How Business Venture Capital Sparks Innovation, And How Google and Facebook are Throwing Water on the Fire When it Comes to Online Ad Firms

Top Ways to Get Business Venture Capital and Keep Innovation Alive

Innovation is what keeps things moving.  It keeps industries from growing stagnant and encourages our economy to continue thriving.  In hard economic times, innovation is what pulls us out. Consequently, we need innovation to keep moving along.  Finding new and better ways to get things done is essential to our economy and our livelihood. It cannot happen without business venture capital however. 

If innovation is the fire that raises the hot air balloon of the economy, then business venture capital is the spark that lights the fire.  Of course you can always get corporate credit, and that is important.  However, there must be people with funds that are willing to support the innovation for it to do what it needs to do.  Name most any industry, and if innovation stops the industry will stall. As a result, growth will cease.  

Consequently, online ad firms are starting to see this in their industry.   It seems strange that, with the internet not going anywhere and continuing to grow, anything online should be in danger of stalling.  In the face of Goliath’s like Facebook and Google however, it appears that is exactly what is happening. 

What is Venture Capital Funding? 

It isn’t really hard to define venture capital.  At its core, it is an investment. Generally, these investment funds come from venture capital firms. These venture capital funds are used by the business owner to get the business up and running, and then the venture capital firm earns a percentage of the profit.

How Does Business Venture Capital Spark Innovation?

What does business venture capital have to do with innovation, or what does a lack business venture capital have to do with a lack of innovation? Consider the previously mentioned ad tech firm example. For a few years there was a ton of venture capital flowing into this particular industry, but there has been a steep decline in more recent years. What is happening with venture capital firms?

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For example, there were 260 deals between ad tech companies and venture capital firms in 2014.  In 2017 there were only 122. The decline is ongoing. Many of the smaller ad techs were not profitable, so they are consolidating or disappearing all together.  Without the business venture capital helping them out, there will not be many more making a go at it either.  

The problem is, those smaller companies are needed when it comes to innovation. If there is no one trying to beat Google and Facebook, or at least compete, then there is no one trying to find a better way to do things. With no venture capital flowing into the industry, the smaller companies aren’t going to be able to innovate, meaning they can’t compete.  

What’s the Solution?

In the ad tech world, the best solution is likely a third large competitor.  A third player in the big game could up the competition just enough to inspire the big three to start looking for ways to beat each other at their own game.  Competition is where innovation thrives. 

What about other industries?  It’s kind of a two-way street.  Venture capitalists like to see innovation, and startups need to find innovative ways to do what they do so that they can compete. To do that, they need funding.  In this way, innovation attracts business venture capital, and the more venture capital a business can get its hands on, the more innovative it can be. 

How Does this Affect You and Your Business?

You know you have to play hard or go home.  If you aren’t innovating, then you aren’t going to get the funds.  If you aren’t getting the funds, your innovation will never become a reality. So, first thing’s first. Get those creative juices flowing and find a better way to do what you do than your competitors. 

How to Get Venture Capital

Now that you understand how venture capital and innovation are related through the ad tech vs. Google and Facebook example, you need to know how to get venture capital for your own business. Keeping with the theme of sparks and fire, you will need to spark your own fire, a campfire of sorts, to attract potential investors.  Here is how to get the fire started, and what to do once you have them sitting around said fire.

top venture capital firms business venture capital credit suite

Gather Your Firewood: Research

Don’t just pick a random firm to approach about investing in your business.  You have to do a little research first. Venture capitalists do not make a habit of investing in companies that haven’t proven themselves.  Most want to see some proof of profitability.

Look for those that have historically offered funding to companies in the same industry as you that were in a similar stage.  If they typically go for businesses in health care and you are a tech company, they are probably not the right fit for you. 

Similarly, if they generally lend to those that have been in business for a minimum of 2 years and profit of at least $50,000 a year, and you fit that description, they may be worth talking to.  Be intentional with the firms you approach to cut down on wasted time and effort. 

Keep the Fire Contained

Do not blast every venture capitalist you can find on line with a cookie cutter email.  That is a huge no no. Not only will it not work, but they likely will never even read your email.  Back in the 80s there was an idea that venture capitalists would read unsolicited proposals, and they pretended that they did.  There is no pretending now. It doesn’t happen, and there is no reason to think it does. Email blasting is not a way to find investors. Keep your search concentrated and contained to those that are interested in your industry and companies in the same stage as yours.

Kindling: Work Through Your Network for the First Spark

How do you find someone then?  In addition to concentrated research, work through your network. Talk to friends, families, and associates.  Pick their brains to see who they know that may be a good fit for your business. Ask them to introduce you.  

Don’t have a network?  Better get to work! Starting from scratch to build a business network is hard, but it isn’t impossible.  Start by joining the local chamber of commerce. Next, take a look at any other professional organizations that may be a good fit for your business. 

Then, attend events.  Take business cards, go mingle, and make connections.  Events may include business after hours, lunch and learns, conferences, and workshops.  All of these offer excellent opportunities for network building, and you may even learn something along the way. 

Make it Inviting

If you are building a campfire, a few well-placed chairs or benches can make others want to join.  In the same way, a quick video or memo that will catch the attention of investors. This is what you use when you get that introduction from friends, family, or someone else in your network. It needs to be quick and to the point, just enough to make them want to know more.  

