Success is measured in never giving up…

Which of us hasn’t faced adversity…numerous times?

The true “test” of one’s character is his or hers response to adversity. Life events simply happen to us all…. some good, some bad.

I have been an entrepreneur for over forty years. That is, I’ve never actually had a job or a career path other than starting my own businesses. Despite all the optimistic drivel promoted by so-called experts…starting and running your own business is by far, the hardest career choice you will ever make.

At the oh-so-young age of 19, I launched my first “official” business, moped rentals, at my summer home (since age 9) of Nantucket Island, Massachusetts. I set up my little rental business with 15 shiny red Puch mopeds (imported from Austria) in a dirt lot with a popcorn stand in front. There, with a fold up card table and cash box bought from the local thrift shop for 50 cents, I set about on my first enterprise.

Within days, my little fleet was sold out and I also faced my first of many challenges to the survival of that business. The Mayor of Nantucket (actually the head of the Board of Selectmen) unilaterally ordered a “Cease and Desist” of my business of renting mopeds. There was zero legitimate reasoning behind this, of course, ( I had done my homework before setting up shop) except for the fact that the Mayor also happened to own the largest bicycle rental shop on the island. I was cutting into his business as an upstart competitor.

I went to my landlord and was referred to the top attorney for fighting the Town. Due to this kind and capable man’s taking my case for a fraction of the true cost, we fought back and in a series of Court decisions, beat the Board of Selectman into the ground. I actually won $1 million in judgments against the Town and against each of the corrupt Selectmen as individuals. It took years but I won. I never did collect on my judgments but my little rental business survived and thrived for 20 years there.

That first summer I earned $55,000 in only ten weeks and I was off to the races and never looked back.

This was an invaluable lesson learned…there really is “no free lunch.” As an entrepreneur, you not only have to create the opportunity, you have to capitalize on it as well as sustain it through the inevitable trials and tribulations. Many times, when faced with nearly insurmountable odds, I really wanted to throw in the towel….but I did not. To me, the greatest failure would have been to give up my dream.

Over the last four decades of entrepreneurship, I could fill several books on the challenges faced and overcome. Many of these challenges weren’t just about business, there were many personal sacrifices made also. In all candor, those were always the hardest to bear.

I am 60 years “young” now and haven’t slowed down much at all since those heady days of a teenage entrepreneur. I’m now on an epic venture in the luxury field, which involves travel and multi-million dollar assets. I think I have the “formula” down for this latest venture, or nearly so and win or lose…I will never stop swinging for the fence.

Perseverance and ultimately overcoming adversity really is its own reward. Wish me luck as I wish all of my fellow entrepreneurs out there.

Note: Previously published by Peter J. Burns III on Medium (2016)

A Lesson in Luxury Bartering…

Note: Previously published by Peter J. Burns III on Medium (2016)

Calling all luxury vacation villa owners…we offer you hundreds of thousands of tax benefits that you never knew you had coming to you…

Note: Previously published by Peter J. Burns III on Medium (2016)

Success is the best revenge…start your own business

So…my last blog (see below) reflects my efforts to fill numerous projects with a talent pool of former “wage slaves” and “cubicle dwellers” who have embarked on the path to self-determination through entrepreneurship.

https://www.linkedin.com/pulse/entrepreneurial-twist-service-providers-peter-burns?trk=prof-post

That effort is going extraordinarily well and my calendar is filled with interviews to explore the synergy between “would-be” employee… turned profit generating entrepreneur to the benefit of the job seeker and my ever-growing project roster.

During the course of these interviews, I realized that what comes quite naturally to me (it better after over 40 years!) of establishing a corporate entity for each venture is notthe normal course of business for the former “cubicle dweller” and now fledgling entrepreneur. To that end, I unearthed an interview that I did with a business reporter some three years ago, which happens to be pretty timely for this latest page in my ongoing path of self-reliance of business start-ups.

To that end, please read this interesting (I hope) interview…

Entrepreneur has solution for businesses squeezed by government

Special

Listen | Print By Cadie Carroll Apr 2, 2013 In Business It’s safe to say that most people dread that letter from the IRS that suggests auditors would like to take a closer look at their books.

