Business Ownership is a Risky Endeavor

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Business Ownership is a Risky Endeavor

Apr 09, 2022
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It may seem like the world is totally against someone who wants to start their own business, and it can be incredibly risky. Small business owners often have a vision for their business and know what they want to do, but then reality sets in. Often, business owners start out using their own personal credit to get their business off the ground and running but quickly learn that they have to give personal guarantees on all credit they get for their business, which can negatively affect them.

There will be business owners who go out of business, or business owners who grow, but not as much as they could or should have grown, because they could not afford to do marketing, or hire help or increase inventory. So, what can a business owner do? No business owner goes into business to remain stagnant. They go into business to grow and profit. So how does a business owner fix that problem?

Of course, one can reach out to the National Association for the Self-Employed (NASE) because they are the nation's leading resource for entrepreneurs to get the guidance that can help them in their quest to grow their business. Second, the short answer is that they need to establish business credit to get loans to expand their inventory and marketing efforts. By having more inventory and more marketing, their business could grow, and then they would also be able to pay their employees. By doing all three things, their profits will grow.;

So, it's safe to say that a company needs more capital to increase its revenue. If their credit is maxed out, or worse yet, they have poor credit, they will be limited by what they can do. However, if they establish their business credit, it will be separate from the owner's personal credit. So, even if the business owner's personal credit is maxed out or poor, the business credit can still be used to grow their business. Now, establishing business credit can be very time-consuming and seem like a very daunting task.

Resources like the NASE in a situation like these can help. In most cases, if the business owner follows their guidance, they will usually receive the needed business credit. So, if you are a business owner and you know you need business credit, but you are nervous about spending money to build your business credit, I have to warn you that you may not be in business long, or your business may not grow.

Robert G. Allen once said, "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." As a business owner, you will have to invest in your business anyway, so why not invest in something that can help you grow and manage the risk ahead.

The opinions expressed in our published works are those of the author(s) and do not necessarily reflect the opinions of the National Association for the Self-Employed or its members.

Courtesy of NASE.org
https://www.nase.org/business-help/self-made-nase-blog/self-made/2022/04/09/business-ownership-is-a-risky-endeavor