This article is by a special guest writer, Tisha Kulak of Creditorweb.com.
Don’t Believe the Hype
Within two days after registering my new business, I had no less than five new credit card offers addressed to my company sitting in the mailbox. Sure, it was exciting to see my name listed as owner right above my new company name. Every offer was different and they all made it sound so easy to get a high credit limit to support my business. All I had to do was sign on the line. Luckily, I know better. If you want to start off on the right financial foot, don’t believe the hype.
Take One Step at a Time
Starting a business is an exciting time but it can also be a very confusing time for a business owner, especially those who are going about it on their own as a sole proprietor. Registering for the correct business licenses, buying the right equipment, finding customers, and making the ultimate executive decisions about your financial future can be inundating and stressful. Taking the steps one at a time is the best approach, especially when it comes to money and the cost of starting a business.
Caution, Caution, Caution
The credit card offers that begin pouring in make everything look great on paper. These companies are offering you thousands of dollars to aid your start up and it can be very tempting. But the reality is, if you don’t already have a financial plan and accessible money for start up, perhaps you need to reconsider opening a business until you do. Using a credit card to fund your entire operation is not a good money move, unless you already have solid income prospects set up that will enable you to pay off the balance right away. The last thing you want to do is run up a bunch of credit cards and have no way to pay them off. As the credit card offers begin to pour into your mailbox, don’t sign up for every card.
Take Your Time, Be Responsible
Instead, take some time to research what each card is offering and what benefits each card can provide for your business. Today’s credit cards are very different from even a few years ago. Credit cards are catering to the entrepreneurs and small business owners by offering incentive packages that are based directly on the needs of small businesses and each card offers something different. As the owner of a company, it is your responsibility to build a solid financial foundation for your company and make choices based on research. Consider what reward or benefit programs best match your business in the start up phase, as well as in the future.
Stick with One Card
Stick with one credit card to track your expenses and earn rewards such as frequent flier miles or cash back incentives. As a business owner you will no doubt be inundated with great sounding offers and free gift if you sign up now. You owe it to you and your business to disregard the hype and instead, seek out the best financial information for your business, especially when it comes to credit cards. If you aren’t going to do your homework, no one will do it for you
Tisha Kulak is a writer for Creditorweb.com, where she writes about business credit cards and responsible credit card use.