Growth is a goal for many veteran small business owners and entrepreneurs. As a company grows, it may be necessary to help mitigate risks and in some cases the more a company grows, the greater the risk involved. This can be a challenging cycle for some business owners to address and overcome. Most veteran business owners are no strangers to challenges, but everyone could use some help along the way; here are a few things to keep in mind while planning for growth.
1) Keep Your Business Credit File Up-To-Date and On Track
For many veteran business owners, the opportunity for growth may come in the form of landing a contract with a large corporation or with the government. When these organizations are deciding which company to award the contract to, they may take into consideration an applicant’s Dun & Bradstreet business credit report. This may be in addition to checking to make sure the company is indeed veteran-owned and reviewing any other required documentation. Checking D&B® scores and ratings may help those making contracting decisions act with confidence about the potential supplier’s stability and discipline to fulfill the contract.
Another step toward growth may be securing outside funding. Some use an influx of cash to fulfill existing orders, cover capital expenditures, or address a range of other needs that may contribute to growth. Many traditional lenders may also pull an applicant’s D&B® business credit report as part of the approval process. A strong business credit file may also help a business negotiate better terms and conditions, not only with lenders, but also with other vendors or landlords when looking to expand or get in a new physical space.
Tip: Work to help ensure that your business credit file reflects your credibility before it’s pulled in the application process. An easy way to do this is to help make sure your business credit file information is up-to-date. To help impact your D&B business credit file, you should consider signing up for CreditBuilder™ offered by Dun & Bradstreet.
2) Choose Your Partners Wisely (With the Help of Information)
Frequently, the more a company grows, the more it may interact with and rely on other partners and organizations. Two examples of these types of relationships include company’s suppliers and clients. As a veteran business owner, you’ll want to work with the most reliable vendors and customers.
When you rely on other companies to deliver a product or service, you should choose these partners wisely. Beyond having the goods you need and being a company that’s easy to do business with, you might also want to consider their financial stability. If a potential or existing supplier has poor business credit scores and ratings, they might be a potential risk for closure or non-delivery.
When partnering with new clients, it can be important to know about their payment history and check their business credit report to help assess their financial health. There are different strategic considerations to keep in mind if you are waiting 90 days for a payment as opposed to 30 days.
Tip: Whether you’re getting supplies from a company or supplying to them, it can be helpful to monitor their D&B business credit file so that you can plan accordingly. This information may be accessed through CreditAdvisor™.
3) Get Informed About the People and Organizations you are Approaching
When forming a new business relationship, it can be beneficial to do some research on the company. Getting the basic information, like strategic goals and company history, to the more nuanced, like the backgrounds of key individuals, may help you plan for the type of meeting you want to have as well as help ensure that you are prepared for a range of conversations. You only get one shot at a first impression and research may be one of the best ways to make the most of that opportunity.
Tip: If you want to research beyond general Internet searches, hoovers.com has data and information on a range of organizations.
If you contract with the government but aren’t in compliance with regulations, you can become suspended or disbarred from contracting. Heed the advice of these experts to keep your veteran-owned business in good standing.