credit

Don’t Let Fear Stop You From Starting Your Own Business

Don’t Let Fear Stop You From Starting Your Own Business

Fear will get you know where in business

Being an entrepreneur is a dream for many people, many people put off being an entrepreneur because they do not have the capital to get the business off the ground. Many people have the dream and they have the vision and great ideas but they feel they lack the capital to see their dreams become success.

There are several steps for getting your dream and vision off the ground. If you feel that you have a great idea and you have put a lot of thought into executing your plan don’t let having very little capital stop you from seeing your dream come true. Yes there is going to be stress, yes there will be nights with no sleep, yes you are going to work hard and yes you will have to step out of your comfort zone. But you that want to be an entrepreneur bad enough will make it happen.

Here are some steps that will guide you to get your vision off the ground with little capital.

  • Make your knowledge work for you. Take what you know and have skills in to build your business. Do not spend money on outside sources and consultants to build a business you know nothing about. Take the years of knowledge you have already invested in and build your business, you will find it easier and sometimes knowledge may be all you need to get your vision started. You will spend less money and time relying on others to guide you if you just take what ever you know and put it to work..
  • Let the world know what you are doing. Tell everyone you know what you are doing, this includes your family, friends, people at the grocery store, bowling leagues, business contacts, people at the gas pump and etc. This is called grassroots marketing, or marketing 101, don’t be shy and don’t feel embarrassed to tell everyone about you and your business.
  • Spend your money conservatively. No doubt your going to have expenses, try to keep them minimal if you can. Make wise decisions on your purchases and avoid overspending when you can. Remember you are starting a business with very limited capital, be frugal until the business brings in good revenue, this can make you or break you,
  • Don’t use credit unless you have too. When establishing a business you should not use credit cards for business purchases like computers, meals, furniture, and office supplies that you do not need. These expenses can add up quick and lead the business to the firing squad. Slowly purchase new items when you have positive revenue growth. Don’t add to your stress, if you don’t have the cash yet, then don’t purchase it with plastic.
  • You built it. When first starting a business you will be the one doing everything. You will be answering the phones, marketing, building your reputation, and all of this takes time. Some days you will find yourself working around the clock, just remember you are not doing it for nothing or someone else, you are doing all this hard work in order for you to be successful. This is called sweat equity, your business will be a great success because of your hard work and sweat equity.
  • Make the internet work for you. There are several ways to market yourself, just remember you are starting this business on a shoestring income. Social media today is a great tool to gain exposure to your business and to gain customers. Another source of free advertising is through writing on forums and writing articles in the local paper.When ever you can use local media sources this can be very responsive because the public will look to you as a leading local authority. Use what ever free marketing you can until you have the revenue to advertise more elaborately.
  • Work hard. When venturing out on your own especially with little or no capital you will be working hard. You will need to dedicate everything you have and know into making your business a success. Again you will have to be the one answering the phones, playing office manager, service manager, handling customer complaints  or questions, handling the finances and banking and of course you will have to be the marketing guru. In order to be successful you will have to wear many hats for awhile until your business grows.

 

Don’t be afraid, don’t let limited funds keep you from seeing your dreams come true. Life is full of stress and life is difficult, take that energy you are using now to be successful for yourself.

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Posted by Tom in Business
7 Items That Can Ruin Your Credit

7 Items That Can Ruin Your Credit

7 Easy Ways To Ruin Your Credit

Some the biggest financial mistakes I made were when I was in my 20’s and 30’ that set me on the road to financial disaster. I was young and dumb and I had a good paying job, credit was no problem. I was receiving credit cards daily in the mail so it was no big deal filling my wallet with these cards. If I wanted something I would go out and purchase it or if I did not have the cash I had the plastic card to pay for the item.

After I matured and received a job handling loans for lenders I got a great education in how credit and loans worked. There are many items that will affect your credit, there are a few things that can have a positive effect on your credit score but there many things that have a negative effect and many things that you have no control over.

Having Good Credit

In today’s world your credit is so important. I am an employer for a large service based company and one of the hiring criteria is having good credit. We will take an application that looks good and if the person has bad credit we will not hire the person. This is just one issue that can hinder your life if you have bad credit. Many things in life revolve around your credit score, one would be amazed at how your life is judge by just your credit score.

There are many things that affect your credit score. Let’s take a little walk down the path and take a look at a few of these simple things that will ruin your life when it comes to your credit score.

Too many credit cards

Everybody is giving away credit cards, these cards are a huge money maker for companies. The last time I was at my dentist and took my dog to the vet they both were trying to get me to take out a credit card with them. Any department store, home improvement store, airlines you fly on and etc have credit cards that they want you to sign up for. Before you sign up for these cards read all the fine print on the contracts. Also take some time and do some research, some of these cards offer some great point reward programs.

Remember that every card you apply for is a loan program. When you apply for these cards your credit report is run and it is scrutinized which affects your credit score. Every ding against your credit drives down your credit score.

Pay your credit card payment on time

While we are on the subject of credit cards remember you MUST pay your credit card payment on time. Do not miss a payment even if it is a one off and say I will pay it next month. If you do this you will be charged a expensive late fee, plus you will rack up more interest. But what is worse is that your credit score will take a major hit and it will show all the times that you made late payments.

Read your email and open all your mail

This just happened last night to my wife and I, my wife was scanning her email and found that our cell phone invoice was due the These companies are saving on postage and administrative fees by sending the invoices by email. If you were to be late with your cell phone bill or utility payments this may show up on credit score and possibly lower your score. Make sure you read all your mail and catch those bills that come in a plain white envelope, read all your email and junk email because with technology these days your bill may be sitting in your email box.

Cosigning for a loan

I highly frown at people that co-sign for loans. First if the person is needing a loan cosigned for then they probably have bad credit for not paying their bills on time. If your child is needing a loan for a car and they have no money for a large down payment then I would wait and make them save their money until they have a good enough down payment for a car loan where they do not need me to cosign for it. I have two daughters that I have turned down cosigning for loans for them, they both have bad credit and it is due to the fact that they cannot manage their finances. It may sound bad, but I am not going to ruin my credit because they cannot manage what they have.

Getting buried in debt

It is getting easy again to finance just about anything. Home and car loans are flying out the door again and money is being lent to people are such cheap rates. Although you may qualify for a home loan and it is not in your budget don’t go out and purchase a home that you know will not fit into your monthly budget. If your debt to income ratio are not inline this will affect your credit very negatively. This negative score will stay with you until you have paid down some of the debt and get your income to debt ratio straightened out.

Large ticket purchases

If you are in the process of purchasing a home while the loan is being processed by the lending institution do not purchase anything on credit until you have closed on the home. Many people while purchasing a home will go and purchase all new furniture and supplies for the home on credit which will have a terrible effect on your credit score. If the hit on your credit score is bad enough you may lose out on the loan for the home. Be extremely careful if you are having a large loan processed, there are many things that can affect the loan, do not add to it with materialistic purchases.

 

Posted by Tom in Finance