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- EP240: Maximizing Long-Term Business Outcomes with Ira Maher | The Basement
- EP229: Strengthening Your Family and Your Business with Jay Feitlinger | StringCan Interactive
- EP223: How to Market a New Travel Business with Yann Barbarroux | Flyion
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- Buying And Selling Your Business
- Increase Business Profitability
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Welcome to Marketing Mistakes And How to Avoid Them. I’m Stacy Jones, the founder of Influencer Marketing and Branded Content Agency, Hollywood Branded. This podcast provides brand marketers a learning platform for top experts to share their insights and knowledge on topics which make a direct impact on your business today. While it is impossible to be well versed on every topic and strategy that can improve bottom line results, my goal is to help you avoid making costly mistakes of time, energy or money. Whether you’re doing a DIY approach, or hiring an expert to help. Let’s begin today’s discussion.Speaker 2 (00:31):
Welcome to Marketing Mistakes And How To Avoid Them. Here’s your host.
Speaker 3 (00:35):
Stacy Jones (00:35):
Welcome to Marketing Mistakes And How to Avoid Them. I’m Stacy Jones. And I’m so happy to be here with you all today and want to give a very warm welcome to Andrew Ray. Andrew is the CEO of Flow Business Funding, which helps entrepreneurs and business people obtain corporate credit, allowing them to grow their business without ruining their finances. Additionally, Andrew is the best selling author of Entrepreneurial Money Secrets, unlock the power of corporate credit to leverage access to business, and coaches people on how to repair their credit score to get funding approval.
Today, Andrew will be sharing his advice on navigating the credit world and how agents can play the game of capitalism. We’ll learn what works from Andrews perspective, what should be avoided, and how some businesses missed the mark. Andrew, welcome. So happy to have you come today.
Andrew Ray (01:21):
Well, thank you so much, Stacy. It’s an honor to be here.
Stacy Jones (01:24):
Okay, so corporate credit, what got you here today to be talking about this? What is your background? What is it [inaudible 00:01:32] this guru of all things, how businesses can actually sustain themselves better financially?
Andrew Ray (01:38):
Yeah, you know they say out of… when you fall down, you learn a lot. And how I learned, I actually got involved in finance back in 2003, at the beginning of the mortgage… It was the beginning of the refinance boom, and then the mortgage and real estate boom. And yeah, I learned the behind the scenes, how everything worked in the mortgage world. And then I was asking questions, I was always curious about how corporations and big companies hadn’t been able to grow and build credit, separate from their personal credit, right. I had heard that before, and somebody had told me a little bit about it, but I wanted to know how it works. So I made it my own journey to figure that out. And I talked to so many people and almost no… they would look at me with blank stares.
Mortgage professional who’d been in the business for like, 20 years, and they’re like, “Well, I don’t know how that works. I thought you just put it in your personal name, and then you did it over in the LLC or corporation.” I’m like, “No, no, you there’s got to be a way the corporations build credit.” And they’re like, “Well, I don’t know.”
So long story short, when my mortgage company that I founded once I got going in the industry, and just like a lot of people at that time, we were making a lot of money. And I had like five investment properties, the whole story, and then the crash of 2008 lost everything, everything went upside down. And then I was like, “I got to learn about this.” So because my personal credit was trashed, so I started learning, that’s where the journey began. And I just really came across a few mentors that really took my hand and guided me and I invested in time and money and energy to learn these things. And now it’s my passion to teach it, to share it. Our tagline is, “We educate, we motivate, and then we facilitate.”
So we got to teach people about it, because most of your viewers probably haven’t even heard of that, that you can build credit to a corporation or LLC, completely separate from your personal credit scores. So knowing that and learning how to leverage that is a huge boost in how you’re successful, play out in your own business life. So that’s why I wrote the book, that’s why I founded this company, and now it’s my passion to share it and get on shows like yours and give as many access to tools and resources, and be able to help people to accomplish that. Because especially now, I mean, never in history have we been in a better time for it, because everybody’s working from home now. This pandemic has changed the game and so many entrepreneurs that are just starting out, they’ve been in a job, like for 20 years, and now they’re out of work, or they’re forced to stay home and work. And I think this is a great time for them to actually sit down, and be successful.
