Compound Profit Blog

Starting a new business is so exciting. It is easy to miss a lot of important steps in the desire to get started and the dreams of success. It is great to be excited. However, skipping the vital steps can be a fatal flaw that will cause many frustrating moments in the future.

The beginning of your business venture will set the tone for the rest of your path. This is the time to create the cornerstone that will support your business as it grows, and provide you with a strong background that gives it business fundability in the eyes of lenders. Even if you do not need money now to start your business, you may in the future. Without the right setup you won’t be in a position to get help when you need it.

Questions to Ask

Start out by asking yourself these important questions:

• Why do I want to start this business?
• Is this business right for me?
• Is this business feasible?
• Do I have the experience to start a business or should I seek help?

Prepare a Business Plan

You can get help with the fundamentals of creating a strong business plan at www.businessfundability.com, but some of the features of a business plan include:

• Summary: An overview of your plan. This should be short and sweet, and explain the exact nature of your business and what you hope to accomplish.

• Business Concept: This is an in depth description of your business, what it sells and who your target market is.

• Financial Prospects: Don’t pad this area, but provide a reasonable outlook for sales, profits and return on investment.

• Expense Requirements: This is another area where padding will stand out easily. Investors and lenders know what it costs to run a business. Make sure you honestly research what all of the costs of running your business will be, and where you will get the funds to operate.

• Current Business Position: Whether you are just starting out or have been in business this area should give the reader a clear understanding of your standing at any given moment. This area should be updated whenever you submit your business plan for review.

• Business Achievements: Anytime you accomplish a goal, win an award or reach an important milestone such as getting patents, creating a prototype, secure a new location you should update this section.

A well executed business plan proves your business is stable and has the business fundability to make it a good risk for loans or other types of investments. When you need to expand or improve your cash flow. You will be happy you took the time to start right and create your business plan.

Final Steps to a Good Business Startup

Once you are truly prepared to start, get all of your financial and legal requirements together. You should obtain an EIN (this is the Employer Identification Number) from the IRS, open a business checking account with your bank, and make sure all of your licensing is in order. After you have all of the above you are ready to start on the exciting adventure of owning a business.

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You wouldn’t go on a long road trip without a map, but you’d be surprised at how many people think they can start a business without knowing where they are going. A good idea is important, but having a goal and a well constructed path to achieve that goal is what makes the difference between success and frustration. That business road map is what a business plan is all about.

Start Up Funds

It takes money to make money, and it takes money to start a business. Unless you have quite a nest egg saved up that you are willing to risk in a new business venture you’ll probably be looking for a loan. To get a new business loan you will need to prove your business fundability. This is a difficult thing to do with brand new businesses, especially if you haven’t operated a business in the past. The lender will want to know if you have the correct outlook, have done enough homework to understand the prospects of your business and how to get to the point of profitability. A business plan is the best way to show loan officers that your business is a wise risk.

Future Limits

The beginning isn’t the only time you may need extra funds to run your business. As you go on, you may need extra money to get a special piece of equipment, replace worn out machines or expand stock to increase sales. A business plan can help you get those funds by showing lenders that your business has achieved what your predictions calculated, and it has further to go and can get there. The only thing that really counts with lenders is your ability to pay and your willingness to do so. That’s how they calculate your business fundability and decide whether to give you a loan. Having a business plan gives you the edge and proves your ability.

Clear Purpose and Understanding

Everything about business is about money. How much it will cost you to begin and continue doing business and how much profit you can expect. However, in order to make use of the financial aspects of your business you need to have a clear understanding of every aspect of operation. 

Sitting down to create a business plan forces you to see the steps of progression clearly so putting it into action is easier. Better yet, you won’t get lost along the way and end up stranded. You’ll get to your destination and enjoy the benefits of a successful business.

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There is a lot more to a business credit card than simply providing available cash. It is very important to have credit cards in your business name in order to protect personal credit ratings. However, depending on your needs there are other things to consider when it comes to what makes the best business credit card for your business. 

There are things like frequent flier miles and hotel savings that the right business credit card can provide for those that have to travel often on business. These are just a couple of the incentives that business credit cards offer. If your business doesn’t require you to travel, however, those may not be the right business credit cards for you, but that doesn’t mean that there aren’t others that will give you the bonuses you can use.

Types of Incentives Available

• Cash Back: Many business credit cards give you a cash back bonus simply for using the card. These bonuses may be general cash back on all purchases, or they may stipulate certain types of purchases. In other cases there may be several types of cash back bonuses on a single business credit card. For instance, the bonus from “SimplyCash®” business card from American Express OPEN that offers 5% cash back on office supply purchases as well as on wireless services. It also gives 3% on gasoline purchases and 1% cash back on all other purchases.