That trepidation is increasingly being felt by small business owners, too. Specifically, the IRS has honed in on how business owners are classifying workers — independent contractors or full-time employees. The Wall Street Journal recently took a look at this trend in a story that served as a call to action for serial entrepreneur Peter J. Burns III. Burns, who started his first business at age 19, suggests a unique solution for small business owners — or any business owner, for that matter — facing this type of problem. Burns suggestion: make the employee a small company. “Rather than hire the individual as an employee, the entrepreneur explains to the individual what the benefits would be if they were to incorporate by obtaining the necessary EIN number, bank account, and business license to establish a consulting business in their specialty field,” Burns told the Digital Journal. “The consulting business would then contract with the small business for this service.” That’s right. Burns suggests that instead of hiring on full-time employees to work for your small business, why not have that individual create their own start-up consulting firm, which would then contract with your small business for work. No catches. No hoops to jump through. It would function as any other business-to-business interaction would, and you would not be faced with the difficult task of categorizing a worker as an independent contractor or full-timer. And as of this point in time, and according to Burns’ knowledge, this is 100 percent completely legal and within all IRS rules, regulations and guidelines. In fact, Burns has employed the model with his company Financedebtandequity.com, which serves as a portal, or conduit, between small and medium-sized businesses in need of capital and willing lenders. In an exclusive, in-depth interview, Burns discussed how he came up with this idea, what it means for the IRS and most importantly, what does it mean for you and your business. Here’s what he had to say:

CC: How did you come up with this idea? PB: I look at it from a purely business stance. The government is jamming us [small businesses] right now trying to make it to where if you have 50 employees or more, they’re trying to force you to have ObamaCare. They are taxing us into nonexistence… So I said let me take a look at how I can solve one big problem: I’ve got a business and I’m growing, and I need help, but if I bring people on I have all of the restrictions of having to worry about unemployment insurance, withholding taxes, benefits… And then I said, “What if the individual became a business themselves and simply had their services exchanged for full compensation from the company?” It wasn’t the half-solution of being an independent contractor… That is so restrictive on all of the elements you have to prove, and then the IRS will slam you and fine you, both the individual and the employer, if they disallow that. But they can’t do anything about incorporating and starting a business because that’s IRS guidelines and if you adhere to exactly what they require (EIN number, bank account, contractor services), then you’ve come up with a solution using their own legislature against them. I’m not trying to say we’re anti-government. I’m saying if they want us to play by the rules, then they have to obey the rules too. I see it as a really good solution; I see it as a way to hire yourself. You create a little company — you get to offset all of the other expenses you can’t do as an individual. The company itself that needs those services pays a simple gross amount which is up to the client company… if they don’t perform correctly then you sever the contract — you don’t have unemployment insurance, you don’t have to worry about them filing for unemployment, you don’t have any of the headaches…

CC: What are the benefits of doing this? PB: The top benefits are that it is a simple transaction between business to newly created business without any of the hair of reporting and withholding taxes, or with social security and health care et cetera, et cetera, et cetera. It streamlined what was the relationship between the employer and employee — it streamlined it into a very efficient business model, which is what capitalism is supposed to be all about anyway. You don’t have to worry about hiring them [independent contractors] and making them an employee and towing the line for all of the things you have to do that the government requires. It is a simple exchange of services for money for an actual service performed, agreed to and paid for. In this case the IRS code doesn’t have anything to do with it. It is a “pay-for-services to an actual company to company transaction.” Period. You agree on a payment amount, service is rendered, you pay it and it’s a straight deal. I don’t see the negatives in this…except the IRS can’t grab a bunch of money from people and there’s no way to actually screw the individual or the company if you use my process. I can’t see the negatives, honestly.

CC: What did your lawyers and accountants have to say about this? What is the IRS going to think? PB: I do not believe the IRS is going to like me talking about this but guess what, I don’t really care. I’m the advocate for small business. I’ve been doing this since I was 19 years old… I’m their friend — government is not so I’m going to do whatever I can to help. My CPA is a principal at one of the largest accounting firms in the country, my lawyer has been practicing for 25 years. I went to them and I said ‘Punch holes in it, tell me… is this right or wrong?’ They both looked at me and said it is completely within the realm of the current law. My accountant didn’t think it was sustainable, he thought companies are going to have to hire people, and I said of course they are — but what if you can exchange the bulk of, or at least some of your would-be employees with this concept. My lawyer said technically it’s completely correct.

