5 Tips to Creating a Successful Business When You are Considered a Risky Merchant
Starting a business online when you are already condemned by credit card processors is quite a challenge. This is because you are left without a platform for processing your payments. But that should not stop you from pursuing your dream. The good news is that there are ways of overcoming such an obstacle and prove doubting Thomases wrong. Here are tips that will help you carry on when your business is rejected by credit card processors.
- Clear Your Debts
Having unpaid debts can cause your credit score to go down. You should therefore clear any pending debts so that you can have a good credit report. While other entrepreneurs have the privilege of clearing their debts in installments, you should look for a huge amount of money so that you can clear your debt once and for all. You can actually sell one of your assets such as cars or land because you can replace them when your venture becomes profitable. You should also avoid declaring bankruptcy because credit card processors will see your financial status when doing background check.
- Look for High Risk Card Processor
When you pay for goods and services online, the money is handled by a credit card processor. In a nutshell, they bridge the gap between customers and traders. When majority of these card processing companies regard your business as high risk, they will refuse to handle your money. Without a credit card processor, your business can’t operate smoothly because your customers will not be able to pay for the products that they have ordered for. It’s therefore important you enter into an agreement with one of the many high risk merchant account providers. These are credit card processors that handle cash transactions for risky businesses such as casinos and wholesellers.
- Start Small
When venturing into an enterprise for the first time, it’s recommended you start small and then expand as the business grows. This is because there is no guarantee that your business will do well right from the start. Your initial sales will be low because you are still struggling to build your brand. In such a case, you should hire just a few employees to keep your expenses on the minimum.
And There’s More
You can hire more people when you get more orders. You should also start with little stock and build your way up as demand for your products goes up. Remember, starting small puts you on the safe side in case of a crash. Besides that, reviving a small business is easier than an enterprise that has a huge inventory.
- Assess the Market
You should never start a business blindly without assessing the market. When you do your homework well, you will be able to know your competitors and what the customers are looking for in a product. Lest you forget, your rivals already have a marketshare while you are still struggling to establish yourself. With thorough research, you will be able to take advantage of any loopholes that have not been filled by existing businesses.
- Don’t Go for a Loan
Startups rarely have enough resources. When looking for seed capital, you should avoid borrowing money from the bank. This is because they will expect you to pay with interest. The other problem is that they won’t bear with you when business gets slow. If possible, you should use your personal savings or borrow from family and friends.