New owners should start their business with a plan for sales, growth, and credit. It is important to prepare for all three areas.
Start Your Business With a Plan
Business owners confront a significant amount of unknowns as they start their business. A thorough business plan is one of the most effective tools they can have in place to help them effectively meet the challenges of business. Plans should be in place to address sales and operations, which will define the basic elements of a business. Operations will need to be streamlined to deliver profits, and operations must be efficient to ensure customer service standards are maintained.
Credit should also be the subject of a plan. Business owners must build business credit slowly in many cases, with vendor credit being required to obtain the supplies and inventory for operations, and also to build a base for additional sources of credit such as business loans.
Vendor financing will be a source of trade references* that a credit reporting agency can use to calculate a business credit score. That score could then be a factor in the evaluation of an application for a business loan from a bank.
Start Your Credit File With a Plan
Because of the importance of credit to a business, steps should be taken to maintain a strong credit file from the day the business begins operating. As soon as a business is legally established with the state they will be operating in, the owner should begin establishing a credit file.
Dun & Bradstreet can help new business owners establish a credit file with a service called DUNSFile™ that provides expedited processing for a D&B D-U-N-S® number, which will be required in almost all credit transactions. With this service, you will be able to start documenting your business credit in your D&B® credit file within five days, and have this important task completed with accuracy and timeliness.
*Trade References will be added subject to D&B® verification and acceptance. Please see http://www. dandb.com/glossary/trade-references/ for eligibility, process and other information regarding Trade References.