Stacy Jones (04:30):
Now, I’m looking forward to learning today because I will tell you, this is an area that I wish I’d learned about earlier in my career. I’ve been an agency owner for 14 years now. And when I did what all agency owners do, we worked somewhere, we did a really good job and realize that we could do it better than the place we were at. And that’s how you become an agency owner and the next thing you know, you own a business, you are dealing with HR and operations and leasing and getting clients, and everything under the sun.
But when I started out, I knew that I had savings because I had worked really hard, and I was going to be able to buy a house. And I should have done it before in reality, but I had my savings, I live in LA, so it takes a little longer, right?
Andrew Ray (05:15):
Stacy Jones (05:16):
And so I was going to buy a house, but then I’m like, “Oh, I’m going to start an agency. So I’m going to take my house fund, and I’m going to start my agency with my house fund and my savings, instead of trying to get money or anything from other people,” because I didn’t know that you could figure out ways to get money to start your business, or even five years down the line, 10 years down the line, money to start growing your business. And that’s why so many of us small middle sized businesses don’t ever move ahead into that world of big, because we’re always shoe strapping it and we’re always trying to figure out how to just make sure at the end of the year, you’re still in the black while trying to grow your business, but you’re not able to actually grow very quickly. And the tools that you have actually changed all that.
Andrew Ray (06:07):
Yeah. You hit a lot of really important points. And, again, the small startup companies to even medium, and like I mentioned before, when you and I spoke a little bit, I talked to millionaires, and they still don’t know this stuff. So beyond just capital and credit… and let’s face it, we’re playing the game of capitalism. What is capital? When I started asking that question, it started unlocking some other secrets, that’s [inaudible 00:06:36] entrepreneur money secrets, that the wealthy all know, and they all play this, and major corporations do this all the time.
And I go back four years ago, when corporate tax was cutting and everybody was screaming, “Oh, it’s only for the wealthy,” and all this kind of stuff. And I’m like, “No, it’s for corporations, and you can start the corporation right now.” “I can?” “Yes, you can.” Anybody can start a corporation and take advantage of all the tax laws and the way the system is set up to be played. They’ll give you deductions, but you have to do it in proper ways. You have to protect yourself. And if you look up the definition of a corporation or an LLC, what you’re going to find is, this is an entity. It’s nothing more than a legal person. And you become the puppet master of an avatar. Look at it like that, simplify it. That’s how I talk to my clients. They get in their head that this big thing that is beyond their comprehension, is really not. You can simplify it down use that as your vehicle, your funding vehicle, your business vehicle to navigate through this thing, this board game of capitalism.
There’s game board pieces, LLC is corporations, land trusts, living trusts, Roth IRAs, these are all instruments that you have to learn about. And once you do, you can use them as a strategy, and it’ll accelerate your progress in business. Because let’s face it, it’s not just bringing in money, it’s taking that money. And I call it the flow and grow method. You’re flowing energy, money is circulating around the world all the time, through these computer screens, zeros are showing up and bank accounts. All you’re doing is diverting it in your direction. So you’re taking that energy flowing in your direction, doing good, if you’re doing good service, however you’re providing a solution in the marketplace. And then you’ve got to take that energy and continue to flow it out.
Wealthy people know that… They set up nonprofits and foundations, not just from the goodness of their hearts. It’s a smart strategic move, because you can either pay Uncle Sam, or you can pay into the community, back to the world. And I’m never going to say don’t pay taxes, but pay the minimal that you can allow. And again consult your CPA, make sure that you have a good strategy in place. That’s another thing, it’s like insurance. You don’t want to have insurance after a car accident, you’ve got to have it before the accident. Before an audit, you want to have your record set up, you want to track everything. You want to make sure that you’re guiding this flow of money, whether the revenue is coming in. I hear these eCommerce stores, “Were making 90 grand a month,” and I’m like, “Yeah, but how much are you [inaudible 00:09:14]?” “Oh, about nine after all of our expenses.” So you’re not really making 90, you’re bringing in 90, but how much are you keeping? How much are you able to utilize?
So these are questions that we ask and this is where corporate credit come in, because being in leverage good business debt offsets tax [inaudible 00:09:34]. Trump, for instance, and I’m not going to get into a political thing, whatever people’s [crosstalk 00:09:43]-
Stacy Jones (09:43):
No, but he’s leveraged [inaudible 00:09:44] really well. I mean, that’s the reason-
Andrew Ray (09:43):
Stacy Jones (09:46):
… why everything is… the Southern District is looking at things because we’re questioning but at the same time, he’s used tax law to his advantage not necessarily to the world’s disadvantage, his advantage.
