START YOUR BUSINESS WITH THE FUTURE IN MIND – DON’T USE YOUR PERSONAL CREDIT!

It’s an exciting time, that first moment you go all in and decide to start your own business. Exhilarating doesn’t really cover it. But not too many days after the buzz has worn off a bit, reality bites and the stress of not knowing where next months’ bills are coming from kicks in. Deep breaths. You will be ok.

Most entrepreneurs start their business with savings and using their personal credit card to get them rolling. Bad idea … very bad idea. Not just because it leaves you with no back-up plan, but it means that your personal credit will take a huge hit as you borrow against your personal assets. Net result is both your personal and business credit end up in the pan.  It’s a rare small business that is able to start with a good amount of working capital, secured through a business loan, so what should everyone else do.

Obviously – live within your means and try not to use your personal credit to keep your business afloat. Easier said than done I know. So, how about some practical tips for new start ups to help them build their business credit as they grow, so they can reclaim their personal credit score and keep it where it belongs. FAR AWAY FROM YOUR BUSINESS!

Tips to keep you moving forward.

Don’t be afraid to seek a loan at the very beginning of your journey, there are plenty of options that will limit your exposure and keep you straight financially. Many of the ‘big’ banks won’t look at you, but there are many options out there that will work.

Make time every week to evaluate your finances, do your financial paperwork and think about what is coming and if you can fund it. Keeping ahead of the game will give you time to find the right funding without having to take emergency action.

Think about using something like Accounts Receivable financing to help get your cashflow back on track and get you past that first few years without a hitch.

Consider joining a credit builder program that can help with regular costs from suppliers, small loans and credit cards all of which are designed to build your business credit score.

Don’t allow late payments to happen! You are not a charity or a bank, stay on top of late payers, ditch them if they persist. Don’t give in to the voice in your head that is whispering ‘what if it’s the only contract I get, better late money than no money?’ NO! Every small business owner, in every corner of the world, has that same fear.

Work with your accountant to help you get (and keep) perspective on what you are doing right and wrong and what you can truly afford. A good accountant can be your CFO – no matter how small your business is, you need a CFO (of some sort).

Running a business isn’t for the faint of heart, but with focus, clarity and a good team behind you – particularly in the finance department – you will do great!

We’re here for you.

WHEN THE BIG BANKS SAY NO, FITUFINANCE CAN HELP.

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