Thank you for stopping by Global Software & Computer Solutions Centers, Inc. In this weeks article, we will be discussing the ten fatal business mistakes to avoid. It is not a complete or comprehensive listing of all the fatal business mistakes that nearly all entrepreneurs and business owners make, but it is a good start nevertheless.
Special Alert Bulletin for Entrepreneurs and Business Owners Who Need Corporate Business Financing:
The ten Most Devastating and Fatal Mistakes Entrepreneurs and Business Owners Make When Financing Their Businesses … and How to Avoid Them. Which one of these all-too-common business mistakes will
cost you your business, peace of mind … and even your
home? Find out inside this article – and also discover how to get unlimited cash financing for your business and investments WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, or Damaging Your Personal Credit History. So the big question is, “How much are you willing to risk for your business?”
As a business owner and entrepreneur, you’re hardwired to enjoy a greater level of risk than the average person. But, do you enjoy the thrill of business and investing so much that you’re willing to risk the following?:
Being denied corporate business credit?
Being hounded by creditors?
Declaring bankruptcy?
Being denied a mortgage?
Paying more than your fair share of interest on your loans?
Losing your house?
Losing your car?
Losing Everything you own?
If you answered “no” to one or more of these questions, this may be the most important article that you’ve read in a very long time. If you’re like most entrepreneurs, investors, and business owners that we’ve met over the past 20 years, you’re in very serious danger of facing all of these horrific problems. And it’s all because of you and your business.
You see, most, if not all entrepreneurs and business owners typically make one or more financially devastating and fatal business mistakes when financing the launch, operation, and/or growth of their new or existing businesses. In most cases, they don’t realize that they’re making a very serious and fatal business mistake. And to tell the truth, even when they do realize that they’re making a serious and fatal business mistake, they lull themselves into thinking that the consequences will be a very minor annoyance, until one day, they can’t qualify for a credit card or mortgage. Or they can’t get the to-die-for financing offered on the new car they’re buying. Or they’re hounded by creditors and eventually have to declare bankruptcy.
To help you avoid these very chilling and all-too-probable consequences, we’ve put together and assembled a list of the ten most devastating and fatal financial business mistakes that nearly all entrepreneurs and business owners make. These are very serious and critical errors that can very quickly bury your business, smother you in personal debt, and destroy your financial future forever.
The professional team of business financing experts at Global Software & Computer Solutions Centers, Inc. have helped thousands of entrepreneurs and business owners just like you avoid these expensive blunders while at the same time, building solid, valuable corporate business credit, and along with it, the business of their dreams! Follow our timetested ways of avoiding these ten entrepreneurial dreamkillers, and you’ll be on your way to a much more secure, satisfying, and financially rewarding future for you and your family.
Devistating Mistake #10 Trying to build true corporate business credit fraudulently — More and more these days on the Internet, you will find many fraudulent companies out there trying to sell you fraudulent business tradelines or business trade references. Do not ever buy these fraudulent and illegal business trade references from anyone on the Internet. This is sure to get you RED FLAGGED by the business credit reporting agencies, and you might as well close down your business once that happens. Be extremely careful with who you deal with on the Internet, it could cost you everything. If you want to properly build, establish and maintain true corporate business credit, visit our business credit page at: http://www.gscsc.net/business-credit.html If you want to purchase any of our 8 to 25 year old aged seasoned shelf corporations with established business credit at wholesale prices, and you want valid trade references, visit: http://www.gscsc.net/affiliate-programs.htm For a limited time only, when you purchase one of our aged shelf corporations with established business credit, get a free corporate business plan. Visit: http://www.gscsc.net/business-plans.html and also visit: http://www.gscsc.net/offers.html to see a list of our current free offers. In addition to this, visit: http://www.gscsc.net/toll-free.html and look at our options for getting a local and toll free business number, 411 listed.
Devastating Mistake #9 Using personal credit to finance your business — The handsdown biggest and most common fatal business mistake entrepreneurs and business owners make is using their personal credit to finance their businesses. Common examples include:
Paying for business expenses with your own personal credit cards or those of a friend or family member
“Borrowing” money from your personal savings, checking, retirement or other investment accounts to “invest” in your new or existing business
Obtaining personal loans to finance your business expenses
If you’ve used one or more of these financing methods to fund your entrepreneurial ventures, we’re not surprised. Shockingly, and sadly, many so called business startup experts recommend these methods to their clients for funding new and existing businesses. Their advice is wellintentioned but nonetheless, it is incredibly dangerous. The reason for not using your personal credit for business purposes is really quite simple: You WILL destroy your personal credit. It’s inevitable.