• Bonus Miles: If you travel heavily for business, or just want to take a much needed vacation you can choose a card like Capitol One® Spark Miles for Business that gives you thousands of frequent flier miles with no limits. There are no blackout dates for traveling, or any airline restrictions and you can even use the miles for cash back or gift cards if you decide you aren’t going to travel. Capitol One® also has a Spark card for cash if you prefer bonuses rather than miles.

• Bonus Points: Another form of bonuses are given as “points” toward special purchases. InkBold with Ultimate Rewards gives you 50,000 bonus points if you spend $5,000 in 3 months. If you have a lot of large expenses, or use your credit card for regularly recurring expenses this can be a very beneficial type of bonus.

• Hotel Bonuses: If you travel on business or for pleasure this type of bonus can save you a lot of money. Marriott Rewards Business Card is one of these types of cards. It gives you 1 point for every $1.00 spent, plus 2 free nights at certain locations throughout the year, no limits on the amounts you can earn, plus if you use your card to pay for hotel accommodations at a Marriott you will get triple points for each dollar spent.

What You Should Consider when Choosing a Business Credit Card

Remember that along with helping you protect personal credit, your business credit card will help you build your company. However, it’s important to determine what you need your card for in order to pick a card properly. If you need a business credit card to finance big, long-term purchases look for a card with a lower interest rate rather than big bonuses. In the long-run, you will pay a lot less for the overall purchases even after you take bonuses into consideration.

If you are using your business credit card to finance monthly expenses and make accounting easier, you will be paying off the entire amount every month, so interest is not a concern. In those cases, get the most for your dollars by choosing a business credit card with the most useful bonuses for your needs.

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Companies that are planning to successfully navigate the new economy that is emerging will have to be proactive, creative and innovative with their business. This will make it easier to deal with the ups and downs of the market and meet customer needs while keeping profits high.

As the economy dips, consumers will be tightening their belts, spending less and looking for good deals. While many companies may strive forward with traditional business models you will have to take the higher road. Start by looking at your current product line, assessing what is selling and what isn't. Cutout products that are slow sellers and focus on ones that are in constant high demand. This is why knowing your customers is so important - when you know what they need the most, you know what product lines to target for your business.

You can also consider expanding your products or services. If you find a product that complements your current line and that will sell, add it and market it aggressively. This will keep your business in the right direction and show customers that you are proactive about meeting their needs.

You can also stay on track by being open to new forms of marketing. Social media, blogs, directories and related sources on the internet can be goldmines to keep consumers buying from you. Offer sales, promotions, customer input and conduct surveys using these sites to get attention for your business and to keep your finger on the pulse of the market. Thinking outside the box will help you to keep the edge in business.

Sit down and re-assess your business plan with a business consultant. You will want to make sure that your focus, goals and strategies are in line with the emerging changes in the economy. Planning ahead and finding alternative ways to get consumers into your business can help to keep you on the right track. This also makes it easier to approach a bank if you are seeking additional funding for your company. Banks want to see where and how the money they are lending you will be used.

The time you spend re-assessing your current business strategy and keeping up with customer demands will pay off in your ability to weather the changes in the economy successfully.

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MerchantCard is the first and only Ongoing Access to Cash Card that provides immediate funds to business owners whenever they need it.  There is no traditional personal guarantee and because this is not a loan, there is no fixed payment schedule or collateral required.


- Over 95% of applicants are approved;
- Approvals are based on sales volume, not personal credit;
- Account availability ranges from $1,000 to $250,000 per location;
- New businesses qualify for instant access of $1,000;
- Funds can be accessed anywhere credit cards are accepted, at any ATM or transferred to any bank account;
- Simple and Automatic payback process through future sales;
- Availability increases every time payments are made;
- MerchantCard is Your Ongoing Access to Cash.

Along with a MerchantCard, you will be set up with a merchant account to facilitate the payback process, while enabling your business to accept credit cards as a form of payment.  If you already accept credit cards, your rates and fees will remain the same while MerchantCard will provide you with the financing and security you need to grow and support your business.       

MerchantCard is essential for every business owner who wants to build business credit by reporting positive payback to Dun & Bradstreet, Experian, and Nexus Lexus. We highly recommend that you apply for one now – here’s why:
- Reports only positive payments (Not Availability) to: D&B, Experian and Lexus Nexus.
- Having a MerchantCard will not affect your ability to get a loan or another credit card;
- It can be used worldwide, at any location that accepts VISA / MasterCard or any ATM;
- Simple approval process for availability of $1,000 - $250,000 per location;
- Approval is based on your monthly sales volume, not personal credit.

New and  Existing Businesses? Good or Bad Credit? If your business can use Ongoing Access to Cash (similar to a Line of Credit), a MerchantCard is for you! Apply here for your MerchantCard.

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