I’m Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits.
As an entrepreneur, you are hardwired to enjoy a greater level of risk than the average person. There’s no question about it. But do you enjoy the thrill of business and investing so much that you’re willing to risk being hounded by creditors, declaring bankruptcy, being denied a mortgage, paying more than your fair share of interest on your loans, losing your house?
If you’ve answered no to one or more of these questions, this might be the most crucial blog you’ve read in a long time because if you’re like most entrepreneurs, investors, and business owners I’ve met over the years, you’re in danger of facing all of these horrific problems. You see, entrepreneurs typically make one or more financially devastating mistakes when financing the launch, operation, and/or growth of their business.
In most cases, entrepreneurs don’t realize they’re making a mistake. To tell the truth, even when they do realize they’re making a mistake, they lull themselves into the thinking the consequences will be a minor annoyance until one day they don’t qualify for a mortgage, can’t get to the to-die-for financing offered on a new car, or creditors hound them. Eventually, they’ll have to declare bankruptcy, and it’s all because they used their personal finances to fund the launch or expansion of their business. Once their personal cash is dried up, they turn to personal credit cards to pay for business expenses.
If you own your own practice or are thinking about starting your own practice, business credit is necessary.
Most business owners have no idea that they can establish business credit, and even fewer know how to do so. By taking the time necessary to educate yourself on establishing credit, you would no longer have to use your personal funds for startup capital or working capital. Separating the business from you and treating it as a separate entity is non-negotiable. You want to minimize the impact of one on the other.
By using business credit cards, for instance, your monthly activity isn’t reported to your personal credit reports. Therefore, if you miss a payment or carry a high balance on your business credit cards, then your personal credit scores wouldn’t be lowered. The most important goal with business credit is to obtain unsecured business lines of credit, which can be done once the business profile is set up correctly. An unsecured business line of credit is a loan that is not backed by real estate collateral, and it functions like a regular revolving business line of credit.
Once your business obtains unsecured business lines of credit, you now have the working capital needed to start a business or expand your business. You have checkbook control to use the business line of credit as you wish. Again, best of all, the business lines of credit don’t report to your personal credit report. If you have set up your business profile correctly, a number of banks will lend to you despite being a brand new startup business.
You read that right. Brand new startup businesses with no track record whatsoever can qualify for unsecured business lines of credit for the startup capital needed to finance the medical practice of your dreams.
Make no mistake about it: Business credit is not an option. It’s a must for every business owner. Don’t put your personal assets at risk. Position your medical practice to finance or fund itself.
Need help staying motivated while pursuing your goals? Check out our blog here on how to remain steadfast when you’re feeling the pressure of tough times.
Attention, Physiatrists! Stop leaving money on the table. Sign up for the free video series: How To Build A Profitable Practice in 90 Days or Less: http://www.sixtytosuccess.com
I’m Dr. Hassan, a Board-Certified Physiatrist and Independent Practice Owner. I help physiatrists start and grow their own profitable practices so they can achieve financial independence and live without limits. Follow me on social media @DrHassanRehab.