By using your valuable personal credit for business expenses, you run the high risk of: Lowering your personal credit score considerably. When you personally guarantee business-related financing, the lender will require a personal credit check be completed on you. Every time an inquiry into your personal credit history is made, your personal credit score takes a hit. The lower your score drops, the harder it is to secure corporate financing…especially corporate financing with the most favorable terms from
potential lenders.
Reducing the amount of credit available for personal use. The more credit that you have personally guaranteed with potential lenders for your new or existing business, the higher your debt-to-income ratio soars … and the less that potential lenders will be willing to give you for personal use. Signing that loan for your business could prevent you from getting a mortgage on the new house you plan to buy a year from now, or it could stop you from getting financed for the new car that you want.
Losing everything. When you use all of your personal resources or personal credit to finance a business, you chain your financial security directly to your company’s success. If the company fails for any reason, you’ll be left holding the bag … and your personal finances will sink along with your business. You’ll never recoup the “loan” you took from your retirement account to get your business launched. Creditors will be calling you for payment. And if things get bad enough at this point, you may have to declare bankruptcy.
To protect your financial security, don’t use your personal credit to finance your new or existing business. Instead, take serious action and steps to secure credit in your company’s name WITHOUT Risking Your Personal Assets, Lowering Your Personal Credit Score, or Damaging Your Personal Credit History. Building true corporate business credit takes time, so don’t rush it, and don’t try to take on too much too quickly. That can also hurt you along with damaging you and your new or existing business.
Devastating Mistake #8 Putting all of your personal assets at high risk — Each time that you provide a personal guarantee for any type of credit extended to your new or existing business, you seriously jeopardize your personal assets, such as savings and investment accounts, your car, and even your home. If your business can’t pay off its debt, the bank will come looking for you to make good on the loan.
A business entity established as a sole proprietorship is most susceptible to this serious high risk. Although you can establish, build and maintain true corporate business credit as a sole proprietor, you will be completely liable for all personal and corporate debt. Your personal credit history will be based solely on activity associated with your social security number because you will not have a corporate tax ID number or D-U-N-S business credit file number. As a sole proprietor, you also have no legal means for separating your corporate business credit and your personal credit.
The best way to protect your personal assets is to incorporate your business. You’ll shield yourself from personal liability for the company’s debts and typically you will also reduce your tax burden.
Devastating Mistake #7 Contaminating your personal credit history and your personal credit profile — When people marry, they vow to share their lives. For some goodhearted but financially nave couples, this means sharing personal credit. Unfortunately, adding your spouse to your personal credit profile isn’t a show of undying loyalty and devotion. It’s credit file contamination – an almost unforgivable sin if you’re a true business owner.
When you initiate joint credit, your spouse’s credit history becomes part of your personal credit file. If your spouse misses a payment on a bill that is due, or if he or she pays the bill late, the delinquency affects your personal credit even if you were not the cause of the problem. The matter is complicated further if you haven’t taken steps to separate your personal credit from your company’s corporate business credit. Credit file contamination created by a spouse’s credit history could easily keep you from achieving your business goals – because it will prevent you from securing the corporate financing necessary to grow your new or existing company.
To avoid credit file contamination, keep your credit history completely separate from your spouse’s history. If your spouse ruins his or her own personal credit, then you’ll still have a good credit history to support your family, as well as your new or existing business.
Devastating Mistake #6 Not paying your bills on time with your creditors– one-hundred percent of the time, You misplaced your credit card bill and sent in your payment a few days late. It happens to the best of us, right? Maybe so, but as an entrepreneur and business owner, you can’t afford even a single late payment for any of your bills. Your personal credit file and your corporate business credit file and your credit scores are a complete in-depth history of your credit activity. Not paying your bills on time can very quickly ruin your personal credit files and your corporate business credit files.
