Business Education

Why Getting a Bad Credit Loan for Your Small Business Is Usually a Bad Bet

You’ve probably heard the comparison before – starting a small business is like planting a seed. You want it to grow into something strong and successful. But, if you start off on shaky ground, that seed might not sprout at all. Sadly, this analogy has become a cliche, but it’s important to remember most unoriginal phrases were once profound. In other words, such a sentiment, even though overused, hasn’t lost its truth.

Now, let’s apply that lesson to the business world. Meaning, that when you start from a deficit, particularly one that’s so costly, it spells trouble. Applying this reality to entrepreneurship, if you have bad credit, you might think a bad credit loan is your only option. But let’s take a closer look at why this can be a big mistake.

The Heavy Burden of High Interest Rates

When you have bad credit, lenders immediately see you as a risk. So, they often charge sky-high interest rates. Imagine trying to run your business while carrying a heavy backpack filled with rocks. Each month, those interest payments can feel like extra weight on your shoulders. If your business isn’t making enough money, you could end up drowning in debt before you really even get started.

Short-Term Loans with Long-Term Consequences

Many bad credit loans offer quick cash. It sounds tempting, right? But these loans often come with short repayment terms. This means you’ll have to pay back the entire amount in a few months. If your business isn’t booming yet, how will you find the money? It’s akin to sprinting an entire marathon—you’ll tire out well before you reach the finish line.

Limited Funding Options

Using a bad credit loan can also limit your future funding options. When lenders see that you’ve taken on a risky loan, they may hesitate to lend to you again. It’s not much different from getting a bad grade in school. It affects your chances of getting into a better school or program later on. If you need more funds down the line, you might be stuck with few options and more stress.

The Debt Cycle Risk

It’s easy to fall into a debt cycle with a bad credit loan. You borrow money to pay bills, but then you can’t keep up with the payments. So what do you do? You might resort to borrowing again. It’s a slippery slope that makes you a hamster on a wheel, running hard but going nowhere. This can lead to more financial problems in the long run, making it harder to get your business off the ground.

Strained Lender Relationships

Bad credit loans often come with tight terms and conditions. If you miss payments, you will face hefty late fees or even legal action. This creates a stressful relationship between you and the lender. It’s basically the same as working for a boss who’s always watching you, waiting for you to slip up. Wouldn’t you rather have a partnership based on trust instead?

Alternatives that Don’t Break the Bank

While it feels like bad credit limits your options, there are often better choices. Many local organizations and nonprofits offer grants and loans designed for small businesses. These can provide the support you need without the heavy burden of high interest rates. Consider exploring community resources or finding a co-signer with better credit. Think of it as asking a close friend to help you climb a steep hill—you don’t have to do it alone.

Choose Wisely for Your Business

Starting a small business is exciting, but financing it shouldn’t feel like a game of chance. Bad credit loans can seem like an easy fix, but they often lead to more problems. Instead of strapping on a heavy backpack filled with debt, look for lighter, more sustainable ways to fund your dream. Your business deserves a solid foundation, not a shaky one. Select funding options that can help you flourish, not those that will keep you trapped in an endless cycle of debt.

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You can call us for your free appointment at 480-636-1720, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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How Successful Entrepreneurs Stay Calm Under Pressure