Snacks: The One Liner 

A spectacular one-liner never hurts.  This can be on your business cards, all over your social media, and anywhere else it may be appropriate to include it.  It should get across what you do in one look. Use familiarity and popularity to help with this. For example, one toy company touts itself as “The Netflix of Toys.”  There is no doubt what the business does, due to the fact that everyone knows what Netflix is, and of course, what toys are.  

Sing Campfire Songs: Develop a Relationship

If your one liner and memo or video work, you will be in further contact.  Spend some time developing a relationship. Don’t rush them. Let them get to know you and your business.  Business venture capital is not a form of quick funding. It takes time to build trust.  

What Does This Look Like Practically? 

Okay, so say you are at an event and someone you already know introduces you to a potential investor.  You visit a little and hand them your business card. Maybe there is a one-liner on it that really catches their eye.  They may ask you a few questions and you answer, then as you part ways he or she says “Very interesting. I’d love to know more sometime.” 

The next business day, when you get to work, send a quick email.  It should say something like “It was a pleasure to meet you at (insert event here.)  You mentioned you would like to know more about our company. I have attached some information.”  Then attach your memo or video. 

If they reply, you can work from there building the relationship. 

 When to Pitch

This is a big question.  They may ask for a pitch as soon as they see your one liner.  They may ask for it after they are wowed by your memo or video.  It is more than a little likely they will want to develop some kind of a relationship before they decide they want to hear a whole pitch deck.  

Here’s the thing.  Regardless of when they want it, you need to have it ready before they ask.  

What Should Be in a Pitch Deck for Business Venture Capital?

A pitch deck is a power point presentation that serves up detailed information about your venture on a series of slides.  Following are some tips as to what slides you should include and what should be on them, as well as a few dress-ups that will really fan the flames.

  • Company Overview

This can be just a quick, four or five bullet point slide that gives a summary of the rest of the pitch. Consider it a sample designed to make them want to know more. 

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  • Vision or Mission Statement

Create a clear vision and purpose for your company and sum it up in one statement.  

  • Your People

Introduce your team.  Use pictures. They need to put a face with the people they are investing in. 

  • The Need for a Business Like Yours

Present the “problem” that your business will solve.  Show the need your product or service will fill. 

  • How Your Business Will Solve the Problem

Make the case for why your business is the ultimate “solution” to the problem previously mentioned. Spend some time explaining how it will work and what makes your business different from other solutions, if there are others. 

  • Introduce Your Product or Service

Introduce the product or service you will be selling.  Bring a prototype or drawings of the product, or if it is a service bring testimonies from those who have used it.

  • Is There a Market for It? 

This is where you define your market.  Who is going to use your product or service, how they will benefit from it, and what they can and will pay. This is also where you explain exactly how you will reach your market.

  • Who is Already Buying?

If you already have a customer base, like people already buying what you are selling, let potential investors know that in this section.  Try using logos investors may recognize where possible. They make a more lasting impression. 

  • Technology

If you have some proprietary technology, be sure to include that. Include any patents or copyrights.

  • Do Not Ignore Competition

You can’t write a pitch deck and ignore the competition.  Acknowledge them and lay out your plans for beating them. Note who they are, how you are different, and what gives you the advantage over them.

Also, make sure you research the competition. You will need to be able to answer questions knowledgeably.   

  • Traction

This many include things such as web traffic, downloads of any apps you already have available, early sales, partnerships, and testimonials. 

  • Tell Them Your Business Model

Tell them how the business will make money, how a customer will retain value long-term, or not, and what you pricing plan looks like.

  • How Will You Get the Word Out? 

Explain your marketing plan.  Those considering providing you with business venture capital will want to know which marketing platforms and channels you intend to use and what the marketing campaign will look like.

  • Financial Statements

It boils down to more than just an income statement and a balance sheet.  They need to know what you have, how much you are making, and how you intend to use what they give you.

  • The Ask

Tell them exactly what you want from them.  Lay out the amount along with what they will get in return.

A Few More Tips to Ensure you Land the Business Venture Capital You Need

There is more to a pitch deck than content.   That’s the important part, but if they fall asleep it won’t do you any good.  They cannot absorb what you are telling them if they are bored to tears. You need to make it pop.

Make it Look Good.

A mixture of crisp, clean design and eye-catching fonts won’t win it for you.  Certainly a lack thereof probably means they won’t make it far enough to even see the important stuff.  In fact, while content is crucial, design is just as necessary for the content to ever get through. It should be interesting, but not cluttered. 

Don’t Make It Hard.

Don’t use DropBox or something similar.  Stay away from crazy file formats. Rather, attach the pitch deck directly to an email.  Just make it easy. 

Don’t Get Long Winded.

A good pitch deck shouldn’t be more than 15 or 20 slides.  It seems like after that, most start to lose interest.  

Keep Acronyms to a Minimum

It’s too easy to misunderstand what you are talking about.  As a result, it is better to just say it the long way.  

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What Can We Learn from Facebook, Google, and the Ad Tech Industry?  We Need Innovation, and we Need Business Venture Capital to Start the Fire

It is no secret venture capital in the ad tech industry is declining. It is because giants like Facebook and Google are snuffing the fire. The verdict is still out on how this will affect the industry in the long-term, but it isn’t hard to envision how it is likely to play out if something doesn’t change.

Business venture capital sparks innovation, and a lack of it can for sure stifle it.  Understanding that through the phenomenon that is happening in the ad tech world right now is vital.  Above all, keep innovation alive in your industry by going after the venture capital you need to start and grow your business to its full potential.

 

The post How Business Venture Capital Sparks Innovation, And How Google and Facebook are Throwing Water on the Fire When it Comes to Online Ad Firms appeared first on Credit Suite.

