Yesterday, Consolidated Credit hosted a workshop for small business owners at our South Florida headquarters. We’ve done this for years, but almost every time, I’m asked a form of this question: “Why is Consolidated Credit teaching business owners? I thought you get individuals out of debt.”
My answer is always: That’s true, but we prefer to stop debt before it happens. That’s why we offer so much financial education.
Small business owners are the backbone of every community in this country. The federal government says there are 36 million of them, representing “99.9% of all businesses.”
What’s odd is that the government considers a small business to have up to 500 employees. That’s a lot of employees! But it’s also true that 8 in 10 small businesses are solo ventures – with no paid employees.
While you can’t get smaller than one, the sheer number of solo ventures represents millions of hard-working people trying to take care of their families. Sadly, after five years, half of them are likely to fail.
Here’s how that directly affects Consolidated Credit: Almost half of those entrepreneurs use their personal credit cards to launch and maintain their small business. Those who fail will be out of work, but not out of debt.
Yesterday’s workshop was called The Road from Personal to Business Credit. Consolidated Credit financial educator Doris Baker explained the difference between the two forms of credit and how each works. Then Phil Zeman, community development officer for SouthState Bank, gave tips for “access to capital.” That included everything from writing a business plan to seeking underwriting.
If you’re a small business owner or thinking about becoming one, your very first step is personal. That is, you need to ensure your own finances are stable. Consolidated Credit’s certified credit counselors can give you a free debt analysis. It’s in-depth and no-obligation. But if you need to shed personal debt so your business can grow, call us.