May 16, 2017 No Comments

There’s one thing that’s certain about starting and running a business, there will be challenges. Some are mere annoyances, while others are minor and easily dealt with, then, there are times when it seems the earth moves. It can happen in the blink of an eye, a simple error demonstrating much to your chagrin the butterfly effect. One tiny mistake or misstep makes a larger-than-life impact, and, your team looks to you to deal with the situation. We are told our whole lives that when faced with a challenge to remain calm. While it’s easy to do so as an exercise, things get a lot more complicated in real time. It starts with a stark realization, your heart drops into yours stomach, and, you begin to look desperately for answers. For most of us, that’s a normal reaction, however, for successful entrepreneurs, there’s a different approach. How Successful Entrepreneurs Stay Calm You’re not alone if you believe that stressful situations wreak havoc on lives and cause physical damage, particularly because it’s backed by science. Dr. Travis Bradberry helped to conduct a research study on more than one million people. As the nearby quote states, the analysis revealed that a whopping 90 percent of those categorized as top performers were able to stay calm, manage their emotions, and remain in control. The ability to manage your emotions and remain calm under pressure has a direct link to your performance. TalentSmart has conducted research with more than a million people, and we’ve found that 90% of top performers are skilled at managing their emotions in times of stress in order to remain calm and in control. —Forbes What this teaches us is that people learn to deal with stress, and other neuroscience research has found this to be true. One of the secrets revealed is that staying calm and under control is not an inborn trait. In fact, we also know this because of our instinctive fight-or-flight response–both can make a bad situation a whole lot worse. So, how is it that successful entrepreneurs stay calm under pressure? Well, they do these things: They take a breath and step back. Okay, we all know to do this, but, how many of us actually practice it? Too often, we let our gut instinct fly, which in most instances, isn’t a path to solve the problem but exacerbate the situation. Taking a deep breath allows you to breathe, in other words, calm your nerves, and your brain. They solicit and seriously entertain ideas. Look to some of the most successful people in business, and, you’ll definitely find a common trait: trust. We’re not talking about self-confidence, but trusting in others, or, put another way, giving serious consideration to the ideas and suggestions of other people. Behind every successful business person, there’s a team of people they trust and rely on for advice. They think carefully but don’t fret the outcome. Rather than focus on the moment and allowing it to become an exercise in fear and doubt, look to the future. While what you face might be heart pounding at the moment, it’s quite helpful to see the good that will come from it. Fear produces poor decisions but hope gives you options and a sense of peace. They stand by their beliefs and principles. When confronted with a problem, rather than give into the pressure, successful people choose to stand by their beliefs and not compromise their principles. While this might cause a setback, it serves a higher purpose and makes a statement. They relabel their emotions. Though not easy, this is very helpful. Instead of giving into fear, reroute the feeling into anticipation. You can turn frustration into desire, and transform dread into wise caution. It takes practice to do these things, but becomes more natural over time. That’s a good thing, because you’ll learn a lot on your journey and different constructive coping mechanisms that produce real results. [shareaholic app=”follow_buttons” id=”26833294″]

How to Make a More Productive Monday on Friday

May 16, 2017 No Comments

With another hectic week coming to a close and the excitement of the weekend just hours away, it’s no wonder why Fridays are less than practically productive. In some business environments, it’s the unofficial slack-off day, one comprised of mundane tasks, a bit of cleanup, and perhaps, some tying of loose ends. Plans for the weekend take away attention from the inbox, and minds wander. Fridays, by-and-large, are informal work days, and that’s a shame, because these could serve as launch pad for serious Monday productivity. How to Make a More Productive Monday on Friday Ironically, Mondays aren’t much better, as these are the days returning from the weekends dreamed about on Fridays. The first day of the work week is one that’s often dreaded, in-part because of what wasn’t done on Friday. Talk about a dichotomy, this one scores high on the list. What’s worse, is that your team members aren’t alone in this experience, because you too, are right alongside them, especially on Friday afternoon, after lunch. Monday mornings are the most critical time of the workweek — they set the stage for the day and week ahead. Most successful people are keenly aware of the typical Monday-morning workplace dynamic of unanticipated events, overflow of communications, and general chaos. —Business Insider Even with all your entrepreneurial drive, you too, are ready to enjoy the downtime the weekend delivers, and it’s important because it lets you let go, at least enough to refresh. This dynamic doesn’t have to bedevil your company, or more particularly, you. There are some things you can do to make a more productive Monday on Friday: Plan in advance for the following week. Monday is often treated with disdain precisely because of what it holds in-store. Ironically, it’s what wasn’t done on Friday that makes this a reality. Mondays don’t have to be a scramble to catch-up, they can be a productive day, if you prepare on Friday. So, prime your sales pipeline, get organized, and plan out the week. You’ll do yourself a huge favor, and you’ll avoid that nagging feeling that you forgot something. Identify one or more things to get done today. Instead of counting down the clock to the end of the day, look at the time available to use for a task or two that’s yet to be completed. When you tackle a project, even if it’s small, you’ll feel a sense of accomplishment, and not guilty about taking time for yourself over the weekend. Reach out to customers early in the day. Because Friday is a lackadaisical day in so many offices, you can use this phenomenon to your advantage. Reach out to customers you haven’t connected with in awhile, and double down by following-up with deals in-the-works. Leave a small reward to enjoy on Monday. One reason Mondays seem so bland is because they lack reward. Whatever it is that perks you up, and not just a cup of coffee, like a favorite snack, put it aside for next week. You can even set a reminder to make it all the more special. Begin the week with thoughtful recognition. There is probably at least one person who helped you out this week, perhaps two or three. Show your appreciation by picking something up for them over the weekend and surprising them on Monday. It will keep you eager to get back Monday morning, and will create a sense of appreciation and excitement to the recipient(s). Another thing you can do on Friday to make Monday more productive is to get that one pain point out of the way. It will make the weekend all the more enjoyable and sweet, plus, it won’t daunt you next week. I started doing this in the form of a game or competition. How many pain point, or high priority projects, phone calls or tasks could I accomplish before I leave on Friday? How many projects or priorities do I have on Monday that I could complete on Friday to make Monday an easy start? And it is working for me with higher productivity, growth and more free time. Make your Friday count so that Monday is a breeze! [shareaholic app=”follow_buttons” id=”26833294″]

