When you are a college or university graduate, you have two opportunities: to search for a job (and find it in a good and well-known company probably) or to take some risk and start your own small business. What variant would you choose?
Some former students prefer to stay safe and choose the first variant of course. But there are also people who do not want to work on anyone. They are inspired by success stories of Bill Gates and Steve Jobs for example, they are young and risky, and they are not afraid of difficulties they can meet on their way to success.
So, you’ve graduated from college, and you want to start your own business. What do you need to so this, and what things should be taken into consideration first of all?
Is it difficult to start?
Having the Internet and the latest technologies, it is not very difficult to start a small business today. A few computers and the Internet connection will be enough for you to be called a young entrepreneur, but there is one very important thing to think about - your start-up capital.
Here we have two variants to get money for your first own business: you can find investors or apply for a loan. The second variant may appear to be a little bit challenging for you if you have a poor credit score, though this situation is possible to manage today.
The reasons of your poor credit score may be the following:
- you did not manage your your credit properly
- you have become a victim of scams
So, if you plan to become a businessman and get a business loan one day, try to protect your identity and perform credit checks!
How to manage your business score?
You have got your business loan, and you are ready to start your small business now. But you should not forget to manage your business credit! How to do that? Just try to follow these tips.
Tip #1: Your business credit file
Every business owner should have a business credit file where different financial institutions will be able to find all information needed. Find out if you have one, check it, and make some changes (if needed). Provide all the information that may be important for others to know about your business.
Tip #2: Your business credit history
Even if you have some personal credits already, your business loan should have its own history; so, your task is to establish it and save the information about all expenses there.
Tip #3: Pay on time
As a business owner, you should have a good payment history, should not you? That is why try to pay your every business bill on time and use your credit lines carefully.
Tip #4: Monitor and update your business credit file regularly
You better check your business credit file to know if there were any changes, because they may affect your relationships with suppliers, customers, and different financial institutions. Make sure that this file is updated, and it shows all changes that happen to your business (location, employees number, etc.).
What do you need a business credit management for?
If you still can’t find any advantages of managing your business credit, we will help you establish them.
1. You will have a chance to obtain more financing, if your business has good credit
2. You will have an opportunity to get all supplies needed
3. You will be able to make wise decisions on your customers
4. You will be able to protect yourself against business identity theft
Certainly, it is a big challenge to start your own (even if it is small) business just after your college graduation. But if you know about all tools and resources you may need, this process will not seem so difficult anymore. So, do not be afraid! Go ahead, and make all your dreams come true!
Provided by Alex Strike, a passionate writer and manager at essay-all-stars.com.