Welcome back for the second part of our start-up financing mistakes blog. We know you’ve been waiting, so without further delay…
Not Doing Anything About Your Credit
This one is serious.
You’ve jumped through a myriad of hoops to get your business off the ground – forming an entity, pouring hours into deciding whether to have a C-Corp or an LLC, come up with a great business plan, and many more.
Yet, when it comes to your credit, absolutely nothing was done about it
Really? How did you think that business loan application was going to work out for you?
In the early stages of your business your character and credit might be the only thing a lender can look at or cling to. Don’t strike out before you get to take a few whacks at it. Learn about treating your credit as an asset.
It’s okay if you don’t understand credit. It can be intimidating but it’s really not rocket science.
Remember this, there’s only two ways you can improve a credit profile. You can add some good stuff or correct and remove some bad stuff. There’s a lot that goes with each of those but don’t let it become more complex than it is. If you learn the basic differences between FICO scores and FAKO scores you’re on the right track!
Know The Best Start-up Financing Options
We end with a very simple premise – know your options!
Blindly muddling from one mistake to the next, or knowing what’s out there and making a clear plan around those options.
Which one sounds more enticing? The famous Theodore Roosevelt quote is very apt in this case, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.”
When starting your business, this couldn’t be more true.
If you are unsure of your options, then take a look at the list of start-up financing options that we’ve compiled.
It’s impossible to have all the bases covered. The crucial aspect is to identify issues early on, and be flexible enough to change things once they’ve been identified. Learn, take action, repeat.
We hope this has provided you with a guide on the basic financing errors, and how to avoid them. If you’d like any further help in getting your business off the ground do let us know.