The 3 Worst Business Credit Cards

Here's my opinion on business credit cards - don't use them if you don't have to. You should be self bankable, but I know this isn't always the case. If you do need to obtain a line of credit for your business then avoid the business credit cards offered by Wells Fargo, HSBC, and U.S. Bank.

Why?

I did my research on the worst credit cards for businesses on the market today. What I found was the repetitive ranking of Wells Fargo, HSBC, and U.S. Bank's cards within the top 3 lists of several other financial bloggers. This prompted me to do a little more digging. Not a single one of these cards adheres to the CARD Act protection clause and none of them have open and transparent policies regarding their credit reporting practices- or any of their practices for the matter.

Basically, the three banks mentioned above aren't looking for a long-term partnership with new business owners. Instead, they're looking to make a quick buck and not tell you how they are going to do it. Stay away. There are plenty of great credit cards out there. In fact, there are so many available that I'm not going to list them. Just don't accept any credit cards from the above mentioned banks!

Again, if you can stay away from putting any business expense on a credit card- do it. If not, select a card that reports your good payment history and has open and honest policies when using the card.

Until next time,

Twyla Garrett

Recommendations - Growing Your Business

There is a restaurant in New York that has been around as long as the city has- ok, that's a stretch. But the deli I'm referring to has been around for what feels like forever. This deli hasn't paid a single dollar for ad space or PR pitches. So, how is the business thriving? I asked the owner. He simply stated "treat em' like family."

The more I thought about the owner's answer, I decided he is a genius. Imagine if everywhere you went, you were treated like family. Starbucks practically thrives on this concept. Think about it. Most of us pay $5.00 a day for coffee because the cups are adorned with our names and most of the time the man or woman making our coffee calls out our name with a friendly smile.

If you really want to "treat em' like family" then you have to start within your own office. I watched the deli owner talk to his staff as if they were his brothers and sisters. If you can create a family-like environment at your office then your internal customer service will float outwards.

Think relationships more than business deals if you want to have a family-atmosphere within your business. If you treat potential customers like potential profit then you're dead in the water. Treat potential customers like you would a sister or brother-in-law. Be cordial, be genuine and talk about what both parties have to gain from a long relationship. Don't just go after a person's dollar, go after their recommendation and continued business.

Finally, be respectful of everyone. The deli owner I mentioned has a customer who comes in every morning and buys a single two dollar coffee. He sits in a booth (taking up three seats versus a single seat at the counter) and he stays for hours. The waitresses aren't annoyed and the owner sits and talks with him daily. The owner could say something about the money he is losing on each cover that walks out because a booth isn't available, or how there is more than a coffee minimum to sit at the booth, but he doesn't. He appreciates the business and the brand loyalty. In fact the owner told me this about the man in the booth, "I don't know his full story. I don't know why he comes here for his coffee. I'm glad he trusts us enough to serve him coffee everyday. We could lose the two dollars to the expensive franchise down the street. I rather have customers I know who like what I'm serving then fight over numbers with the competition."

As we head into the weekend, think about how you can treat your customers more like family.

Twyla Garrett

The Entrepreneur Life Test

Do you have what it takes to own a business? I'm not talking money or ideas. I'm talking grit and getting your hands dirty. Not sure if you have what it takes? Take my test. Answer yes or no if you agree or disagree with each statement below and see what I have to say at the end.

1. You believe you can balance work with a personal life.

2.'Fake It To You Make It' is the best advice you ever received.

3. You can't wait to be rich, which will be soon since all business owners have tons of money.

4. You can have a day job and run a business at the same time.

5. There is nothing to fear about employing other people. It is great to have people work for you.

6. You're going to be loved by everyone because you have a business and your business will take off right away.

7. You believe a mentor is important.

If you answered "yes" to any of the above questions, you don't have what it takes to be a business owner. The above statements are all myths and some of the most popular reasons why businesses fail. Grand ideas, assuming riches will happen overnight, faking knowing how to provide a service or products, etc. are all big red flags in the business world.

If you answered "no" to any or all of the questions above, pat yourself on the back! You're a true entrepreneur.

Twyla

Homeland Security Blog: Drug Tunnel Shut Down Near San Diego

Drug tunnels are a homeland security issue. While many people might thing the drugs being brought into this country don't possess a threat to their daily lives, the opposite is true. Drug tunnels can facilitate the transport of more than just drugs. In fact,these tunnels are also often used to facilitate smuggling of illegal aliens and, potentially, terrorists and weapons of mass destruction. This can potentially impact everyone, not only those buying or selling the drugs.

