Did you know that having a wrong/high-risk business name can stop you from getting funding, vehicle, corporate leasing, and much more? In this episode, you will learn how to pick the right business name to set your business apart from everyone else. This episode will also teach you how to fix a name if it's high-risk. Tune in to this episode and build your business today with Patrice Jordan.
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The Importance Of Picking The Right Business Name
Welcome to episode three of the show. I advised you that the next couple of episodes are going to be super important to the foundation of your business and being able to accomplish and execute the things that we are looking to execute as business owners when it comes to making things simple for us. In this episode, I want to get into business names. Did you know that having the wrong business name can get you flagged when it comes to getting funding? Did you know that having the wrong business name can get you flagged when it comes to getting vehicles under your business? It can.
What happens is a lot of you put yourself in what we call the category of high risk. What is category high risk? Category high risk is anything that the merchants think can be a possible chargeback. For instance, if you have a name, let's say John's Wealth Financial, wealth and financials are already too high-risk industries. If you have something like John's Trucking Company, trucking is what we consider a high-risk industry. If you have a name called John's Financial Services, financial is a high-risk industry.
A lot of you put yourself in a position where you end up being high risk. If it is John's Credit Repair, credit repair as a whole is high risk. Those are industries that the banks and lenders look at. Those are industries where people would easily be able to do chargebacks to your business. You will have a lot of high risk in your business due to, for instance, credit repair. I’m sure if you are in the credit repair industry, which I feel super bad for you, you know that the clients in that industry are super difficult to deal with. Fortunately, for me, I do not have to deal with that side of the business because I only offer no PG business credit. Most of my services are helping people grow and skill their own businesses. These people are responsible for their own businesses.
In credit repair, a lot of you take on the client's profile where, for instance, you may tell the client that you are going to execute on the first. The second comes and the client is outraged because you didn't deliver what you were supposed to deliver on the first. That client says to themselves, “Let me contact my bank.” You fall under a high-risk industry.
Let's be very clear on how to pick a business name that will not get you flagged. Another reason that these names will get you flagged is, for instance, going to get funding. If your business name says credit repair, these lenders are not slow. Your business name says credit repair. They know if you default on that loan, you know how to remove that off of your credit. They are reluctant to give you credit because they know that 9 out of 10 or maybe 10 out of 10, you are able to reverse that and it shows up like you never took out the loan in general.
It’s the same thing with the financial. If you have the name financial, these names fall under smarter categories where these lenders are like, “Financial?” They are possibly in a position where somebody in the firm understands financials and understands how to read contracts. If you are not familiar with contract law, there are so many things in your contract that is against the law when it comes to corporate leasing or getting vehicles. There is so much when it comes to this process of building business credit that people are not familiar with.
Let me tell you how to pick the right business name. First, you want to make sure you have the most generic business name. Let's say I wanted to incorporate my name, Patrice S. Jordan Enterprises. You do not know what that business is unless I tell you what the business is. It’s the same exact thing when you go to the bank. You go to the bank with these high-risk business names and the banks, especially Navy Federal, are automatically not approving you for these bank accounts because you fall into the category of high-risk.
This is something simple that I want to give to you. I want you to go to Google before picking your business name and type in, “High-risk business industry.” You are going to get a long list of categories or business that falls under high risk like beauty. Beauty is a high-risk industry because in the event that your product burns someone, you are getting sued. It's a high-risk industry. Before you go to pick your business name, what I want you to do is go on Google, type in, “List of High-Risk Business Names,” and stay away from every one of those business names. You want to be as generic as possible.
Going back to Patrice S. Jordan, you will never know what that business is unless I tell you what the business is. You always want to be in that category. You want to be in that category where people don't know what your business is until you tell them what it is. The way that you would explain your business to people is management consulting. We are not talking about administrative assistance. We are not talking about farming management. We are talking about simple management consulting.
9 out of 10, on your corporate leasing documentation, you may have to select Other. You do not want to do anything else that's going to cause you to be at high risk. Everybody falls under management consulting. Why do you fall under the category of management consulting? The moment that you start a business, you start in management mode. You start to manage your time. You start to manage people. You start to manage your social media. You fall on the consulting because you have clients that you are working with and you are consulting with them on their business. That is management consulting.
The Right Business Name: Nine out of 10, on your corporate leasing documentation, you may have to select “Other”. You do not want to do anything else that will cause you to be at high risk.
It's all about how you word the information when you go to the bank. It's all about how you word the information when you are talking to the dealership. It's all about how you word the information when you are talking to the finance company. These people are not slow. They are going to try to trip you up all the time. Whenever somebody asks me about my main business, which is Her Secret Vault, this show falls under Her Secret Vault. For this show, I'm not looking to get funding for this business, so I was okay with using the name business credit.
My main business is Her Secret Vault. No one knows what that business name is unless I tell them. No one knows what the business does until I tell them what the business does and I explain the same thing. For management consulting. 9 out of 10, most banks or lenders are going to say, “What type of management consulting?” My short answer to them is, “I teach businesses how to grow and scale.” That is it.
Most people end up trying to fish a little bit like, “That sounds very interesting. How do you help a business grow and scale?” I help a business grow and scale by showing them how to be able to set up their business to gain funding. I help them to be able to set up their business to be able to build a strong foundation or run a great business, or grow and scale their business properly. It's all about the wording and how you say your wording.
9 out of 10, a lot of you end up getting caught up with the banks where they end up declining you because 1) You have a high-risk business name and 2) The category that you give to the bank is considered high-risk. If you are not familiar with your NAICS code and your SIC code, I want you to get very familiar with those two codes. Those two codes are super important when it comes to the incorporation of your business, which is picking the business name and then incorporating it.
Nine out of 10 of businesses end up getting caught up with the banks and getting declined because: 1) they have a high-risk business name; and 2) the category they give to the bank is considered high-risk.
Before you move forward to incorporating, make sure that you tune into episode four. Episode four is what's going to seal the deal on how to properly get your business going. In that way, you are not in a position where your business ends up being harmed because you don't know what you are doing. The next episode will lock you into what's needed before incorporating your business.
Notice that on this episode, I'm specifically talking to you about the business name. It's very important to pick your business name. We are not talking too much about incorporation yet because these are simple mistakes that you make, and then you run and you incorporate your business. If you do not have an incorporated business, do not move forward until you watch episode four.
If you have an incorporated business and have already started the process, I highly still suggest that you tune into episode four. Episode four is going to put a lot of light on a lot of business owners who have been hurting when it comes to funding. Episode four is going to give you a lot of understanding as to why you are being declined. Episode four is super important when it comes to the next level of your business.
I thank you again for tuning into the show. I will see you in episode four for a very important topic. This topic has a lot to do with before incorporating. I don't want you to run and incorporate your business yet. Make sure that you are taking the steps that are needed to incorporate your business properly. If you have a business that's incorporated already, I'm going to shed a lot of light for you on what you may need to change, so in that way, you come out of that high-risk industry. Thank you again so much for tuning in with me. As a reminder, bosses build business credit. I will talk to you soon.