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Hiring and working with a digital agency comes with a lot of considerations.
Not only will you need to think about how to appropriately vet a digital agency, but also what the working relationship will look like.
In order to ensure that you are getting the most out of your digital agency – and that you aren’t driving them crazy – consider these factors.
1) Proposal and Strategy
When you are initially engaging with a digital agency, you should expect to receive some form of value upfront before you invest in their services.
This can take different forms such as:
- Proposals – The agency you are speaking with should at the very least prepare a presentation in regard to strategy and execution.
- Test project – In some cases, it may be worth hiring the agency for a test project initially. This works better with some services such as content, but not so much with something like SEO, which takes longer.
- Audit – Agencies may provide you with a free audit, such as things to optimize with your technical SEO or how to improve your design.
Getting value upfront will help you evaluate the expertise of the agency and demonstrates that they are serious about helping you.
2) Niche Speciality
Any agency you engage with should ideally have experience working with other clients who are similar to you in terms of both your specific needs and the market you operate in.
- Market – Not all markets are the same and need different strategies. A B2B company selling machinery parts will need a completely different approach to ethical fashion brands in terms of marketing channels, messaging, and sales cycles.
- Marketing channel – Your digital agency should also have real experience with whichever marketing channel is best suited to you. Remember that you are competing for customers in each channel, so you need somebody who knows the nuances that will allow your message to stand out.
Understanding the legal side of your relationship with your agency will ensure that you don’t have any nasty surprises.
When you sign a contract with an agency, here are some things you should expect:
- No guarantees – Naturally, an agency will likely do their best to ensure that you get results. However, you will never find an agency that will guarantee a set of results in the contract. Although they may be competent, there is no way they can know for certain they’ll get you results.
- Fixed period of time – Most contracts are agreed on for a fixed period of time, e.g 3 months. This means that you won’t be able to simply cancel the agreement once you get started, unless there is a clause allowing you to do so.
- No responsibility – An agency doesn’t hold the responsibility for any damages your brand may incur through their marketing activity. This is one of the reasons why you need to be prudent when evaluating different agencies.
4) Cost Expectations
When you are hiring an agency, you are engaging in a form of outsourcing.
But despite the connotations, outsourcing doesn’t necessarily mean cost savings. If you work with the best agencies, you will have to pay adequately for their expertise.
Some agencies may promise to do the same work for less, but there is always a logical reason why one agency charges more than the other. Chances are, they have more experience and expertise.
It’s important to also keep in mind the cost difference between hiring an agency and building an in-house team. Consider how much it would cost you to hire the top talent in a particular field, versus hiring an agency who already has them.
5) Project Scope
Oftentimes, business owners engage with an agency without a clear understanding of exactly what they want.
Although this is understandable, you should speak with your agency and get a crystal clear idea of what the scope of the project is.
You will need to consider:
- Timeline – How long do you see your working relationship with your agency lasting? Is it a short contractual project to complete a content series? Or do you need an ongoing partner to work with indefinitely?
- Evolving needs – You may hire an agency to take care of your SEO, but soon realize that you actually need help producing great content. You will need to map out all the ways you will need help and account for that in your project scope.
- Budget – Longer and more complex projects cost more, so you will need to have a realistic grasp of how far your budget will stretch.
6) Results Expectations
Getting results for your business is the ultimate goal when hiring an agency, but it’s important to have a realistic perspective on what success looks like.
- Testing phase – At the start of any relationship with a new agency, there will be a period of adjustment and testing before both of you find the right cadence. This could be a matter of months, depending on what the focus is.
- Failure management – Even the best digital agencies don’t have any magic powers. Although they may do their best, there are sometimes factors outside their control. For instance, the competition in your market may be very tough. You should accept that there is always a risk of failure when engaging with an agency.
- Quantified results – With product services like design or programming, the end result is easier to agree on. With marketing, however, there are a lot more variables that can be hard to predict upfront. For instance, a PPC agency can’t tell you exactly how many leads they can get you without running the appropriate tests.
7) Hiring Multiple Agencies
Something you may be thinking about is whether you should hire multiple agencies or just one that can handle everything.
Working with different agencies has perks including:
- In theory, you will be able to find super-specialized agencies for each of your marketing needs. This should provide better results
- You can leverage and gain insights from different perspectives
- You diversify the risk of relying on one team
But there are some limitations too.
