Small Business Computer Consulting Additional Qualifications For The Sweet Spot

To find the ideal clientele for your small business computer consulting, you want to target small businesses by their number of PC’s, (10 to 50) as well as their revenue. Generally, companies that have anywhere from 1 million to 10 million in revenue are the sweet spot of small business computer consulting. In this article, you’ll learn why you should target this type of business. {Tip: Of course if you’re located in Canada, the UK, Australia, New Zealand, or any of the other more than 21 nations around the globe where our training has been adapted, be sure to convert this to your local currency. (See )}

Beware of the high end of this range
Once small businesses get to the high end of that revenue range, where they start having substantially more than 50 PCs, or substantially more than $10 million in annual sales, often the small business owners lean towards putting a real, salaried IT person on payroll instead of using a small business computer consulting professional. That’s when you start running into some tough competition. At this point, your client will add up your services invoices and try to figure out if they can do it cheaper or more efficiently in-house.

Look for clients that need a real server
Another important aspect is to find small business clients that are big enough to need a real dedicated server. Once small businesses need a real server, they need a ton of other professional services to go along with it. And it’s very unlikely they can handle it on their own, with just an internal guru. Bingo-you become their outsourced IT department!

Multiple locations are a bonus
Sometimes a sweet spot client has one location. A lot of times there’s a main office and some branch offices. The branch offices present a big opportunity for your small business computer consulting because there’s usually a HUGE need for sharing data in real time among employees in different locations.

The Bottom Line about Small Business Computer Consulting
In this article, you’ve been learned more about how to find the sweet spot in your small business computer consulting business.

Business To Business Transactions Contribute Billions To The Global Economy

In its simplest terms, B2B is a commerce transaction between two commercial enterprises. For example, a manufacturer selling to a wholesaler is a business to business transaction. Opposite terminology would be business to consumer or to government.

For all intents and purposes, the volume of B2B, or transactions, far outweighs business to consumer transactions. The most recognizable example would be a car manufacturer. The purchasing agents buy tires from one business, batteries from another, glass from still another. Obviously, when building a car, there are hundreds of B2B purchases. These are all B2B transactions. When that manufacturer sells to a consumer, it is a single transaction, when the consumer buys the car. This is a business to consumer transaction.

B2B is terminology that describes the nature of the selling process of services and goods. The terminologys first usage was put in place to differentiate between electronic communications between businesses and enterprises. This was an attempt to define the difference between business communication and business to consumer communication. It can safely be said that most sales and marketing professionals operate in the B2B sector of the global economy.

Business to consumer products have gone through any number of business to business transactions. For example, it is a business to business activity when a cheesemaker buys milk from a dairy farmer. The same cheesemaker would also buy rennet and food coloring from another business to produce cheese that is ultimately sold to a consumer. Nearly every consumer product that comes to mind has been through numerous value-added processes before purchase. Very few products are sold directly to a consumer from a manufacturer.

B2B purchases and other transactions involve some degree of risk for both of the involved companies. For instance, if the above mentioned cheese is rancid when it reaches a store for consumer purchase, the cheesemaker may opt to find another dairy farmers milk. If the rennet or food coloring was recalled for contamination, for instance, the cheesemaker might be forced to do business with another supplier. In either scenario, the result to the providers business can be (and often times is) catastrophic. The risks to a consumer in a business to consumer transaction are not as high. If a consumer buys rancid cheese, he would probably dispose of it. He also might have second thoughts about buying from that particular cheesemaker again.

Transactions in the business to business sector are often made by committees. Differing attitudes and opinions about another companys product may affect the purchase. There are many reasons for purchasing or not purchasing a particular brand and not all of them are objectively considered. Since people and personalities are involved in the purchase, the ultimate decision may not be made immediately. Discussion is sure to ensue, and the decision making process is affected by that and by technical details. Long-term relationships between businesses can alleviate some of this decision time; however, brand loyalty can changed at the insistence of just one committee member. This is unfortunate for both sides of the equation. Another process that affects the business to business transaction is the need for samples and mock-ups. Specification-driven purchases must be made with complete confidence. It is detrimental to the car manufacturer, for example, if the brake system from another business doesnt meet rigid specifications. A manufacturers purchasing agents may be hesitant to reach a decision until they have a product in hand that meets the desired criteria.

