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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What to Do with an Unwanted Inherited Business

September 16, 2021 No Comments

Owning a business is not something that everyone aspires to do. Sure, many people like the idea of being their own boss. But, there are definitely individuals who prefer to avoid the stress and anxiety of being an entrepreneur. Of course, there are many different sets of circumstances. For instance, children who follow their parents and run the family business, taking it over after their parents retire. Or, people who unintentionally fall into their own business without actually setting out to do so. For example, someone who inherits a business from a relative. Although this might seem a bit far-fetched, it does happen more often than one would think. So, what options are available to an heir who really does not want to take over the business? Types of Inherited Businesses Probably the most common form of an inherited business is a family company. Usually, the children grow up in and around the operation and are at least familiar with it. Other times, the children aspire to follow their own career path and never work in the organization. Additionally, there are heirs who inherit a family-owned business that they have never really been acquainted with whatsoever. If you’ve inherited a company, there might be a lot of questions on your mind. You might not want to be an entrepreneur, or even if you do, you might prefer to work in a different industry. Even if you’re ready to take on the business, you might be unsure about how to deal with current employees and suppliers. —Nerd Wallet Though these circumstances are far less common, they do occur. One prime example is someone who inherits a commercial property. That property is leased by several other businesses and generates a profit. The owners may not even be directly involved with the day-to-day operation and rely on a firm or individual to handle the necessities. These would include things like maintenance, repairs, negotiating leases, upgrades, and more. What to Do with an Unwanted Inherited Business Your first instinct could be to just sell it and be out of the situation as quickly as possible. But, if it’s generating a consistent profit, that might not be a wise idea. On the other hand, even if it does generate a profit and you’re completely unfamiliar with it, it could turn into a gigantic mess. Here are some possible options to explore: Learn about the business. Regardless if you’re set on selling it or remotely considering taking it over, you’ve got to know what you’re dealing with first. It’s imperative that you educate yourself about the business in order to make an informed decision as to which way to go. Don’t make the mistake of letting your emotions take over. Instead, take at least a little time to understand precisely what it is and more importantly, how much it’s really worth. Consider being an absentee owner. Although this is quite common in the business world, it’s always a risky proposition. And, it’s probably why you don’t want to get involved in the first place. If you let other people run it, you’re putting your trust into others and that could easily lead to a very regrettable set of circumstances. However, if it is something like commercial property and your relative was also an absentee owner, at least give it some serious thought. Invest in the business. If you do want to give it a try, don’t go it alone. Bring in a business coach to guide you through the process of taking on an entrepreneurial role and become familiar with all it takes to head up this type of operation. If you find it isn’t a good fit, you can always sell it and move on. What other suggestions would you give someone in this position? Please take a moment to share your thoughts and experiences so others can benefit from your perspective! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Less Texting More Face Time Equals More Success in Business

September 12, 2017 No Comments

No, I am not talking about the Facetime application … I am talking real, live one-on-one face time! Texting has become as normal a standard in our world as eating and sleeping, and in some cases it has become more important to some people than eating or sleeping! With texting, the level of trust is low. Texting does not allow for relationship building and real relationship building is required to develop trust. Texting only provides tentative, at best, minimal trust. It’s important to understand that low trust does not translate to success in business! Why Personal Contact Always Beats Out Texting in Business Ok, I am as guilty as anyone using text to communicate. Texting is an efficient and immediate form of communication that allows the sender and recipient to respond on their own terms. It’s very convenient. The benefits of texting are numerous, but the problems that texting develop or cause are now beginning to surface as we track data; auto accidents, pedestrian accidents, sleeplessness, lack of productivity, poor communication skills … and now less success in business due to limited and poor planning! Texting has its place, but not while walking, driving, during meetings, or especially at the dinner table. You want to improve your relationships with family, friends, and business associates, along with clients/customers? Call them, meet them for coffee or lunch, and build a relationship with eye-to-eye contact instead of sending texts. We never talk any more: The problem with text messaging – From CNN Tech Web site By Jeffrey Kluger As texting use rises, the phone call is becoming a dying institution American age 18-29 send an average of nearly 88 text messages a day Psychologists worry social skills in young texters won’t develop Habitual texters may hurt relationships, miss out on new ones Because texting is convenient and can be done almost anywhere, it tends to substitute proper planning in advance for last minute texting to coordinate meetings, directions, critical information, etc. Recently, it hit me why last minute texting is a pet peeve of mine. Why? It minimizes our need to plan because we expect immediate responses. So why plan in advance when you can text at the last minute? Is it not more convenient? Does this rationalization sound familiar? Let me provide a real-world example. When texting or cell phones didn’t exist, we all had to plan out our days, our travel, our meetings … our whole day-to-day life. It required goal setting and developing a plan because there was no cell or text to connect at the last minutes. We had to pre-plan even if the plan was just meeting someone for lunch, or meeting someone at an event. Today, I hear many people say, “We’ll figure it out; I’ll text you.” Real success occurs when you plan in advance by writing down your goals and when you have a plan to achieve those goals. Or in the case of meeting or connecting with someone, you plan in advance so that you minimize the use of text while driving to the meeting! Achieving Your Goals Statistics show more than 70 percent of people never have goals. And, only 28 percent say they have some kind of goals, with just a meager 2 percent having written goals. Moreover, it’s estimated that this 2 percent controls over 90 percent of all income. Goals require planning. This includes planning your weekly business calendar of priorities which are part of your strategy to achieve you goals. So, if you have a plan, you can easily set a meeting and location based on your schedule. If you have no plan, and your plan is to “figure it out and text” at the last minute, then your potential for success diminishes greatly. Align your plan with your goals, by scheduling your plan in a calendar. Instead of texting for directions or meeting locations or times at the last minute, usually while driving and walking, pre-plan your meeting in advance and call or e-mail the information. Then use the time while driving to clear your mind and prepare for your meeting. That will produce far more effective and successful meetings than texting at the last minute. “By failing to prepare, you are preparing to fail.” –Benjamin Franklin Try this for 2 weeks Take 1 hour to plan your week by pre-scheduling all the priorities you need to accomplish in your plan for achieving your goals for the next two weeks. Put each priority in your schedule under a block of time. Allow time for travel, meals, errands, family, work outs, etc. (This takes thinking in advance, but by pre-planning, you will address any logistical challenges in preparing your plan and be able to adjust prior to your meeting or event.) Call and use your voice to communicate your plans with those you are meeting. When you get to the meeting or event, avoid texting and focus on eye contact and listening to your client, customer, vendor, or associate. In doing so, you will have less stress, higher productivity and greater success … with less aggravating, last minute, in between traffic lights and phone call texts … I guarantee it! So, put down your mobile device and start planning for Less texting and more real face time that will help you succeed in business!