Andrew Ray (10:00):
Absolutely. Same with bankruptcy. He’s bankrupted corporations, not himself personally, and people wonder why he was unscathed. They wonder why he was able to… In the debates, he was bragging about this. He was saying, “You don’t pay any taxes,” that’s even smart. Because he set things up in a way that he leverages that, he leverages loss, because you don’t start paying taxes until you’re profitable. And you can offset your profitability by growing in a sense, but you’re going to have to do it strategically. Real estate corporations, business that is all of the big instruments that are able to create this big empire, if you look at it like that.
And I know we don’t have much time to go into detail about that, maybe we’ll have another conversation. But essentially, that blow and grow mentality, first of all, get yourself out entity, get with your tax advisor, or somebody who can set up for your business, because everybody’s going to have a little different than LLC for real estate, well, if it makes sense. But for a long term hold or for a construction company, for instance or for a trucking company, you might want a corporation, a C-corp, or S-corp, or whatever that is, you’ve got to get with a professional that knows what they’re talking about if you guide you along that. Second thing go get a tax ID and build credit too. Start right now. The sooner you do it, the better and start moving your personal stuff, because like you said everybody’s bootstrapping and using their own money. Save that money and get capital, obtain it, leverage your personal credit.
I can get people 50 to 150,000 and 0% interest, credit card credit lines under a tax ID with a startup. And they’re not asking for tax returns and not asking for income. Will you pay fees for doing some of this stuff? Yes. But remember, it’s all tax rideable when it’s business. So are you paying, or are you investing in your future, investing in a return that you’re expecting? If you start thinking of it like that, because I know, my generation, I’m an X-Gen. And we were all taught the reverse. It’s like, we were told, “Don’t get in debt, save your money, don’t protect your credit score,” and all this. And it’s like, if you’re an entrepreneur, you’re going to be in debt. If you want to buy a house, you’re going to be in debt. This is a reality of life, and the sooner we learn that game, and feel comfortable with doing it the correct way.
Now, don’t go out and buy, go on a vacation when you just got a $10,000 credit card. Use that to get a return on investment, invest in marketing, like your agency. How are you able to pay? Because let’s face it, we’re not going to all be good at everything. You’re going to have to hire out, you’re going to have to outsource. And how are you paying for it? Out of your pocket? Or are you doing it correctly under your business, under your tax ID and documenting the process of that, and then getting a return on that? Once you get that flow happening in your direction fundings, because then you’re accessing more and more capital, you’re buying multi unit properties, you’re investing in different vehicles assets. Like Robert Kiyosaki talks about Rich Dad, Poor Dad, all these principles, you… go get that book if you haven’t read it, because that’d huge, everything I’m talking about, he is talking about in detail, so yeah. That’s-
Stacy Jones (13:17):
I think it really is just about a mind meld of changing how you view something. So instead of when you’re buying a million dollar house, and we got a million dollars in debt, no, you’re now just going to actually be paying yourself rent against the property that’s more than a million. And hopefully, by the time you get out of it, maybe it’s worth one and a half, or two or two and a half million. So it’s just different way of approaching. And it’s sad that we don’t learn this actually, in our educational systems, because we don’t learn it in high school, and we don’t learn it in college. These are not like go to lessons on financial help that anyone really gets taught.
Andrew Ray (13:53):
So true. It’s funny that you say that, because right now I am passionate about learning these processes or process of getting the message out, I should say, like being on these podcasts, and sharing with like minded people this. But my whole passion is to get into the high schools, like you said, getting into the community colleges, and getting this coursework in more people’s heads and minds, because we need a shift, we need a paradigm shift how we’re approaching this. We live in a digital era where information is being shared everywhere.
And it’s unbelievable that they will hand you a $2,000 credit card when you’re an 18 year old freshman in college and you don’t know anything what to do with it, you don’t know how it works or anything. So arming our future entrepreneurs with this knowledge when they’re young, able, now it gives them such a head start. I know I’m teaching my boys right now, how this works and we just talked this morning at the table about setting up for their first bank accounts and things like that. And they’re 9, 11 and 15. So yeah, it’s I think the sooner the better they start getting this in mindset.
