7 Things To Think About Before Becoming An Entrepreneur

7 Things To Think About Before Becoming An Entrepreneur - starting a business image

Image source

Starting a business is one of the most ginormous commitments anyone can ever hope to take on. Yes, it is worth it because not only is it exciting and rewarding, it is also yours. However, to prevent you from starting off on the wrong foot and then struggling to get into your stride thereafter, we have come up with a list of essential advice you should know about and carefully consider before you start your business.

  1. Research Is Key

Research everything you can and remember that there is no such thing as too much research. Research the competition, the marketplace, the technology, the marketing approaches, the economy, governmental policies, gaps in the markets and emerging trends. As an entrepreneur the more you can do the better.

7 Things To Think About Before Becoming An Entrepreneur - organised desk image

Image source

  1. Organisation Wins

There are so many variables, so many different aspects and challenges and things to do that it is absolutely crucial you get as organized as you can from the get go. Great ideas are great, so is passion and research, but without being organized, you will struggle. This also includes having a plan and sticking to it.

  1. Passion Helps

It isn’t the be all, but having a passion for what you do is what will help you get through the rough and, yes, there are going to be rough times. Things will go wrong, you hope will start to fade and you’ll ask yourself why you are doing this. Be able to answer that question.

7 Things To Think About Before Becoming An Entrepreneur - start up mentor

Image source

  1. Seek Help

Starting a business is not something you can do alone. Okay, it is, but you shouldn’t. There are too many plates to spin. That and the fact you aren’t an expert at everything, whether it be accountancy, finding and keeping your best staff or whatever. So find help. It’ll be the best thing you do.

  1. Know The Legalities

Never ever start a business without getting legal advice first. Too many people think that legal advice is there to help us when we get into trouble, but it isn’t. As Bovill Risk & Insurance Consultants will tell you, legal advice is there to prevent us from getting derailed legally. Knowing what professional indemnity insurance you need is key, having the right insurance to protect your employees is vital, and your board members. Legal advice helps long-term success.

  1. Better Credit Rating

Nothing is going to impact on your credit rating as much as starting a business will, that is why it is so important for you to do everything you can to improve it. Starting a debt will likely mean you get into debt and all sorts, and you’ll likely need to borrow money. Quite simply, your personal choices can have professional consequences because the better your credit rating the more you will be allowed to play with.

  1. Understand Your Audience

Knowing your audience and really getting under their skin is going to have a huge impact on your road to success. As such, do all you can to better understand them. Survey your demographic, find out their likes and dislikes, their spending habits, their hates and their wants. If you know what they are like as consumers, you can tailor your marketing and development toward them.

Golden Rules Of Repairing A Poor Credit Score

repairing a poor credit score - calculator image

Via – pixabay

A bad credit score can have a terrible impact on your overall finances – and your lifestyle. But it’s  important to understand it is not the end of the world. With the right mindset and prudent financial planning, it is possible to repair your score and start getting your household’s money and borrowing ability back into shape. Let’s take a closer look at some of the golden rules of repairing bad credit.

Understand the importance of a good credit rating

The first golden rule is to know what you are dealing with. Good credit scores make your life easier, cheaper, and more manageable – it’s that simple. A poor credit score, however, can have a significant impact on your life. Your borrowing options will be limited. You might open yourself up to the harsh realities of bankruptcy. And you might find that you can’t get a job, rent a property, or even get a contract for a cell phone. It’s that serious – and it should spur you on to make amends.

Check your rating

The next golden rule is to understand your current credit position. You’ll need to check with the major credit reference bureaus such as Experian, Equifax, and the TransUnion. Once you sign up, you should be able to see a breakdown of all your borrowing history, as well as records of your bank accounts and any court judgements you might have against your name. At this point, it’s important to look for any records that you are not responsible for. Sadly, fraud and mistakes are all too common, and it’s not a rare occurrence for credit records to be incorrect.

Tackle your debts

The next step is to highlight all the debts that are causing you problems. Contact them and set up reasonable repayment schedules that you can afford, making sure that you have money left over for general household spending.

Start improving your credit rating

Now you are in a position where you can start repairing your score. And the way to do this is to prove that you are a responsible borrower. Unfortunately, many of the credit avenues you had before maybe closed off to you now, so working out how to get a loan with bad credit will usually result in applying to particular services and lenders. But the point is, as soon as you start paying back your debts promptly, your score will improve, bit by bit. Just borrow and spend small, affordable amounts and keep clearing your balances for a minimum of six months.

