Building a Solid Business Foundation for Financing

The single most important thing a business owner can do for their business is to build their business to sell it.

Sell it you ask?

Yes. Build to Sell.

Every decision a business owner makes should be based on that thought. If an entrepreneur can base their business decisions with that underlying idea (in terms of financing), they will be set up for long term success.

The lending institutions base their acceptance or declination on one thing.

Is the business an attractive lending risk.

There are 20 key points every business owner must have in place to be approved by financial institutions when their underwriting team is determining to approve or decline a loan app. Many of these are small, seemingly meaningless ideas. However, lets take a look at it from the eyes of the lenders.

Banks and lending institutions get so many applications from business owners who, quiet frankly, have no business applying for a loan. Their business is not set up to be lent to. The banks are not even viewing these entities as a viable businesses. So the first stage of getting past the computer guidelines is to have these in place.

Additionally, if you were to go to the bank and not have these in place, the loan officer would get a two digit code back from the computer system and all it was say was “Loan application declined.” Your loan officer, without investing some time into the issue, would not know exactly what you needed to do differently to be approved. The loan officers surely do not have the underwriting guidelines for their firm.

In this article we will examine the top three reasons business owners fail at business credit building and business financing.

The first is simply the business owner does not have all the I’s dotted and the T’s crossed in their business. Things like having an 800 number, being listed in the 411 directory, and having a dedicated fax line is a must to a business owner seeking financing. Many business owners I speak with are small businesses, who are just seeking their financing options. It’s impressive to see the amount of businesses that do not even have these first three steps accomplished. Remember, the goal here is to have your business look attractive on paper. In the eyes of a lender, if you do not have an 800 number it is suggested you own a “mom and pop shop” and are not setup for success.

Secondly, business owners have not started to build their business credit. There are right ways and wrong ways to go about building your business credit structure. In the eyes of the lender business owners who go out seeking to open revolving lines of credit and are turned down (due to reasons outside the scope of this article) it appears as though they are fishing for financing. It’s imperative to apply for the right types of credit lines and being approved for those lines when establishing your business credit from the get go.

Thirdly and most relevant to most entrepreneurs: they have not separated their personal liabilities from their business. It’s important for a business owner to have good receivables in his/her business. But, and what’s equally important, is that business owners personal credit is not tied to the business, in any possible way. There are two reasons why you’d want to separate yourself from your business. If something happens to your personal financial situation, you do not want that to be the reason your business is unsuccessful in obtaining financing. Secondly, should something happen to your business, you do not want that to affect your personal credit.

Building a Business Foundation

Perhaps you are new, or you are just getting started with your internet or retail or other business. There is no difference. It can be very scary. I know that I was scared when I started 7 years ago. It was March 2003. I was close to $200,000 in debt. Even my ex husband choose to leave me for another woman. It was scary But I drew strength from my belief in beginning with a solid foundation. The term foundation means your mindset and contact list. These are the only assets that you have to build a firm, solid foundation which able to let you to develop a building where the sky is really the limit.

There is so much to say about mindset which take years to talk about it and understand all that we should.

There is two quotes of mindset. ” Great Spirits have always encountered violent opposition from medicine minds” by Albert Einstein. ” A wise man is a master of his mind and a fool is a slave to it” by unknown author.When this two quotes added up it becomes if you resolved to succeed, you will. You must be focused. You have to put the blinders on. You have to steer clear of all the garbage advice that you get from the naysayers and the dream stealers.

We all get “NO” and “Dollar store guidance” from our relatives or friends, but those who can stay focused are the ones who succeed. Think of Columbus, everyone told him to sail off a cliff, or Colonel sanders who got 1009 “No” before he got financing. Those guys certainly had mindset and focus. They never let the dream stealers get in their way.

Your mindset sets your course which establishes your attitude, habits, work ethic and drive. It is the thing that makes your press for the closing sales for your business. Is your mind set on you treating this work like a hobby ( you know, kind of doing it here and there, sticking your tow in the water and seeing it works) or is your mind set on you making this be the last business that you will ever have to be build( you are going to reach your goals no matter what obstacles you face)

The other part of foundation is contact list. This will be congruent with your mindset. If you are going to treat this like a hobby, you will come up with a few names to add to your contact list. If this is going to be the last business you will ever build you are going to write down everyone you have ever known.

