[godzillabrennus]

Few other things I learned: 1.) Don’t personally guarantee anything for the business, including a real estate lease.

2.) Do create three separate bank accounts for taking money in, for paying your labor, and for paying bills with a debit card. It’s never fun when a vendor dings your card and accidentally adds an extra zero at the end of a bill and you needed to make payroll.

3.) You are not a Bank, don’t lend money by working first then getting paid, take deposits on phases before you start a phase. If a client has a big project and needs NET terms then use a factoring company to check the credit worthiness of the client and to take over your accounts receivable for your company.

[ams6110]

> Don’t personally guarantee anything for the business

How do you do this though? Banks/creditors generally demand a personal guarantee on any small business credit cards, loans, etc. Specifically because small/new businesses are very risky.

[godzillabrennus]

If you are running a service business you shouldn't need any loans if you manage the business properly. You can use factoring services to get paid on deals that require terms (negating the need for a loan to make payroll).

Small businesses are risky. It doesn't pay to put your personal financial well being on the line to sign up a customer. You aren't starting a bank. Good factoring companies do a monthly credit worthiness check on your clients for you. A real asset for this kind of business.