Small Business Realities – Three "Must Have's" To Building a Successful Business

If you just started or currently own a small business, then you know of the realities of a small business. The truth is small businesses need a lot of things to keep it running (more than you can ever think of). However, a business owner needs only a few things to make their business successful. We'll discuss a few of these in the following paragraphs.

 

The first and most immediate task you must accomplish is to decide the scope and focus of your business. In other words your business must have a mission statement. I know this sounds very silly to some people. It's important to know what your business offers and who your going to offer it to or you're wasting your time. If you're consulting, start out with something you specialize in and target a niche you have dealt with before.

 

The second thing you need to do is separate your personal identity from your businesses identity. The way to do that is through incorporation. When you are incorporating you are basically separating your business and personal dealings legally. You have one set of records and your business has another. One example of this is your credit. You'll use your social security number for personal matters. A tax identification number is what identifies your small business as it's own credit entity.

 

Finally, your business needs access to money. You should always have funds available for your businesses time of need. You can expect to get into situations when you need to shell out money for your business so you better have the funds ready. In any business situation, having access to money makes things much easier. There are two ways to do this. One is to have cash ready to pay for it. The other is to build your business credit rating.

 

Have good business credit gives your business more flexibility because you have more purchasing power. Whether you think credit is a good or bad thing, it's a necessary tool to expanding your business. The easiest way to get started with a good business credit rating is by getting a business credit card. Always remember that being irresponsible and abusing credit will hurt your business. So build your business credit responsibly and use that new purchasing power with caution. The payoff of building your business credit correctly will open many doors your business no matter what size it is. 

 

If you want to know how to establish good business credit, then go to our web site at http://www.buildingmybusinesscredit.com.  You'll learn all you need to know about how to build and establish good credit for small business.