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Business Purpose in 3 Steps

What is business purpose?

Well, what’s the purpose of your business? You can’t build a business that will create wealth for you, if you have not clearly defined your business purpose.

  • In a purposeless business, everything feels disordered, anxious, unclear, and without meaning.

There is a much better chance that your business will succeed when you have clearly articulated your business purpose. That’s because:

  1. Purpose is your reason for being in business – When you are clear about your purpose, the direction of your time and energy is now framed by your intentions, your goals, your aspirations. Your productivity will soar because you’ll have guidelines to follow that help ensure the effectiveness of everything you carry out.
  2. Purpose builds your brandBy clearly and consistently communicating your purpose to your prospects / clients, and targeted audience, over time, you create a brand in the minds of those who matter most to you.
  3. Purpose leads to personal fulfillment, peace and joy - You are aligning your thinking with your actions. Becoming clear about how to move your business forward. You’re excited to get up in the morning because you understand what you are doing and what to do next. And, you’ll start seeing forward movement, clients and revenue start to increase!

You’ll see inner transformation and growth because when you define the purpose of your business it goes beyond making money… Yet it almost always results in making more money than you ever thought possible.

Your business purpose is a phrase that represent your business’s intention, defining your vision and mission in a brief statement.

Example:The purpose of this (your business name) business is to help entrepreneurs find clarity, focus, simplicity, and freedom in business and life; having perfect systems in place, bringing client loyalty, and finding strength in letting go; allowing their Greater Power to organize through them…with the perfect system of the Universe.

Steps to writing your Business Purpose:

1. Why does your business exist? What is it you want your business to do?

2. What is your business mission in short? People you serve, product / service you offer.

3. What is your business vision? What is it your business is trying to achieve?

4. Using these answers, your can now set yourself above your competition with a few memorable sentences focused towards your perfect client.

When starting your business, clarity of purpose is a central planning step in communicating your brand. Are you completely clear about what your business is designed to achieve? How it will be organized? And who your clients will be?

Strategy is everything!

Aligning your Business Mission Statement, Vision Statement and Purpose Statements gives you a strategic framework that your business success and your personal success can be maintained by. When you have set yourself apart depending on how well you define and live by these important concepts, it will help you maximize your profits. In other words, stop money leaks and create wealth!

Small Business Loans and Bad Credit

Do a search about business loans and bad credit and you will see result after result touting some way or another where you can fool the banks and lenders into giving you a business loan.

Follow those results and for the most part you will only end up poorer (paying those companies or individuals a fee) and still not getting the business loan you want or need.

Banks and lenders use credit histories and credit scores as a time saving measure. You request a loan, they pull your credit. If your credit is bad or below their threshold, they don’t waste anymore time on your deal request and can move on to other deals that have a better chance of getting funded.

I deal with entrepreneurs everyday that complain about how their bank or a private lender just won’t look at their deal because they have bad credit. I constantly hear the same thing:

“Why won’t they just look at the merits of my business and not focus so much on my personal credit as it is my business that will be paying the loan back!”

My answer is always the same:

1) That is how the financial markets work, and

2) If you want to get approved based solely on the merits of your business then find the right business loan that focuses only on the merits of your business.

Sounds simple and it really is.

Yes, there are business loans (and other types of business financing) that either do not look at your credit at all or if they do, do not place much weight on it (great for those credit scores that are borderline).

Let’s look at three examples:

1) Accounts Receivable (Invoice) Factoring: Your business writes an invoice for goods already shipped or delivered to your customer but you have to wait 10, 30, 60 days or more to get paid. Then, factor those invoices and get your cash today so that your business can pay its employees, suppliers or to complete that next job.

As your business has already completed the job and shipped the goods and is merely just waiting to get paid, the lender has no reason to even consider your credit history. Instead, they focus on the next cash event – which is your customer paying you. If your customer shows a strong promise to pay as agreed, then your loan request should be approved (without pulling your personal credit history).

2) Purchase Order Financing: Your business has already won over the customer and you have their job order in hand only to realize that your business does not have the cash on hand to purchase the materials and labor to complete that order.

Factor that job (purchase) order for up to 100% of the cash you need to complete it. When the job is done and you collect payment from your customer, you pay back the advance and keep the profits to be plowed back into the next deal.

Again, since your business has already demonstrated that it can win business, the focus of this loan approval is not based on your personal credit or the cash position of your company but in the next cash event – when your customer receives the completed order and pays you.

3) Business cash Advances: If your business accepts credit card payments from its customers, then your company could qualify for a business cash advance; based on your company’s ability to continue to get customers to purchase your goods and services.

Based on past results (your business’s past results and not your personal credit history), your firm could receive a cash advance to be used as working capital to re-stock inventory, pay employees, generate new business or whatever your business so desires.

And, since repayment of this advance (loan) is based on future cash flow from your credit card paying customers, these lenders are not that concerned with your personal credit scores but more concerned about your business’s ability to keep getting those paying customers in the door (which is what you wanted – a business loan based on your business results and future potential and not your past credit mistakes).

Now, while Business Cash Advance lenders place the onus of their loan/advance decision on your future cash flow potential, they may still pull your personal credit. The reason is that should your business shut down tomorrow, they want to be assured that you will still pay them back.

But, if your credit score is border line or just a bit below what a traditional lender requires, then a Business Cash Advance just might be the financing kick start your business needs.

These small business financing options were designed for businesses and business owners just like you – whether it is bad credit or a lack of cash flow or whatever reason a traditional lender states why they declined your loan request.

Thus, if you are one of the many that want a lender to focus their loan approval on your business and not on your credit, then seek the right business loan; a loan that has no reason to focus on your credit (as you and your business have already done the work) but focuses more on the merits and wherewithal of your company’s future potential.

So, the ball is in your court. Forget your credit score and get out there and get the business – show these lenders that your business can and has the potential to be something special and then use that potential to get the financing you need.

If bad credit is holding you back from getting the business loan your company needs, maybe it is time to step up to the plate and seek a loan that is more concerned about the abilities of your business and not solely on if you have made a few credit mistakes in the past.

In the end, it really doesn’t matter where that capital comes from as it all can be spent the same way – helping you grow your business into the success you know it can be.