Business Information for Entrepreneurs by an Entrepreneur

Besides your reputation, the one thing in life that deserves fierce protection is your credit score. The same holds true when it comes to the name and reputation of your small business and its credit score. Traditionally, small business debt is not a part of your individual credit score. However, changes in the economy, business and banking practices are beginning to influence this longstanding tradition. Small business owners are finding that financial institutions are sometimes reporting bad business debts to the credit bureau. Unfortunately, the creditors aren’t doing so under the name of the business, but the business owner.

The Blame

Small businesses typically have to rely on some type of loan or line of credit to cover the cost of overhead at some point in time. Such credit was not previously considered as part of an individual’s credit history, unless, of course, delinquency became a problem. Unfortunately, delinquency is a growing problem, especially given the current economic circumstances. It is likely that delinquency is to blame for the practice of reporting business activities on a personal credit report.

The Ups and Downs

How will a credit score be impacted if a bank reports on small business debt? The credit scoring process is complex and certain standards also fluctuate right along with the economy. It is difficult to pin an exact number on the impact of small business debts on an individual’s credit score, but a safe estimate is likely 25-75 points. For struggling small business owners, this fluctuation in credit score could make the task of personal finance management even more daunting.

The Likelihood

Despite the changes in business and credit reporting practices, the likelihood of business credit impacting one’s personal credit score is small. Most financial institutions do not make it a habit, and the average small business owner’s personal credit is safe. The best way to protect a personal line of credit is by monitoring your personal credit report on a regular basis, minimally 1-2 times per year. In addition, if maintaining the integrity of your business credit becomes a problem, consult with a financial professional to stop a small spark from becoming a wildfire.

What you say during a call or meeting with a potential customer ultimately determines your chances of closing the deal.  It’s not always natural for most of us to sell.  But if you run a company or work in sales or marketing, you need to have many phrases at the ready to combat the objections and resistance you may encounter.  You can read some tips on overcoming price resistance in this blog.

This week, one of our MailerMailer clients, Give More Media, just released a wonderful little free ebook that will help you find just the right words to use in different sales situations.

This fast-reading guide includes a checklist to help you prepare yourself prior to the call or meeting. Plus, it provides 30 sample open-ended questions that are designed to get your prospect talking – something you definitely want to do because you close more sales if they talk, not you.

Here are two excerpts of sample dialogs from this ebook that I really love:

WHEN THE PROSPECT PERCEIVES IT IS SAFER TO DO NOTHING:
“The exciting part of this [solution/ program] is not only the additional immediate revenue you’ll likely generate, but also the added referrals that become possible as a result— in addition to the competitive barriers you’ll create by getting the primary customer relationship going now.”

TO CREATE A SENSE OF URGENCY:
“It seems like a great fit to what you’re trying to accomplish, and I’m fairly confident we’ll have the inventory available, but we can only guarantee it [today/ this week/ this month]. What concerns do you have about moving forward now?”

If you are new to sales or need a little inspiration to help close a deal, Be Sales Ready is pure gold.

Download Be Sales Ready for free here.

Every penny counts in a small business, from the money spent on inventory to office supplies and especially the funds set aside for payroll. Now is the time to start looking for ways to reduce overhead while still preserving the integrity of your small business. New government initiatives aimed at helping small business survive have come up with a creative incentive program. Now you can enjoy financial rewards for hiring young employees to work for your small business!

Young adults aged 14-19 have a great deal of energy and enthusiasm to offer in the workplace. There are several different programs that reimburse employers as much as $2.00 of a young employee’s hourly wage. These programs feature some great opportunities for small business owners to enjoy the following benefits:

Overhead Reduction

The extra funds from government-sponsored employment programs can help you reduce overhead at your small business. While these programs are often restricted by time limits, they might provide that extra savings that you need to get ahead.

Community Development

An investment in a young person is like an investment in your community. You can help aspiring young professionals learn workplace skills, leadership skills, and provide an opportunity for them to demonstrate responsibility and initiative. All of these skills and attributes are critical for young people who want to continue onto higher education. You also might find promising new talent when hiring young people. They could potentially stay with your small business for many years to come.

Building Relationships

By participating in government-sponsored programs geared toward helping small businesses and young people, you can build meaningful relationships with other organization in your community. This might include other small businesses who are participating in the program or local and state officials who are documenting progress of these government-sponsored initiatives. Building relationships with diverse populations of people in the community is one way you can enhance your presence, influence and consumer base in your community.

Hiring a young person features many benefits for employees, employers and entire communities. Be on the lookout for government sponsored programs in your area that capitalize on the resources of young people to take your business to the next level.