- It can create a lot more work having to manage multiple agencies. If managed badly, performance can suffer
- Not all the agencies may be as good as each other
- It may be difficult to get agencies to collaborate together on a holistic marketing strategy
Hiring multiple agencies can be useful if there is something very specific that you need to solve. For instance, if you are in a niche market and need content creators who have deep knowledge of your market.
8) Personal Workload
When you engage with a digital agency, you are leveraging an external team that can help you achieve your goals.
However, this doesn’t mean that they are going to take over your business and do all the work for you. Particularly when engaging with a digital marketing agency, you will still have some responsibilities:
- You will need to ensure that your landing pages are well optimized so that you can convert the increased traffic into customers
- There will be tasks that you have to do at the onset of the relationship such as providing access to software, creating customer profiles and so on
- Depending on the type of work you have hired for, you may need to complete specific tasks such as taking high quality product photos or interviewing your team for content ideas
Micromanagement is typically never a good thing, but you are more likely to pull it off successfully if you are working with a small in-house team.
Working with a digital agency is another story.
Your digital agency will have their own set of processes and ways of working which you won’t easily be able to oversee and become involved in.
Remember that an agency operates in a different manner to your employees and they aren’t simply there to do as you tell them.
There are also logistical barriers even if you wanted to micromanage an agency. You may only have direct communication with an account manager and not the other members of the team, for instance.
And not only will the agency not be in the same location as you, but there is a chance that they could be in a completely different timezone.
10) Business Fundamentals
Here’s the deal.
If you have a bad business, it wouldn’t matter if you hire the best digital marketing agency in the world. They would simply be sending traffic into a blackhole.
You need to deeply understand whether your current challenges are a result of your marketing strategy or a weak business in itself. Before talking to a digital marketing agency, think deeply about the following:
Have you validated your product?
If you barely have any customers, hiring a digital agency probably isn’t the best idea. Find out if there is a strong demand for your product first.
Is there a large addressable market?
Digital agencies will help you build out scalable marketing channels. And to see the best results, you need to have a product and a market that can scale. Selling personalized homemade cookies in your local area probably isn’t the right fit for a digital agency.
Do you have any proof of marketing potential?
In addition to proving that you have a product that sells, you need some inclination that digital marketing channels will work for you. For instance, are their competitors in your space that are doing well online?
11) Agencies Have Multiple Clients
Digital agencies structure their business so that they can work with multiple clients. And like any other business, they are usually trying to grow, which means taking on new clients.
What you need to keep in mind here is that any given digital agency will never put 100% of their resources and focus onto your particular goals.
You will be assigned an account manager, and depending on the work involved you may have direct contact with the team members who are executing on the marketing strategy.
But you will likely not have access to the senior team, unless you are one of their biggest and most important clients.
It’s also important to keep in mind that even the account manager and marketing people you work with will likely be working on other projects too. It is unlikely you will work with agency members who are 100% focused on your project.
12) Agencies Have Their Own Processes
When you start engaging with a digital agency, you will quickly come to find out that you are essentially integrating with another company.
This means that there has to be a good symbiosis between the different parts of your company and theirs.
- Team – As agencies are mostly about human relationships and not software, you will need to see if your team actually gets on well with their team. Even if it’s a right fit in terms of skills and track record, sometimes different personalities don’t see eye to eye.
- Culture – You will need to examine the culture and values that your agency partner embodies and see if it meshes well with yours. You may for instance prioritize a more slow and steady approach, but they may focus on results by any means.
- Processes – You may expect an agency partner that is always on stand by and ready to engage, whereas they may structure themselves more around long periods of deep work. They may be more methodical in how they work, where you may focus more on fundamental execution. You will need to ensure that your processes and styles of working sync up too.
Having the appropriate expectations will set you up for success and a more harmonious relationship with any digital agency you work with.
The main takeaway here is to understand what an agency can and can’t do for your business.
As talented and experienced as they may be, they can only work with what you give them.
You will need to ensure that your own house is in order first so that when you do work with an agency they can help you scale up what’s already working.
The post 12 Expectations to Consider When Engaging a Digital Agency appeared first on Neil Patel.
According to Investopedia, a silo mentality is “a reluctance to share information with employees of different divisions in the same company… reducing the organization’s efficiency.”
In other words, if different people or teams in your company aren’t on the same page about everything that’s going on, they might end up doing a worse job.
They could also make your marketing less effective.
What is Marketing Siloing?
When it comes to marketing, “working in silos” usually means that everyone in the marketing department keeps to themselves.