8 Things Employees Need to Unlearn When They Become Entrepreneurs

August 22, 2024 No Comments

8 Things Employees Need to Unlearn When They Become Entrepreneurs Making the leap from employee to entrepreneur is thrilling but also daunting. You’re not just changing your job; you’re transforming your entire mindset. To thrive as an entrepreneur, you’ll need to unlearn certain habits and thought processes. Below, we’ll take a look at the most common obstacles and break them down. Everyone knows transitioning from being an employee to becoming an entrepreneur involves a significant shift in mindset, behavior, and expectations. But, what usually comes as a surprise is that employees moving into entrepreneurial roles often need to unlearn certain habits and beliefs that were helpful in an employee context but can be limiting or counterproductive in the world of entrepreneurship. So, here are key things employees need to unlearn: Letting Go of a Fixed Routine As an employee, structure is your best friend. You have set hours, defined roles, and a clear chain of command. But in entrepreneurship, that routine can act like a chain, holding you back. The world of business is like a wild river; it’s always changing, and you need to be ready to navigate the rapids. Embrace flexibility instead of sticking to a rigid schedule. Can you imagine a fish trying to swim upstream while stuck in a net? You don’t want to be that fish. Shifting from Safety to Risk In a traditional job, you might have felt safe with steady paychecks and benefits. Entrepreneurship, however, is a different story. It’s a leap into the unknown where financial security is not guaranteed. You must unlearn the fear of risk. Think of it like jumping off a diving board: the thrill comes when you embrace the plunge, even if the water feels cold at first. Start viewing risks as opportunities for growth instead of threats to stability. Ditching the Need for Approval Employees often look for feedback and approval from bosses. This can be a comforting validation but can stifle creativity. As an entrepreneur, you won’t always have someone to give you the thumbs up. Learning to trust your gut is vital. Picture an artist creating a masterpiece without a critic standing over their shoulder. Sometimes, you’ve got to paint outside the lines to find your true colors. Rethinking Work-Life Balance In traditional jobs, the idea of work-life balance is often a checklist item. But as an entrepreneur, this concept shifts dramatically. Work can seep into personal time, and that’s okay. Unlearn the idea that you have to clock out at a specific time. Instead, think of it as a dance. Sometimes you’ll lead, and sometimes you’ll follow, but the music keeps playing. Finding your rhythm is key to thriving in this new environment. Breaking Free from Hierarchical Thinking Employees usually navigate through a company hierarchy, following orders and protocols. Entrepreneurship flips this script; it’s about collaboration and community. Unlearn the mindset that someone always needs to be in charge. Picture a team of explorers planning a journey—everyone shares ideas, and every voice holds value. This teamwork spirit opens the door to innovation and creativity. Shedding the Idea of Job Security In a job, many seek security and comfort. But entrepreneurs must accept that uncertainty is part of the game. You can compare it to a tightrope walker. Balancing on that line takes courage and focus, knowing that every step is a risk but also a chance to soar. This mindset shift allows you to take calculated risks that can lead to great rewards. Focusing on a Narrow Scope of Work Employees often specialize in a particular area, focusing on a specific set of tasks within their job description. They may rely on other departments or team members to handle different aspects of the business. Conversely, entrepreneurs wear many hats and must manage various aspects of the business, from product development and marketing to finance and operations. They need a broader skill set and the ability to juggle multiple responsibilities. So, entrepreneurs must embrace a generalist mindset, learning to understand and manage multiple aspects of the business. Embracing Continuous Learning In employee roles, growth often comes from annual reviews or courses mandated by the company. As an entrepreneur, learning becomes a constant journey. Unlearn the idea that education has limits. Seek knowledge from every corner—books, podcasts, networking. Think of yourself as a sponge, ready to soak up every bit of wisdom. This drive will keep you ahead of the curve in a fast-paced world. The Journey of Unlearning Going from employee to entrepreneur involves unlearning old habits and embracing new ways of thinking. By embracing a new mindset, you empower yourself for this exciting journey. Remember, the path might get rocky, but with each step, you’ll carve out your own unique path in the entrepreneurial world. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at (602) 541-1760, or, if you prefer,