Just about any type of relationship can go bad at practically any time. Business relationships are no exception to this sad phenomenon. Even Dave Ramsey says often, “The only ship that won’t sail is a partnership.” Statistics certainly prove this point true. But, it’s not just professional partnerships. Small business owners enter into many working relationships and any one of them can go bad. So, if you experienced this type of situation, there are ways to get back to doing business together, though both of you will need to make a commitment to make it work. Alternatives, Options, and Change If the relationship is irreconcilable, or it’s just not possible to do business again (because of an extraordinary circumstance like death, retirement, or the person has gone out of business), you’ll have to rely on other options, which can mean going with an alternative. But, before you jump right into another relationship, it’s usually best to try and work things out first. The common thread among all damaged relationships is the trust between both parties has been broken. Trust is the underrated lubricant for success in business, and rebuilding that trust is the first step in repairing any business relationship.–Inc.com After all, if you had a working relationship with this individual before, you both benefited from it and it makes sense to continue so neither one of you is forced to start from scratch again. However, if this isn’t feasible or even possible, make a list of alternative options and write down each one’s pros and cons. Make some preliminary contact and explore working together. You could even give one or more a trial run in order to determine how well it does or doesn’t work. How to Patch-Up a Sour Business Relationship Now, if there is a possibility that the relationship can be reconciled, there’s no real good reason not to try. Although, it will take quite a bit of commitment from both parties in order to have a viable future. Here is some effective advice for how to mend a broken business relationship: Start with introspection. Humans are keen on shifting blame away from themselves. People not only dislike making mistakes, but they also do not like being in the wrong. So, it’s up to you to take a good look at yourself first and be willing to accept any blame you deserve. Be humble but honest in your approach. Next, try to reconnect on a casual basis. If you have mutual interests, that’s a good place to start to reconnect. If necessary, take a gradual, measured approach and go slow. When the time is right, you can have a more candid discussion about what transpired but, don’t be blameful. Agree to leave the past behind for the sake of the future. Both of you will have to keep this promise in order to have any chance of working together again. Make it a point to put sensitive topics or events off-limits and focus on your future working relationship instead. Keep an open line of communication flowing. Once you agree to work together again, don’t let the same things get in the way. Stay in regular contact so that everyone’s expectations and needs are known. This will be a great way to help the relationship flourish and be beneficial to both parties. What other advice would you give entrepreneurs about patching up a sour business relationship? Please 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.

Do businesses actually have a credit score? The short answer is — yes. And, these measures of financial responsibility are calculated much in the same way individual credit worthiness is determined. Although it’s not something that’s widely discussed or known about in the consumer world, businesses do have credit histories, and therefore detailed reports which give them scores. Read on to learn the basics about business credit scores and what you need to know. How Business Credit Scores are Calculated As mentioned above, a business credit score is measured very similar to the way individual scores are calculated. Meaning, the length of credit history, types of credit used, payment history, debts owed, and other factors. Unsurprisingly, the better a business handles its financials, the better score it earns. Businesses of all sizes may need credit. A carpenter with no employees may want to borrow money to buy equipment. A marketing professional with a few employees may be ready to purchase furniture and computers for a new office. A salon owner with subcontractors but no employees may want to buy, rather than rent, commercial property. Any type of business could benefit from a business credit card. —US News and World Report Of course, there are some differences, one of the most minor being the scores themselves. While individual credit scores range from a low of 300 to a high of 850, business scores range from 0 to 100, with 100 being the highest. Additionally, business credit scoring services use different models in order to determine the creditworthiness of companies. Also, instead of there being three main credit reporting bureaus for individuals, Equifax, Experian, and TransUnion, there are two principal business credit scoring entities: Dun & Bradstreet and Experian. How to Improve a Business’ Credit Score Since business credit scores rely on many of the same elements as individual consumers, nearly the same factors are used to assign a credit worthiness score. So, in order to maintain or improve a business’s credit score, companies must do the following: Keep debts manageable. Opening too many accounts and taking on large amounts of debt will only increase your financial risk. This not only hurts your business’s credit worthiness, it also puts a lot of strain on you as the owner. This is why it’s best to keep your credit accounts to a minimum and pay off as much debt as possible. Utilize different types of credit. Credit mix is also a consideration, meaning businesses having different types of credit accounts. While it’s advantageous to have various types of credit, it is equally advantageous to keep these to a minimum so you’re able to pay what’s owed in a timely manner. For instance, you might finance or lease vehicles through your business, have a business credit card, and maintain vendor credit accounts. All of these will go into determining your business’s creditworthiness. Be vigilant with your personal credit. One misnomer that entrepreneurs have about business credit is that it’s somehow separate from their personal credit and/or financial responsibilities. However, this is completely false. Business credit accounts almost always require an individual or personal guarantee. This of course means that if the business defaults on a line of credit, you are personally responsible for that particular debt. Moreover, business credit is partially scored on your personal credit, so it’s best to maintain a good personal score for the benefit of your company’s creditworthiness. What other suggestions do you have about maintaining a business’ credit score? 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.