and enjoyable, they can be a significant source of stress. With so much to do and less time to get everything done, it’s very easy to feel overwhelmed. Stress can be particularly acute for business owners and entrepreneurs during the holiday season and this means being able to recognize the symptoms and cope with them appropriately. Why It’s Very Important to Take Stress Seriously Stress is a natural response to the demands and challenges of life. However, when stress becomes chronic and is not effectively managed, it can have negative effects on both the mind and the body. On the mental level, stress can interfere with concentration and decision-making abilities, leading to reduced productivity and difficulty in problem-solving. It can also cause feelings of anxiety, depression, and irritability. In extreme cases, chronic stress can lead to the development of mental health disorders Ask almost any small business owner about their plans for the holiday season, and there’s about a fifty percent chance they will laugh in your face. December is a notoriously stressful time for business owners, as the combination of wrapping up the end of year finances and projects, creating projections for the year ahead, and showing appropriate gratitude for customers and employees adds up to a heap of extra anxiety. —All Business.com On the physical level, stress can have a wide range of negative effects on the body. It can cause muscle tension, headaches, and digestive issues, as well as weaken the immune system and increase the risk of heart disease and stroke. Stress can also disrupt sleep patterns, leading to fatigue and difficulty in getting a restful night’s sleep. To mitigate the negative effects of stress on the mind and body, it is important to find healthy ways to manage stress, such as exercising, mindfulness practices, and healthy eating. By taking steps to manage stress, individuals can improve their overall physical and mental well-being and live happier and healthier lives. Tips Business Owners and Entrepreneurs can Use to Cope with Holiday Stress The holiday season can be a stressful time for new business owners and startup entrepreneurs. Between trying to meet end-of-year goals, managing a busy schedule, and dealing with the added pressure of holiday expectations, it can be easy to become overwhelmed. Here are five coping strategies that can help new business owners and startup entrepreneurs manage holiday stress: Set boundaries. It’s important to set limits on how much time and energy you dedicate to your business during the holiday season. Set aside specific times for work and make sure to take breaks to rest and recharge. Delegate tasks. Don’t try to do everything yourself. Delegate tasks to your team or consider hiring temporary help to alleviate some of the workload. Practice self-care. Make sure to prioritize your own well-being during the holiday season. This may include exercising, getting enough sleep, eating well, and finding time for activities that bring you joy and relaxation. Seek support. Don’t be afraid to reach out to your network for support and guidance. Surrounding yourself with a supportive community can help you navigate the challenges of the holiday season. Practice mindfulness. Take a few minutes each day to focus on the present moment and practice mindfulness. This can help you feel more centered and better equipped to handle the demands of the holiday season. By implementing these coping strategies, new business owners and startup entrepreneurs can effectively manage holiday stress and maintain their productivity and well-being during this busy time of year. So, what else do you recommend to help entrepreneurs and business owners deal with the stress of the holidays? Please take a few moments to give your own input to help others out during this time of year. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Is Your Business Charging Enough for its Products and Services? Probably Not. Here’s Why…

September 30, 2021 No Comments

“Sure, we lose money on every sale, but we make up for it on volume.” This witty saying is often repeated in the business world because it effectively demonstrates a fundamental flaw with a company’s operating model. But, like any really good bit of humor, it contains an undeniable truth. Plus, it is probably applicable to your own business in an abstract way. If you have ever wrestled with raising the prices you charge for your business’ goods and services, then now is a great time to resolve that issue. Why Businesses Don’t Raise their Prices Although large corporations and big companies do raise their prices fairly routinely, small business owners are averse to doing the same. It’s not because small business owners aren’t smart operators, it’s merely the fear of the possible repercussions. Perhaps the biggest objection is that maintaining lower prices attracts new customers and greatly influences repeat business. While this might be ostensibly true, it can’t exist in perpetuity. A major part of running a successful business is knowing at what price to value your services or products. Entrepreneurs and business owners must ensure a balance in price between costs and gains. While low prices are certainly an attractive selling point, a variety of factors can bring pressure to bear on your bottom line, necessitating a higher charge for your services. —Forbes.com Another reason small businesses don’t raise their prices is that they’ve become so accustomed to their charging schedule. Though it sounds like a cop-out, it’s just the comfort of complacency that allows them to dismiss the notion of increasing their prices. Then, there are the logistical factors that come into play, which is particularly true in retail, where items must be individually updated, along with point of sale systems. Three Compelling Reasons Businesses should Charge More Even though most small business owners would gladly welcome a pay bump in their bottom line, they avoid increasing what they charge because they fear it will result in a loss of customers. However, this only looks at one side of the equation. Here are three compelling reasons why businesses should charge more for their products and services: There model is outdated. It’s a real accomplishment to stay in business for years on end. Everyone knows the statistics, that a high percentage of businesses fail in the first two to three years. But thereafter, they become not only viable but probably profitable enough to sustain a few sets of disruptive circumstances. Since business owners always experience ups and downs, they find a great deal of unconscious comfort in their pricing models that they established at the outset. But, as years go by, prices should go up incrementally to keep up with the times. There’s a lack of other service providers. The very fact that so many businesses fail, compounded by the shutdowns resulting from the global pandemic, means there are likely fewer service providers around right now. This represents a prime opportunity to market more aggressively, raise your prices, and build out quality staff. If you don’t, you’re missing a key moment that you’ll probably regret in the future. The cost of doing business just keeps rising. Of course, everything costs more now than it did just a short time ago. It’s not just the shortage of materials that the world is currently experiencing, but also other dynamics, such as inflation, the always rising costs of employee benefits, insurance, rent, and just about everything else associated with the cost of doing business is going up. What other reasons warrant raising prices? Please take a few minutes to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Big Benefits of Business Coaching

