National Small Business Week may be over, but your small business journey is just beginning.
In an ever-changing economic landscape, small businesses must remain vigilant and adaptable, finding innovative ways to effectively manage credit and capital. Many small businesses rely on business credit to finance the purchase of new machinery, acquisition of inventory, and expansion of their operations.
If you don't need the funds or don't currently have credit, it's a good idea to establish business credit for the day you need to apply for external financing.
Here are some simple steps to establishing business credibility.
- Establish your business as a separate entity. Separating the owner and the company is often the best approach when establishing business credit. Because there are different types of corporate structures, you may need a link to understand LLCs, S-Corps, and partnerships, and finding out the impact of each business structure is important. You will also need advice from a lawyer to avoid making mistakes in your DIY attempts. Most states have a page with links to small business formation, usually in the Secretary of State's office, and some states may also have resources for minority small businesses.
- Register for a Dun & Bradstreet DUNS® number. A DUNS number is a unique identifier for your business and is available free of charge from Dun & Bradstreet.
- Obtain an Employer Identification Number from the IRS. To file your company's taxes, you need an Employer Identification Number (EIN).
- Open a business bank account. A business account can also help you build a track record with the bank.
For Black communities, decades of systemic racism and discrimination have left them at a particular disadvantage when it comes to economic opportunity. That's why our society must prioritize financial education. Taking control of our credit is one step she takes to building financial health that we can control. It's never too late to start or restart. The NAACP has two partnerships that help understand and establish trust. Our relationships with TransUnion and Hello Alice help grow and sustain Black small businesses.
Financial Education and Wellness: NAACP and TransUnion
trans union
Black-Owned Business Resource Center: NAACP and Hello Alice
Hello Alice
Commitment to trust is essential to the future of your business. You can start exploring options and resources for your next steps with business credit.
