There has seldom been a better time to turn ideas into reality and found a business. As outlined by CNBC, small businesses are experiencing on average a 20% tax cut due to governmental fiscal policy, creating a wonderful environment in which to establish and grow a business. However, many people with a big idea will feel they are unable to act on it due to their own adverse finances, which can be hugely demotivating. For those would-be entrepreneurs, there are plenty of options to get a business up and running despite previous money mismanagement.
Correcting the record
Many businesses will opt to use credit to fund and grow their services, and this is a great way to get yourself off the ground. This is an option often not extended to those entrepreneurs who have an adverse financial history, as bad credit scores will deter banks from providing lines of credit for those businesses. Unfortunately, these scores can often be misleading. According to USA Today, government statistics show that there have been 257,000 credit record complaints every year, signifying the scale of unfair credit flags in the US. How do you get around this? Regularly check your credit record to identify any errors, and take corrective action through credit repair agencies. This will help you to remove adverse credit warnings that were placed unfairly, and give you a better chance at securing funding.
Credit is not the only way to raise capital for a business. Equally popular is the process of tendering the business out to potential investors. Searching for private investment gives you the opportunity to sell your business and garner sympathy, including for factors that might otherwise ward off investors. Being a motivated and disciplined person will help in this regard. As Entrepreneur notes, the investment pitch is one of the most important parts of the process of gaining investment. Prepare and polish your sell, show the qualities and potential of your business, and you could find investors are willing to engage with an adverse credit history.
Looking to the wider world
Entrepreneurs are using the connected nature of the world to find funding from unusual sources. Eschewing banks and investment firms, new businesses are instead opening investment up on a big scale and finding success through smaller payments. Crowdfunding again gives motivated entrepreneurs the opportunity to find people willing to engage with a good business idea or service. Like with pitching to entrepreneurs, the key is to find the right tone, according to Forbes, before tailoring this to a huge audience.
Bad credit should not, and does not, preclude you from becoming a successful businessman. Through banks, private investment, and the interest of the wider public, your big business idea and personality can shine through and help to pull in much-needed investment. Engage with a disciplined and financially diligent lifestyle today, and show that errors in your financial history are not the story of your business today.