{"id":12937,"date":"2015-03-20T13:46:00","date_gmt":"2015-03-20T13:46:00","guid":{"rendered":"http:\/\/tricks-collections.com\/?p=12937"},"modified":"2015-03-29T11:52:27","modified_gmt":"2015-03-29T11:52:27","slug":"how-internet-start-ups-build-business-credit","status":"publish","type":"post","link":"http:\/\/tricks-collections.com\/how-internet-start-ups-build-business-credit\/","title":{"rendered":"How Internet Start-Ups Build Business Credit"},"content":{"rendered":"

For budding entrepreneurs, the main focus is usually on the product or service they are providing.\u00a0 Invention or innovation, new and better processes and customer service, infiltrating a niche (or creating a brand new niche) are all key elements in a successful start up.\u00a0 Usually what isn’t thought of until after the fact is how to get proper financing to get the idea or innovation off the ground in the first place.<\/p>

For tech start-ups, even the young geniuses face road blocks in this regard.\u00a0 They are often not well versed in the art of finance and not used to the rarefied air of venture capitalist meeting rooms.\u00a0 It’s not without great trepidation and hesitation that most step out and try to get some financing for their project.\u00a0 Most often they make mistakes, get taken advantage of, or simply don’t get enough capital to start with.\u00a0 This can be crippling to a budding project, and can lead to many start-ups failing before they even get a proper chance to succeed.<\/p>

Innovator and entrepreneur James Altucher<\/a> says regularly on his daily podcast that it takes a minimum of 6 months to get financing from venture capitalists.\u00a0 If you are looking for money and only have 1-5 months of working capital at your disposal, it is probably already too late.\u00a0 Many start-ups run into this same issue and it is the reason they fail.<\/p>

The rise of the popularity of shows like “Shark Tank” has made venture capital a trendy topic.\u00a0 However this isn’t always the best way for a business to go about maintaining it’s finances.\u00a0 More often it is more important to ensure a proper working flow of capital to make sure vendors are paid off, employee payroll is met, and monthly bills are paid.\u00a0 This usually doesn’t call for a portion of equity to be sold off.<\/p>

\"finances\"While some may take to an “angel investor<\/a>” to bail out the needs of the company, not everyone has that chance or opportunity.\u00a0 Venture capitalists are often very strict and want at least double-digit percentage stakes in a product or company.\u00a0 Selling off pieces of equity can soon leave a new CEO “high and dry” with very little equity left to himself and his employees.\u00a0 So for this reason it’s best to build strong business credit<\/a> early and often.\u00a0 No one wants to remain in debt, but having access to business credit is a safety net which allows a business to get through some rough patches without resorting to selling equity (or folding entirely, as is sadly often the case).<\/p>

There are services out there that focus on reviewing your business, getting you the credit you need and ultimately getting you funded.\u00a0 They specialize in these sorts of things, so don’t simply open a random credit card offer you get in the mail, but go to a more specialized service that can accommodate your needs as a business.<\/p>

So don’t automatically take to selling off parts of your business, and don’t apply to appear on Shark Tank!\u00a0 Get your company a regular working flow of capital and then worry about the real problem, building your business and attacking your niche!\u00a0 Innovation can only take off once the little problems are taken care of!<\/p> ","protected":false},"excerpt":{"rendered":"

For budding entrepreneurs, the main focus is usually on the product or service they are providing.\u00a0 Invention or innovation, new and better processes and customer service, infiltrating a niche (or creating a brand new niche) are all key elements in a successful start up.\u00a0 Usually what isn’t thought of until after the fact is how […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[95,734],"tags":[735],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/posts\/12937"}],"collection":[{"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/comments?post=12937"}],"version-history":[{"count":3,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/posts\/12937\/revisions"}],"predecessor-version":[{"id":12943,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/posts\/12937\/revisions\/12943"}],"wp:attachment":[{"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/media?parent=12937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/categories?post=12937"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/tricks-collections.com\/wp-json\/wp\/v2\/tags?post=12937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}