Branding is an important consideration in B2B transactions. While an individual committee member or a consumer may be willing to take a risk on an unknown product, many large and successful business arent willing to take a chance. This makes the business to business environment unfriendly to startup businesses. Successful end users have found, through experience,that experimenting with new brands can have a severe and unfortunate impact on the entire business. Brand loyalty tends to be much stronger in business to business business. It is incumbent upon a business to differentiate its brand from others. A business theory is in place that there are as many as thirteen strategies to attain this goal.

What Are The Objectives Of A Salesbusiness Head

Business activity is focused around the achievement of appropriate business goals.
A business aim is the goal a business wants to achieve. It may have several aims. In the private sector businesses aim to make a profit. Others aim to survive as a primary aim, as survival is necessary for the business to continue. Other aims include: expanding, maximizing sales, to be more competitive and to be environmentally friendly.

As a sales/ business objective is a detailed picture of a step you plan to take in order to achieve a stated aim. These need to be smart in order for the business to know what progress it has made towards achieving the objective.

As a sales/business head these are some of your objectives for you and your team to succeed:

Develop strategies and objectives with regard to sales quota, new business

opportunities, and the maintenance of present customer satisfaction.

Accelerate your sales cycle.

Abilities to do plans to boost your teams sales performance.

Sales Proposals that can help generate sales everyday.

Should be able to come up with everyday game plan that can help generate sales for the team.

Sales force automation.

Must be able to reduce the administrative works/clerical works of the team so they can focus more in their own field.

Quickly ramp up the new sales team.

Must be able to train or speed up new teams sales skills and abilities to help make more sales to help the team.

Improve RFP consistency and Quality.

For faster communication and to speed up every transaction.

Manage relationships throughout the sales cycle, from prospect to client.

Should be able to go along with different kinds of people.

Maintain ancillary responsibility for client relationship management at account after they have adopted Companys service.

These are few of some objectives that you need to achieve for you to become a successful sales/business head.

To know more, visit http://www.pegasyssoft.com, Pegasys is a Global provider of professional IT Services. We offer the best services at a cost effective pricing resulting in quick Return On Investment(ROI). Our Services include CRM Services, Sales Effectiveness Solutions, E-Commerce Solutions, Smart Assistant Services, Custom Software Development and much more.

Effective Services Of Business Process Consulting Firms Boost The Growth Of Any Organization

If you are an entrepreneur, you will surely agree on the fact that in order to survive in this highly competitive business world, every business requires a professional help. Thus, the role of consulting companies comes in right at the very primary stage. The very effective business process consulting services are committed to deliver you excellence at every step as they are professionally collaborated with business firms. They solicit plethora of new organizations in developing their businesses and also give their contribution in boosting the marketing strategies of existing companies. With their systematic business plans and vast experience these professional firms deliver you the excellent consulting services.

Majority of successfully executed business projects have taken assistance from these professional firms who have insight into the real tactics and which further help to grow your business with quick boost. Moreover, these experienced organizations after achieving the objectives of your venture in the most quick and budgeted manner propel your company to the heights of success.

These renowned firms with their effective services offer you quality decision based on reviews and assessments, which are most judicious and well thought by these professionals. These reviews are implemented by the experts of the industry in order to have rapid realization of actual goals. With their dedication and hard work, these firms execute problem identification techniques, effective solutions as well as profitable business analysis.

Therefore, these professional consulting services with their real objective add positive value to your venture by managing the dynamics of modern business in most effective and excellent manner. Thus, you get timely and risk free execution of all your desired goals.

Primary Services Offered by Business Process Consulting Firms:

Fair and Deep Analysis: A venture involves number of figures and facts. And these consulting services aptly understand the real essence and importance of these factors. Thus, analyze them systematically in order to execute the strategies effectively.

Implementation of analysis conclusions: It would not be wrong to say that the success of analysis lies in the proper implementation of final outputs. And experts working with these professionals firms duly understand numerous tactics of implementing results.

Performance Management: The growth and prosperity of a company truly depends upon its performance. Actually it depends upon plethora of factors. However, these factors are examined by the professionals of consulting firms. They deliver 100% efforts in order to let the performance graph stay upwards.

Hence, at the end it can be concluded that business process consulting services act like coaches for all the growing companies and have potential to boost the growth of any company.

Negative Effects Of Taxation On Businesses

We know that taxation has got many advantages: they form the source of government revenue, they act as a tool to redistribute income, reduce inflation among many others. However, do you know that taxation also has its own limitations?

Well, issues of taxation are not just a preserve of the politicians. And complaining about high taxation is not just meant for the “selfish capitalist who doesn’t want to share.” There are many negative impacts of taxation in the economy, and that is why taxing business and individuals too much can easily lead to a decline in productivity.