The SEO people only think about SEO, designers about design, developers about development…you get the picture. Like actual silos, they’re separated and don’t interact. Why does this matter? Because it’s bad for business.
Why Are Marketing Silos Detrimental to Your Bottom Line?
There are many reasons why marketing silos can cause a ripple effect in your business that goes beyond ineffective communication.
Silos Waste Time
When your marketing is siloed, your team can end up accidentally wasting a lot of time by not coordinating with each other.
You own a company that makes dog food, and your content marketing strategist is trying to generate a few content ideas about pet care for your blog. They go to my keyword research tool, Ubersuggest, to get some inspiration:
But what they don’t realize is that the SEO team already did a bunch of research about this topic last week, and could easily have shared it with them. No one on the SEO team thought to tell the marketing team about their research, and no one on the marketing team thought to ask.
Because of marketing siloing, your content marketer has now spent their entire day doing something that’s already been done.
Here’s another example:
You have a freelance copywriter writing for your new website and a UX specialist working on the design. They’re working separately.
When they present you with the final deliverables, none of the copy fits into the wireframes. At all.
Your copywriter now has to redo all their work, annoying them and costing you more money.
The whole thing could have been avoided if you had just asked the copywriter and UX specialist to work together.
Silos Prevent You From Getting the Best Marketing Results
In addition to wasting time and money, marketing siloing prevents you from getting killer results.
Your customers expect your marketing to be consistent across channels—it’s how they know they’re on a legitimate site for your company. That’s why it’s so important to have an integrated marketing strategy. If your marketing department is siloed, your campaigns—and even basic things like font choices and colors—will look inconsistent. Silos can also create confusing situations and missed opportunities.
For example, let’s say you’re launching a new content marketing campaign. Your content team pours a bunch of money into hiring freelance writers, graphic designers, and videographers to create lots of awesome content for your website.
No one knows what happened. The content is really high-quality and perfectly optimized for SEO. You’re getting tons of additional traffic, but no conversions. What gives?
Turns out, the tone of the content is all wrong. It’s written in a way none of your ideal clients can understand or relate to.
Know who could have told you that? The sales and customer service teams. After all, they know your clients pretty well.
Once again, siloing leads to a marketing fail.
(By the way, if you’re trying to get more conversions for your website, there’s more to it than just creating content. In the video below, I share seven cool hacks that can help improve your conversion rate.)
Silos Demotivate Your Employees
Another terrible thing about marketing siloing is that it demotivates your employees.
It’s easy to get excited about something when you see the bigger picture. But the larger your business gets, the more removed every individual becomes from your company’s overall mission—because they may not even know who is making decisions, let alone why.
Think about the way freelancers and consultants see their business. They’re responsible for doing everything themselves, so it seems like a real win when they get results.
The same goes for small teams—when something goes well, everybody celebrates. People feel like their job is making a difference.
When you’re running a larger company, it’s harder to keep this dynamic going.
Suppose your SEO person sits around all day copying and pasting keywords into a spreadsheet without seeing how this impacts the company’s marketing strategy. They’re likely to start thinking their job is pointless. After a while, they’ll probably start to look for another one.Losing talent is expensive. You don’t want your best people to leave because of an easily-solved problem like marketing siloing.
For employees at mid-size or larger companies, getting together with co-workers to bounce around ideas can be motivating, especially when those co-workers aren’t the same ones they see every day.
It makes everyone feel like they’re working towards the same goals.
How to Tell If Your Marketing is Siloed
By now, you should be pretty convinced that marketing siloing is not a good thing: it’s something that can hurt your business.
But how can you know if you have a silo problem?
When you’re “in the trenches” day in and day out, it can be hard to take a step back and think about what’s going on at the macro level in your company. And if you’re making the higher-level decisions, you may not know what your employees are experiencing.
If you’re worried about marketing siloing, take a look to see if you notice any of these things:
Your Marketing Employees Don’t Talk to Each Other
Have you noticed that your employees only talk to a few of their co-workers?
Maybe they don’t leave their desks and just chat with the people next to them. Or perhaps they have one or two friends in their department and don’t talk to anyone else.
If this is something you’ve seen at your company, marketing siloing might be an issue for you.
Your Marketers Don’t Understand What Their Colleagues Are Doing
Another way to see if your marketing department is siloed is to ask your marketers what their co-workers are doing.
