The first time that I heard the phrase entrepreneur credit I had to laugh at myself.
I fell right in to that category.
When the business was good I had great credit and when it wasn't I had bad credit.
For the past seventeen years I have been an entrepreneur.
There has been a roller coaster ride with my credit along the way.
I've been crazy enough to try working for someone other than myself twice.
I can't do that again!!!
What I noticed about most entrepreneurs is that they have bad credit (entrepreneurial credit).
When things are going well their credit is great.
We have good credit personally and with our business.
When business is bad we have bad credit.
So in turn I call it having entrepreneurial credit.
When I started my first business my credit was ok.
As time went on it got much better.
As I was growing my business.
I started getting credit card offers in the mail.
I acted on every offer I got setting myself up to have entreneurial credit.
The problem was being an entrepreneur my money would be up and down.
I would use the credit cards for my own personal use instead of just for the business.
The problem comes when business is down you can't always pay for the credit cards.
Whether you are a corporation or LLC the business is still you.
It effects your own credit when you can't pay.
You may start to have money again.
Pay your bills on time and improve your business credit.
When your credit depends on how the business is doing that's entrepreneurial credit.
From time to time many entrepreneurs go through the struggles of good months and slow months of business.
Our lifestyle shouldn't be based on the business but on a salary that we can live in our means when there are slow times.
Being an entrepreneur is not for everybody.
It takes tough skin to handle the collection calls during those bad entrepreneurial credit days.
Managing your entrepreneurial credit takes special skills not to abuse it.
Not to use your entrepreneurial credit to support a lifestyle.
Learning how to separate your entrepreneurial credit from your personal credit.
I had to learn the hard way.
My lifestyle was based off the business.
I got away from the paycheck I was taking home.
I started using the company credit cards to support my shopping habits.
My weekend getaways that cost more than just money.
I now value my credit and my companies credit.
I don't want to go back to having entrepreneurial credit.
Many entrepreneurs make purchases of houses and cars off of what the whole business is making instead of the amount they take home for themselves.
All the money is yours.
There are two sets of bills that you may be responsible for at home and the business.
With that said if you don't have to put yourself in a position to have entrepreneur credit then don't.
It can get be rough having bad credit as an entrepreneur.
When that big pay day finally comes in. It doesn't mean you have to make up for the things when business was lean.
This is how you put yourself in the position of having entrepreneurial credit.
Give yourself a bonus instead of 10% every quarter.
That way you don't have bills when the money is gone and go back to having entrepreneurial credit.
Do you have entrepreneurial credit??
Your financial coach,
Renee Lawson
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