Don’t fall off the wagon again

Finally, once you have done all the hard work to repair your credit rating, don’t ruin things by making the same mistakes as before. See this as an opportunity to change the way you deal with your finances, and you should – with a little bit of luck and a lot of dedication – never find yourself in a similar position again. Keep checking your rating, and always update your current budget to ensure you are on the right track.

How to Improve Your Credit Rating

If you don’t have a good credit rating, there are things you can do to improve it. But first, you may be asking yourself; “Why bother?”

Well, there are a number of reasons you may wish to consider doing what you can to improve your rating.

Firstly, you will have a better chance of getting credit card and loan approvals. Just remember that debt can be a good or necessary tool but only when it’s used carefully and effectively and that there’s very rarely any such thing as free debt management advice. Nevertheless, having a good credit rating doesn’t guarantee approval as lenders consider factors like income and debt, but it betters your chances of being approved.

An improved rating will also help give you more power in negotiating lower interest rates on a credit card or a new loan and you can give examples of other offers you’ve received from competitor companies based on your credit score.

Similarly, you are more likely to gain approval for higher limits as you’re able to demonstrate that you pay back what you borrow in a timely manner. You should also be able to benefit from easier approval for houses or apartments you may wish to rent for obvious reasons as landlords often use credit scores to screen tenants. And finally, you should be able to get better car insurance rates.

But how do you achieve a better rating?

There are a number of basic steps you need to take:

First of all, make sure your records are intact. If you have gaps in your formal record for residency or the electoral register, do something about it by making sure you ‘exist’, formally, at your current address. Without such a record, you’re unlikely to be able to get any kid of credit. A stable background also helps – for example, if you have been at the same address for a long time, or been with the same bank for a decent length of time. Also, make sure your credit records are accurate. Many people have inaccurate records through no fault of their own whatsoever.

Show that you are good for credit by having credit and using it responsibly. For example, the good use of a credit card or a mobile phone deal will help in this regard. Just make sure you use this credit responsibly to demonstrate that you can pay it back. The credit history will work in your favour in the future.

Finally, don’t exceed any credit limits you have. It’s actually better to have a higher credit limit that you don’t exceed than a lower one that you do. So never miss any payments if you can possibly avoid it. This raises a big flag on your credit score. On the other hand, don’t ask for more credit than is realistic for your official level of income.

All you need to know about online credit checks

 

Unless you’re a millionaire, whenever you make large purchases, notably for a house or car, you will need credit. Few of us have enough money laying in wait in the bank to buy a brand new car, let alone a house, outright; we need a loan to buy these things. And to get a loan, our credit history is given a thorough once over. Every time you apply for a loan or credit it is noted on your credit history. Too many applications and you risk looking dodgy, fraudulent or in financial trouble. Whatever conclusion is drawn, chances are you will be offered a highly unattractive interest rate of will be refused the loan or credit outright.

But few of us actually know what our credit history looks like. You can get a free online credit check from sites such as Credit Expert and finally get to see what financial institutions see. But before you get this free online credit check, you need to know exactly what a credit report looks like and how you should interpret it.

What is a credit report?

A credit report is basically your financial history. It is made up from two main sources. The first comes from public records, such as electoral roll information, court judgements, individual voluntary arrangements and bankruptcies. The second is based on financial information from banks, credit accounts, credit applications and financial associations.

What is a credit rating?

Once all the relevant information has been gathered, financial institutions will give you a credit rating. This is based on your financial history; things such as unpaid loans, late payments and even the size of the loans themselves will affect your credit history. You shouldn’t be afraid of your credit rating as it can be both good and bad, furthermore, there are things you can do to change it. The rating is there to help lenders lend profitably, but also responsibly.

What influence does a credit rating have?

Your credit rating, whether good or bad, will determine whether you get a loan, mortgage or credit; it will dictate whether you are included or excluded from certain offers and promotions as well as services and products. It can also affect employment prospects and whether you get a roof over your head.

Why should you have a credit rating check?

Everyone should take a healthy interest in their credit rating as a good rating can give you access to the lowest interest rates and best financial promotions. However, a poor credit rating can have devastating effects and mean you might not be able to get the home of your dreams. If you can get a free online credit check, you haven’t got anything to loose so you might as well give it a go.

Your credit rating is constantly updated in accordance with your changing financial situations, so it’s important to keep on top of these changes so if any problems arise you can deal with them before they become credit barriers.

Finally, and perhaps more importantly, ID theft is becoming increasingly common and costs the UK £2.7 billion. However, it takes the average Brit 15 months to discover their identity has been stolen. A credit check can quickly reveal the truth and allow you to do something about it. Get more information on identity theft and how to protect yourself from it from Crime Stoppers.