Starting a new business venture is an exciting time in one’s life. Getting to build one’s dream career, escaping the shackles of a 9-to-5 office job, and being your own boss is something that many Americans dream about. However, a new business can come with many pitfalls. Logistical problems like finding clients and getting all the proper tax forms in order are issues that many are familiar with when starting a business, but there is one thing that many may overlook: protecting your credit.
Whether you’re applying for a business loan or looking for a lease on a building, your personal credit history will play a bigger role than you might think in starting your business right, and maintaining your credit is huge in continuing to build and expand your business through the years. Here are some tips for making sure your business starts out on the right foot.
Repair Your Personal Credit
The first few years of a small business can be perilous financially. It’s virtually impossible to find a business loan in the first year or two of a startup when revenue and customer reviews are still filtering in, and you still have so much to prove. That means that much of your first forms of revenue will come from crowdfunding, the kindness of friends and family, and, overwhelmingly, business credit cards. While business credit cards differ from personal credit cards and come with many great features to help grow your business, approval for them will depend on your personal credit.
If your personal credit is not where you’d like it to be quite yet, consider signing up for a credit repair service. Credit repair services can help scan your credit reports for erroneous penalties and way to lower interest which will help raise your score quicker, help you qualify for better credit cards, and get your business started on the right foot.
Secure Your IPs
IPs, or Intellectual Properties, may not be the first thing you think of when thinking about protecting credit, but it’s more important that you might think. Protecting your business from fraudulent copyright claims will help keep you away from costly lawsuits, that will not only eat up your hard-earned revenue and much-needed, and possibly sink your company into more debt, but will also help protect your reputation as you search for more business partners. The best way to protect your IPs is to have Non-Disclosure Agreements, and Non-Competition clauses on hand for every employee and partner you sign, and, if necessary, take your ideas to the copyright office and get them protected legally.
Research Your Partners
When starting a new business, you will be working with many different companies, not all of whom will have the same dedication to protecting your privacy, and unfortunately, some may turn out to be scams. Before making deals with any businesses, carefully research their history and reputation as a business. Consider issuing a business credit report to show proof of their good standing. You want to be sure that the businesses you’re collaborating with will help to grow your business, not ruin the work you’ve put into it.
Many people have a dream to start their own business, but few are able to follow through with it, and even fewer find true success in their ventures. With all the other worries you will have with making sure your new business can reach its full potential, your credit should be the least of them. With these simple tips, you can rest easy in knowing your credit is secure, and sit back and watch your business reach the heights it was always meant to.