It May Discourage Hard Work

In an effort to redistribute income from the rich to the poor, the government might find itself discouraging people from working hard to become rich, since with increase in income, the greater will be the increase in taxation.

For example, if someone knows that beyond a certain level of income, he will pay the government an extra 50 cents for every extra dollar he earns, he may be discouraged from becoming more enterprising. In the long run, this will reduce the productivity of the whole economy.

May Discourage Saving Habits

Since direct tax falls on income and not consumption, individuals may be penalized for saving money and investing it. Take a case where two people are earning the same amount of income during there working years. If each one of them earns $1,000,000 during their active years, they will be required pay the same amount of tax like $100,000. If one person decides to save and invest $200,000 and the other person decides to save and invest $100,000, the first person would have consumed less during his active years compared to the second person. If both persons earn then same amount of interest on their investments, the first person will earn more and taxed even more, and the second person will earn less and be taxed less. From this, you can see that someone will be tempted to avoid saving because there is actually no reward for saving money.

It May Discourage Foreign Direct Investment

Foreign investors look for opportunities to make money. For this reason, they are always looking for places or locations that are favorable to them. These are the locations that give them the chance to achieve their plans. High taxes may discourage investors from going into a particular country as these taxes will obviously eat into the income of the business entity.

With increased globalization, different countries aim to attract investors through a variety of measures such as reducing taxes and so on. It is therefore very easy for a company to move from one country to another simply because of the tax incentives offered in another country.

As people continue to debate about the importance of taxation and the negative effects of the same, it is important that governments understand that that although tax increases may seem beneficial in the short-run, they may end up being counter-productive in the long-term.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed

I’ve spent over 20 years keeping business owners, executives & VIP’s alive in 42 countries. Every threat expert knows the security risks of business owners being kidnapped; mugged & murdered overseas are increasing.

Kidnap for ransom is also a growth business sector, as is kidnap for ransom insurance or K&R Insurance. The following travel security expert tips will help raise your security awareness & minimise your personal security risks.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #1 Under Estimating The Security Risks.

The world of business travel has changed dramatically for business owners in the aftermath of September 11th and the subsequent global war on terror. Security experts all suggest you should heighten your security awareness.

If you are a western business owner, director, executive or senior manager who travels overseas for business, then any professional security experts compiling your travel security threat assessment would designate the security risks as medium to high risk.

Contemporary professional terrorists and organised criminals understand the politics of kidnap for ransom and K&R Insurance.

Even western middle managers on an average western salary are considered lucrative kidnap for ransom targets because kidnappers know if the person is working for a large company then they are likely to pay out on the kidnap for ransom insurance policy.

Every threat expert knows the security risks for business travellers are out there, they are very real, and you should never underestimate these security risks.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #2 Familiararity & Assumptions.

Two security awareness phrases spring to mind. Familiarity breeds contempt, and a familiar sight provokes no attention. Security experts advise that terrorist groups and organised criminals utilise these two phrases to ensure the success of their kidnap for ransom insurance business.

During several of my business protective service operations I have witnessed sane, rational and intelligent business owners lose all three of these sub conscious defensive functions the moment their aircraft lands in a foreign country.

You might think it’s a familiar sight to see an empty coke can under a nearby car in Mexico City. However to the trained eye of a threat expert the security risks indicate it could be a remote controlled improvised explosive device.

Many business owners have been killed because criminals and mafia groups brought them into familiar surroundings in which their subconscious automatically made incorrect assumptions about it being a safe environment. Soviet Bloc Mafia groups are particularly skilled in facilitating this environment.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #3 Arrogance And Showing Off.

During my 20 plus years providing security experts and threat expert close protection for business owners and directors. I have witnessed many security risks breaches instigated by the business owner-director under my protection.

Several of these security awareness breaches were directly attributable to these business owners showing off, or being unnecessarily arrogant.

Many successful business owners have not achieved success by being a meek little wall flower. They are vocal, occasionally loud, sometimes rude and for some strange reason when in an overseas destination, occasionally downright obnoxious.

Most of these security risks problems manifest because many business owners have an enormous ego to stroke, and because many business owners talk far too much.

Organised terrorists and organised criminals involved in the kidnap for ransom insurance business have low level foot soldiers mounting target intelligence and gathering intelligence on loud mouthed, arrogant business travellers who are showing off.

