Deadly Business Mistakes That Can Cost You Millions
1. Not having your Business in a Legal Entity Many individual business owners
think they dont need to have their company become a business entity, such as a LLC, S-Corp or C-Corp. But, one of the things they are not thinking about is the fact that in addition to sharing their personal passion with a business, if they do not structure the business as an entity, they are putting themselves in the tough spot of taking on personal liability for the business. Remember when banks lend to sole proprietors, its called a personal loan. So make your business an LLC or corporation. This step also makes your business look more professional in the eyes of a bank or other financial institution.2. Not having your business phone number in 411 What this means is that your business has an address and phone number of it's own and they must match. It will be important that your business be listed in the national 411 directory. While many people like to use their cell phone as their business phone, that will not work with financial institutions, because when the banks check that cell phone that address will not match the address that you gave at the state and county level for your business. When it comes to your address, you should make sure your business is connected to a real physical address. Those who are using P.O. boxes are questionable in the eyes of a financial institution, as anyone can get a P.O. box. It is not considered a professional address.
3. Not checking on your business credit profile You know the rule about regularly checking your personal credit to make sure everything is in working order and to keep an eye on all the accounts you have open. You should not just do this with your personal accounts, but your business ones as well. You should check your business credit profile in Dun and Bradstreet for a few different things. First to make sure all the items filed on the report are accounts that you really do have open in your business name and also to make sure the rest of your information is right. There are plenty of mistakes made in filing paperwork and those mistakes can end up on your credit report. Remember, all financial institutions you consider working with will be looking at that credit report to get an idea of whether or not you are worth the risk of working with. If there is false negative information on your credit report they won't ask you about it, they'll just judge you on it.
Pat Gage, The Opportunity Creator, has over 18 years experience in money and finance, business building, real estate investing and marketing. The Opportunity Creator is not only a sought-after business coach but he also is a national speaker, trainer, and life-long entrepreneur who himself has started several companies.
For more information, visit Gages site at http://www.10stepstomoney.com
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