Expert advice on building on your Utah business’ success
As your business continues to develop you might find you have a lot of concerns when it comes to profit and loss — and how to best navigate both. The first few years of a business are crucial to bringing longevity and stability, no matter your industry.
We’ve recently seen a lot of advice being offered via Forbes concerning business finances. From considerations once you start turning a profit to ways to boost your credit rating, there are plenty of things to keep in mind as you navigate the business world.
We can help as well, as First Utah Bank offers business lines of credit to help with expenses as you continue on this path.
Future-forward balance for your financial needs
The experts on Forbes’ panel had some specific advice with a financial focus. The main piece of advice concerned perceptions on money itself, and especially when it comes to spending for business. Business attorney Frederick Penney believes that business owners should be bringing in more money that’s spent in every respect, weighing up-front costs with the potential to increase revenue.
He also notes that business owners should not have a stigma about making money. Profits can also be turned into investments or into helping organizations that need a boost. He talks about a mentor who gave him some great advice.
“You can still be a good person and want money,” Penney said. “I wouldn’t have been able to do all the stuff I’ve done to help other people or continue to do the charity work that I’m doing now without my business making me a lot of money.”
To that end, though, Penney also believes business owners should resist the temptation to buy than is essential when the money starts to increase. It’s less about tipping the scale all the way into luxury and more about moderation.
He also concludes with some general advice: “Learn to be patient – it’s a virtue. Nothing is going to happen in a day. If someone tells you it is, go to the next person.”
Building credit is an important step
There’s also plenty of advice from experts on ways to build better credit. Among them is watch how your credit score rates through Dun & Bradstreet. One way to help those scores is to submit recommendations from your own vendors.
An accounting software leader talks about building lasting relationships with business bankers as a key to establishing more credit. “You can get much more value by finding a business banker who is willing to take a chance on your company and help you build your business credit—it’s a win-win for both parties,” says Kurt Kunselman. “Credit is about numbers, but it’s also about trust and those who are willing to take a chance on you.”
At the same time, another expert notes that you shouldn’t take on too much credit risk if you aren’t prepared. “Ensure you’re taking care of the basics and not taking on credit risk you’re not prepared for,” writes business owner Dan Henry. “You don’t have to use the credit to benefit from it; but if you do use it, pay on time every time, and bank with a company that makes it simple to access your business credit while you watch it grow.”
Financial advisor Aaron Spool also advocates for using credit judiciously, but also in a way that will help build a strong score.
“Pick a business-friendly credit card company whose offers you want (for example, larger credit balances plus cash back or points),” writes Spool. “Pay all your bills through that card, and your transaction volume will make you eligible for the best offers. Make sure to pay the balance in full each month so you don’t get hit with large interest charges.”
Business lines of credit can help Utah businesses
Having a business line of credit can be an important driver for Salt Lake City businesses. You can easily monitor and control employee spending, drive volume from invoices and check transactions to your card with 24/7 ease.
First Utah Bank offers credit cards with several features that place them a cut above many other options. Among them is receiving automatically credited 1.00% cash back on all purchases. There are also no annual fees, up to 25 grace days and no requirements to pay down to zero each month. Interest is 13.49% on purchases and balance transfers, and 19.49% on cash advances.
Among the other benefits to business credit card holders are travel insurance, including baggage delay reimbursement and rental vehicle damage waivers. If you pay for a company cell phone through our card, we also offer phone protection and reimbursement if there’s damage or theft. There’s also automatic new retail purchase security.
Learn more about business lines of credit for Lehi and other locations throughout the Beehive State, as well as all the services we provide, by going to our website.