How to Set Up a New Business in New Hampshire

Starting a Business in New Hampshire

A new business in New Hampshire can be yours. So have you been wondering: how do I start a business in New Hampshire? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in New Hampshire during a recession?

A New Business in New Hampshire: Pros and Cons

New Hampshire is in the second highest set of ten states to start a new business in, per a 2016 article by Business Insider. But the state does have a poor startup activity score.

Still, the state does well with its business tax climate and the quality of possible employees.  In a recent GOBankingRates.com study, New Hampshire was the best state for families to live a richer life. This is also important when considering where people want to live.

Given its size and favorable location, New Hampshire business owners can hire people in Vermont, Massachusetts, and Maine. Plus a vital New Hampshire business resource comes from having no sales or income taxes. Corporate tax rates are also relatively low.

Recent Massive Surge

According to a 2018 article by Fit Small Business, New Hampshire clocks in at number one! But keep in mind, Fit Small Business and Business Insider are using different methodologies.

Why the change? According to Fit Small Business, it had the best labor market and the best small startup costs – for the entire country. It also had some of the best quality of life metrics and very good rankings in the tax category.

A New Business in New Hampshire: Initiatives

New Hampshire’s Business Finance Authority provides access to finance programs. These programs are meant to expand credit availability to small businesses. The authority’s Capital Access Program also helps banks to offer loans to startup companies.

R&D Credit Program

New Hampshire’s Research and Development (R&D) Credit program offers tax credits to businesses which conduct manufacturing R&D. This credit is based on wages paid to New Hampshire employees doing R&D.

There is up to a 10% credit to offset a company’s state taxes. However, this credit is capped at $50,000 per business in a fiscal year.

Community Development Investment Program

The state’s Community Development Investment Program is meant to encourage companies to support community development projects. Tax credits of up to 75% of a company’s donation can also be granted. This lets businesses invest property, cash, or securities into programs to improve their communities.

Working Capital Line of Credit

The state’s Working Capital Line of Credit Guarantee program provides banks offering lines of credit. These are for New Hampshire companies with a guarantee of up to 75%.

Guarantee Asset Program

Another New Hampshire business resource is the state’s Guarantee Asset Program. It guarantees up to 90% of a line of credit. The line of credit is from a participating New Hampshire bank to a qualified local company.

Start a New Business in New Hampshire – New Hampshire Top Industries

The biggest industries in New Hampshire include retail trade. Smart business owners can find new opportunities. Work with the bigger industries in the area. Offer goods or services such as trucking for any industry.

Here is how to start a new business in New Hampshire.

Start a New Business in New Hampshire – New Hampshire New Business Secretary of State Requirements

Register a Business Name

Perform a business name look up on the New Hampshire Secretary of State’s website.

Business Permits and Licenses

All professional and business licenses are at the New Hampshire Government online services page.

Local Permits and Licenses

Check with your local municipality, city or county office or website. There may be any local licensing or permit requirements.

For example, in Nashua, go to the Licenses & Permits page on the city of Nashua website.

Start a New Business in New Hampshire – Business Registration

The Secretary of State of New Hampshire offers an easy online registration system. Forms are also available.

Tax Registration

Be sure to visit the New Hampshire Department of Revenue.

Start a New Business in New Hampshire – Virtual Offices

Alliance offers New Hampshire virtual business office space in Bedford and Portsmouth.

Also, try Regus for New Hampshire virtual business offices in Concord or Manchester. Go to DaVinci for New Hampshire virtual offices in Manchester.

For Franconia and other parts of the state, ask local business owners. Or try computer user groups for possible help in this area.

More options may be to look for virtual business office space in neighboring states. They are Maine, Massachusetts, and also Vermont.

Start a New Business in New Hampshire – Establish Business Credit

Company credit is credit in a company’s name. It doesn’t link to a business owner’s personal credit, not even if the owner is a sole proprietor and the only employee of the business.

Consequently, an entrepreneur’s business and individual credit scores can be very different.

The Advantages

Considering that small business credit is distinct from personal, it helps to safeguard an entrepreneur’s personal assets, in case of a lawsuit or business insolvency.

Also, with two distinct credit scores, a small business owner can get two different cards from the same vendor. This effectively doubles purchasing power.

Another advantage is that even startup ventures can do this. Heading to a bank for a business loan can be a recipe for frustration. But building company credit, when done right, is a plan for success.

Individual credit scores are dependent on payments but also other considerations like credit utilization percentages.

But for company credit, the scores actually only depend on whether a small business pays its debts timely.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

The Process

Building company credit is a process, and it does not happen without effort. A business needs to actively work to develop company credit.

That being said, it can be done easily and quickly, and it is much quicker than building personal credit scores.

Merchants are a big part of this process.

Performing the steps out of sequence will result in repetitive rejections. Nobody can start at the top with small business credit. For instance, you can’t start with retail or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

Start a New Business in New Hampshire – Small Business Fundability

A small business must be fundable to credit issuers and merchants.

That’s why, a business will need a professional-looking web site and email address. And it needs to have website hosting bought from a company such as GoDaddy.

Plus, business phone and fax numbers ought to have a listing on ListYourself.net.

Likewise, the company phone number should be toll-free (800 exchange or comparable).

A business will also need a bank account devoted solely to it, and it must have every one of the licenses necessary for operation.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Dealing with the Internal Revenue Service

Visit the Internal Revenue Service website and obtain an EIN for the small business. They’re totally free. Pick a business entity like corporation, LLC, etc.