CC: So what made you want to help out fellow small business owners so much? Where is this creativity and passion coming from? PB: We’ve got to do something to help our small business population; nobody’s helping us so we’ve got to help ourselves. When you involve government with capitalism, it’s a cluster. It always has been and it always will be. It’s just like how government is interfering with crowd-funding right now. What was a great idea and was actually passed is now mired in controversy and legislation… it’s just a mess. Let business people stay with business people, let government stay with government. Do not mix the two — it is a recipe for disaster. I’m just another entrepreneur out there just trying to help my fellow entrepreneurs. I am not a lawyer, I am not an accountant, I am just a fellow businessman who may have come up with a way to save a lot of time and trouble, and not to mention money, for my fellow entrepreneurs.

Read more: http://www.digitaljournal.com/article/347056#ixzz4K3VeeDAr

Note: Previously published by Peter J. Burns III on Medium (2016)

“entrepreneurial twist” to service providers…

First off, let me state unequivocally that I totally respect talented “creatives” that ostensibly produce all of the beautiful graphics, web design, collateral material, lead generation campaigns and anything else that drives and supports business enterprises. I simply don’t enjoy paying for these services.

The “nature of the beast” is that you never know exactly what you are going to end up with and there’s nothing you can do about it… having already committed time and financial resources to undertake each service product before actual delivery. What’s more is that you never know who you are hiring, with literally scores of providers specializing in each bit of marketing minutia, all declaring they are the “best,” the “cheapest” or even the “best and the cheapest” yada, yada, yada…

What is particularly frustrating is that these so-called service providers shroud what they are actually doing with the same type of legalese that lawyers use to confuse we mere mortals. And the biggest rub…you really never know if a $100 a week Filipino is actually doing the work that you are paying 10 times that (or much more) to the US-based service provider.

Six weeks ago, I put the word out here on Linked In, their LinkedIn Pro Service and a couple of other freelancing sites with the basic messaging outlined on the blog below:

https://www.linkedin.com/pulse/call-action-service-entrepreneurs-peter-burns?trk=mp-reader-card

The response was nothing less that paralyzing: 1st offer-76 applicants, 2nd offer-91 applicants and finally, my ad two weeks ago for a Personal Assistant has yielded 80 responses and counting. That is, nearly 250 qualified, intelligent and eager to work professionals were all vying for a handful of positions to provide services for our modest start-up enterprise. Even by sifting through the sheer volume of applicants, contacting those I’m interested in via email, and subsequently following up with a call to those that make it that far…I have still personally interviewed invited two dozen individuals who met me in person, which equates to a full couple of weeks of meeting 2 or more service providers nearly every day.

Here’s what I learned and what I just came up with….the job market in Southern California (where I am now) is overrun with qualified and in most cases seriously overqualified professionals, who have traded nice weather and a relaxing lifestyle for a severely reduced compensation opportunity. The competition to finding well paying and challenging jobs is staggering. As a result, an employer can retain the services of well-honed professionals in virtually any field for a fraction of the going rate elsewhere in the country.

In interview after interview, I discovered the old axiom — “People are like onions…you have to peel the layers to see what they have to offer.” I met people who could not only do the service that I had originally reached out for but could do so much more…even better and faster than I had hoped. This created a sort of cross-pollination opportunity…an applicant, who was more interested in the “30,000′ view” of working for a wage or vendor payment could actually be recruited into one of my many enterprises that were propped up and ready to go, contributing the necessary support and implementation to make it so.

Of course, everyone is different and in truth, only a certain percentage of applicants were able to consider the opportunity of a revenue share or even equity on a new venture. Their main business had to be stable enough to pay their bills and could only support an effort that represented the time that they could commit to “spec.” That is, the applicant must either have extra time or bandwidth, free from obligations to take a “flyer” to engage in the possibility of starting a brand new business with me or aiding an existing one that needed their horsepower and degree of expertise.