Stacy Jones (15:01):
Yeah, and it is, but even then, way back the way my parents did it, right, they set me up with a checking account and a credit card, and I established credit as I was young. But once I went off to college and out into the real world, I didn’t… they didn’t have the tools to teach me. They didn’t know how… My dad had a successful one man business, they didn’t know how to go out and become a corporate takeover, of how you can actually build and grow and scale versus just you just eke along, keep going, keep going, and keep going, nose to the grindstone. So it’s a different world now. Which is great that you and people like you are teaching these types of strategies.
So, when you’re saying corporate, you’re taking an entity. So this is like, what Dun & Bradstreet is doing. Right? That plays into it, right, with credit monitoring, and like… Can you explain what is, get a tax ID, and what else you have to get. You have to get a DMV number, you have to get like bank accounts, you have like… what do you need to do?
Andrew Ray (16:05):
Yeah, that’s a great question. And the fact that you bring in Dun & Bradstreet tells me that you know a lot more than most of the people I talked to, because Dun & Bradstreet is the oldest business credit company that actually tracks the credibility of a business. So that’s the foundation for the separation of your business from your person. And then there’s business experience, a big business Equifax. So separating that is essential. So getting your DMV number, first of all, if you call in to get your number, first download my free guide, or get a copy of my book because I’ll show you how to get the number for free because Dun & Bradstreet is going to try and sell you the [inaudible 00:16:48].
Stacy Jones (16:48):
Andrew Ray (16:50):
Stacy Jones (16:52):
They call you. I had this [crosstalk 00:16:52]-
Andrew Ray (16:52):
Oh, they won’t leave you alone.
Stacy Jones (16:53):
… where I had exploded on the phone with them, because they have called and gotten someone on my team to say yes to something, and all of a sudden, it’s like we’re buying a product that I don’t want to buy, but they’d done it to me, and then you make it [crosstalk 00:17:07] you have to, you have to do this.
Andrew Ray (17:06):
Yeah, yeah, yeah. You really want to build business credit, you need our program. And again, this isn’t a-
Stacy Jones (17:16):
“You’re failing, you’re in risk right now, you have to do this right now.” Scare tactics, a lot of scare tactics.
Andrew Ray (17:21):
It’s terrible. And that’s why we have a comprehensive program that walks people through it, and for less than the cost of what you’re going to be paying to try and figure this out and try and go by people upselling you and doing all this stuff, you can actually have somebody hold your hand and walk through it with you, and pick my numbers and… Okay, let’s get back to the first step of your question. You get your tax ID number, you go get your Dun & Bradstreet number, even before your DMV number, what you want to do is become credit. And what I mean by that is with the business, once you set your entity up and everything, then you start to see the separation, you want to become fundable as a company.
And that means you want to have presence online, you want to set up a website, you want to have your listing, your phone number listed, a professional number, your cell phone. So you want to have that listed with 411, you want to have an office. Even a home office is okay, better to have a virtual office if you don’t have an actual office space. Because when companies are assessing the risk of lending to you, they’re going to be looking you up. They want to see that you have a web presence, they want to see that they can dial 411, and your number is going to show. What it’s going to do, even if you’re a small one person operation is show that you’re legit. You want to be legitimate, so we walk you through the whole process of becoming credible. And and that’s really the first step of it.
And from there, then you get your DMV number, then you want to get what’s called vendor accounts, Net 30 accounts. Well, there’s some lenders that will lend to a business right out the gate with no credibility and without your personal credit, without your personal FICO Score even showing up. So you want those and then within the 30 days, then when they offer that 30 day Net account, you’re going to want to pay about a weaker, because that’s going to boost your score. In the business credit world, if you pay it a little bit early, it actually shows that you’re a quick pay, and that actually boost your score. What you’re shooting for, when a PAYDEX Score, which is what Dun & Bradstreet uses as their scoring system, you want an 80. That’s like a 755 go score for a person.
So this is your business score that you’re shooting for is 80 plus, 80 out of 100. So if you’re doing the early pays, you can get up to 85 90% or 90 as a score. And then that’s the first tiers you’re going after vendor accounts. Then when you establish about four or five accounts, you go after your Office Depot, your Sam’s Club, that’s the next year. You don’t have to store credit. You might get some gas cards, things like that. Then you go to the next step where you’re actually able to get cash credit cards and things in… By that point, you realize that, “I might not even need all the business credit.” Everybody thinks you got to pay for everything with money. “Oh, I need a business credit card with $10,000 cash.” Well, what if you’re leasing equipment? If you’re a truck driver, you don’t need that. You need a new big rig, so you don’t have to pay for it.
