General Business and Finance Blog

(c) 2008 Christine Kloser

When was the last time you heard someone talking about the proverbial “next level” in their business? Probably in the last 24 hours! Well, I don’t know about you… but I’m a little tired of hearing this phrase over and over again.

When I was in Las Vegas recently with my mastermind colleagues, we originally thought we were there to take our businesses to the “next level.” After all, isn’t that what mastermind groups are all about? Progress in your business! But, I soon began to notice something each time a colleague stood in front of the room to share… the realization of which leads me to third gift I received in Las Vegas.

Gift #3: The only “next level” is within YOU.

Colleague after colleague, each time someone stood in front of the room and started talking about where they were in their business, it became crystal clear that the only journey we were there to take was the journey within.

Many entrepreneurs (myself included) have made the mistake of thinking that business growth is something that you experience on the outside in terms of increased clients, more money, more web traffic, more referrals, more invitations to speak, more of whatever you desire in your business. And, yes, those things are all outward expressions of growth… but the only thing that SUSTAINS the external growth of a FULFILLING business is the internal growth of your soul.

Sustained, fulfilling growth does NOT come from what you DO in the external world; rather, it comes from the work you do on the inside. Sustained growth and the progress of your business’ evolution is less about the business than it is about YOU. As a conscious business owner, the only thing stopping you from all the success you desire is you, not your external circumstance.

Please forgive me if I’m coming on strong here, but I speak from my own experience. If you’ve been following me for any length of time, or have read my new book, you know that I have been through some very challenging times in my business… on the edge of bankruptcy and struggling to pay my rent. It wasn’t until I stopped TRYING to make my business work, (and started to INQUIRE WITHIN about where I needed to grow so that my business COULD grow)… that my business drastically changed for the better. So, now when I catch myself focused on the external aspects of my business, it’s a reminder for me that the growth isn’t going to occur “out there”, the growth is going to occur inside of me. Then, and only then, do I experience the results I desire on the outside.

So, the next time you find yourself wanting to get your business to the “next level”… it’s a sign that the time has come for you to go to the next level within yourself. Where do YOU need to go? What’s working? What’s not working? Why are you unfulfilled with the current state of your business? What would “light you up?” What old thoughts no longer serve you? It is this self-inquiry that leads you down the path to REAL, sustainable and fulfilling success.

ght (c) 2009 Marco Carbajo

There has been a growing demand in shelf corporations from many of the investors,small business owners and entrepreneurs that I have the opportunity to speak with on an ongoing basis who are looking for coaching on how to start business credit using a shelf corporation.

By sharing some insight with you on shelf corporations and what are the key business credit advantages will better prepare you in making a more educated decision if this is an option you’re thinking about.

Now, let’s first cover the basics.

What is a shelf corporation?

A “Shelf Corporation, also known as an “Aged Corporation” (or “Aged Company” when referring to an LLC, for example) is a corporation that is already formed, but not in use, and ready for “purchase” by a new owner. There are many reasons that people purchase shelf corporations, and there are certain things to look out for when considering one of these “ready-made” corporations.

Now one of the questions I’m sure you’re thinking is “Why should I buy a Shelf Corporation?”

Shelf corporations allow you to engage into business, credit, or real estate agreements as an established company without having to go through the long waiting period of establishing a brand new corporation.

Most potential creditors or business resources are less likely to extend credit or lend to new or up-start corporations. By approaching them as an established corporation or company, the more likely your business has the opportunity to have access to credit lines, banking relationships, leases, and so on.

For example, during the initial stages of building business credit there are some vendors that will only extend credit to companies that are at least two years in business. In some cases they also require a personal guarantee if the business is less than a year old. By purchasing a shelf corporation that’s three or even ten years old can drastically increase the number of credit opportunities available to you.

Now don’t worry if your existing corporation is less than two years old because you’ll still be able to obtain business credit, but the amount of banks that you can apply at will be limited. If you’re planning on starting a corporation or setting up another corporation then this may be an option to entertain.

Shelf corporations can also offer a large increase in borrowing power as well as enhanced credibility for your business when talking to customers and lenders.

Remember the age of the owners does not necessarily correspond with the age of the company.

When the H.J. Heinz Company advertises that it was established in 1869, it doesn’t mean that all of the shareholders are well over 100 years old. It simply means that the company was filed in that year. You can take advantage of similar credibility benefits when advertising to customers.

The age of your company can give greater credibility to customers and lenders than a business that was recently established. So, purchasing companies with established credit and existing credit lines can give the business a big financial boost.

Here are the Top 5 Advantages of a Shelf Corporation

1. Saving time and expense of forming a brand new corporation

2. Immediate access to contract and government contract bidding. Most states require that your company be in business for a specified minimum length of time.

