Today, I’d like to take some time to talk about the big changes that have occurred in the market over the past five years or so…
Back in 2009, you could buy things for so cheap it was unbelievable, but that advantage was wasted because it was incredibly difficult to borrow money! Today, in 2015, there is BIG money available in the marketplace… The stock market is at an all-time high, the government has loosened up some of its restrictions, there are low interest rates, and banks have plenty of money available…
The point is, things have changed drastically, and as a business owner, you have to be cognizant of these trends! You are and—in most cases—always will be the PRIMARY investor in your Practice. Sometimes that means taking the funding out of your personal account, and sometimes that will mean getting a loan from the bank… Either way, you need to be in a position to acquire capital. You need to be BANK READY.
You might be wondering, “What exactly does being ‘bank ready’ entail?” It’s a totally reasonable question, because unless you’ve ever been through the process, there is no way that you could know what to expect. Being bank ready means that you:
1) Pay all of your bills on time. Auto-pay is an easy way to eliminate the error in this process.
2) Check your credit score. You need to aim for a score above 720.
3) Keep balances low on credit accounts.
4) Don’t close lines of credit. Instead, leave them open and opt not to use them. This actually builds your credit.
5) Build liquidity/cash on hand.
6) Set up a down payment account.
7) Don’t give away Practice equity!
8) Know your numbers (Practice debt, overhead, profitability, etc.)
9) Track your net worth.
10) Read up on the bank’s lending criteria.
11) Use a financial planner that will help you forecast the financial future of your Practice. (*I personally recommend DDS Financial.)
That might sound like an overwhelming to-do list, but I promise you that it will:
a) save you from a lot of pain and frustration
b) give you the most positive and successful investing experience
If you’ve ever been to one of my seminars, you know that I’m not big on debt, but you need to understand that in certain situations it is 100% necessary. Use debt to your ADVANTAGE to make investments in your Practice so you can receive tremendous ROIs. And the sooner the better, I might add—because, at the moment, you can get funds at a very low interest rate. Don’t make the mistake of waiting until interest rates are very high to capitalize your business!
If you’d like to learn more financial tips and strategies that will help get you on the path to financial freedom, then give my team a call today at 866 917 2808. They will be happy to answer any questions you may have, let you know your options, and get you the tools that YOU need to succeed.
Until next time,