So when you built your credibility, where you could go qualify and get a vehicle, or get office equip. We get people Dell, we get Apple Computer, things like that. you can furnish your office with a lot of these supplies. And again, you’re building your business credibility. In the meantime, you still want to have good personal credit, because that’s where the magic happens, is when you got both, because then you’re able to get cash credit lines that accelerates everything, and it just mushrooms from there. So it’s building it out, it’s really a never ending process, obtaining capital is an ongoing thing, so.
You’re going to se, as you’re an entrepreneur, and this as well, we see this much, and then we gain altitude, and we start to see a broader vision. And then we gain a little more altitude, and we see a broader vision. So it’s just like our learning process, we continue to evolve. And let’s face it, things change. Lenders that are working now, weren’t working six months ago. And so it’s a constant updating, and our program addresses that, so that we stay abreast about what, who’s lending, who’s reporting, all that kind of stuff. So navigating through it is it can be a little overwhelming at times, but it’s worth it. It’s like anything else, it can be frustrating, and then you get these feelings of elation when you accomplish what your goals are.
Stacy Jones (21:36):
Yeah, I think a lot of small businesses, midsize businesses learned that their big banks that they were with, like Citibank, you know what I mean, were not a help during COVID. Right? And it was the small businesses, the small banks that were actually the ones that came up. And so I think that’s differentiated, and that’s put a whole new like mix into the equation too about where you should actually be banking and getting your funding and how you can get the best support. But what you stressed, touched on a moment ago is whether it’s Apple or whether it’s Dell, so even if you come well funded to start your small business, you need to be thinking strategically about ways to build credit. Just because you can afford $20,000 of computers to outfit your office does not mean that you shouldn’t take the Dell 90 day plan and then extend it into a year so that you have that time to build credit. That’s what you’re saying with that.
Andrew Ray (22:30):
Stacey, you make some really good points. And that’s exactly right. Keep your capital where you have reserves, always have a path. If you want to borrow 50,000, get 100,000 if you can and stay within the parameters of 30% 40%, if you can. But yeah, if you don’t need it, don’t use it. Use the other ways to do things, like you just mentioned, use those vendor accounts, use those store credit cards. And if you’re flipping a house, and you got a $10,000 line of credit at Home Depot, use that instead of funds in your bank because they will fund you in many cases with zero till almost no interest or very low interest. And then the fees are all trackable, and whatever interest you’re paying, your write-off, because those are costs of doing business. And this is just a whole different paradigm shift for people to look.
Stacy Jones (23:24):
It’s mind boggling, right? Because like you go in, and you’re proud that you don’t have credit card debt, that you don’t owe any money, and you’re like, “Hoo-hoo, I’m so great,” but then you find out that, that’s not the great way to run a business. I mean, it’s shocking, right, because that’s not how what we were taught, we were taught, “Do not carry debt, make sure that you owe no one any money.” I’m also Gen-X, right, so [crosstalk 00:23:48] different with your Gen-Z and Millennials right now. But this is what our baby boomer parents instilled in us that we need to strike it out on our own and be clean and lean, versus, “Oh there’s paperwork that I have to write checks to on a monthly basis.” That’s a very different mindset.
Andrew Ray (24:12):
Right. And again, that brings up another good point, I was thinking as you’re saying this. Another thing is to learn to systemize and automate as much as you can. Once you have everything set up in your accounts and everything, then you want to put it on auto pay so that you make sure that you’re paying on time because [crosstalk 00:24:29]-
Stacy Jones (24:28):
You’ll get bad debt now, and they are credit.
Andrew Ray (24:31):
Right. And transfer, I mean, if you’ve got stuff on your personal credit, as long as you’re tracking it, when you transfer it over where it belongs in the first place under your tax ID, the funny thing is your personal credit bounces up anyway because in business credit another benefit is your utilization isn’t as important as it is in personal debt. If you go over 30% in personal credit, your credit score is [inaudible 00:24:54]. In business credit you can be at 90% and it’s not hurting as long as you’re paying on time, or early. And then, they’ll lend you more. Because another thing is you’ll be able to [crosstalk 00:25:05]-
Stacy Jones (24:31):
Andrew Ray (25:05):
Yeah, right. As long as you’re paying, and you’re showing your risk assessment. And another little secret about credit and business credit things is, there’s another credit, there’s a third credit that I was just telling my fiance about, that most people haven’t heard of either, besides corporate credit, bank credit. Bank credit is when you carry a certain amount of money in the bank, there’s a banking system that people that all the banks can check out, community, credit unions, everybody can look in and see, “Hey, this is carrying $10,000 balance for over three months, six months,” they give you a rating. So they give you higher approvals, higher amounts. And most people have even ever heard of that. So like you just said if you’ve got capital sitting in your bank account, it behooves you to use those Office Depot or Dell accounts instead of taking out of your personal because then it allows you to have a stronger, less risk rating with the banking system. So that’s another boost for your company that most people haven’t heard of.
