Starting a business can be a tremendous strain on your personal
finances. It takes time before your new venture turns a profit and provides
financial support for you and your family. Before starting a business, it is
important to get your finances in order.
To get started, write a monthly household budget that accounts
for your income and your household expenses. Be as conservative as possible
because maintaining your household expenses is vital to the success of your
business. Any strain on your personal budget can cause a financial risk to your
business.
It is also important to check your personal credit history. Because
you have not established a business credit history, lenders and suppliers will
use your personal credit history to determine your terms of credit.
Your credit report, which is issued by a credit bureau,
determines how potential lenders and suppliers will perceive you. You should
know what appears on your credit report because you may find errors to correct.
Visit AnnualCreditReport.com to get a free copy of your credit report from each
of the nationwide credit reporting companies.
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