Biggest problem that no one addressed, first line of credit you apply for will be 50%+ apr. debt traps. Usually have weekly or biweekly minimum payments, eating up your cash flow. you’re expected to use it until you’re offered more reasonable rates. Unless you’re making 300k rev with bare minimum decent net, getting business debt will initially be a debt trap.
I started my pressure washing business using a business credit card that had 0% interest for 18 months back in 2019. If you know how to manage a credit card(ie. paying off the debt prior to the interest starting) then there is nothing wrong with starting a company using business credit or credit cards.
It’s the ppl with the not so great business ideas that are afraid to invest in that matter. They can’t project any high returns because their product or service isn’t that great or they’re mimicking another businesses model. If you know you’re gonna yield a great return you just need the finances to invest and your ready to jump because you know your idea is brilliant and the money will come.
I never realized the importance of building business credit until I watched this video. The tips and insights from small business owners are priceless. Thank you for sharing!...
Great Video. There was so much great information shared especially for start up and scaling, using financial literacy to create wealth 🤩 Great response and Great questions most people have.🎉
I like S corps, but just didn’t run into any S corp owners. You should watch my video where I ask small business owners their favorite tax write offs, I talked with an S corp owners for a bit
@@LYFEAccounting Ill definitely check that one out. We’ve been an S corp for several years now and if I understand correctly - that allows for an avoidance of self employment tax on the flow through portion of the income (forgive me if my terminology is incorrect - you’re the expert here so please correct me if I’m messing this up lol). But that being said, we’ve saved a significant amount on our taxes by still paying ourselves a solid salary, but the profit that flows through is taxed at a much lower rate.
If you only have a will as opposed to a trust, your kids/family will go through probate to get your/their wealth, and the fees and time associated with such are horrendous.
Im sorry, but a lot of these guys are just dumb business owners. You should never start your business through credit card debt. The interest on a credit card alone is disgustingly high and ontop of that some of these guys are leaving their job without any savings? Absolutely crazy and I wish you called out these bad habits. Most of these guys will probably end up failing in their business due to these bad habits that have in place.
When people make comments like yours, it makes me wonder if you were more concerned with criticizing than learning. It's a short video so no one had hours to share what they know. I bet that you learned SOMETHING.
