The First Five Stages to Building Business Credit

The statistics state that 9 out of 10 businesses fail in their first 3-5 years in business, and an additional 9 out 10 fail after 5-10 years of start-up. Why is the failure rate so high you might ask? The better question is what must I do to ensure that I am one of the 10 percent that survive the first 5 years and then thrive during the years 5-10?

Many businesses fail not because they weren't successful but because they were unwilling to take the necessarcy steps to build a solid foundation for their business. The foundation of any business must begin with;

1. Mission
2. Team
3. Leadership

without these 3 things as your foundation your company will eventually fail. Never fear because this allows true entrepreneurs to continue to learn from experience and produce success the next time.

How do you accelerate your learning curve and actually leverage OPM (Other People's Money), simple you build business credit so that you'll have access to capital when you need it. If you wait until you need money from a bank to ask for it don't even bother because you'll be denied or better yet try it to see how many times you can take the words I'm sorry but unfortunately we will not be able to help you.

The First 5 Steps To Building Business Credit

1. Name Your Business (Please think it through) and Incorporate (LLC, LLP, S-corp, c-corp) the choice is yours. Check this site to learn more
2. Get your Tax Id(EIN NUMBER) Don't worry it's FREE from the IRS
3. Establish a land line phone at a Physical Address for your Business (Do not use a P.O. Box or your home address) your business phone must be answered during business hours by a live person in the name of your company. Virtual Office is affordable or use your local phone company for remote call forwarding line
4. Pay your phone Bill On TIME
5. Set-Up your Business Bank Account at a local neighborhood Bank friendly to small Businesses (Remember to open a free business checking account) with as much Money Initially as possible because Banks Record how much You opened your account with attempt to put at least $5000 or more in your account when you open it.

This will conclude the first five stages of building Business Credit, and in the next posting I will highlight what to look for from companies offering an easy way to establish business credit.

Hint: run from companies that guarantee you the Universe without any way of honoring that major guarantee.

Until next time read The science of getting rich and Think and Grow Rich