This past Thursday the DHS announced they had discovered a newly completed tunnel that connected a warehouse in Tijuana, Mexico with a building in San Diego’s Otay Mesa industrial park stretched the length of nearly six football fields. The tunnel was equipped with lighting, ventilation and an electric rail system. It was described as “the largest, most sophisticated tunnel uncovered along the southern border in two years.”

While the discovery of the tunnel is great news for our country (since we could now close it and recovered the drugs), it isn't that great of news for the DHS. These tunnels are popping up all over southern California. How we assess various issues related to the war on drugs and illegal immigration can impact our national security directly related to potential terrorist threats. This leads to my next question... "are we doing enough to prepare and prevent?"

I might do a webinar covering how one non-national issue can lead to a national disaster. Preventing tunnels from forming is impossible, but we can decrease the rate of which they are forming. The issue itself is too complex to cover in this blog, which is why I have a homeland security book coming out shortly.

I am interested in your thoughts on this discovery and how you think we , as a country, can prevent further tunnels from forming.

Twyla Garrett

The Best Business Habit to Have!

I recently met a woman who wouldn't tell me how she failed in business. She insisted everything was perfect. I insisted she was wrong and did a little digging. My results? The woman had failed in business several times- which is to be expected, not something to be ashamed of.

I couldn't figure our why she tried to hide her business failures. Everyone in business has failed at one time or another. In fact, business leaders don't even refer to these events as failures anymore, rather they are called learning experiences. The best business habit someone can have is to flaunt a failure, not try to hide it. Here's why;

There are two types of people in this world. The kind who accept failure as a signal to give up and the kind who will not accept failure as their destiny. Giving up distinguishes wanna-be business men and women from true go-getters. Flaunting your failures and showing how you rebooted and had the umph to go at it again really is a character attribute. Hiding your failures, or lying about them (as in the woman's case) also tells a lot about who you are. So, which side of the fence would you want to be on?

I'm going to develop a series of books dedicated to this topic. In the meantime, connect with me on Twitter and let's discuss your failures and how you overcame them!

Twyla

3 Not So Fab Customers!

Where's your next paycheck coming from. If you own a business, you might not know the answer. I received a question over the weekend dealing with customers and payments. When do you let one go? Well, I have some answers. First, you don't turn down money -ever. Instead, you screen potential money vs. people think they have money. Trust me, everyone does this when providing services. Next, know who the customer is and then decide if you want a relationship or continued relationship with him or her. Here is how to tell.

1. The Sour Puss. This is a customer who is happy with you for the moment, but not loyal. If he or she could find cheaper- they would. This type of customer is dangerous. Why? He or she can be unhappy for one small reason and will forget all the major things you have done to help him or her. These customers sour pretty fast and don't hesitate to write nasty things all over the Internet about you and your company. If you'd bidding for a contract with a sour puss, pass. If you have one now, don't renew.

2. Oz The Not So Powerful. Every have a client remind you ten times a day how much money he or she is spending at your company? Well, that is because he or she has no authority in every other aspect of their lives and will use whatever they pay for as a chance to try and command power. This type of person is a pain in the butt and not worth the money they will pay you. They are seeking a chance to flaunt authority more than anything else. Don't renew this client if you have this type of person as a customer.

3. The Check Was Mailed Mama. Have a client that doesn't pay on time or needs payment arrangements? Pass! If they can't afford you, find someone who can. The second you lower your rate, give a break on a late fee penalty, etc. know that you're sending a message that your time and payments aren't important. Ditch this type of client.

Doing business with people isn't always pleasant, but it doesn't mean you have to be a doormat. I say never turn down money but these three types of people are the exception to the rule.

Happy Monday!

Twyla

Ask Your Clients The RIGHT Questions

I overheard two businesses owners complaining about their clientele the other day. It can be frustrating, just like you- clients aren't alike. You will have clients who require extra hand holding and you will have clients who you never hear from, refuse to give you direction and then expect the world from you. Regardless, your clients pay your bills and you have to honor their work style just as you want them to honor yours.

To get a sense of the type of client you will soon be working for, and how to approach him or her, ask these questions:

1. What are your priorities and goals and what are your timelines.

Asking this question will help you understand what is important to your client and how fast the client expects you to work. This question series eliminates a lot of guess work.

2. What is your preferred form of contact.

I knew a lady who hated phone calls. Every week, on Friday, her servicing contractor would call her. He told me she always seemed annoyed but would insist on finishing the call. Finally, after this went on for months, the client asked him why he always found time to call her in the middle of her pedicure. The contractor assumed the client wanted phone calls and he assumed the date and time of the phone calls. Don't assume anything with clients. If you don't know, ask.

If you implement these two questions when starting to work with a new client, you will have a more positive working relationship.

Happy Friday and a new blog coming up on Monday!

Twyla Garrett