Showing off and being overtly arrogant is a sure fire recipe for catching any prospective kidnappers attention.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #4 Habitual Behaviour

All security experts and every individual threat expert will inform you that most business owners are most likely to be attacked or kidnapped when they are entering or leaving a building, or vehicle. One of the main reasons why, is because this is generally when every VIP is most vulnerable.

When working overseas your security risks increase and so your security awareness needs to increase accordingly. Make sure you alter your routes and any other habitual behaviour that terrorist and criminal surveillance operatives may pick up on.

i.e. if you are working in unfamiliar overseas location and you walk or drive to the same hotel bar every evening, then kidnappers seeking K&R Insurance finance will utilise your habitual behaviour against you.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #5 Lack of Security Awareness & Poor Observation Skills.

Security experts and every threat expert call this lack of security awareness ‘Condition White.’ In its basic format this means the person is completely oblivious to perceived or actual security risks, threats and problems.

For people going through their day to day existence in ‘Condition White,’ their observation skills are generally poor and they are unable to recognise increased security risks and threats.

All good security awareness and counter measures should begin before you book your overseas trip. As an overseas business traveller your life is at risk and although the concept of 100% security is non-existent, there are simple security risks countermeasures which you can implement to ensure you are not presenting as a ‘Soft Target’ to criminals and kidnappers while overseas.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #6 Overt Corporate Lifestyle.

To minimise the security risks to your personal safety while overseas it is wise not to adopt an overt corporate lifestyle.

Remember professional terrorists, organised criminals and professional kidnappers seeking a K&R Insurance payout, pay for surveillance operatives to surveill high priced, up-market western style hotels to identify travelling western business owners, especially those operating in ‘Condition White.’

For example, security awareness dictates you should never carry a business briefcase. Dress down when travelling, don’t use corporate luggage tags and stay away from the high class American and UK hotels whenever possible.

And always avoid using a sign written corporate motor pool vehicle belonging to a western business, because adopting an overt corporate lifestyle overseas is a recipe for disaster.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #7 No Security Back Up Plan B.

All security experts or a professional threat expert organises a security awareness back up plan when mapping out the threat assessment for any VIP under their protection.

In the security risks industry this is generally referred to as ‘Plan B.’ It is not uncommon for security experts to have multiple alternative back up plans because no matter how good your security awareness plan is, Murphy’s Law always materialises to screw things up. Murphy’s Law can be summed up by the following; ‘what can go wrong will go wrong.’

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #8 Complacency.

Security experts know that complacency kills. It’s as simple, harsh and as brutal as that. Terrorists, criminals and kidnappers often strive to lull prospective targets into a false sense of security awareness, because complacency quickly follows and the victim becomes easy prey.

To really understand complacency, think about the immediate aftermath of September 11th citizens initially accepted increased and unprecedented security awareness measures at airports, marine terminals and all borders.

However in a relatively short time, complacency set in as citizens complained bitterly about being inconvienced at airport check in.

When complacency sets in, security awareness levels drop and security risks increase.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #9 Not Trusting Your Gut Reaction

Security experts say we are all blessed with our own sub conscious defence mechanism. Civilians call it trusting your gut reaction. Security experts call it the ‘Fight or Flight Syndrome.’ Without getting too technical, we are pre-programmed for fight or flight, and it happens in the blink of an eye.

I’ve heard many a threat expert explain to security risks students that if something doesn’t quite feel right, then you should always go with your gut reaction. I agree, because despite the very best security awareness planning I’ve often had to change tack because my gut was telling me something wasn’t quite right.

Travel Security Expert – Avoid 10 Things That Get Business Owners Kidnapped Or Killed #10 No Kidnap For Ransom K&R Insurance

If ever the phrase a ‘No Brainer’ had a place in security, then it is when any business owner or traveller visits any overseas location without having a kidnap for ransom insurance policy or K&R Insurance.

K&R Insurance is no longer reserved for multi millionaires. It is an affordable business expense which should be utilised by every business owner traveller visiting any destination overseas to conduct business.

It’s not necessarily going to prevent your kidnapping, although some policies come with caveats that you must attend a security risks awareness training programme. But having K&R insurance might mean you are released safely by your kidnappers.

Can You Really Make Money With Home Based Business Opportunities

Home based business opportunities can make you good money when done correctly, but many people seem to go about their home based business in the wrong way.

So in this article we will go over the key essentials for how to make money with home based business opportunities. These tips are taken from my own experiences of going from newbie to full-time online entrepreneur:

1. Pick A Home Based Business That Works – In fact, I think you will find that most home based business opportunities do work. All too many people are quick to blame a particular opportunity for being a scam just because they failed to make money with it.