A small business can get started as a sole proprietor. But they will most likely wish to change to a sort of corporation or an LLC.

This is in order to lessen risk. And it will maximize tax benefits.

A business entity will matter when it concerns tax obligations and liability in case of litigation. A sole proprietorship means the entrepreneur is it when it comes to liability and tax obligations. Nobody else is responsible.

Sole Proprietors Take Note

If you run a small business as a sole proprietor, then at least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the company name. As a result, you can find yourself being directly accountable for all company debts.

Plus, according to the Internal Revenue Service, by having this arrangement there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 possibility for corporations! Prevent confusion and substantially decrease the odds of an Internal Revenue Service audit as well.

Instigating the Business Credit Reporting Process

Start at the D&B web site and obtain a free D-U-N-S number. A D-U-N-S number is how D&B gets a small business into their system, to produce a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s websites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

By doing so, Experian and Equifax will have something to report on.

Vendor Credit Tier

First you need to build trade lines that report. This is also known as the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

Start a New Business in New Hampshire Credit Suite

And with an established business credit profile and score you can begin to acquire credit in the retail and cash credit tiers.

These kinds of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture.

But first of all, what is trade credit? These trade lines are credit issuers who will give you starter credit when you have none now. Terms are in most cases Net 30, rather than revolving.

So, if you get an approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, like within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts have to be paid in full within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To start your business credit profile properly, you need to get approval for vendor accounts that report to the business credit reporting bureaus. Once that’s done, you can then make use of the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Vendor Credit Tier – It Helps

Not every vendor can help like true starter credit can. These are merchants that will grant an approval with very little effort. You also want them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may need to apply more than once to these vendors. So, this is to prove you are responsible and will pay on time.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then progress to the retail credit tier. These are service providers which include Office Depot and Staples.

Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use the company’s EIN on these credit applications.

One such example is Lowe’s. They report to D&B, Equifax and Business Experian. They need to see a D-U-N-S and a PAYDEX score of 78 or more.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move onto the fleet credit tier. These are companies such as BP and Conoco. Use this credit to purchase fuel, and to fix, and take care of vehicles. Just use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, make sure to apply using the small business’s EIN.

One such example is Shell. They report to D&B and Business Experian. They want to see a PAYDEX Score of 78 or more and a 411 company telephone listing.

Shell may claim they want a particular amount of time in business or profits. But if you already have enough vendor accounts, that won’t be necessary. And you can still get approval.

Learn more here and get started toward building business credit attached to your company’s EIN and not your SSN.

Cash Credit Tier

Have you been sensibly handling the credit you’ve gotten up to this point? Then move to the cash credit tier. These are businesses such as Visa and MasterCard. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or better. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Plus, they want you to have an established business.

These are companies such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are commonly MasterCard credit cards. If you have 14 trade accounts reporting, then these are doable.

Start a New Business in New Hampshire – Monitor Your Business Credit

Know what is happening with your credit. Make certain it is being reported and deal with any mistakes as soon as possible. Get in the habit of checking credit reports and digging into the specifics, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

Update Your Data

Update the relevant information if there are inaccuracies or the data is incomplete.

Fix Your Business Credit

So, what’s all this monitoring for? It’s to dispute any mistakes in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs often want you to dispute in a particular way.

Disputes

Disputing credit report errors usually means you send a paper letter with copies of any proofs of payment with it. These are documents like receipts and cancelled checks. Never mail the originals. Always send copies and retain the originals.

Fixing credit report inaccuracies also means you specifically spell out any charges you challenge. Make your dispute letter as crystal clear as possible. Be specific about the problems with your report. Use certified mail so that you will have proof that you sent in your dispute.

A Word about Building Business Credit

Always use credit sensibly! Don’t borrow more than what you can pay back. Keep track of balances and deadlines for payments. Paying in a timely manner and fully will do more to raise business credit scores than virtually anything else.

Growing business credit pays. Good business credit scores help a business get loans. Your lending institution knows the small business can pay its debts. They understand the company is authentic.

The small business’s EIN links to high scores and credit issuers won’t feel the need to ask for a personal guarantee.

Business credit is an asset which can help your small business in years to come.

Learn more here and get started toward opening a new business in New Hampshire.

Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.

 

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Success once again South Carolina… $120,000.00 in Business Revenue financing!

Our client wanted financing to start working on consolidating a loan and remodeling . This financing will allow his company to stand out among the rest of its peers. We are so pleased that our client because of the financing he obtained and the quickness of it, he has many new opportunities opened to him and his company. He was encouraged to see how smoothly the process of obtaining the financing went!

Glad to be part of your success!

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Check Out This Great Question from Residential Real Estate Agents: How Do I Build My Business Credit?

How Do I Build My Business Credit? Residential Real Estate Agents Ask This Question All the Time

Every entrepreneur asks this same question: how do I build my business credit?

Business credit is credit in a company’s name. It doesn’t link to a business owner’s consumer credit, not even when the owner is a sole proprietor and the sole employee of the company.

As such, a business owner’s business and consumer credit scores can be very different.

How Do I Build My Business Credit and Get The Advantages?

Due to the fact that business credit is separate from individual, it helps to safeguard a business owner’s personal assets, in the event of a lawsuit or business insolvency.

Also, with two distinct credit scores, a small business owner can get two separate cards from the same merchant. This effectively doubles purchasing power.

Another advantage is that even new ventures can do this. Going to a bank for a business loan can be a recipe for disappointment. But building small business credit, when done properly, is a plan for success.

