Business Credit: 5 Simple Steps To Get Started

It is imperative that investors take the time to set up their business correctly from day one. In doing so, they can easily get onto the fast track to success. Alex Erlich, a credit advisor and educator, is joining us today to discuss the steps investors need to take to win the investment game. Let’s take a closer look to discover the five simple steps to get started.

Getting started is daunting! Here is what you need to get in it to win it.

First, Personal Credit

Make sure that your personal credit is setting you up for success. The majority of investors use their personal credit for business expenses. As a result, the utilization rate begins to have a negative impact on personal credit scores. By identifying and separating personal expenses from business expenses, you can in turn get your credit score back on track. 

Second, Identify Your Business

It is important that you not only identify the type of business you are starting, but the corresponding subcategorization as well. Banks will look at the NAICS, also known as the North American Industry Classification System, when you apply for business financing. 

Third, Select a Business Name

How do you select a name for your  business? Will there be a parent company? It is imperative that you select a business name that represents your company, and that your name is available within your state.

Fourth, Set Things Up Correctly 

Establishing the company properly through the secretary of state, applying for an EIN, applying for a business license, and opening business accounts for expenses. Setting this up correctly ensures that both lenders, as well as clients, see it as a business.

Fifth, Set Clear Goals

Be very clear with your goals from day one! Where do you want to go with your business, how many properties do you need, do you need to buy machinery? 

In Conclusion

Starting a business is overwhelming. Taking it step by step will result in not only helping your business succeed, but it will also have a positive impact on your personal life as well. We have created a guide that will help you step by step through the process of starting your business. This includes links to all of the important websites that you need for your specific state. We are here to help get you on the fast track to success.

Contact us today to find out more about setting yourself up for success.

Need more tips and tricks? Watch the full interview with Alex Erlich