Have you ever thought about the differences between using business credit as opposed to personal credit?
If you are in business you should. It is that important.
Think about it for a minute.
When you go to the store and buy supplies for your business office and use your personal credit card, how serious are you about your business?
First impressions are important!
More importantly, what impression are you giving others when you do this?
The business you buy the supplies from doesn’t really care, as long as the money comes in, they don’t really care where it comes from. But, if your intent is to create history of your spending as well as your business brand awareness, a personal credit card, or checking account is not going to do the job.
Personal credit is great if you are merely building up your hobby to a grand scale. A friend of mine bought a house with a large garage simply so that he could display his model trains in a unique way, without having to worry about the weather. And he did, as the display had many different model houses and communities and tunnels and bridges and a number of other very appealing displays. All this spending did not make him any more valuable at the lumber store than it did at the hobby store. They got to know him real well at both stores, but that was the extent of it.
Serious Effort, or Hobby?
If this individual wanted to change his interest or passion and turn it into a business, he would be hard pressed to get those same stores to take his effort seriously. They would eventually do so, but it would take a lot longer than needed.
When you are serious about your business, you must behave as if the business is serious. That means that you get all the accoutrements of a serious business. Here are just some of the basics:
- A separate telephone number that is answered professionally.
- A separate business checking account.
- A business name or DBA alias.
- A business license.
- A department store credit card or store credit.
- A business credit card.
- Business cards,
- Letterhead with your business name.
This is your brand!
These make up what is known as the brand of a business.
Much like many major businesses create a brand that’s recognized world wide, so should you create your own brand. It could be just your name, if appropriate. Or, it could be a business name that is in line with what you are attempting to create. Whichever way you go, make sure you differentiate yourself from the crowd.
Although one name brands are common and easy to remember (for instance, “Microsoft, Apple, IBM, Ford, Wendy’s) you don’t necessarily have to stay at one name, you could go with two: Pepsi-cola, Coca-Cola, just to name the ones I could remember. Seriously though, create a brand name that is uniquely yours and then add a logo. You want to make sure that your customers remember you if not for your product, then your brand. Once you have created your brand, protect it. It’s a valuable business asset.
Once you have created your brand, make sure that you keep your business and your private affairs separate. This, even more so, when it comes to business credit. Create a business entity and make sure that it stays a business entity because it is that important. If you won’t do that, you are not serious enough about being in business.
All the very best on your business endeavors.