Ask your designers what the dev team is up to in relation to their projects. See if your SEO team knows anything about paid ads. Check if your content marketers are working with your social media people on writing consistent content across verticals.
If the answer people keep on giving you is “I have no idea,” they’re working in silos.
Your Marketing Team Doesn’t Work with Other Teams
Even if your marketers are pretty good at working with other marketing team members, that doesn’t mean they’re good at working with other teams.
Marketers need to know what other teams are doing—even when their jobs seem unrelated.
If your marketing team doesn’t understand your business from a big-picture perspective, they could be making major mistakes that cause your marketing campaigns to fail.
How to Get Rid of Marketing Siloing Right Now
Let’s say you’ve decided that your business has an issue with marketing siloing. What are you supposed to do about it?
You have to take action to deal with the siloing.
When creating a plan to tackle marketing siloing, the first thing you’ll want to do is talk to your managers.
Siloing often starts at the higher levels of a business. If your marketing department is divided into several teams, meet with your team leads separately to see what their goals are.
If the team leads aren’t working together and their goals seem unrelated to one another, that’s a problem. You should call a meeting with them to come up with a way to do things better.
Here are some of the things you can include in your de-siloing plan:
Have a Marketing Master Plan
Having one central marketing plan that everyone has to follow is essential for your company. If you don’t already have one, that’s the first place to start.
If you’ve been running your marketing in a “throw things at the wall and see what sticks” type of way, it’s time to nip that in the bud and get serious about your strategy.
What does this mean? Well, first, you should have one or more buyer personas that show who your customers are and what they care about.
Next, you need to know what your competition is doing. Do some competitor analysis and try to understand what they’re doing that works and how you can use that information to get ahead of them.
Don’t copy their strategies, though. You’re not the same as your competitors; instead, you’ll want to show you’re better. More on that in my video below:
Once you’ve covered these things, you can create a multichannel marketing plan to help you get the results you need.
You’ll want to define your main goals and KPIs and make sure you’re hitting them. Make it clear that everyone needs to be involved in that process.
Meet, Talk, and Train Together
If you already have a marketing plan in place, but you still feel like you’re dealing with marketing silos, how can you get everyone in your company to get on board as a cohesive team?
If folks in your company don’t see the big picture, maybe it’s because they’re not talking to each other enough.
Make sure to plan regular meetings for your marketing department where your marketers can present what they’re working on and tell others about their wins and roadblocks. Even a 15 or 30-minute weekly meeting does wonders for team connection and communication.
Another thing to look at is the collaboration software you’re using.
If people are divided into different groups in your internal chat software or project management tools, make sure some company-wide channels are open, too. These will let everyone talk with each other.
Ensure that all your marketers have access to training, even in fields that are different from theirs. Maybe your SEOs want to learn more about web development, or perhaps your developers want to know more about copywriting. Let them learn!
Training your employees not only helps them get better at their job, but it also shows you care about helping them advance in their career—in turn, making them more engaged at work.
Identify and Deal with Culture Problems
If you still can’t figure out why your marketers aren’t working together, maybe your company has a culture problem.
Maybe one of your managers has trouble controlling their temper and has a history of blowing up at people. Everyone tries to avoid them, so communication breaks down.
Or maybe you’re paying your lead SEO twice as much as your head of content marketing, and the content marketer isn’t happy about it. Since the content marketer resents the SEO, they’ve stopped talking to them and just do things on their own.
Once you root out these problems, you can deal with them.
Restructure Your Marketing Team(s)
If you’ve already tried fixing culture problems and giving your marketers more opportunities to communicate, but you’re still having problems, it’s time to consider taking more significant steps to deal with your marketing siloing.
Maybe what you need is a full overhaul of your org chart.
If you have several small, siloed teams, consider merging them into one larger unit with a few different “sub-units.”
Put these bigger teams together in the office to talk to each other about their current projects.
Or you could keep the hierarchy you have now, but move people around in a way that makes them feel less isolated.
Follow Through Over Time
No matter what you choose to do to deal with marketing siloing, the most important thing is that you follow through with it.
Don’t just go on an “anti-silo crusade” for a few months and then forget about it, letting things go back to the way they were before. Make sure your commitment is permanent.
Marketing siloing is one of the main things that can sabotage your marketing campaigns. Luckily, once you realize your company has a silo problem, you can often deal with it pretty quickly—as long as you have an organized plan.
Your employees will feel relieved that you’re taking the initiative. They will benefit from better communication between departments and individual employees.