Happily, this new revelation of channeling certain job/service applicants has already started to bear fruit. In only a couple or three weeks, I have channeled the following job/service applicants into the following opportunities:

Two independent lead generation experts have partnered up with me on a $5 per phone call lead generation program for an airline ticketing partner, splitting the take 50/50 with me from their efforts. One such marketing partner of my airline ticketing contact earns $35,000 per week from his efforts…so the upside to my lead gen partners is pretty exciting.

One web designer/programmer, able to commit 10 hours per week for 2–3 weeks is busy delivering a brand new web site that is dedicated to an exciting new opportunity involving cost segregation studies for multi-million dollar vacation villas recruited to our Program. He will glean a return that is a multiple of his stated cost of time spent from a % of the revenue earned from the new enterprise. Should this arrangement prove successful for him, the web designer will commit his extra time to ongoing projects like this that I bring to him.

Another web designer has received both a stated commission on leads turning to sales from his lead generation efforts as well as an equity stake in the business of flying pets and their owners by private jets. His contribution is creating the brand new web site with all of the “bells and whistles,” marketing the unique enterprise and both maintaining and improving the site for the life of the business.

A Personal Assistant recruit, who happens to have both graphics arts skills, professional writing skills as well as a Real Estate sales background is now earning commissions from booking trips from leads of luxury travelers to our web site as well as securing new villa inventory into our Program. Those efforts which are non-commissionable, like graphics work and professional writing assignments, earn her market hourly rate which is added to her commissionable sales at a higher rate to compensate for her hourly work earnings.

Yet another web designer is updating some of our older web sites and creating a brand new one for another “bookshelf” enterprise that was researched and deemed a profitable opportunity…yet needed the web site, SEO and all of the infrastructure in place to launch. This web designer earns an equity stake in the enterprise, which encompasses his technical skills to re-purpose my old sites and offer ongoing tech advice and solutions for my myriad of projects.

Another Personal Assistant applicant, who happens to possess a resume’ of impressive skill sets in media, professional writing and corporate organization and I are busy working our a formula of mutual profit through various assignments. We aren’t there yet but I’m confident we will be shortly.

Yet another Personal Assistant applicant with an Industrial Engineering background is meeting me tomorrow morning to discuss his particular application for participating in one of my engineering marketing niches that I’ve recently re-introduced. His talents fit in perfectly. Now, we simply have to determine his motivation for my unique style of compensation…or not.

Finally, at least for today, I just got off a very enlightening phone conversation with a younger version of myself, who will meet with me next week, along with a very bright technical colleague to discuss any number of verticals that I’ve created and that they hope to manage on my behalf and for a piece of each deal that they can assist me with.

I’ve always said that the success you gain in business is directly proportional to the success you have with people. Looking at the traditional process of interviewing job applicants and service providers for tasks needing completion…by instead seeing these people as valued collaborators and partners is very exciting and is expected to be very profitable…for all parties.

Another day…another opportunity!

Note: Previously published by Peter J. Burns III on Medium (2016)

Luxury Group Homes Provide Dignity and Comfort for All Ages – Peter J. Burns III

Peter J. Burns III is a successful serial entrepreneur and philanthropist. Burns lives by the principle belief that to truly do well, it is critical to perform acts of kindness for others. As a self-made multimillionaire, Burns has deep pockets and access to a vast network of influential individuals. Therefore, he is able to do a great deal of good for others.

While Peter J. Burns III continuously powers a range of new and pioneering projects, Luxury Group Homes is an especially innovative and beneficial endeavor. If you have not heard of Luxury Group Homes yet, you definitely should know about this enterprising project and its potential to help countless people.

Truly Fair Housing

Firstly, it is important to understand that “group home” refers to a housing entity in which multiple non-related individuals live together. Often, group homes house elderly people who need extra care. Unfortunately, many people find traditional group homes less than satisfactory. Traditional group homes are not always comfortable living places, and moving to a traditional group home may require a new resident to move far from his or her community, where HOAs and similar groups may be reluctant to accept the establishment of a group home.

