Business « 1001 How-Tos

October 23, 2008

How To Build Your Business Credit Score

Filed under: Business — Tags: Business, credit score — Johnny @ 8:29 pm

For a business to be in the favor of different lenders and to obtain the necessary funding for its future capital needs, having a favorable credit score is very vital. But a good credit rating does not come in an instant, and for any business owner, there are certain steps to follow. These steps will help improve a business’ credit rating as well as maintain a favorable reputation to lenders and investors.

1. Make sure that your business has a legal entity

Your business will not be able to build business credit if it does not have an entity unto itself. And thus, it is necessary for you to be incorporated or to form an LLC (Limited Liability Company). No lender will be willing to give a business loan to a sole proprietor because this might end up as a personal loan in disguise.

2. Find a Good Address, a Telephone Line, E-mail and Internet Service

Having a good physical location for your company adds credibility for lenders to believe that your company is legitimate when your office address is not your own home address. And having the right means for people to contact you such as owning a telephone line as well as an e-mail address and even a web site, is essential especially for faster communication.

3. Check Your Business Listings

Have your company enlisted under all the necessary agencies and make sure that all your listings are under the same exact legal name as well as with the same exact phone number and address. It is very important for all your personal creditors to have you listed under a uniform identity.

4. Obtain All Necessary Business Licenses, Permits, etc.

Obtain a business license for your company and, if applicable, a license for tax resale in the state, city or county location of your business. Follow all the necessary regulatory guidelines for running your business.

5. Organize Financial Statements and Tax Returns

Be ready to present at least two years of financial statements, with which the help of a CPA is highly recommended. And it is also very important, that your business at this time should already have its own tax ID number. Both federal and state business tax ID numbers should be enlisted under the same exact legal business name.

6. Secure Bank References

A minimum of one bank reference is necessary for your business to establish its score. And it would be advisable if your bank account were at least active for two years, with a good stable balance of at least $10,000 for the past three months for it to be in a favorable position for lending. How you manage cash flow in your business will be reflected from your banking.

7. Obtain At Least Five Trade References

Your business will need five trade references that have given you a credit account. This may include your suppliers or any firm in which your company has purchased goods, preferably at a regular basis. Make sure to choose references that will give a favorable credit history to agencies investigating on your financial history.

8. File for Credit Report Agencies

Get three business credit cards that do not have personal links to you and that will give business credit reporting agencies their feedback on your company.

After doing all these, just remember to play your business in a clean and fair game and of course, pay all your bills on time, and you will surely be able to attain an excellent business credit score.

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August 6, 2008

How to put up a magazine publishing company

Filed under: Business — Tags: Business — timf @ 4:55 pm

Magazine publishing is one of the fastest growing industries in the country. More and more people are getting into the magazine publishing business, acknowledging the widening influence and scope of magazines. You only need to look around to see just where the industry stands now.

When before there are only magazines for beauty and clothes, now there are magazines for every conceivable subject in the planet. There are magazine for crafters and those who are gaga over scrapbooking. There is one about coin collection and antiques. There is even one that tackles the not so well known subject of ikebana.

Magazines have started to do niche marketing where they target specific readers. This is easier to do as few people will need to be informed about it. Marketing, advertising and sales will not be as huge a deal as the marketing involved with magazines that have a diverse target market. In fact because of this, magazines that target a town or a community are also being put up to cater to smaller readers.

But putting up a magazine publishing is not as simple as it seems. It is hard to do and sometimes a headache to organize. But if you know the market and already know what to expect, starting a magazine can actually be easy to do. Here are some tips on how to put up a magazine publishing without having to go through the aches and pains in the head.

1.Look for a good market of readers

With a lot of magazines available, it will be hard to find a target of readers that have not been addressed yet. And if ever, you find one, chances are the magazine for that niche was already created years ago, only that it did not work. But hey, nobody said that you too will not succeed. When you look for target readers do not just stop on the demographics. Research on the articles that they want to see in magazines. Zero in on the products that they feel they will be able to use. You can even make a survey on the people that they want to be featured or the people in the field that they look up to.

2. Look for famous columnists

One secret to promoting your magazine and thus ensuring the success of the venture is to look for famous people in the industry. Their names are often enough to pull some readers into buying your magazine. They will also be able to help in marketing your magazine through word of mouth and industry news. Once everybody finds out that a recognized expert in the field is writing for a magazine, they will buy the mag, even just out of curiosity. It will be a nice start.

3.Content

Even with the biggest name in the field in your magazine, without good content, your magazine will go nowhere. The number one selling point of any magazine are the articles that you will find within. Remember that having big names is just the introduction. What you need is to sustain the interest with features that they can relate to and use. To do this, you also need to hire good writers in the field. Pick one who does not only write well but one who has interests in the field.

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