Category: Growing a Business

Business Credit Score vs. FICO Score

Business Credit Score vs. FICO Score

When it comes to credit scores, many of us think of FICO scores first. FICO creates the formulas that are behind billions of credit scores used by lenders, insurers and other businesses.  Most of FICO’s credit scores are used to evaluate personal finances, not businesses, though there is an exception we’ll talk about in a moment.  Business credit scores are credit scores created to evaluate small businesses, instead of consumers. Business credit scores are used to help business owners qualify… Read More
The Business Owner’s Guide To Paying Yourself

The Business Owner’s Guide To Paying Yourself

How To Pay Yourself as a Business Owner: Key Takeaways Business owners have several choices when it comes to how they pay themselves, including owner’s draw and formal payroll.  Choosing the right business structure can save money on taxes. However, failing to pay reasonable compensation or payroll taxes when required can be costly.  One of the key decisions small business owners need to make is how to pay themselves. How, when, and how much to pay yourself isn't always a… Read More
What Is a Good Profit Margin? The Different Types of Profit Margins & Industry Benchmarks

What Is a Good Profit Margin? The Different Types of Profit Margins & Industry Benchmarks

“No business will survive at the end of the day without profit,” warns Bruce Eckfeldt, 5X Inc 500 CEO and strategic business coach.  “There are ways to deal with cash flow issues in the short and medium term, if you can show long-term profit.” While many business owners find the numbers side of running a business tedious or frustrating, they provide insights you can't get otherwise. Understanding profit margins and building a profitable business is what makes a business successful. … Read More
How To Organize Your Small Business Finances

How To Organize Your Small Business Finances

Organizing your business finances can be a challenge, whether you’re a new small business owner just starting out or growing your business.  When Rosie Ferrero started her ecommerce business, Roupa Fashions, a boutique that curates designs and styles from around the world, she did something smart: she opened and used a business bank account. But she found that keeping all her money in one business account didn’t give her the insights she needed to make informed decisions about her finances. … Read More
How To Calculate Total Financing Costs and ROI

How To Calculate Total Financing Costs and ROI

Key takeaways: Financing costs refer to all the expenses related to borrowing money, including interest and any fees. ROI, or return on investment, is calculated by dividing net profit (or loss) by the cost of the investment. For small business owners with limited time and resources, calculating financing costs and ROI can be particularly challenging. Still, these metrics are essential for managing cash flow, evaluating investment opportunities, and deciding when to borrow. When is it worth it to borrow money… Read More
Inflation and Rising Costs: What Businesses Should Know in 2024

Inflation and Rising Costs: What Businesses Should Know in 2024

Inflation rates have “hugely” affected LaToya Redick’s business Redick Beauty Affect, a company that sells all natural skin care and cosmetics. As a relatively new business owner, Redick says she has not been able to participate in the in-person events she is confident would be valuable for connecting with customers. She’s found herself “trying to figure out how to keep it up and going with little to no resources.” She’s not alone. CNBC, First in Business Worldwide, and SurveyMonkey’s quarterly… Read More