Stacy Jones (26:08):
Yeah. I think yeah, the line of credits is something that I think a lot of small businesses don’t think about what their banks, and that they can qualify for it, and that it’s a good idea to be able to have a line that you can use. And so somewhere back in the day, I got a line of credit, and then my banker would come to me periodically, every couple of years and be like, “We should boost your line of credit.” I’m like, “Not using my line of credit. Why would I need to boost my line of credit? It’s just there.” And she’s like, “Yeah, you also need to be using it every year, so that there’s something happening on it. It’s not just sitting there dead.” And I’m like, “Well, I don’t want to owe any money.”
So it’s great that I have the credit, but that’s a whole lesson in itself, what you need to be doing, because you don’t know as you’re growing your business, when you’re going to actually need to buy more, whatever or hire more whatever people in order to get and grow. And you want to make sure that you have a line there that can gap finance you a little bit, that can give you that dollar amount, so that you’re not just scrounging and hoping that you happen to have put enough money in, taking enough money out and taxes, have dividends that you can put back in the company, and you’re always self funding.
Andrew Ray (27:20):
Now, 100%. This is one of my funnest podcasts, because you actually know a lot about this stuff. [crosstalk 00:27:26]-
Stacy Jones (27:20):
I know what I’ve done wrong.
Andrew Ray (27:28):
Well, that’s how we learn. I mean, a lot of times, like I said, I don’t like to task or be in my lucrative business where I thought I was on top of the world. Out of that is where the whole passion for this. And preparing, let’s face it, we’re in a recession whether interest rates have held us from, some real estate and everything still seems strong, but I learned the last one, I also studied this, that it’s cyclical, this is going to happen. And preparing for it, the wealthiest people prepare for it, so that they’re selling at this time, because they’re buying in two, three years when the prices drop. And it’s the same with having a cushion in your business. We didn’t know we’re going to have a global pandemic over a year ago.
In October of 2020, everything was great. And I would talk to people, [crosstalk 00:28:17]. Yeah, I don’t need credit right now, we’re making plenty of money. And those people are calling me like five months later going, “Hey, how can you help me? We’re going to go out of business because everything dropped and we don’t have any reserves.” So, again, it’s like insurance. It’s not after the fact that you’re going to need it, have it in ready, and utilize it when you need it. And also, like you’re saying, learn to utilize it to leverage and grow, because we can either be self employed forever, if you’re a one man shop, or you can start to outsource.
I know our business is now growing, because we built another whole team and division. In marketing, that’d be another conversation for us. Because having a team that’s there, like building your brand for you, allows you to do what your highest score, it’s your best and highest place in your business. And we’re not going to be good at everything. There’s certain things that I’m very good at,and there’s a lot of things I’m horrible at. I’m never going to be a great accountant, or bookkeeper, or things like that, but having superstars that are great at that and passionate about doing it, allow me to get on more shows and talk to hosts like you and share this information to more people working on the next book. These are the things that I feel passionate, I wake up and I feel really good about. So finding where your places in the mix is going to be essential as well.
Stacy Jones (29:38):
So you mentioned a moment ago a little while ago, corporate experience, corporate, this whole other tax reporting bureaus, but that do it on the corporate base. And I don’t think that’s something a lot of people know about. Can you share more information on that? Because we all will run credit checks on ourselves and we’re like, “Good or [inaudible 00:29:59],” right?
Andrew Ray (30:00):
Stacy Jones (30:00):
And so, how and what do you do in regards to your business and approaching with that?
Andrew Ray (30:08):
Yeah, again, another little resource. Again, we have these resources and I’m sure at the end we’ll offer that. But I get with credit monitoring, just like with your personal credit, you’re going to want to monitor your business credit. So a company like NAB, N-A-B, who they monitor your Dun & Bradstreet, your business experience, your business Equifax, and even your personal scores. So, that’s a good way to be aware of what’s going on in your credit. Because just like personal credit, there’s going to be inaccuracies. So you want to make sure that those are good, so that it’s not hurting your credit scores. And those are the three-
Stacy Jones (30:46):
I think [crosstalk 00:30:46] for myself, [inaudible 00:30:47] podcast.