Consumer credit scores rely on payments but also other components like credit utilization percentages.

But for company credit, the scores actually only hinge on if a business pays its invoices on time.

How Do I Build My Business Credit and Start The Process?

Growing company credit is a process, and it does not occur automatically. A small business has to proactively work to establish business credit.

However, it can be done readily and quickly, and it is much swifter than establishing consumer credit scores.

Merchants are a big part of this process.

Doing the steps out of order will lead to repetitive rejections. Nobody can start at the top with company credit. For example, you can’t start with retail or cash credit from your bank. If you do, you’ll get a rejection 100% of the time.

How Do I Build My Business Credit and Get Started with Small Business Fundability?

A small business needs to be fundable to lenders and vendors.

Hence, a business will need a professional-looking website and e-mail address. And it needs to have site hosting bought from a supplier like GoDaddy.

And also, company phone and fax numbers ought to have a listing on 411.com.

At the same time, the company phone number should be toll-free (800 exchange or comparable).

A business will also need a bank account dedicated solely to it, and it has to have all of the licenses essential for running.

Licenses

These licenses all have to be in the particular, accurate name of the small business. And they must have the same small business address and phone numbers.

So keep in mind, that this means not just state licenses, but potentially also city licenses.

Learn more here and get started toward establishing small business credit.

How Do I Build My Business Credit and Start Credibly Dealing with the Internal Revenue Service?

Visit the IRS web site and acquire an EIN for the small business. They’re totally free. Choose a business entity such as corporation, LLC, etc.

A business can begin as a sole proprietor. But they will most likely want to switch to a variety of corporation or an LLC.

This is in order to limit risk. And it will take full advantage of tax benefits.

A business entity will matter when it involves taxes and liability in case of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and taxes. No one else is responsible.

Sole Proprietors Take Note

If you run a company as a sole proprietor, then at the very least be sure to file for a DBA. This is ‘doing business as’ status.

If you do not, then your personal name is the same as the small business name. Consequently, you can end up being directly accountable for all small business debts.

In addition, according to the Internal Revenue Service, by having this structure there is a 1 in 7 chance of an IRS audit. There is a 1 in 50 possibility for corporations! Prevent confusion and significantly reduce the odds of an IRS audit at the same time.

How Do I Build My Business Credit and Set off the Business Credit Reporting Process?

Start at the D&B web site and obtain a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a company in their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.

Once in D&B’s system, search Equifax and Experian’s sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.

This way, Experian and Equifax will have activity to report on.

Vendor Credit Tier

First you must establish trade lines that report. This is also called the vendor credit tier. Then you’ll have an established credit profile, and you’ll get a business credit score.

And with an established business credit profile and score you can start to obtain credit in the retail and cash credit tiers.

These kinds of accounts often tend to be for the things bought all the time, like marketing materials, shipping boxes, outdoor work wear, ink and toner, and office furniture. This furniture could be particularly helpful to residential real estate agents.

But to start with, what is trade credit? These trade lines are credit issuers who will give you preliminary credit when you have none now. Terms are usually Net 30, rather than revolving.

Hence, if you get an approval for $1,000 in vendor credit and use all of it, you will need to pay that money back in a set term, such as within 30 days on a Net 30 account.

Details

Net 30 accounts need to be paid in full within 30 days. 60 accounts must be paid in full within 60 days. In contrast to with revolving accounts, you have a set time when you have to pay back what you borrowed or the credit you used.

To launch your business credit profile the right way, you should get approval for vendor accounts that report to the business credit reporting bureaus. Once that’s done, you can then make use of the credit.

Then repay what you used, and the account is on report to Dun & Bradstreet, Experian, or Equifax.

Business Credit for Residential Real Estate Agents Credit Suite

Vendor Credit Tier – It Helps

Not every vendor can help like true starter credit can. These are vendors that will grant an approval with a minimum of effort. You also need them to be reporting to one or more of the big three CRAs: Dun & Bradstreet, Equifax, and Experian.

You want 5 to 8 of these to move onto the next step, which is the retail credit tier. But you may need to apply more than one time to these vendors. So, this is to demonstrate you are responsible and will pay timely. Here are some stellar choices from us: https://www.creditsuite.com/blog/5-vendor-accounts-that-build-your-business-credit/

How Do I Build My Business Credit and Get Benefits from Accounts That Don’t Report?

Non-Reporting Trade Accounts can also be helpful. While you do want trade accounts to report to a minimum of one of the CRAs, a trade account which does not report can still be of some worth.

You can always ask non-reporting accounts for trade references. And credit accounts of any sort will help you to better even out business expenditures, thereby making budgeting simpler. These are companies like PayPal Credit, T-Mobile, and Best Buy.

Retail Credit Tier

Once there are 5 to 8 or more vendor trade accounts reporting to at least one of the CRAs, then move onto the retail credit tier. These are companies like Office Depot and Staples, both of which have plenty of goods for sale which will help residential real estate agents.

Just use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, use the small business’s EIN on these credit applications.

One instance is Lowe’s. They report to D&B, Equifax and Business Experian. They want to see a D-U-N-S and a PAYDEX score of 78 or more.

Fleet Credit Tier

Are there 8 to 10 accounts reporting? Then move to the fleet credit tier. These are companies such as BP and Conoco. Use this credit to buy fuel, and to fix, and maintain vehicles. Only use your Social Security Number and date of birth on these applications for verification purposes. For credit checks and guarantees, make certain to apply using the company’s EIN.

