Credit inquiries not all the same – be aware!

I learned something about credit inquiries. If YOU make an inquiry on your credit, it’s a “soft” inquiry and doesn’t give you a “black mark.” If a bank inquires because you’re interested in getting a business loan, that’s a “hard” inquiry and it does show up and can count against you. If you are going to multiple banks to apply for your loan, FIRST get copies of your credit report from all three credit bureaus (Experian, Equifax, and TransUnion). Take these reports along and show them to the bank instead of letting them check your credit. Only when you’re really ready to deal with a bank should you let them directly check credit.

Balance Sheet

Someone asked me why I have a “balance sheet” tab on the P4PS Spreadsheets but there’s no balance sheet. I do know what it is, but I also know that it’s very difficult to create a startup balance sheet of assets and liabilities, until you actually know what you are purchasing and what the market value of each item is, and what loans you will have, etc. If your bank requires one, email me and we’ll work on it: jean@dcpracticesuccess.com

More Q&A on DBAs

Q:  What’s the difference between a fictitious name statement and a dba?

A:  There is really no difference.  The “dba” = “doing business as” = doing business under a fictitious name.

Q:  If I am forming a corporation or a partnership or an LLC, do I still have to file a dba?

A:  No, the formation of the entity is the registration you need.

Q:  If my name is John Smith and I want to be known as Smith Chiropractic Center, do I have to file a dba?

A:  This one is kind of on the line, but I suggest you register the dba, since your entire name is not included.  The purpose of the dba is so that everyone in your community knows that it is you running this practice, not someone else.  If you were opening “John Smith Chiropractic” you would NOT have to register the dba.

Q:  How do I register a DBA?

A:  Usually you register with the city where your practice is located.  Many cities want you to publish the dba in the local newspaper a couple of times, so everyone in town knows it’s you.

Q:  Can I get a bank account before I register my DBA?

A:  No, you should register first.  You’ll probably have to use your own personal funds to do this – it is usually not expensive.

Q: Can someone else use my DBA?

A:  If you are a sole proprietor with a DBA, there is nothing to prevent someone else from using it.  If you want to prevent another business from using your name, you can also reserve the name with your state.

Words of advice from successful business woman

Tami Longaberger, Chair and CEO of The Longaberger Company (yes this is the basket company) in a recent online interview with SCORE, gave this advice:

Q: What is the most important piece of practice advice you would give to anyone—male or female—about starting a business? A: Start a business that you truly believe in . . . success will come. Q: What practical advice can you give to entrepreneurs looking to make that big sale or land that big contract? Understand your market and potential customers. Do the necessary research, make sure your business plan is thorough and have a clearly defined marketing plan. Talk to other business owners in your industry and your community to learn from their successes and mistakes.