Episode 48: TY Crandall on the Two Reasons Businesses Fail
How important is capital? Well, think about it like this. Every business that fails, fails because it runs out of capital.
If you are serious about your business and committing to it, capital is the lifeblood of your business.
Ty Crandall, owner of Credit Suite, is an expert in the world of business finances and credit. He says businesses fail because they are poorly managed and they aren’t able to access capital when they need it.
Crandall also points out how it doesn’t work to wait until the last minute to seek capital, but to have a reserve built up for finding opportunities.
It’s getting harder than ever for entrepreneurs to access capital, but Crandall points out, if you take the right steps, there is money out there.
If you want to learn more about business funding and credit, check out Ty’s insane amount of valuable content at www.creditsuite.com/ein
|48: Show notes for Ty Crandall
Q1: 3:50 – Could you talk about how you are working to solve the issue of getting money and credit for your business?
A lot of small businesses, unfortunately, don’t make it. Per the SBA (Small Business Association), the two largest reasons for those failures have to do with lack of capital and lack of knowledge. As entrepreneurs, we can relate to these because often times we are figuring things out as we go. We asked entrepreneurs where they would you go if they needed money. A large majority responded they would go to their bank. The Department of Revenue indicates that 98.2% of small business financing does not come from conventional banks. Less than one and one-half percent of funding for companies comes from conventional banks. That means that the money is out there, and we help people uncover capital. Even if a business has credit issues or doesn’t have collateral, there is financing available. You just have to know where to go to get the money and that is really the role that we fulfill. We help bring capital to businesses through every legitimate funding source, helping them recognize where the money is that will work for them and even help them build their business or corporate credit profile to make them more lendable. That is how we tackle that solution and be able to put capital in the hands of small business.
Q2: 7:00 – How did you get involved in business credit and what gets you fired up about it?
I started out building a mortgage loan business. After the collapse of the real estate market and the fall of my business, I was as close to bankruptcy as I could get. One big thing I learned is that none of us expect to fail but there are so many situations that are outside of our control that can create awful circumstances. I destroyed my personal and family’s finances because I didn’t understand that you could get money without a personal guarantee and without personally being liable for what took place in your business. The next business I started was a credit improvement company because I wanted to be part of the solution when the economy shifted. I was astonished to realize that you could build an entire credit profile and score that is linked to your EIN, that you could get business credit cards without personally guaranteeing them, without being personally liable, and was even more shocked that were no advocates out there for this. Nobody was talking about this, yet what I realized was one of the most important things that all of us should be taught from the beginning when we get in business. So that’s where we are now, making sure that anybody who wants to start or grow a business has access to the capital to do so.
Q3: 10:55 – Do you ever feel like you have to force yourself to create content or is it all genuine?
I learned many years ago how to work on my business, not in my business. But one thing I have never been able to do is outsource content. That is something I found that I have to do myself. So I made something called the Multiple Uses Model and how it works is I provide a live webinar every two weeks. I research a topic, prepare a presentation in PowerPoint and provide it to my team. From there they refine the content and it becomes articles, blog posts, email content, PowerPoint presentation, social media content, live video on YouTube, a live webinar, a podcast and an automated webinar. From a few hours of research and refinement, we create multiple uses for the information.
Q4: 13:45 – What team is required for you to accomplish that?
We use a company called Upwork and that is where you can get virtual assistants. We have a large team of American employees, but we also realize that we have a lot of tasks that do not require $15-20+ an hour person. We utilize Upwork to hire international contractors, at a fraction of the rate we pay our employees, to perform video work, audio work, voice overs, graphic work and just straight virtual assistants.
Q5: 16:20 – Can you talk about your philosophy of educating and how that has worked for you in marketing?
Credit repair is very effective. When you understand the consumer laws that regulate credit and credit reporting and scoring, you understand how many manipulative things are done to people’s credit reports to lower their scores. Through automated email campaigns, we were able to help educate our prospects on the credit system and help them understand what we did. Through general education efforts, we created an environment where we are the obvious choice when business owners are ready to find credit or repair their credit just by being a trusted company.
Q6: 23:40 – What are some steps that entrepreneurs can take to make themselves more viable long term?
The first thing that everybody needs to know is that, in business, you should not wait until you need money to go get it. In so many instances we see people who are desperate and when you are desperate it makes it tough, on consumer or business lending, for people to want to lend you money. So, get money before you need it. The second piece of advice is that business credit is applicable to any business even if you are just starting up. So one of the first things you should do is start building your business credibly. Have a business address, phone number and fax number that isn’t also your personal address/phone number. Make sure the name you use on your application is synonymous on all of your documents.
Q7: 27:35 – Can you share what doing all these things can do for you?
You have to make sure you have a credible business that has continuity with your name across everything to make yourself easy to find. A common reason people get denied is because they don’t include “Inc.” in their business name when filling out the application.
Resources: www.creditsuite.com/ein – Free report
“How to Build Credit for Your EIN that’s Not linked to Your SSN”