May 16, 2017 No Comments

It takes a lot of determination, grit, and optimism to start and grow a business in today’s environment. The duality of the web is that you can broadcast further than ever before, reaching more potential customers, but so can your competition. The internet certainly changes the dynamics of business, but it’s not your only tool. You have more at your disposal, and for many entrepreneurs, they don’t look to much else. That certainly creates a problem, but it’s one that can be overcome, with the right attitude and mindset. Put another way, business owners succeeded before the advent of the web, and, those who are now growing do so making the most of what’s available. These entrepreneurs understand that ultimately, business is all about people, and, having the advice of an experienced professional does so much. The Big Benefits of Business Coaching You’ve heard about business coaching but might wonder why companies utilize their services. One advantage is gaining insight into what growing a company looks like from someone that’s been through the process time and again. Often times, companies lack experience in dealing with problems not faced before. They simply don’t know where to begin, or, what tack to take. Business coaching is not just for entrepreneurs with small to medium sized enterprises. In fact, studies have shown that over 58% of large corporations have expanded their use of business coaching over the last few years. Why? Because it works. —Enterprise Hub That’s a really a bad place to be and decisions made with uncertainty rarely have good outcomes. It’s not just fear that fells companies and alters their direction, but also, lack of preparation and not having an adequate, workable system in place. There are still more reasons companies benefit from business coaching, including the following: Organization and time management. A huge problem for most business owners is that so many things compete for their attention. That can easily lead to becoming disorganized, and, to poor time management. With someone helping to set priorities, schedules, and boundaries, a lot more will get done with the most important tackled at the right time, with limited distraction. Setting achievable goals to build momentum. One thing that can weigh down a business and get an entrepreneur stuck is lack of achievement. The reason material is taught in a incremental, tiered fashion, practically no matter the subject, is because it works. People are naturally motivated to reach other goals when they’ve had success. Sure, there is always the possibility of failure, but when it has a small impact, it’s a lot easier to overcome. Making team members accountable. A hobgoblin of business is one the wreaks havoc both subtly and overtly: little to no assigned accountability. For team members, as well as owners, to be truly productive, creative, and deliver their best, everyone in the organization needs to be held accountable. The trouble with this scenario is those on the inside usually have difficulty seeing the forest for the trees. Put another way, it’s hard to assign accountability to each team member because you’re dealing with personalities and emotions. A third party will have a much more clear view. Smart financial projecting and planning. It’s not easy to make financial projections and plan for the future when you’re trying to run a business. While you likely have a grasp on potential, there will be contingencies. Here again, having an experienced hand will take off pressure and keep you from diluting the numbers for a variety of reasons. Creating a better, more open environment. When everyone in the organization feels valued and is encouraged to contribute creatively, there’s a lot of good that will come as a result. Tapping into those resources must be done in a positive, proactive, and genuine way. [shareaholic app=”follow_buttons” id=”26833294″]

How Entrepreneurs Can Establish Good Business Credit

Why Building Good Business Credit is Important

How Entrepreneurs can Establish Good Business Credit

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How New Business Owners and Startup Entrepreneurs can Deal with Holiday Stress

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