Did I miss any ways to deal with marketing siloing? Let me know in the comments.
The post How Marketing Siloing May Be Ruining Your Business appeared first on Neil Patel.
It is possible to build business credit, even during hard times. Of course it’s easier to already have business credit when the hard times hit. However, if you find yourself in need of funding to get through this Covid caused rough spot, business trade lines in a recession can help.
Business Trade Lines in a Recession: Build Business Credit Even in Hard Economic Times
When the economy heads south, it can seem impossible to build anything good. Most of us tend to go into survival mode, happy if we can just hang on. Building, growing, and expanding are the last things on our mind. The truth is though, you can use business trade lines in a recession to build business credit.
This can allow you to be in the unique position to take advantage of opportunities during a recession that others will not be able to benefit from, because they are still in survival mode.
Imagine, if a wholesaler offers a special on inventory and you have business credit that allows you to take advantage, while your competitor does not, you have a clear advantage. But how do you do it? How do you use business trade lines in a recession to build business credit? The simple answer is, the same way you do any other time. There is a little more to it however.
Business Trade Lines in a Recession: Where to Start
Before business trade lines in a recession will do you any good, you have to do some prep work. This prep work lays a solid foundation to build strong business credit on, even during a recession. If you skip this part, you are likely to find you can’t even get started with business credit. These first steps truly are essential before you can take advantage of the help business trade lines can offer.
These steps are best taken before you start your business, but if you are already up and running, all is not lost. Just start where you are.
You need to consider how your business is set up. For many new business owners, starting a business just kind of happens. You have something you do that you love, and you decide it’s time to use it to make money. You may find a location or start from your home. Likely you simply mingle funds in your personal bank account. You have a business name but the business address, email, and phone number are all the same as your personal contact information. It is sort of a natural progression.
Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
If you want to establish business credit, you have to be purposeful to set up your business separate from yourself. This means doing a few things differently.
How to Establish Your Business as a Separate Entity
First, you have to incorporate. Running as a DBA, sole proprietorship, or partnership really won’t cut it. You can choose from running as a corporation, S-corp, or LLC based on your specific needs, but it needs to be one of these three. Each one comes associated with a different cost and varying levels of protection, but each will serve the purpose of separating your business from yourself.
Next, establish separate contact information for your business. You need a business address, email, and phone number that is different from your personal address, email, and phone number. The phone number should be from a toll-free exchange, and your email address should be associated with your professional website. Do not use a free service such as Gmail or Yahoo, and don’t ignore the professional website part. These days, a poorly put together website can ruin a business.
Pick Your Numbers
After these first steps are complete you need to play the numbers game. In order to establish business credit, your business has to have two numbers associated with it. The first is an EIN. This is an identifying number for a business, similar to a social security number. You can get one for free on the IRS website.
The next is a DUNS number. This is a number assigned by Dun & Bradstreet, the largest and most commonly used business credit reporting agency. To have a business credit file with them, you must have a DUNS number. You can apply for it for free on their website, but note that they will definitely try to sell you other services. Be strong. The number is free and the other services are not necessary.
Separate the Finances
Open a separate bank account for your business. This is the account through which all business financial transactions should run. If your business is already up and running, it may take you some time to get everything switched over, but it will be worth it. Not only will is help separate your business from your personal credit, but it will also help tremendously when it is time to do your taxes.
The Magic of Business Trade Lines In a Recession:
Plant the Seed, Hammer the Nail
Okay, so these steps ensure that your business is on record as a business at all the right places. As soon as something credit related is reporting, it will have a place to go. How do you get something reported though? You need accounts that will report your on-time payments. Lenders will not even consider extending you credit however, if you don’t have a credit score, or if your credit score is bad. How do you break into the circle?
You can find a tiny crack with business trade lines in a recession. These are vendors that sell things you use in the everyday course of business, and they are vital to building business credit. Here’s how it works. They will extend net30 terms on invoices, without a credit check, and then report your invoice payments to the business credit reporting agencies.
For most of these vendors, you will have to make a few initial purchases before they will extend net30 terms. Some want to see a minimum time in business or a certain revenue level as well. We have compiled a list of six easy approval options to help you get started with business trade lines in a recession.
Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
Strategic Network Solutions
This company sells eBooks, software, and even office supplies. You do have to register to see their products, but the process if fast and easy. You will have to make a $75 or more initial purchase to be eligible for a net30 account of up to $1,000 for a new business. The credit line can increase in increments of $500 if balances are paid in full and on-time. Strategic Network Solutions reports to Experian and Credit Safe.