One such example is Shell. They report to D&B and Business Experian. They need to see a PAYDEX Score of 78 or more and a 411 business phone listing.

Shell might say they want a specific amount of time in business or profits. But if you already have adequate vendor accounts, that won’t be necessary. And you can still get an approval.

Learn more here and get started toward establishing small business credit.

Cash Credit Tier

Have you been sensibly managing the credit you’ve gotten up to this point? Then move to the cash credit tier. These are companies like Visa and MasterCard. Only use your SSN and date of birth on these applications for verification purposes. For credit checks and guarantees, use your EIN instead.

One example is the Fuelman MasterCard. They report to D&B and Equifax Business. They need to see a PAYDEX Score of 78 or higher. And they also want you to have 10 trade lines reporting on your D&B report.

Plus, they want to see a $10,000 high credit limit reporting on your D&B report (other account reporting).

Also, they want you to have an established business.

These are businesses such as Walmart and Dell, and also Home Depot, BP, and Racetrac. These are commonly MasterCard credit cards. If you have 14 trade accounts reporting, then these are in reach.

And there are tons of ways the business credit cards in the cash credit tier can help residential real estate agents.

Learn more here and get started toward establishing small business credit.

How Do I Build My Business Credit and Monitor My Business Credit?

Know what is happening with your credit. Make certain it is being reported and take care of any mistakes ASAP. Get in the practice of taking a look at credit reports and digging into the details, and not just the scores.

We can help you monitor business credit at Experian and D&B for 90% less than it would cost you at the CRAs. See: www.creditsuite.com/monitoring.

At Equifax, you can monitor your account at: www.equifax.com/business/business-credit-monitor-small-business. Equifax costs about $19.99.

Update Your Data

Update the relevant information if there are inaccuracies or the information is incomplete. At D&B, you can do this at: https://iupdate.dnb.com/iUpdate/viewiUpdateHome.htm. For Experian, go here: www.experian.com/small-business/business-credit-information.jsp. So for Equifax, go here: www.equifax.com/business/small-business.

How Do I Build My Business Credit  and Fix My Business Credit?

So, what’s all this monitoring for? It’s to dispute any inaccuracies in your records. Mistakes in your credit report(s) can be fixed. But the CRAs often want you to dispute in a particular way.

Disputes

Disputing credit report errors typically means you mail a paper letter with copies of any evidence of payment with it. These are documents like receipts and cancelled checks. Never send the originals. Always mail copies and retain the originals.

Fixing credit report inaccuracies also means you specifically itemize any charges you dispute. Make your dispute letter as crystal clear as possible. Be specific about the concerns with your report. Use certified mail so that you will have proof that you sent in your dispute.

How Do I Build My Business Credit? A Word to the Wise

Always use credit smartly! Don’t borrow more than what you can pay back. Keep track of balances and deadlines for payments. Paying off on schedule and fully will do more to elevate business credit scores than nearly anything else.

Establishing small business credit pays off. Great business credit scores help a business get loans. Your lender knows the small business can pay its debts. They understand the company is bona fide.

The business’s EIN attaches to high scores and credit issuers won’t feel the need to demand a personal guarantee.

How Do I Build My Business Credit: Takeaways

Business credit is an asset which can help your small business for years to come. Learn more here and get started toward establishing small business credit.



 

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Another satisfied client in Oklahoma… $10,400.00 in Business Revenue Financing!

Our client was in need of just an extra push financially to obtain the goals they had set out.  This was for the expansion they were needing to keep their  business growing successfully. He was looking to expand his business and we provided the solution to his need. He is very pleased to have his company moving  forward on their goals and not having to wait because of lack of funds. 

We are glad to be part of his success and look forward to continue to helping his company!

Click Here to see how much funding you can get for your business.

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Smash the Summer Selling Slump and More –10 Brilliant Business Tips of the Week

The Hottest and Most Brilliant Business Tips for YOU – Smash the Summer Selling Slump and More

Our research ninjas at Credit Suite smuggled out ten amazing business tips for you! Be fierce and score in business with the best tips around the web. You can use them today and see fast results. You can take that to the bank – these are foolproof! Smash your summer selling slump and keep your revenues so hot you could fry an egg on them. And more!

Stop making stupid decisions and start powering up your business. Demolish your business nightmares and start celebrating as your business fulfills its promise.

And these brilliant business tips are all here for free! So settle in and scoop up these tantalizing goodies before your competition does!

#10. Your Marketing WILL Be Televised

Our first jaw-dropping tip is all about cutting costs and improving customer experience with your business’s TV set. That is, if your business has one. Lots of businesses with waiting rooms do. Noobpreneur says there are a few things you can do to take advantage of this bit of advertising real estate.

Our favorite tip was not to advertise your own business. Although of course we can see and applaud the use of a business TV set for this particular purpose.

Nope. What we liked better was using the TV to advertise other businesses. Of course you will charge for the privilege. And keep in mind, this will not succeed if your business isn’t much of a business leader in the area. But if your business fits the bill, then why not try this?

Pro tip: why not reach out directly to related businesses? So, for example, pharmacies could sell advertising space to local dentists. Day spas could sell ad space to local aesthetician-type businesses, such as hairdressers. Marketing synergy is a good thing.

#9. Do You Speak Design?

The next awesome tip is about presenting UI/UX designs to non-designers. Dribbble tells us one issue is just plain communicating. So, in the interests of full disclosure – UI means user interface. And UX means user experience.

