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The New 50-50 Rule

The New 50-50 Rule

Like I have mentioned before in my articles prior, as the economy changes, we change, so here it is for now what I would call the “norm” whatever that means. I am writing this article for the simple fact that it lately has dawned on me. I am speaking to more and more business owners that have jut completely bottomed out on their personal credit.

They have no other way to go and get money and believe it or not most of the reasons the personal credit is so low is not from paying bills late! It’s from taking on too much debt or having so many inquiries personally that the score drops even if they pay their bills two weeks early, crazy right? So back to what I was saying, having the pleasure I call it, of working with these business owners on a daily basis, it has come to my attention, are we really doing a service for them? Wouldn’t it be crazy to think that I could have a personal fico score of 350 and have a business separate from me and still get 100k, 200k…. not realistic in today’s times.

I am calling this new found saying the 50/50 rule for any business owner. Personal Credit is 50% and Business Credit is the other 50%. While you can still be a corporation or LLC and maintain to keep yourself and the owners separate from the business you still need to have good personal credit also. Doesn’t it make sense say it to your self, good personal credit and good business credit equal in most cases a successful business and family life.

The 50/50 rule, what a great concept to live by as we all struggle both in our personal lives and business relationships as well. It’s important to have that 50/50 rule in your mind at all times, seems like a formula for success if you ask me. How many times in our lives did we display personal behaviors that got us into a mess?

I know I sure have had my fair share of them. How many times in our lives did we get to a dead end and only then look to a solution quickly to fix the problem when it was already too late. We thought we could fix the problems that may have taken months or even years to get in the mess in the first place. We need to be more realistic iand in these troubled times, we need to be more aware, awake and great examples of what the driver factor is behind our personal and business success….a well balanced life! We need a rule of thumb to live by so to speak. Balance in my view one of the single most important things we need to have in our.lives as individuals and also as business owners. I really thought a lot about this and the importance of having this balance in our lives.

As I was thinking about writing this article I felt it needed to be put out their for our readers. I have been fortunate enough to work with business owners and not only be one myself but be around business owners for a lot of years. I remember a while back there were so many companies; both banks and lenders that were giving away money and it seemed that anyone could get it. The days of the “no-doc” stated loans are gone pretty much and the economy changed. Did you see it change or did you get caught up in the middle of it all, then stopped to look around and realized hey it was too late for you.

The story is not uncommon; it’s very real right now in our economy, this living breathing dark cloud that slowly inched its way over us. Now the reason I painted that picture was for this reason: it takes time to solve the problem if you weren’t prepared, it doesn’t mean you can’t do it or it’s too late. If anything, I bet it will not happen to you again. If you would have lived the 50/50 rule back when the money was abundant, where would you be now? Where will you be in 6 months if you do not stop now? You can not fix something your behavior got you into, your only choice now is to stop displaying those types of behaviors look what they did to us before. Most importantly, where will you and your business be in 6 months if your don’t make a change today. I know we have all heard this expression and maybe it is a little different worded for different people but here it is “The definition of stupid is trying to get a different result when trying the same action again” what a great group of words that really make you think. Remember we have a brain and we are all intelligent people.

When you fell the crunch of life or the crunch financially in your business remember there are people out there dealing with the same problems we all face, the difference between you and them…..balance we all have it inside already, we all need to survive and most importantly we can all do it! Bring your vision to life, reach out and become that person you know you have always wanted to be, get balanced and start living by a new regimen and remember to tell yourself everyday when you get up this will be my day, my time to rise above the doubt. Remember we change as the markets change see you real soon thanks for the reads! Take care until next time.