Experian Study Highlight Small Business Benefits

Owners of incorporated businesses have average incomes 35 percent higher than the overall population, according to a study by Experian. The global information solutions company recently analyzed more than 1.2 million small businesses and found that:

· Incorporated business owners have incomes 35 percent higher than the overall population. Comparatively, unincorporated owners’ incomes are 24 percent higher.
· Incorporated owners are 56 percent more likely to have completed college, whereas unincorporated owners are 29 percent more likely.
· Incorporated business owners are 94 percent more likely to exhibit “work hard, play hard” attitudes than unincorporated owners and the overall population.

I've recommended incorporating your business for a long time and this study is even more evidence of the benefit.

Welcome to the Business Credit Blog!

I recently poured over the Sept. 2006 issue of Inc. magazine, intrigued by the profiles of entpreneurs who have made the prestigious Inc. 500 fastest-growing companies list. More than one mentioned maxxing out personal credit cards to get their venture off the ground, or pledging personal assets as collateral for their business loans.

That's great when it works, but I also talk to a lot of entpreneurs who relied on personal credit and didn't achieve success as quickly as they wanted. Now they are panicking as the creditors start calling.

Most small businesses will borrow at some point if the plan to grow. Building business credit so you can avoid using personal credit as much as possible is crucial. That's what this blog is about. I'll share business credit building strategies, and would love to hear yours as well.

And, while you're at it, pick up the Sept. 2006 issue of Inc. It's very inspirational and educational. I'm also glad to be quoted in the article on small business credit cards (page 42) -- and welcome your comments!