Category Archives: Business Management
~ Sir Winston Churchill
~ Henry Ford
~ Elbert Hubbard
After the savings and loan crisis of 2007, I was forced to look for more cost efficient was to manage and run my business. I’d like to share my Top 3 CEO boostrapping secrets weapons.
In Business Bootstrapping means to start a business without external help/capital. Startups that bootstrap their business fund development of their company through internal cash flow and are cautious with their expenses.
Mail Chimp: This email marketing tool rivals anything like it on the market. Create e-zine capaigns and integrate with most social media and event programs.
ZOHO: CRM, Invoicing, sales tracking, collaboration, and more. If you have virtual assistants this program is an awesome all in one system.
Green By Phone: No monthly fees, check are verified by phone, Accpet checks electronically or over the phone and have the money deposited into the account in 24hrs.
The cost for each of these tools: FREE
The Slight Edge by Jeff Olson
Olson takes the concept of compounded interest to a whole new level. His premis: If you will just put a penny’s worth of effort each day towards your goals, over time you will achieve them. If you are to be a successful CEO, make the Slight Edge philosophy a part of your daily attitude. Making a business work takes a lot of time and effort. Your effort must be a little bit every day, and consistant.
Raving Fans by Ken Blanchard
Blanchards work focuses on organizaiton excellence presented in the form of “legendary customer service”What is a raving fan? The premis: “If you really want to ‘own’ a customer, if you want a booming business, you have to go beyond satisfied customers and create Raving Fans.” A raving fan is an advocate of your products or services in the marketplace and an integral part of successful businesses.
The 7 Habits of Highly Effective People by Stephen R. Covey
Habits are a matter of choice. In this book Covey dives into the depths of our attitudes (paradigms) and principles to help us identify “where we are coming from”. Once we can identify which of our paradigms are keeping us from interacting effectively with others, then and only then can we truly begin to work on changing them.
The E-Myth Revisited by Michael Gerber
Gerber’s book is all about why most small businesses don’t work. To me it is the very summation of the definition of insanity seen in the business world everyday. Don’t get caught in the rat trap and the lie of entreprenuership, thereby only creating a glorified job for your self. Discover the Five core leadership skils as defined by Gerber: Vision, Discrimination, Strategic Thinking, Commitment, and Inspirational Communication. A definite must read for CEO’s
Think And Grow Rich by Napoleon Hill
This is likely the book every most CEO’s have read as budding entreprenuers, or at least has been told it is a must read. Who wouldn’t want to learn how to just think about being rich and have it happen? Published in the 1930s, the personal issues Hill wrote about Like the thoughts and behaviors that hinder people’s success in acquiring riches are still relevant today.
Costly Mistake #10: Rushing Your Business Credit Profile!
Two Words: RED FLAG
Dun and Bradstreet Partners with the federal government to provide information on small businesses in America. One of the biggest components is fraud. There are certain activities within a business credit profile that will cause a company to get on D&B’s Radar. One activity is quickly beefing up a credit profile in a small time frame.
Remember organically a company builds good business credit in about 3 to 4 years, so, if a start-up or young company initiates the companies profile and has 5 or 6 new vendors reporting every week, that activity will seem suspicious. Once a company has been red flagged by D&B it is very difficult to obtain business credit.
Costly Mistake #9: Trying the Do-It-Yourself method of Building Business Credit.
One of the biggest mistakes a business owner can make is trying to save on expenses by doing administrative task themselves. In theory, it sounds like a prudent idea. Right? Paying a consultant to reasearch financing options and complete loan applications can’t be financial feasible, right? It is so easy for a business owner to convince themselves they are saving money by setting up their own credit profile with D&B and applying for credit on their own.
On the surface it may appear to be cost effecient to “do-it-yourself” but bussiness owners ofter neglect to factor in the true cost of their time. The truth is as a CEO or Entreprenuer your time is best spent running your business! Not to mention making mistakes like inaccurately building the companies profile, missing compliance items, and prematurely applying for credit and loans can cost you much more than time.
Two things to remember:
Costly Mistake #8: Sticking with Traditional Financing Methods Because That’s The Way It’s Always Been Done!