Are you clairvoyant? Do you really know what is going on in their lives? So do not be a fortune teller. Do not presume what is in their mind before you contact them about your business opportunity. By the way, if you have a strong mindset and you are going to treat this like a business, you will be willing to contact everyone you know. Every time you leave someone off your list or miss someone that you know, you potentially leaving millions of dollars behind. You also must do follow up with those that have done business with you.

Online Business Foundation

With all the home-based businesses out there it can be difficult to find business opportunity that has
basic foundation that you need for a home based business that actually makes you money. Here are some of the basic foundations you need.

1) Start-up Cost: When looking for an online home based business for sale, this is so important. A good rule of thumb is around $2000.00 or less, anything much higher than this you might have to worry about people just getting your money and leaving you in the dust. Remember your starting a business, it will cost you money.

2) System: The business should have a proven system that works . This might be most important thing to look for. Anyone who a successful business has system in place that makes them money. No System= No Money

3)Training and Support: The online Business that you consider should have a training and support back office where members can go for support, and training. If your new to the online world, you’ll we need all training and support you can get, the internet is a big place, and you to make sure your energy is focus in the right place.

The internet is a great place to make a living, like anything your foundation is the most important thing.
So make sure you pick the right business for you.

Every second of the day is a chance to change your life!

Gold nugget= With any venture your attitude will the deciding factor in making it grow. There is reason why you see passionate people succeed!

Laying Your Business Foundation – Outstanding Customer Service – Part Three

In this series we will talk about the importance of providing outstanding Customer Service. Again, if you have not read the previous series I encourage you stop what you are doing and review the articles NOW!

Customer service is the provision of service to customers before, during and after a purchase. Have you ever shopped at a store and you could not find anyone for assistance? Did you wonder through the store looking for a particular item and could not locate it? I would confidently say 8 out of 10 stores do not offer outstanding customer service.

Furthermore, in order to offer outstanding customer service the business owners must have a well-trained staff to demonstrate outstanding customer service to every customer; regardless if they are making a purchase or inquiring about an item it is the staff responsibility to know about the product or service, if not the staff need to know where to find the product or service.

Customer service is the pivot point that will either increase the company bottom line or shutdown. If the merchant sells to the general public they should have employees that are trained and ready to demonstrate outstanding customer service.

Customers are the most precious assets to any company and without them businesses would not exist. Not only are the customers assets to a business but they add value to the business by referring friends, neighbors, family and others to your business. The following steps will help you start and organize an outstanding Customer Service training program for your business.

Steps To Provide Outstanding Customer Service

Step 1: Greet the customer with a friendly smile then a firm handshake. It is customary to greet each customer with a pleasant smile and or handshake to establish a business relationship between both parties. The initially step sets the tone to demonstrate outstanding customer service.

Step 2: Ask the customer if you can be of assistance then give them your undivided attention. Never assume you know what the customer needs or want. They came into your business for a particular service or product; therefore, they know you have the solution to their problem, which the reason they came to you verses going to your competitor.

Step 3: Answer every question accurately. The customer will know if you can or cannot help them by listening to your response. They will draw a conclusion by listening to your voice tonality, observing your body language and if you’ve been attentive to them since the greeting. Customers are keenly aware of you sincere or not.

Step 4: Explain to them how you can or cannot help them. Observe their request from all angles to find a solution. Just because someone else had a similar problem does not determine the same outcome. Going the extra mile builds trust. This will keep your company in the customer mind when they encounter another problem.

Step 5: Deliver timely results. Do not make any promises you cannot deliver. Do exactly what you agreed to provide at the specified time and price. Be mindful of any changes between both parties; however, if there are changes provide the changes in writing at least 24 hours before the deadline. This will give both parties the opportunity to clarify any misunderstanding.

Step 6: Close the deal. In business deals are always being made. Up to this point you’ve been establishing a relationship with the customer to win them over to do business with you. Now it’s time to either capture them or they will go to your competitors. Closing the deal can be challenging but so was learning to walk, run or ride a bicycle. First, recap what transpired between you and the customer. If you can recall the customers’ interest either verbally or body language this is a good indication that they are interested in your product or service and looking for you to immediately close the deal.

Until Next Time! Stay tuned to “Laying Your Business Foundation.”

These steps will help you start or revise a Customer Service training program for your business. Research and study other programs by searching the internet or visit several merchants in your locale. The topic of discussion for the next article of “Laying Your Business Foundation – Part 4: Professional Telephone Etiquette.