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Small Business Realities – Three Things Your Business Must Have To Have a Chance at Being Successful

[ 0 ] January 3, 2009 | admin

If you just started a small business, then you are learning about the small business realities. The truth is small businesses need a lot of things to keep it running (more than you can ever think of). But you only need the basics to be successful. Keep reading to learn more.

The first and most immediate task you must accomplish is to decide the scope and focus of your business. In other words your business must have a mission statement. I know this sounds very old school to some. It’s important to know what your business offers and who your going to offer it to or you’re wasting your time. If you’re consulting, start out with something you specialize in and target a niche you have dealt with before.

The second thing you need to do is separate your personal identity from your businesses identity. The way to do that is through incorporation. Incorporating means you are separating your business and personal information legally. Your personal information will have one set of records while your business has another. One example of this is your credit. You’ll use your social security number for personal matters. Your business gets its own credit rating under a separate tax identification number.

Finally, your business needs access to money. You should always have funds available for your businesses time of need. You can expect to get into situations when you need to shell out money for your business so you better have the funds ready. In any business situation, having access to money makes things much easier. You do have options with this. One is to have cash available to pay. Option two is to build credit for your business.

Have good business credit gives your business more flexibility because you have more purchasing power. Whether you think credit is a good or bad thing, it’s a necessary tool to conducting business smoothly. Business credit cards are the easiest way to get started on the road of building your business credit. However, keep in mind abusing credit will ultimately harm your business. It is imperative that you as a business owner build your business credit responsibly by spending wisely. If you build your business credit correctly, your business will always have an opportunity to grow.

If you want to know how to establish good business credit, then go to our web site at how to establish a good credit rating for your business.

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Category: Small Business

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