The idea here is to make your website easy and enjoyable. And it should be clear and easy to understand. If you’ve ever loaded a s…l…o…w website or didn’t know how to get back to an earlier page, then you’ve witnessed, respectively, a lousy user interface and a terrible user experience.

What we really liked were the emphases on identifying a problem and demonstrating how your solution works. For the money people, this is key. After all, why pay for a design overhaul if you’re still left with the same old problems?

Summer Selling Slump Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Smash the summer selling slump and keep your business as hot as a summer sidewalk.

#8. Push-Me/Pull-You

Our following life-changing tip concerns using pull marketing when push marketing just plain isn’t cutting it. Startup Professionals lays it all out for us.

One thing which surprised us was how there are still some 25% of all businesses which don’t use social media at all.

Huh?

We can’t conceive of that these days.

And of the 75% which do, there are a number which just monitor and don’t engage.

Don’t be one of those companies. Not engaging, or worse, not being on social media at all, is like leaving free stuff behind. You’re tossing away free and (pretty) easy chances to get your brand out there.

Why the heck would you do that?

#7. How Much For Just the Planet?

For our next sensational tip, we looked at setting the proper prices for your goods or services. DIY Marketers has all the details.

This is a terrific article, and we recommend reading the whole thing as the process makes the most sense when you look at it in order. It’s a fascinating exercise. But it all starts with one thing – how much do you want to be making?

Say what?

Now this makes more sense than you might think at first glance. Consider this: we have covered goals many, many times here. And what’s the first thing you need for a goal to succeed?

Anyone?

Bueller? Bueller?

You need a target!

And what better target than to decide how much money you want to make?

A Fer Instance

Let’s play with a few quick numbers, for illustrative purposes only. So let’s say you want to make $100,000 per year. And let’s further say that you sell widgets. If you sell one widget at $100,000 then you’re done, right?

Not so fast.

More expensive goods and services require excellent customer service. So if you sell your one $100,000 widget, then you maybe you need a dedicated person to handle that account. They might not handle any other accounts, in particular if the customer is fussy.

So if you have to hire a dedicated account manager for $50,000 per year, then you’re only making a $50,000 profit on your one overpriced widget ($100,000 profit – $50,000 in overhead costs for your account manager’s annual salary).

Now you need to sell two widgets. And you need an account manager for each of them. This is a simplistic sample. So we’re not looking at other costs such as manufacturing or shipping.

Now let’s sell your widget for $10,000. Your account manager may be able to handle ten accounts now (just to use a simple number here).  Understandably, the customer service expectations are lower for cheaper widgets. So if your account manager still makes $50,000 per year, then once five widgets are sold, you’ve paid your account manager’s salary.

Sell 20 widgets and you’ve made your profit (you’re paying 2 account managers at $50,000 per year). If you give your account managers raises, you need to sell more product, or raise the price.

But at least you have a measurable goal. You know how close you are to making it. That matters more than nearly anything when it comes to pricing and budgeting.

#6. Improve Your Selling!

This tip is so helpful, and it works! The Work At Home Woman gives us the lowdown on how to get better at selling.

This one, of course, goes far beyond smashing a summer selling slump. It goes directly to the ultimate success – or failure – of your business.

Confidence SellsLow Sales in Summer Credit Suite

This was our absolute favorite tip. Of course, this can be easier said than done. But the bottom line is, we like to buy from confident people.  And there is a huge reason for this.

Who wants to buy from someone who doesn’t seem to believe in their own product?

So no matter if you are desperate in real life – and don’t think there aren’t any seasoned salespeople who aren’t – do your level best not to show it while selling. Now, that may be easier said than done.

But practicing, as the article says, is a great idea. No matter what, you need to know your product or service backwards and forwards. And a quick pro tip from your intrepid blog writer – not having to worry about knowing what to say rather effectively removes one reason to be nervous.

Get out of your summer selling slump and for gosh sakes, don’t let it turn into a winter sales slump.

#5. Smash Your Summer Selling Slump

Grab this mind-blowing tip while it’s hot!

The summer selling slump is real. Fundera tells us how to smash it.

From June to September, Things Get S…L…O…W

Even if you don’t actually have a summer selling slump, the truth of the matter is, your employees are going to be distracted.

The kids are out of school – and perhaps underfoot. It’s light out longer, so the end of the business day doesn’t coincide with nightfall. As a result, the days might feel longer, or shorter. It can be a bit disconcerting during about a month before or after the solstice. In all fairness, the same can happen around the time of the winter solstice.

We loved that some of the best suggestions had to do with keeping employees happy!

Keep Your Employees Happy

A few of these may very well seem like no-brainers. For example, creating Friday hours and allowing work from home seem to be almost intuitive. And so is changing to a casual dress code, even if it’s only for one day a week.

We also liked the idea of hiring a passel of summer interns. They can bring in a fresh perspective, even while they do the scut work. It’s hard to have a summer selling slump when there are new people around, with new perspectives.

A True Story

Over two decades ago, your intrepid blog writer worked in the insurance industry. Egad, has it really been that long? Eek.

But I digress.

Now, keep in mind that this is before businesses got too comfortable with the internet. And it is also before casual Fridays were the norm, rather than the exception.

So what happened?

We did what we could. And since this was an office in beautiful downtown Boston, there were plenty of places to get the signature food of the summer.

I’m talkin’ ‘bout ice cream, of course.

We used to get cones every Friday, just after lunch. So it would be maybe 2 PM or thereabouts. This activity did not take too long. It had the added bonus of getting outside, however briefly. We would come back to the office if we were not finished beyond a certain time. That was around 1:30 if memory serves.

