Top Ten Things You Need To Know About A Successful Business
(But Probably Had No Idea Of Them Or Their Importance)
1) 20 Items of Lender Compliance
These are items that lenders use to categorize businesses as higher risks of default based on history default data already collected by a large number of lenders. Things such as; not having a USPS listed business address, using a cell phone number as your primary business number, using a free email account for your business, not having a website, and 16 more just as simple.
2) 10 Reporting Trade-Lines
In order for a business to show how they pay their debts, there must be a recording and available report of that history. Your business needs at least 10 lenders or vendors that are reporting each month on how you pay your business debts.
3) Business Credit Scores of 70 or Above
Much like a 700 FICO score. 70 is good, 80 is better. A 70 score is developed by having 10 reporting trade-lines and paying those debtors on time. A score of 70 indicates that you pay on time, a score of 80 indicates that you pay your debts 10 days early.
4) Low 5 or Above Bank Rating
A measure of the ability of the business to debt service. This is the measure of the average daily business bank balance over the prior three months. A Low 5 is the minimum goal. Low indicates the balance began with a 1, 2, or 3 and the 5 rating indicates the balance had 5 digits. Therefore, the business maintained a daily balance of between $10,000 and $39,999. Lenders use this rating to determine if your business has the ability to debt service.
5) 40+ Local Listing Directories
What Google and Apple use for placement determinations and how a business gets found. There are 40+ local listing directories that are used by consumers and more importantly that are used by Google and Apple to determine placement on their online and map search engines. Any truly successful business needs to make sure they are correctly listed on all 40+.
6) NAP Validation
The Name, Address, Phone of a business must be local, unique, and for a business, not a residence or cell. If the business Name is conflicting, or not unique from other already listed businesses, it will most likely not pass NAP validation. The address must also be unique and to pass NAP validation it cannot be a residence or a mailstop. The phone number must also be unique, it must be local by prefix, and it must be listed by the FCC as a business number. Those businesses that do not pass NAP validation cannot be listed on the GPS and mobile map services such as; Google maps, Apple Maps, OnStar Maps, and most local directories.
7) Link Authority & SEO Placement
The high value and quantity of links leading to a site greatly impact local, mobile, and SEO placement. Search engines and mobile map services place a very high value on who links to your business. Community organizations carry a high value as do press organizations and independent reviewers. The more, high value, links you have pointing to your business the better for SEO.
8) Reviews vs Star Ratings
Anything less than four stars will greatly affect the gross revenue of a product or service business. In today's markets consumers have become wary of businesses that do not have excellent customer reviews. If your business does not have many reviews then just a few negative reviews can drag your ratings down and many potential customers will stay away.
9) Four Components of Becoming Bankable
The ability for a business to stand on its own for all types of financing has 4 major components. Having all items of Lender Compliance completed, 10 reporting trade-lines, business credit scores of 70 or above, and a bank rating of at least a Low 5.
10) Seller's Discretionary Earnings (SDE)
The key determining factor in establishing a sales valuation for the business that is being built. When it comes to selling your business the single most important factor is SDE. Most businesses that sell for five million dollars or less are valued based upon a multiple of their SDE. Optimizing value during ownership so a successful exit can occur starts with understanding your SDE, striving for increases, and taking steps to achieve the highest multiple at sale.
Run A Free Key Success Element Scan On Your Business
If you already knew about all 10 of these items that are vital to your business success then you are in the top one percent of all small business owners. If you were unaware of many or most of these success items, then you are part of a very large group of small business owners who simply have never been educated as to their importance. By running a free Business Success Assessment you will see exactly where your business stands right now for each of these 10, and you will be provided with instructions on how to complete and optimize each one to give your business the very best opportunity to succeed.