However, the Fair Housing Act (FHA) was created to ensure that protected groups, such as people with disabilities, would not be subject to discrimination in terms of housing. Peter J. Burns III, who wholeheartedly supports the aging population and individuals with disabilities, envisioned Luxury Group Homes as an alternative to traditional group homes. The Luxury Group Homes project abides by the FHA and is compliant with the Americans with Disabilities Act (ADA).

Luxury Group Homes offers residents with excellent care, social activity, and gourmet meals in sophisticated settings. Because of the FHA, Luxury Group Homes may be built almost anywhere, and are a solution to the problem of elderly people being driven from the neighborhoods in which they planned to retire. Individuals absolutely deserve to live with dignity; reaching a certain age or needing extra support should never drive a person to accept unsatisfactory living conditions.

The Premier Luxury Group Home

Burns’s first Phoenix Luxury Group Home is pictured above.

The first Luxury Group Home developed by Peter J. Burns III and his associates is an assisted living mansion built to accommodate 10 residents. The property is located in Phoenix, Arizona. It features sumptuous private rooms, elegant group spaces, first-class guest quarters, a swimming pool, a lush lawn, and a serenely private chapel.

Above: an interior view of a sitting room inside Burns’s signature Phoenix property.

This historic mansion was the largest private property in Arizona when it was built in 1929. The building has been fully updated with the highest-quality modern comforts by Peter J. Burns III’s trusted, established developers in order to provide residents with the excellence they deserve. The development is intended to be just one of several Luxury Group Homes which will provide the same exceptional care and white glove service.

Pioneering Plans for the Future

In order to serve more individuals with tasteful, peaceful surroundings in their later years, Peter J. Burns III is currently planning other luxury residences. Potential lenders are encouraged to invest in this project, which will positively impact the lives of many. Because lenders fund up to 90% LTV of the real estate portion of Luxury Group Homes acquisitions, the barrier to entry is significantly lowered for potential investors. To find more information about this project, including blueprints, figures, and ways to invest, visit www.luxurygrouphomes.com.

Luxury Group Homes is made possible, in part, by Burn$ Funding. Click here to find other investment opportunities and sound financial solutions. Read more about Peter J. Burns III and his pioneering projects and businesses at www.peterjburnsiii.com.

Article by L.K. Bright, MLS & MLIS

The Surprising Relationship Between Entrepreneurship and Sleep

Peter J. Burns III urges entrepreneurs to get sufficient sleep. Burns is a serial startup entrepreneur who has started over 150 innovative businesses since his teenage years. He was recently interviewed on The Kim Pagano Show about his past and current ventures. 

During the interview, Burns says that he tries “to get a lot of sleep because its very productive.” It might be surprising to hear this from someone who has started so many companies at such a startling rate. That’s because there is a misconception that entrepreneurs work around the clock, which Burns also address in the interview. According to Burns, if entrepreneurs do not get enough sleep, they do not tend to be successful.

“Sleep is actually a regenerative period,” Burns explains during the show, “It also allows you to assimilate all of the concepts and ideas that have come from multiple sources.” Based on research studies Peter J. Burns III is right; sufficient sleep is positively correlated with both productivity and creativity. The American Academy of Sleep Medicine (AASM) reports that “poor sleep at night could mean decreased work productivity in the morning” (Yang, 2018).

The AASM describes the following information gleaned from a study of over 1,000 people:

  • Individuals who slept 7-8 hours were the most productive group.
  • The subjects who slept only 5-6 hours experienced a 19% decrease in productivity when compared to the aforementioned group.
  • People who slept less than 5 hours were 29% less productive that the individuals who slept 7-8 hours.

As Peter J. Burns III advises, getting enough sleep is definitely crucial for entrepreneurs. Starting and running a business takes a lot of focused energy. Without enough sleep, entrepreneurs can become too drained to be efficient. It can be tempting for entrepreneurs to stay up late; these individuals actively work to make their visions become realities. However exciting an idea may be, entrepreneurs need to put work aside and make sure to get some snoozing in.