Grainger Industrial Supply
Granger industrial Supply sells industrial equipment for outdoors as well as standard tools, and more. To gain net 30 approval you will need a business license, a DUNS number, and bank reference. They report to Dun & Bradstreet.
Summa Office Supplies
Another office supply provider, you can order anything from paper to staples, pens to printer ink, and pretty much anything you can think of in between from Summa. They require a $75 initial purchase, and will approve up to $2,000 on net 30 terms. They report to Eqifax and D&B.
Quill Office Supplies
Quill also sells standard office supplies. You will need to make an initial purchase. They’ll usually put you on a 90 day prepay scheduled, but after ordering for 3 months in a row, they’ll typically approve net 30 terms. They report to Dun & Bradstreet.
Uline sells a lot of things, but they specialize in packing and shipping equipment and janitorial supplies. You’ll need to place an initial order, and they do ask for a bank reference and two other references. They report to Dun & Bradstreet, so you’ll of course need a DUNS number too.
Hit the jackpot and weather any recession with our best webinar and its trustworthy list of seven vendors who can help you build business credit.
What Comes After Business Trade Lines in a Recession?
Using business trade lines in a recession is all part of the working with starter vendors. After you have a few of these accounts reporting, you can apply for store credit card accounts, then the fleet cards, and finally general use cards. Here’s what you need to know about each type of card, and what happens when you get to the top.
Business Trade Lines In a Recession :Store Cards
It’s hard work to get something going. Rolling a tire, pushing a car to jump start it, and starting a business all take an extra exertion of energy. Once a thing is going, you can sort of set it on cruise control. Store cars are the beginning of your business credit cruising phase.
In building business credit, after you have enough business trade lines in a recession, you can start applying for store credit. These are credit cards issued by specific retailers such as Office Depot and Best Buy. Apply for these accounts, purchase things you need in the everyday course of running your business, and make your payments on-time. Your business credit score will grow stronger by the day.
Business Trade Lines in a Recession: Fleet Cards
Keep cruising through and after enough store cards are reporting, apply for fleet cards. These cards are issued by fleet companies such as Shell and Fuelman. They can be used to purchase gasoline or for automobile maintenance and repairs. Once you have enough of these accounts reporting, it’s time for the general use cards.
Business Trade Lines in a Recession: General Use Credit Cards
General use credit cards are end game. Hold the wheel steady, and you can cruise here forever. These cards consists of the traditional Visa, Master, and American Express cards not associated with a specific store or type of purchase. Use this wisely, continue to make consistent, on-time payments, and your business credit will be rock solid.
Setting the cruise doesn’t mean you get to be disengaged. Building business credit with business trade lines in a recession takes a lot of work. It feels good when you have a business credit score that is building quickly and you can relax a little. You don’t have to work as hard, but you still have to steer, and watch the signs.
Neglecting to make payments consistently on-time could throw you in a ditch. You’ll have to climb out and start all over again. Be careful.
Why Business Credit?
You may be asking yourself the question, why bother? You may have personal credit that will allow you to get what you need to run your business without needing to work with business trade lines in a recession. It can take time, and better prices may be available elsewhere. What’s the point? Why do you need business credit?
The fact is, it’s never a good idea to have your business transactions on your personal credit report, recession or not. There are a few reasons for this. First, if your personal credit takes a hit, it can affect your ability to run your business.
Also, business credit cards based on personal credit often have a lower credit limit, and business transactions are often very large. If you get close to your limit, your score will take a hit even if you make your payments like you should due to the high debt-to-credit ratio.
By having cards based on your business credit, you can get higher limits, and your personal credit will not be affected by business transactions. This way, you do not have to worry about business transactions keeping you from applying for personal credit you may need to purchase a car or make home improvements.
Build Business Credit With Business Trade Lines in a Recession
Regardless of your personal credit score, you really do have to work with business trade lines in a recession to start your business credit. After you establish your business and prepare the way for your business transactions to be reported to your business credit profile, you will need accounts to report. Most credit cards will not extend credit to a business with no credit, or bad credit. Working with business trade lines that do not do a credit check is a way around that. You can start building business credit in your business name without your personal credit score ever being involved. It’s a win/win for you and for your business.
The post Business Trade Lines In a Recession Can Help Create a Unique Opportunity appeared first on Credit Suite.