It is up to us to make these programs work by marketing them effectively and driving lots of traffic. If we don’t drive traffic and get leads then nothing will work!

But to increase your chances of success, look for a program that gives you a “business in a box” that consists of the following: lead capture system, sales presentations, sales funnel, traffic and lead generation training, and quality products to promote as an affiliate.

When you find a home based business opportunity that gives you the complete mechanical workings of a business, and all you need to do is to send traffic into it, then you will find it much easier to make money with.

2. Focus On The Leads – When someone is struggling to make money online then they often complain that the system does not work or that they have been scammed.

But if you simply ask these people “what marketing have you been doing?” and “how many leads per day are you getting?” then the answer to both questions is usually: zero!

So when you first start out, don’t worry too much about instant sales coming in. Instead, focus on generating daily leads because when you are getting leads then sales will naturally follow.

In order to get leads apply basic internet marketing strategies on a daily basis and just focus your mind like a laser on sending traffic to your lead capture system. Use free marketing such as blogging, article marketing and YouTube videos as well as paid solo ads, magazine ads, and banner ads.

If you stay consistent with your internet marketing then the leads will come in. Keep your eye on that lead count rather than the sales to start with and you will be on the right track.

So in summary, it is possible to really make money with a home based business opportunity but many people fail because they don’t join a system that works and they don’t generate leads. Hopefully the pointers in this article will help you overcome those issues!

CRA Income Tax Debt and how it Affects Small Business Owners

Its tough to be a small business owner. Many small business owners really struggle the first few years that they are in business. When trying to build up a business there can be times where the business does well and times when it does not. Where sole proprietors are concerned their business income is almost one and the same as their personal income. While a sole proprietor can write off business expenses, the revenue that is left must be declared as personal income on her CRA income tax returns.

Small business owners, especially sole proprietors are the group that is by far the most at risk of running into trouble with the Canada Revenue Agency. Small business owners may not have the revenue at the beginning to afford bookkeeping services and often do not plan from the “get go” to set aside money to pay their Canadian income tax debt. It is sometimes hard to estimate what one might earn in a year and CRA income taxes are usually due on an annual basis. Tax time can be shocking to small business owners because not only is it more expensive for an accountant to prepare returns for an individual and a business but small business owners sometimes underestimate what they will actually have to pay.

One very common example of where small business owners can run into trouble with the Canada Revenue Agency is when they collect HST on behalf of the government. HST is trust monies that must be paid to the CRA and often small business owners will remit their HST on an annual basis. Time and time again we have seen small business owners who dont set aside their HST money because they are certain that they will be able to pay it when the time comes to file their CRA income tax return. If the business is not doing well when tax time rolls around, coming up with the money to pay the HST may be a more difficult prospect than what they anticipated.

At this point usually one of two things will happen; the small business owner will miss his or her filing deadline fearing what the CRA will do when they process the HST return and then learn that the small business owner doesnt have the money to pay or he or she might look for expenses to reduce the amount of HST owed. The latter is where huge problems can happen. Aggressive tax preparers may be able to make your income tax return result in an amount that you feel you can pay, however this can land you in big trouble if the CRA decides to look into your books.

The worst thing small business owners can do if they are worried about their CRA income tax debt is fail to file or manipulate their books. Both actions are illegal and can create a legal problem beyond the financial problem they would have had, had they filed their returns on-time and transparently.

No one goes into business wanting to have problems with the Canada Revenue Agency but it happens. Bad things happen to good people and usually tax problems dont escalate because the person intentionally set out to create them.

The most important thing to do if you are a small business owner who has a tax problem is face it and work with a financial consultant to get your finances straight. Financial consultants are not tax preparers and are able to look at a businesss finances to come up with a strategy to help the business deal with its CRA income tax problem.

Process Of Business Strategy Development

The present day sees a lot of new business ventures sprouting in all places of the globe. The need to excel in any venture is the most important thought in the minds of individuals. It is quite common to dream big and try to reach the goal. But what can make people reach great heights in business? It would be inappropriate to list a few factors that can make a business venture successful. Efficient planning and designing the framework of the concerned work and business initiative is the first and foremost task that has to be undertaken. This task done with a clear vision in mind and giving importance to the various choices available for achieving it is called as strategy. It has been well said that realism and goals or ambition require a certain amount to balance. When it comes to business, the value of any strategy depends on the balance that is struck between the two of these components.