With regard to the relationship between sleep and creativity, Peter J. Burns III is correct as well. As reported in The Journal of Sleep Medicine “sleep facilitates creativity, and this idea has received substantial empirical support” (Ritter et al., 2012). Your body obviously tires when it lacks sleep, and your mind does as well, leaving your devoid of new ideas.

So, what should an entrepreneur do if a great idea arises in the middle of the night? Peter J. Burns III suggests that these individuals write their ideas down. “If you don’t write it down, you might not remember it the next morning,” he cautions. Furthermore, it is easier for you to go back to sleep when you are not fretting about forgetting your thoughts.

“I have a pad and pencil right next to my bed,” Burns says. If this strategy works for brilliant start-up strategist Burns, it is certainly a noteworthy technique for any entrepreneur. 

Simply put, everyone needs to sleep, but an entrepreneur may need sleep even more than the average individual. Take Burns’s advice and allow sleep to boost your productivity and creativity. You will definitely have a much better shot at successful entrepreneurial endeavors if you are well-rested.

You can listen to a recording of the interview here:

To learn more about Peter J. Burns III and his current and upcoming projects, please visit www.peterjburnsiii.com.

Sources:

Ritter, S. M., Strick, M., Bos, M. W., Baaren, R. B. V., & Dijksterhuis, A. (2012). Good morning creativity: task reactivation during sleep enhances beneficial effect of sleep on creative performance. Journal of Sleep Research, 21(6), 643–647. doi: 10.1111/j.1365-2869.2012.01006.x

Yang, R. (2018, June 4). Poor sleep at night could mean decreased work productivity in the morning. Retrieved November 14, 2019, from https://aasm.org/poor-sleep-at-night-could-mean-decreased-work-productivity-in-the-morning/.

Article by L.K. Bright

Support for Self-starting Entrepreneurs – Peter J. Burns III

Peter J. Burns III carries serious clout as an entrepreneur. He starts successful new businesses at an astounding rate; he has begun over 150 pioneering startups over the last few decades. Burns uses his own extensive experience to help boost young entrepreneurs to success. Over the past several years, he has provided both formal and informal training to would-be entrepreneurs, opening doors and opportunities. His mission is to offer experience and support to young entrepreneurs who are not often given the opportunity and guidance they need to build their businesses.

Educating Entrepreneurs

Burns’ experience teaching entrepreneurship skills in a formal setting began at Arizona State University; he became active as an educator there almost 15 years ago. He explains that he first taught courses “as an Adjunct at the venerable Barrett Honors College at ASU.” Later, he expanded these efforts by “moving the whole Program over to Grand Canyon University,” where he “started the first accredited College of Entrepreneurship at GCU.”

His impressive teaching experience extends beyond the borders of the U.S. He fondly recalls his time as a “Visiting Entrepreneurship Educator at two top universities in Ethiopia several years ago.” Burns was impressed by “the sheer brilliance and earnest enthusiasm of these young men and women.” He explains that teaching overseas was “one of the most satisfying times in a four-decade-long career in entrepreneurship.”

A Practical Stance on Academics

After moving to California a few years ago, Burns describes how he “started no less than 5 new ventures and have actively sought the help of millennials as my interns in each new venture.”

According to Burns, millennials are an interesting group to inspire and “there are the ‘jewels’ in every batch” that he interviews. “I have gotten quite good at picking the winners and I am glad to place my bets on them,” he explains.

While providing mentorship to these millennials, as well as valuable internship positions, Peter J. Burns III noticed, with great concern, that many of these young entrepreneurs had accrued a lot of debt. Most of that debt was due to student loans. It troubled this philanthropist that both parents and millenials “fell for the falsehood that an expensive education ensured success in the business world.” Most young entrepreneurs he has coached tend to be in about $50,000 worth of debt. “I have even met young people with $100,000 hanging over their heads as they enter the ‘real world,’” Burns reports.

As Peter J. Burns III points out, “Employers really don’t care where you went to school…all the prospective employer wants to know is can you do the job offered, efficiently and for the benefit of his or her business.” As the cost of education continues to rise, the number of young people who employ themselves simultaneously increases. Therefore, interviewers’ opinions of these self-employed millennials really become rather irrelevant. Burns admires the truly hard-working “self-starters” who avoid “spiraling into student loan debt.”

