Small Business Realities – Must Haves For Building a Business

If you just started or currently own a small business, then you know of the small business realities. 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 old school to some. However, it’s really important to decide on the service you will provide and your target market or else you’ll wind up doing jobs that may cost you time and ultimately money. 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 and family financial matters. Your business gets its own credit rating under a separate tax identification number.

Finally, your business needs access to money. You should always have funds available for your businesses time of need. When running your own business, you will always encounter unexpected expenses and you may need to have funds available right away to pay for it. Whether it’s a bill you have to pay or a software application you need complete a project for a client, having access to money makes things much easier. There are a couple of ways to do this. One is to have cash available to pay. The other is to build credit for your business.

Have good business credit gives your business more flexibility because you have more purchasing power. Your business may need a good credit rating if you need to borrow a lot of money to expand it. The easiest way to get started with a good business credit rating is by getting a business credit card. However, keep in mind abusing credit will ultimately harm 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.