It was fun and easy. And it didn’t even cost the company any money. We bought our own cones. This tiny break made it a lot more tolerable to sit in an office, in a suit, no less, during the best weather of the year.

Keep Your Customers and Prospects Happy

Of course, one part of a summer selling slump directly relates to your customers and prospects. Unless you want your employees to just sit around and play backgammon all day long, you are going to want to do something or other to bring in revenue.

So we really liked the idea of test launching a new product. In particular, if your website isn’t too busy, you will have an easier time of it when it comes to A/B testing and other details that go along with launching a product. Now, we would not recommend launching something big during this time. But if you have something minor, or just an extra to fling to the universe, why not do so during the slow months?

Summer Selling Slump Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Smash the summer selling slump and keep your business as hot as a summer sidewalk.

#4. Let the Leads Come to You

Check out this spectacular tip, all about effective inboard marketing strategies. Word Stream says it’s all about the quality content. That is, the high quality content.

One excellent point W0rd Stream makes at the very start is something we have been observing for quite a while now.

There is just a ton of content out there. And it comes at all of us, 24/7. So what is happening is, essentially, people are tuning out a lot of that content.

Don’t act so surprised! You do it. I do it. Everybody does it.

After all, there are just so many hours in a day. If we felt the need to consume every moment of content, every pixel of it, we would get nothing else done. Ever.

Consider this: in 2017, a good 300 hours of content was uploaded to YouTube. Every. Single Minute.

And that’s just YouTube. So it is just plain not physically possible to consume every bit of content.

As a result, we have all become curators. Like it or not, we sift through the tsunami of content. And we inevitably search for what moves us. This means that ho-hum content is not going to cut it for much longer.

So as a business, your mission is to release quality content.

What Sort of Quality Content?

The article – which we truly feel should be read in its entirety – goes over a lot of familiar forms of content. these include podcasts and, surprise! YouTube videos. And it does our hearts good to see the suggestion of books.

What is this telling us? It’s telling us that longer form content has heft. And that makes a ton of sense. We all consume the equivalent of an all-junk food diet when it comes to most content.

So throw your prospects and customers a full-course meal and they’ll see you as an expert. And that means they will trust your product or service.

#3. Don’t Be Spammy!

It’s not your imagination: this winning tip can help keep your sales emails out of prospects’ spam folders. Succeed As Your Own Boss tells us there are some tell-tale signs of spam – at least, that’s according to email carriers and internet service providers.

Some of these may be self-explanatory. For example, clean up your email address lists! The more bouncing back you get, the more you look like a spammer. And don’t email all at once – a big bulk email screams ‘Spam!’

Our favorite tip was to keep triggering words out of your emails! Those are phrases like ‘absolutely free’ or ‘instant access’.

Consider this: if your email looks like spam to you, it’ll look like spam to ISPs and email providers. And, even worse, it’ll look like spam to your customers and prospects.

You don’t want that. Ever.

#2. It’s All About the ‘Gram

Our second to last unbeatable tip can give you a new perspective on making your business Instagrammable. Small Biz Trends lets us know all about it.

For some businesses, Instagram is where they post images of their product or service. But for others, customers may be posting about the company.

For those latter businesses in particular, the idea is to showcase the work place well. Our fave tip was to create an interesting wall. That’s a real wall, by the way. The idea is, if there’s a good backdrop for photographs, then people will be all too happy to use it.

This is why you see so many exterior walls with wings or the like.

Pro tip: why not hire an artist for this? This person can even be an art student. Of course, ask for samples to be sure you like what you’re paying for.

And by the way, while this is likely to be best for businesses where the customers come there in person, why not paint an interesting exterior wall? Which just so happens to have your signage in the background?

#1. Things Can Always Get Better

We saved the best for last. For our favorite remarkable tip, we focused on how to change your business – for the better. Score says there are a number of steps you can take which will help you, no matter what sort of business you’re in.

We particularly loved two ideas – to get organized and to take a class. Both can refresh both you and your business.

Getting organized is key for your business and for you, personally. Consider all the time you may be spending looking for stuff. Now imagine having that time for something a lot more fun. Or more profitable. Or at least something which you need to get done.

Now you can.

And taking a class dovetails well with another tip, which is to get out of your comfort zone. You might be able to save time or money with what you learn. Pretty cold, eh?

But wait, there’s more!

While the article doesn’t get it, we couldn’t help but think about how taking a class in something utterly unrelated to your business can be just about as helpful.

So don’t feel confined to just taking accounting courses or software use training or the like. Unless you want to, of course.

Why not take ceramics, or philosophy, or music theory?

No learning is ever wasted.

So which one of our brilliant business tips was your favorite? And which one will you be implementing now?

Summer Selling Slump Credit Suite

If you are as passionate about succeeding in business as we are, please help us spread the word about how to take the plunge and save time and money – and your sanity! Smash the summer selling slump and keep your business as hot as a summer sidewalk.

The post Smash the Summer Selling Slump and More –10 Brilliant Business Tips of the Week appeared first on Credit Suite.

Happiness achieved again for our client in TX… $20,000.00 in Business Revenue Financing!

Our client had desired extra working capital and to cover the cost of new hire expenses.  All he had to do was provide us with his last six months of bank statements and an application to proceed with financing.  He was so pleased with our help in getting financing a couple months ago that he came back to us with his needs.

With this he was able to help his business succeed and meet the goals he had set.

Congratulations on your success; so happy to be a part of it!

Click Here to see how much funding you can get for your business.

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