Credit Policy for businesses and how to extend credit and manage credit risk

I am writing this blog post in response to questions asked on my post titled "Royal Visits with Woman Experts"  Some of the questions I was asked are:

• What is your best advice for women in business who have not felt the support or enjoyed the benefits of financial backing, but who have brilliant and well proven ideas that might be outside the mainstream?
• How do they stay alive financially and where can they look for genuine financial support?
• Can you share your ideas?

What is your best advice for women in business who have not felt the support or enjoyed the benefits of financial backing, but who have brilliant and well proven ideas that might be outside the mainstream?

My advice is to keep your day job and save your money.  Work on your business while you have a steady income. You will have to work nights and weekends to do this but it will be well worth the effort.  When you decide you are ready to leave your job to pursue your business full time, try to keep your employer as a client so that you have a paying customer immediately.

I started my collection agency from my home, I worked for years as a credit manager and saved up $10,000.00 towards my business.  I used that money to purchase computers, desks, phones, filing materials, business cards, letter head, envelopes, office supplies, software, books, trade magazines, and memberships to trade organizations that pertained to my business.  I also decided on my business name and registered with my state and opened a bank account. I created my own marketing materials and website to save money.

I worked weekends and nights at my business and when I felt I had enough clients to leave my day job, I talked to my boss about keeping them on as a client. They agreed to this and I set a flat monthly fee with them to do their accounts receivables and collections.  This is a great idea when you are just starting out.

I did not have any financial support and did not take out any loans.  Having no or very little income is a great motivator for anyone to go out and drum up clients.

I put everything I made into living expenses and growing my business. I worked long and hard and it paid off. 

If you are not able to do that, you can write a business plan and go to your local bank to get a loan or contact the Small Business Association.

I was very confident about what I was doing and never considered failing. I now know it was not a good idea not to have a backup plan in case I did fail, but to me that was not an option. I had 2 kids to feed and support.

Networking and bartering will be a big help to you when you decide to start your business. I have exchanged ads on my websites for business cards for example. I joined some on line networking groups, one of the best is Digital Women. I have been a member for almost 10 years now and still do business with the women I met there. Check out the website for a WEALTH of information on starting a business, networking with other women in business, financing, marketing, websites and anything that pertains to business. You will not be disappointed.

Good luck and please leave me your comments!