A single delinquency can be held against you for years and it can be used to constrict the extension of existing credit or deny new credit which can very rapidly make or break your ability to finance the launch, operation or growth of your new or existing company. There are two important things that you should do to protect yourself from this very serious and critical business mistake. The first, obviously, is to ensure that you always pay your bills promptly, either on the due date or as early as possible before the actual due date of the bill. Second, always keep your personal credit separate from your corporate business credit. That way, problems with your personal credit history will have no bearing on your corporate business credit history. But if you do not take all the necessary steps to separate your corporate business credit and your personal credit, problems with your personal credit file could directly affect your ability to properly establish, build and maintain your corporate business credit and your business.
Devastating Mistake #5 Using your family’s money to finance your new or existing business — When you use your personal credit cards to buy business items, you instantly slash the amount of credit you have available to get the things you and your family need and want.
And if you, like many Americans out there, regard your personal credit cards as the financial cushion that will carry you through emergencies such as an illness that makes it virtually impossible to workwasting your credit on business expenses, ultimately weakens and breaks down your current safety net for your new or existing business. Still, many entrepreneurs and business owners ignore the serious and dramatic consequences of this dangerous practice:
They buy business-related items or items that they do not need with their personal credit cards.
They “borrow” the needed money they’ve socked away for retirement, education, and savings accounts … and “invest” it into the business.
They obtain other personal credit cards, leases, loans and lines of credit to finance the business.
And, once their borrowing limits are maxed out … they try to persuade their spouses or other family members and friends into using their good credit to continue financing the business. It happens all the time.
Be forewarned: if you convince your family members to finance your business, you’re just digging a deeper hole for your family to crawl out of. If your business fails – as ninety-five percent of all businesses do in the first five years, according to the Small Business Administration, your
friends and family could be wiped out financially.
Don’t ask friends or family members to use their good personal credit and cash resources to invest in your new or existing business. As we discussed in Mistake #9, using your personal credit to pay for business expenses is a strategic business error. And if it doesn’t make sense for you, the business owner, it makes even less sense for family members and friends. Keep everyone’s personal credit strictly separated from your company’s corporate business credit. Using other methods to acquire corporate financing for your business are available.
Devastating Mistake #4 Not setting up a corporation and properly establishing, building and maintaining true corporate business credit the right way — Many entrepreneurs and business owners today, are unaware of the value of incorporation. Even fewer understand the essential steps necessary for building the kind of corporate business credit that will ultimately enable them to take full advantage of their entrepreneurial status.
Incorporation makes your business entity stand by itself separate from you, the business owner, as a separate entity with its own liability. Incorporation separates your business assets from your personal assets. If someone decides to sue your company, they cannot legally touch your house, car, or anything else owned by you or your family. But eliminating your personal liability for your company’s debts and actions isn’t the only reason to incorporate your business.
Let’s face it. You are in business to make money. And in order to make a profit and sustain your business, you need working capital – in the right place, at the right time – to help your business grow. By incorporating your business, you enable your business to begin establishing true corporate business credit, which will ultimately provide the funds that you need to grow your business.
But incorporating your business doesn’t automatically qualify you for all the corporate business credit that you need, much less the best type of corporate business credit to obtain. Your goal should be to secure cash lines of credit, not lines of credit that are tied to particular stores or vendors for which you do not need to offer a personal guarantee. You will need this type of corporate business credit, but only in the early beginning stages of building true corporate business credit. To secure this “Holy Grail” of true corporate business credit, you need to follow a well-defined, step-by-step system to build your corporate business credit history and corporate business credit score.
Some of the preliminary steps every entrepreneur and business owner needs to take to secure excellent corporate business credit include: incorporating your business, maintaining a physical commercial address and office, obtaining a local phone number and a 411 listing, and getting a business license and any other permits that may be required. All of this will be checked by the business credit reporting agencies, so do it right.
These very basic steps begin to pave the way for building your corporate business credit score with the business credit bureaus. After you follow those preliminary steps and provide the credit bureaus with the information that they require, and you go through our Corporate Business Credit Builder Program, you will be prepared to approach the handful of potential lenders who will give you a cash line of credit with no personal guarantee. In other words, those few select lenders will help you keep your business and personal assets separate AND give you the cash you need to grow your new or existing business.
Devastating Mistake #3 Rushing the process for establishing, building and maintaining true corporate business credit — True corporate business credit can be an invaluable tool as you build your wealth; because it gives you the flexibility to invest money in ways that you have determined will help you build your new or existing business. Having this resource can enable you to stay in business as you watch your competition close their doors forever. But just as it takes time and patience to build wealth, it takes time and patience to properly build the corporate business credit that enables you to get cash from potential lenders without your personal guarantee. Incorporating your new or existing business is just the starting point of the entire process. The industry standard for building true corporate business credit to the point where you can secure corporate business credit cards, cash lines of credit, equipment and vehicle leases and cash loans without a personal guarantee is typically two to three years.