Providing a Foundation

Peter J. Burns III

Except in rare cases, such as the college programs created by Burns, entrepreneurial skills do not tend to be addressed informal learning settings. In order to help millennials acquire experience, Peter J. Burns III continues to offer these individuals mentorship, business funding opportunities, and internships. “My door is open to the would-be success stories out there, and I will give them a shot,” he says, welcomingly. However, he reminds entrepreneurial hopefuls of the adage, “Of whom much is given, much is required.”

Through the efforts of Peter J. Burns III, countless individuals have received inspiration, advice, and encouragement to follow their dreams. If you would like to learn more about this serial startup entrepreneur or reach out to him, visit his site: www.peterjburnsiii.com.

Your Business Needs Good Credit – Peter J. Burns III

As a lifelong entrepreneur, Peter J. Burns III is a true business guru. Burns has started over 150 successful businesses during the past four decades, including Burn$ Funding. He started Burn$ Funding to provide other entrepreneurs with sound solutions to their financial and credit needs. According to Burns, your business absolutely needs to have good credit in order to be as effective and lucrative as possible.

What is business credit?

Business credit is built much like personal credit is built. However, business credit is tied to your employer identification number (EIN). While personal credit tells lenders if you are a reliable borrower, business credit tells lenders if your business is a trustworthy entity. When credit-reporting entities like Experian and Equifax consider your business credit score, they take several factors into account. These factors include the length of your credit history, your credit card utilization, your repayment history, and outstanding balances.

Why is business credit important?

  1. Good business credit will make you more eligible for excellent financing opportunities.

Without good business credit, your chances of securing the capital you need for your company are limited. It is also important to know that the U.S. Small Business Association (SBA) reports that businesses have between 10 and 100 times the credit capacity of individuals. If you want your company to grow, business credit is a must!

It is also important to consider that even if you do not need extra capital right now, you should always have an emergency fund in the event of an unexpected occurrence. Emergency business funds are of the utmost importance! For example, if you were unable to work for two months, you would still need to pay your employees.

  1. Building business credit will help you protect your personal credit.

Never max out your personal credit card to pay for business expenses and always keep your business and personal credit separate. As previously mentioned, you will be able to access a much greater deal of credit as a business, as opposed to as an individual. Entrepreneurs like Peter J. Burns III know that is nearly, if not entirely impossible to run a business using only personal credit. In order to scale your business, you definitely to build your business credit.

  1. Having a business credit card will help you to separate your expenses.

For accounting purposes, it is crucial to know where your money is going. Without using a business credit card, it is very difficult to separate personal expenses from business expenditures such as payroll. By tracking your business expenses carefully, you can make the right decisions about where to spend your organization’s money and where to “trim the fat.”

Furthermore, if you own an LLC or a corporation, you definitely need a shield between your personal assets and your business. A separate business account can help you to protect you from being personally liable for debt accrued by your company and legal fees incurred due to lawsuits.

  1. Cost segregation opportunities should never be overlooked.

If you want to retain more of your money, it is absolutely essential that you take advantage of cost segregation. When you file your taxes, it is much easier to separate your personal and business assets if you use a business account for your company’s expenses. Maximize your tax saving by using a business credit card.

How do I build business credit?

  1. First, incorporate your business or establish it as an LLC.
  2. Obtain an employer identification number (EIN). This number is similar to your social security number, but it identifies your business (as opposed to you as an individual).
  3. Open a bank account using your company’s legal name.
  4. Apply for a business credit card, spend wisely, and repay your balance.

For financing solutions and opportunities to build your business credit, visit www.burnsfunding.com, which was established by Peter J. Burns III in order to help entrepreneurs and founders to manage their financing. There, you will find a variety of business-savvy tools to help you succeed. You can even apply for Peter J. Burns III’s Entrepreneur’s Credit Card. The card will allow you to receive up to $175,000 in unsecured credit and you will pay 0% interest for 12 months or longer.

Follow Burn$ Funding on LinkedIn here for more information and updates on the company’s special offers.

Article by L.K. Bright