The Definition of Insanity: Doing the same thing over and over again expecting different results! How many bank applications do you have to try before you figure out there has to be a better way? It’s time to stop doing what’s always been done because the way it’s always been done is no longer the model for success.
Consider the Facts:
- 80% of Small Businesses Faile within the first 5 years (Reason: LACK OF CAPITAL)!
- 70% Companies that apply for financing from Banks DO NOT QUALIFY!
- 90% of America’s Small Businesses have no idea what true business credit is!
It is time we get a real life MBA education and stop going to mom and dad for advice on business finances. It’s time to stop a continuing losing tradition. Learn the difference between traditional business credit (reported to your personal credit but in the business name) and “True” Business Credit.
Learn how business tycoons like Donald Trump can file bankruptcy twice and still get credit for million dollar projects. Learn the “secret set of business credit rules” the wealthy use everyday. Learn why using your personal credit to build a business perpetuates the insanity.
Costly Mistake #2: Destroying Your D&B File by Checking it Yourself!
Can you go to Dun and Bradstreet and check out your own profile or check to see if you even have one? Yes, You Can!
But here’s the problem, if you go to Dun and Bradstreet too early and pay them to set up a credit profile, they’ll give you a number and access to log in to see if you have a credit profile. That won’t help you if you do not have a profile with D&B.
Depending on what package you get. The package can cost anywhere from free to $700. With the purchase of some of those packages they say they will build a credit profile for you. They really won’t do it. They’ll just get a number for you and they’ll see if there are any vendors you currently work with that will report.
Then when they start to check your corporate compliance, if everything isn’t in order, they will redflag you or put comments on your file. “Secretary of State lists this persona as a CEO. This person from the company listed somebody different as its CEO.” They will start putting things in your file that is potentially negative information. (insider information from a former Dun and Bradstreet employee)
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If you want to take a quantum leap in your sales in 2011, YOU SHOULD BE THERE!
Will I see you?
In this economy credit can be difficult to come by. What would it mean to your business if you had another 30-360 days to pay the companies bills? The truth is NO lender will give you a loan specifically to make payroll (with no assets as collateral).
BUT, the company could use TRADE CREDIT to preserve cash flow. This means use business credit with vendors for office supply items, computers, printers, envelopes, gas, etc, and free up the CASH you need for things your business can not get on trade credit – like payroll!
Here are 5 steps to securing Trade and Cash Lines of Credit for Your Business.
1. Understand the Role of Personal Credit
Although your personal credit score is not the deciding factor on whether or not your company gets business credit, it is part of the equation for determining what type of credit your company qualifies for.
2. Register a Business Entity
Sole proprietors CAN NOT build “true” business credit. In order to build a business credit profile the company must me an LLC, S-Corp or C-Corp.
3. Create a Strong Business Image with a Paydex Score
Establishing an image of stablity for your small business or start up business is essential. Companies where you do business, as well as lending agencies and customers will scrutinize your business profile carefully. Strong business credit happens by building business credit with a Paydex score.
4. Hire a Professional
An expert in the area of business credit has already done the research, knows how to accurately build a companies business credit profile and have built an extensive list of funding and credit sources that are lending money is this economy. Don’t risk being turned down or red flagged.
5. Manage Your Companies Image
Your business image is developed through organized administration and implementation of systems in all departments. It is also influenced by your ability to manage your finances and the strength of your business credit Paydex score. Pay your credit accounts on time.
Costly Mistake #1: Starting Your business as a Sole Proprietorship Will Prevent Your Business from Accessing Maximum Capital!
Over 70% of all small business owners still operate as sole proprietorships. The problem with sole proprietors is they self-finance their business with their personal credit cards. Unfortunately, the accounting world is telling these people, “You don’t make enough profit to incorporate, stay a sole proprietorship and keep it simple.”
But this really shoots them in the foot when it comes to financing later. I’d rather see people incorporate as soon as they get started. Stop using their personal credit cards, get the business credit cards (not psuedo business credit cards), and begin using them. Protect your revolving debt and keep it as low as possible.
If your personal revovling debt is 80% -90%, you are automatically going to get rejected by the bank when you apply fo a business credit card, or you may get a very, very low limit. It is extremely important that you incorporate as soon as you start your business and stop using your personal credit cards. Keep your revolving debt low, and work on your personal credit score.