Global Software & Computer Solutions Centers, Inc. has streamlined its corporate business credit building process so that you can get the corporate business credit that you need in as little as six months. We also offer an elite rush corporate business credit building package for clients that need fast corporate financing. You will then follow the necessary corporate business credit building steps to position your company to qualify for no personal guarantee cash lines of credit, commercial lines of credit, equipment and vehicle leases and corporate business credit cards. This also includes services for the development of a professional corporate business plan for your new or existing business.
Devastating Mistake #2 Not following up on the corporate business credit building process on a regular basis — Once the entrepreneur or business owner begins to follow the prescribed process for establishing, building and maintaining true corporate business credit, many entrepreneurs and business owners simply neglect responsibility and they don’t do enough followup work. This is a very serious and critical business mistake to make. If you don’t keep track of your progress during the process of building excellent corporate business credit, you may miss key elements that could make the difference between getting the cash line of credit that you need … or being denied. The choice is yours.
It is always a good idea to delegate certain responsibilities out to key people within your business, especially if you are extremely busy. But you have to be extremely careful as to which kind of work you delegate. The work that directly affects the growth of your new or existing business and your wealth deserves your personal attention.
Devastating Mistake #1 Not recognizing opportunity costs your business money and the potential to close its doors forever — At the first sign of profits made within a brand new business or the first influx of valuable corporate business credit that comes into a new or existing business, many entrepreneurs and business owners spend way more money than they actually have – or even more than they will make on material goods. Lured by the luxury car, that expensive home or that exotic vacation they’ve lusted after for several years, they quickly and rapidly ignore longterm business goals in favor of temporary and immediate gratification. What a serious business mistake to make.
If you truly want to achieve your longterm business goals, recognize that true corporate business credit and profits should only be leveraged to create greater gains for your new or existing business. Instead of figuring out how much profit you can take out of the business, seek ways to invest your corporate business credit so that it will deliver greater returns for your business for many years to come.
This is not, by any means, a comprehensive list of all the very serious business mistakes that nearly all entrepreneurs and business owners make when it comes to building true corporate business credit. But if you address these costly and dangerous errors right from the start, you will be on your way to building a safe, secure, and financially sound business, the business that you always dreamed of!
Global Software & Computer Solutions Centers, Inc. shows entrepreneurs and business owners how to get at least $30,000 to $100,000 and up – in cash lines of credit to finance their businesses while bulletproofing their assets, slashing their taxes, and safeguarding their personal credit history and personal credit scores. Our programs are time tested and proven to work if you follow the steps.
Global Software & Computer Solutions Centers, Inc. with its groundbreaking, comprehensive Corporate Business Credit Builder Program, is a proven, step-by-step program for separating personal credit from corporate business credit, building your corporate business credit, and obtaining unsecured cash lines of credit! In addition to our Corporate Business Credit Builder Program, you also receive a topsecret list of the handful of potential lenders who offer cash lines of credit without a personal guarantee.
The professional team of business financing experts at Global Software & Computer Solutions Centers, Inc. have already helped hundreds of real estate investors, stock, and other investors and small business owners from a wide variety of industries all over the United States qualify for the cash lines of credit that their businesses need. To learn more about The Ultimate Guide to Building True Corporate Business Credit and our ironclad, financing guarantee, call us toll free at: (800) 922-5170 for a free phone consultation. For a limited time only, get a free corporate business plan when you purchase one of our aged shelf corporations with established corporate business credit. Visit these links for more detailed information: http://www.gscsc.net/business-credit.html for corporate business credit options. Visit: http://www.gscsc.net/business-plans.html for details on obtaining corporate business plans. Visit: http://www.gscsc.net/toll-free.html to get a local or toll free business number 411 listed. And visit: http://www.gscsc.net/offers.html to see our current list of free offers. Also visit: http://www.gscsc.net/merchant-accounts.htm for more information on our merchant accounts. Every business needs good solid accounting software. Visit: http://www.gscsc.net/programming-software-development.htm Call now, you have nothing to lose. There is no better time than right now to establish true corporate business credit.