I Reopened My Business, but Now I’m Short-Staffed, What Do I Do?

February 9, 2021 No Comments

The COVID-19 pandemic and subsequent shutdowns affected different businesses in different ways. Some industries, like financial services, online retail, and even real estate, experienced growth. However, other industries suffered big losses, particularly hospitality, restaurants, and brick and mortar retailers; even some office environments experienced significant setbacks. Now, with plans to reopen and resume business as normal underway, some companies are faced with a labor shortage. Obviously, it’s difficult to service customers without the proper employee support. So, let’s look at some ways to shore up your business staff in short order. Employees are the Single-Most Valuable Business Asset Regardless of what industry your company serves, you’ve probably learned over the years — or have least heard — that employees are true assets to any business. Companies who do not treat their employees as assets suffer from high rates of turnover, low quality work, and often poor morale. Before you start evaluating candidates, ask yourself what traits you want to have in those employees to ensure you’re aligning your new hires with your business objectives. Some common traits that I’ve seen among hiring for eCommerce and physical retailers include flexibility, high energy, and fast learner —Business 2 Community Conversely, businesses that treat their employees as valued assets enjoy quality production, higher rates of production, a strong camaraderie and positive morale, and very low turnover. The reason isn’t a mystery — treat employees well and they will in turn do their best. Of course, that begs the question of how to bring on several people in a short amount of time that will make a good fit? How to Find Quality Employees on Short Notice In order to staff a business quickly, you need to first determine which roles to prioritize. And, know exactly what type of personalities best fit said roles. Here are three attitudes you must embrace to find the right staff in a pinch: Be patient. You probably already have existing employees taking on expansive responsibilities out of necessity. You should continue that practice but with a goal to reach. It’s better to rely on known qualities and compensate them well than to rush through the hiring process simply to fill positions. Start with previous employees to fill empty roles and give them more responsibilities for the short-term. Be flexible. Of course, you should streamline your hiring and training processes. But along with these changes, it’s also smart to think strategically. In other words, if a new hire isn’t working out in a particular role, move him or her into a different position instead of letting them go and having to go through the process all over again. Be confident. Sure, this might be a time of uncertainty. It’s unnerving, upsetting, and can be difficult to cope with. But, if you remain calm and show confidence, that will permeate through the company and help your employees greatly. What other attributes would you suggest business owners take on in order to get through a period of short staff? Please take a moment to share your thoughts and experiences by commenting so others can benefit from your unique perspective. Interested in learning more about business? Then just visit Waters Business Consulting Group.

Why Getting a Bad Credit Loan for Your Small Business Is Usually a Bad Bet

The Heavy Burden of High Interest Rates

Short-Term Loans with Long-Term Consequences

Limited Funding Options

The Debt Cycle Risk

Strained Lender Relationships

Alternatives that Don’t Break the Bank

Choose Wisely for Your Business

Want to Accomplish More?

Like this article?

Related Posts

How Successful Entrepreneurs Stay Calm Under Pressure

How to Make a More Productive Monday on Friday

I Reopened My Business, but Now I’m Short-Staffed, What Do I Do?