Andrew Ray (30:48):
Okay, perfect. Yeah, so it’s just like anything. We’ve got to constantly monitor analytics and numbers of companies. So you’re increasing your accounts, who’s reporting, who’s not. Are they right in reporting? You’re going to want your Dun & Bradstreet, your business Experian and your business Equifax. So those are the three to pay attention to. And as you’re building those… see the Dun & Bradstreet started out, and that’s where the store and vendor credit, things like this, the business Experian and Equifax is where the lenders are going to go when they’re lending out lines of credit, things like that. More so, they’re going to look at your PAYDEX score as well. But you can’t have the other ones without the base. You build the foundation first, and then you start to build your house, your profile. And again, you can accelerate, you can get these business credit cards at 0% interest under a tax ID with a 680 plus FICO Score, that will jump you into the Experian and Equifax because they’re reporting and it’s reporting under your tax ID.
You might qualify with your personal credit, but if done correctly, a lot of these credit lines will disappear off your personal credit and go under your tax ID. So all you’re doing is showing, “Hey, I’m a little risk, because I’m responsible with my personal life.” That’s why I say how the boat is a huge boost. And the 0%, let’s be clear, it’s usually an introductory 12/18 month offer, so it’s not like you’re going to have 0% forever. Why do they offer that? Because for one thing, they want you to start using their cards. Banks and lending institutions are in the business of lending money, that’s how they make their money. So them, offering these things to get you started and then prove yourself is really what it’s about.
So learning these things, utilizing this space, and then exercising these things, like getting in the gym. You get with the personal trainer, the first three months, they put you on a program and get you going, then it’s just consistency over time, and then you’re going to get to your goals. And it’s the same with this too. It’s your financial fitness. So having good guides, good mentors, good people to… resources that you can turn to when you have questions, because you’re going to have questions, I still have questions. So it’s a constant learning process, but it gets pretty fun once you get going, and once you see the power that can unleash so, super exciting.
Stacy Jones (33:11):
What are other sources of potential lines of credit or borrowing that a lot of businesses don’t think about?
Andrew Ray (33:18):
Well, for one thing, if you haven’t already, if you’ve been in business, you go apply for PPP, or some of these government programs right now. I’m seeing people get approved. And this round because I’ve been doing more research because more and more people are asking you about it. And if you’re a gig worker, you’re a Uber driver, you’re self employed, and you have a dog walking service or something, you might be able to get some money. So it doesn’t hurt to try. And all they can say is no, so you try, you’re legit, and if they give it to you, great, it gives you a boost. If not, then at least you tried.
I know a lot of people are afraid to even try. And if you fall down, get back up, learn from the experience and keep moving on. But any of these resources can be helpful. And go to our website and download the free guide, download as much information. There’s so much on there, and we’re constantly trying to update it, because the first thing to do is learn. You’re not going to be as fearful about taking action if you take the mystery [inaudible 00:34:20]. People that don’t know, they get handicapped and paralyzed to even move. And I say just take baby steps in the beginning, until you get this. Like you talked about, it’s a subconscious thing. We were taught things that are from our baby boomer parents, because they came from the Great Depression era, thinking [crosstalk 00:34:39]-
Stacy Jones (34:39):
Save safe, [crosstalk 00:34:40] don’t spend-
Andrew Ray (34:40):
Yeah, don’t trust banks, don’t… this is all this kind of stuff. And in the world that we live in now think more like the flow and grow instead, think about it as just energy. Take that fear away, look at it like that’s your avatar, “This is this is my body in my business, and I’m going to help build credit to it and it’s going to feed me, and I’m going to feed it back.” It’s a back and forth thing. So just take the mystery out and take some action.
Stacy Jones (35:05):
Will it help take the mystery out since you mentioned, to go to your website? What is your website? How can people find you?
Andrew Ray (35:11):
Well, it’s pretty straightforward. Flow, like flowing water, flowing money, businessfunding.com. So flowbusinessfunding.com. Like I just mentioned, we revamped everything, we’ve got new materials on there. And that’s our passion, is helping entrepreneurs, first of all, learn about how this all works. Set up a strategy call, we’d be happy to guide you along the process. And we have some consultants that have been in the industry over 20 years, so they’re more than willing. Or you may end up talking to me because I do a lot of counsels myself as well.