Quick look at the meaning of a business strategy

A business strategy in lay man’s term means the plan jotted out by the organization about how their business vision can be reached in an efficient way. It includes a lot of aspects. Value proposition is undoubtedly the most crucial factor that has to be given prime importance by all professionals involved in the management of a company or any kind of enterprise. The responsibility of formulating the right approach for the company decides the smooth functioning of the organization. This calls for the most suitable business strategy to be included in the system.

Salient features of a good business strategy

Implementing the right business strategy in any organization has a pivotal role to play in the success of the company. A strong and efficient strategy can help sustainability in this very competitive world. Business strategies all over the world require a clear and highly realistic plan. Techniques to retain sustainability in the business have to be included along with a comprehensive development plan. Business objectives should be met by undertaking the strategy in a clever manner. Efficient policies and regulations are a must to maintain the dignity of the work nature. Creative and innovative thinking can show positive results when given a place in the development plan and strategy. The business plan has to include all possibilities to handle the positive as well as negative changes that are expected to occur during the functioning of the concerned business venture.

The description of the process of business strategy development

Business strategy development is not as easy as it sounds since there are various intricate details involved in the process. Any strategy planned is to gain maximum success in the venture no matter what the field is. The process can be easily explained in the following steps.

* A right direction and a specific purpose can help start the task. Details of the industry in which the business venture is to be started has to be researched and full information has to be gained.

* External as well as internal analyses done by trained individuals should be done to gain a clear insight on the strengths and negative factors or weakness of the company. This step can prove to be crucial in getting an idea on the core competencies of the industry.

* Various tools such as the Michael Porter’s Forces model should be used to evaluate the external environment and determine the external competitive intensity. The prime success factors can also be located in this process.

* The next step is to look for the key factors within the firm or business. Internal activities should be identified by using tools like the Value Chain of Porter. Critical evaluation is required if the key factors and the core competence do not go hand in hand.

* The business organization has to decide if it wants to be a price leader or use any other technique with regard to their prices and services. Cost leadership can be done if one wants to be a price leader in the industry.

* Other differentiation strategies can be undertaken if there are lots of expectations from the customers. Value addition is a must if this is the process that the business initiate requires. Competitive advantage can be gained and the business can sustain longer in the industry if these steps are followed and the right plan is designed.

Sustainability in any industry can be easily reached when a person plans the best business strategy development process. Success will not be a far away dream for such business people.

The Business Credit Card Five Things You Need To Know

Too many business owners think they can run their business by charging business expenses on their own personal credit cards rather than using a business credit card. If you’re one of them, you may want to rethink that policy.

Using a personal credit card for business purposes can turn into quite the disaster. Fortunately, by understanding the five following business credit card facts, you can avoid the common business credit card pitfalls.

1. You’ve Got To Keep It Separated

If you run a business and keep charging your business purchases to your personal card rather than a business credit card, things are going to get messy. And sooner or later, you’re going to mess something up. Because keeping proper business records is critical to the success of your business, you should avoid using your personal credit cards for your business needs.

2. Don’t Pay More Than You Have To

Some business owners assume that a business credit card will carry a higher interest rate than a personal credit card. Don’t fall for the myth. It’s just not the case. Just like the personal credit card market, the business credit card market is filled with competition,and getting a great interest rate is just a matter of shopping around

3. Take All You Can Get

Having a business credit card isn’t just good for financing business purchases; a business credit card can also help you out with some additional business-related perks. Many business credit cards allow you additional cards for employees, automatic insurance protection on purchases you make with your business credit card and rewards programs (minus the high interest rate usually associated with rewards cards).

4. Your Business Needs a Credit History

No matter how you may feel, you and your business are two separate entities. Just like you need your own credit history, your business needs to establish its own credit history as well. One of the best ways to do this is with a business credit card. By obtaining and using a business credit card, you will begin the essential process of building your business’s creditworthiness and paving the way for future business credit opportunities.

5. Be Prepared to Guarantee It

If your business has never had a business credit card before, you’ll probably need to guarantee your business credit card personally. Think of it as co-signing for your business. When you do this, not only are you building your business’s credit history, but you are also adding on to your own personal credit report at the same time.

Now Is The Time

So whether you are starting a brand-spanking new business or you have been running a business without a business credit card for a while, now is the time to get the ball rolling and apply for the business credit card that will best serve the needs of your business. There’s no time like the present to put a business credit card to work for you.