3. Instant credibility and an appearance of corporate history.

4. More attractive to potential investors and investment capital.

5. Faster and easier access to banking relationships and lines of credit.

As far as purchasing a shelf corporation for the purpose of obtaining a bank loan or line of credit, given the current economic conditions, banks are requiring seeing much more than simply the age of your company. There are bank ratings, credit history, NSF history, and other factors to consider especially if you request more than a $50k line of credit. So if your interest is in applying for bank financing keep in mind shelf corporations have no business history, tax returns, financials and existing revenue.

Another word of caution that you need to consider is there are many businesses that sell shelf corporations that have done business in the past, DO NOT buy these! If a shelf corporation has done business in the past and you purchase it you also assume all past liabilities of that company. So if the company has had any lawsuits brought against the corporation from the past you are now liable because you now own the corporation.

It’s critically important that the shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the corporation and ensuring that the extent of its business activities was limited or nonexistent except for the application of an Employer Identification Number and maybe the formation of a bank account.

Shelf corporations can be a great option to start business credit if the proper due diligence is taken and there are many aged shelf Nevada corporations, Delaware corporations, Wyoming corporations, offshore corporations and Canadian Corporations that are available but be sure you do your homework.

If you ride a car, then make sure that you give full and maximum treatment for it is your investment, especially if the car reflects your personality and lifestyle, not only for transportation vehicles. Be careful in choosing the products for your car considering the cost and the synchronization with the engine.

Now you do not have to look fat to get your car solution because you can find everything you need online in the website at http://www.carid.com/ where you can have large options of dash kits, billet grilles, floor mats, chrome accessories, toyota accessories, spoilers, headlights, tail lights, custom wheels, lambo doors, body kits, grill guards, cargo liners, and many other accessories. You can pick by the categories of accessories of by your car brand. There are products for Honda, Toyota, Fiat, GMC, Isuzu, Jaguar, Jeep, and many others.

To narrow down your choice you can also check out the list of top ten products consist of rear spoiler, truck grills, wood dash kits, LED tail lights, halo headlights, car mats, cargo liner, wind deflectors, xenon lights, and vertical doors to make your car unique. Take your choice now, get started and experience secure online shopping. If you have questions or need some more information you can contact them by phone.

In putting up any kind of business, the end goals are primarily profitability and progress. Magnifying your money is the target endpoint. To be able to do such, you ought to focus on a very important aspect of your business- Business Finance Management. Below are some tips that you can follow not just to ensure the sustainability of your company, but to probably maximize its potentials.

1. Raise Money- Lots and lots of it. Businesses need more than sufficient funding. They need funds for the expected expenses, more funds for unexpected problems, and reserved funds for possible beneficial ventures. As such, when you are attempting to look for funds and possible investors, maximize the opportunity. Prepare big time but feasible business propositions. When opportunities for investment and profit knock on your doors, take chances and welcome the chance. However, you ought to grab the risks only after you have carefully examined the possible consequences of your business venture.

2. Acquisition is not always the answer. During business ventures, there is always plenty of room for additional expenses. Your first budget allocation for a certain expense may not be enough. You may need additional equipment and materials that require you to make unexpected expenditures. In such cases, note that buying what you need is not the only option. Look for alternatives such as renting or leasing the equipment you need. However, do take note of the rental or leasing fee versus the acquisition expenses, in accordance to your time frame for equipment usage.

3. Inform the concerned. In business ventures, you ought to keep pertinent parties aware of whatever is happening in your business. Pertinent parties refer to those who will be affected by the profitability or fund inadequacy in your business. These parties include your bank, your investors, your suppliers, your customers, and even your inland revenue representative. Realize that keeping them informed maintains good business relationships. It may also heighten their concern for your business needs such as additional funds and/or more profitable business deals.

4. Welcome Renegotiations. There are some cases when your investors, suppliers, and customers ask you for renegotiations on your transactions. Be open for such possibilities and options. Avoid limiting yourself to uniform business deals. Recognize that suggestions made by the people you are working with are worth your attention. This will not only help you maintain good business relations with them. Instead, it can open your doors to business opportunities which may prove to be beneficial in the long run.

5. Stick to strict payment and debt procedures. Renegotiation starts and ends with business deals. They should not extend to your payment procedures and debt accountability. When allowing your customers to go on credit, do a thorough financial check first. Set clear procedures for payment and be sure to follow them, without exceptions. You should also set a specific deadline for each debt. Realize that a service or product on credit is a potential loss for your business finances.

6. List everything. This may be a tedious task but such may prove to be very beneficial for you in the end. Realize that no matter how big or small your business deals are, all of these mirror how you manage your finances and all of these affect the overall outcome of your business venture. As such, you ought to practice proper bookkeeping and accounting.