Stacy Jones (35:49):
And then yeah, I would definitely like to have you come on again in the future where we can dive into what are some of those tax strategies you mentioned earlier on, that people need to be thinking about when they’re starting their businesses, since there’s nothing like having the most stellar year ever, and then realizing that 33% or more of your money is just going away.
Andrew Ray (36:11):
Stacy Jones (36:11):
It’s gone, good bye.
Andrew Ray (36:14):
Absolutely. And if I can emphasize anything when it comes to tax, it’s tax planning, plan ahead. You might think your CPA is saving you money or doing all this because they’re low costs, they may be costing you money, because having that right strategy in place can save you 10s of 1000s of dollars. And if you do it, you can’t do it after. You got to do it before, so you got to have a plan in place. And it’s very specific, as I found out, per industry, per business model, per entity that you want to have a specific… like a cannabis business is going to be very different than real estate, long term holding company. So that strategy and entity and everything that’s going to take place is going to be very different.
Having that ahead, set up ahead of time, on average probably saves you 10 to $15,000 or more depending on how big you are. So yeah, I think that’s a whole nother subject that we can [crosstalk 00:37:10]-
Stacy Jones (37:10):
A whole other topic. Yes.
Andrew Ray (37:11):
Stacy Jones (37:13):
Okay. Well, if you had to say three things that you want to keep people in mind of what we just talked about, or else something that would drive them and change their lives as far as how their approach? What would those be?
Andrew Ray (37:27):
First of all, be honest with yourself, because it starts with you. Credibility, when I was talking on the Voices this morning, I said, “Credibility starts with integrity. It’s who you are.” And so taking personal responsibility is go look at your… where are your credits? Most people don’t even know where their credit is. Look it up, look at where you are to start with. And then where are you in your business game? That would be the first thing, self assessment.
The second thing is, make some goals, dream a little bit. Just take 10, 15 minutes and off the top of your head start drawing out the life that you’re trying… Because let’s face it, business is a vehicle for a life that we want, a lifestyle. Is it more time freedom? Is it a certain number? You want a Lamborghini? What is it? Be specific and think about that, consider that. And then take action. If you don’t have an entity now, go on our website, at least check out the information. flowbusinessfunding.com is a great resource center. We built it that way to be a resource center. So download some guides, educate yourself, get on some videos.
We’ve got a YouTube channel, we’re going to be spending more time making more video content as well. And then just take baby steps in the beginning. Look at your personal credit, set up your entity, get your business plan idea that you’re going to do, and then start going after fund. Get on the phone with us and see where you’re at, and we can guide you. If you need some credit repair, let’s work on that first. If you’ve got great credit, you want to go after credit lines right away, let’s get you going on. You want to build corporate or business credit, completely separate from your FIFO, getting our finance [inaudible 00:39:10] there, walks you step-by-step through.
And believe me, you think it’s going to cost a lot of money like 3000, but it’s an investment that’s going to save you money, because if you get with Dun & Bradstreet, all the resources that we provide for you, you’re going to pay well over that in fees, not to mention you make mistakes, and then it’s going to put you back even further.
So don’t look at things as coming out of your pocket, look at it, what are you investing in and expecting an ROI or return on investment. That’s how we should all think as entrepreneurs. We’re putting money out to get something back. It’s like fishing, you’re putting a fishing line in to catch a fish, you’re going to put another line in to catch another fish. But if you’re not putting a line in with bait, you’re not going to get anything. So, at least do something.
Stacy Jones (39:55):
Okay, Andrew, I think all the topics that you’ve had are extremely important to any of our listeners, whether they’re going out and creating a small online business for themselves as a hobby in their own time or whether they’re the masterminds of a corporation that’s on the move and growing. So thank you so much, really appreciate your insights today and sharing your knowledge.
Andrew Ray (40:18):
Oh, it’s my pleasure. Thank you for having me. I really appreciate your time and, hello to all your viewers out there. And let’s just rock it all together, we’re all in this together, so.
Stacy Jones (40:31):
Perfect. Well, to all our listeners, thank you for tuning in to another episode of Marketing Mistakes And How To Avoid Them. Appreciate that you spent your time with us today, and I look forward to chatting with you this next week. Have a great day.
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