At Experian, we believe every small business has a story—and your story matters. That’s why we’re excited to launch the Experian Small Business Pulse Survey, a quick, credit-focused monthly check-in that amplifies your voice and helps shape the future of small business lending. Please Submit Your Survey by 11/15/2025 Each month, we invite a special cohort of small business owners to share insights and experiences. This feedback helps Experian to better understand what’s driving confidence, what challenges are emerging, and how we—and our partners in lending, insurance, and trade—can better support small business growth. Why Participate? By joining the Pulse Survey, you’ll: View peer insights — See how other businesses are navigating similar challenges and opportunities. Shape the big picture — Your responses help inform lenders and policymakers who play a role in the small business ecosystem. Amplify your influence — Be part of the conversation that impacts access to credit and financial opportunities for businesses like yours. The survey takes just a few minutes to complete each month—but its impact is far-reaching. Together, we can ensure small business voices are heard loud and clear. Ready to make a difference? Take the Experian Small Business Pulse Survey today. Take the Experian Pulse Survey today

The American Arts Film & Television Academy (AAFTA), founded by Jessica Orcsik, is known as the “Juilliard of the West.” As a hybrid vocational school, AAFTA provides elite yet affordable training in performing arts, film, and television. Beyond developing talent, the academy equips artisan creatives with skills in content creation, financial literacy, and career development. With a strong focus on international students and underrepresented voices, AAFTA empowers its community to succeed in one of the world’s most competitive industries. The Challenge: Inconsistent Credit Reporting Despite being operational since 2017, AAFTA's financial partner did not consistently report the academy’s credit history. This lack of reporting created barriers to qualifying for larger loans, consolidating debt, and securing the affordable financing needed to expand programs. Without a complete and accurate record, AAFTA was left rebuilding its business credit profile while navigating missed opportunities. The Solution: Experian Business Credit Advantage To address this gap, Jessica turned to Experian Business Credit Advantage. The platform provided the transparency she needed—allowing her to regularly check AAFTA’s credit progress and clearly identify areas for improvement. “Experian clearly defines and identifies those areas that need to be addressed. It provides the practical approach we really need as business owners.”Jessica Orcsik, Founder & President With these insights, Jessica gained more control over AAFTA’s financial reputation and positioned the academy to qualify for affordable financing while shopping more competitively among lenders. The Results: Building Toward Growth By leveraging Experian Business Credit Advantage, AAFTA is: Rebuilding its credit profile with accurate, up-to-date reporting. Qualifying for more affordable financing to consolidate debt and fund expansion. Gaining credibility with lenders and vendors, creating new opportunities for growth. For Jessica, Experian’s Business Credit Advantage solution is more than a monitoring tool, it’s a partner in strengthening AAFTA’s financial foundation and enabling the academy to continue empowering the next generation of artists. About Experian Business Credit Advantage Experian Business Credit Advantage is a self-monitoring tool that helps small businesses stay on top of their credit profile, identify risks, and position themselves for better financing opportunities. By providing ongoing visibility into a company’s financial reputation, Experian helps business owners like Jessica Orcsik focus on what matters most: building, growing, and achieving long-term success. Learn more about Business Credit Advantage

When you're running a small business, having the right tools and equipment can make or break your operations. Whether it's a commercial vehicle, industrial machinery, or high-end tech, the cost of purchasing new equipment outright can be overwhelming—especially if your cash flow is tight. That's where equipment leasing comes in, and strong business credit can help you secure better equipment leases. Leasing allows you to access the equipment you need without the large upfront investment. But what many small business owners don't realize is that your business credit score can significantly influence the leasing process—from approval and terms to how much you'll pay over time. In this article, we'll break down how equipment leasing works, explore how your business credit plays a key role, and show you how strong credit can help you lock in better deals. Understanding the Basics of Equipment Leasing Before we get into the credit side of things, let’s take a quick look at what equipment leasing is. At its core, equipment leasing is a financing arrangement where a business rents equipment from a lessor (leasing company) for a specific period, typically in exchange for monthly payments. Unlike buying, you don’t take ownership right away—instead, you use the equipment while the lessor retains ownership for the lease term. Types of Equipment Leases Operating Lease: These are short-term leases, often used when a business wants to use equipment temporarily or plans to upgrade frequently. At the end of the term, you can return the equipment or renew the lease. Capital Lease (Finance Lease): These are more like loans. You’ll pay over a longer term and often have the option to buy the equipment at the end, sometimes for as little as $1. Why Leasing Is Attractive to Small Businesses Lower upfront costs: No need for a big purchase all at once. Predictable budgeting: Fixed monthly payments help with cash flow planning. Tech flexibility: Upgrade more easily when equipment becomes outdated. But the real key to unlocking the best leasing terms? It’s all about your business credit. How Business Credit Impacts Your Leasing Options When you apply for an equipment lease, the leasing company isn’t just looking at the type of gear you need—they’re sizing up your business’s financial reliability. One of the first places they’ll look? Your business credit profile. Strong business credit can make leasing faster, cheaper, and far more flexible. Weak or non-existent credit can do the opposite. "Know your credit bureau… my advice to any small business is know what you look like to others. Monitor both [personal and business credit.]"David T. Schaefer – Chairman & Founder, Orion First Why It Matters In the world of small-ticket equipment leasing — typically for transactions under $100,000 — lenders often focus more on the individual behind the business than on the business itself. As David Schaefer explains, the owner's personal credit profile frequently serves as a proxy for the business's financial health, especially in deals where no financial statements are required. This makes ongoing credit monitoring critical. If you're a small business owner applying for financing, understanding how lenders perceive you — through both your personal and commercial credit reports — can be the difference between approval and rejection. Regularly reviewing your credit helps you: Catch and correct errors before they hurt your application. Spot red flags like tax liens, collections, or slow payments that might disqualify you. Strengthen your financial story, especially if you're asked to provide supporting documentation like financial statements. Ultimately, staying informed gives you control. It allows you to take proactive steps to fix issues, present your business in the best light, and approach lenders with confidence. Strong business credit? It makes leasing faster, cheaper, and gives you way more flexibility. But with weak or nonexistent credit? You're in for a frustrating experience. What Leasing Companies Evaluate Leasing companies typically assess: Your business credit score – from credit reporting agencies like Experian. These scores are based on factors like payment history, credit utilization, and the age of your credit profile. Personal credit score – especially if your business is new or hasn’t established credit yet. Time in business – the longer you’ve been operating, the more stable you appear. Annual revenue and existing debt – to gauge whether you can comfortably afford lease payments. If your business checks all these boxes—especially a strong credit score—you’re far more likely to get approved quickly and with better terms. What Good Business Credit Unlocks Here’s what a strong credit profile can do for you: Faster Approvals: Lenders see you as lower risk, so they’ll be more willing to green-light your application without a long approval process. Lower Monthly Payments: Strong credit may help you secure lower interest rates or lease factors. Higher Lease Limits: Need multiple pieces of equipment or something high-ticket? Better credit often means access to larger lease amounts. Better Terms: Less money down, longer repayment windows, and more flexible end-of-lease options like upgrades or buyouts. Real-World Example: Credit Makes the Difference Just last month, I saw this play out with two landscaping companies in Phoenix. Both were looking to lease the same $25,000 commercial truck. The first company, Green Thumb Landscaping, had methodically built its business credit score to 85 over three years. The second, Billy Shears Hedging Service was just getting started, has no business credit history and a personal credit score in the mid-600’s. Green Thumb got approved within a day, qualifies for a $0 down lease, and secures a 36-month term at a low monthly rate. Billy Shears was asked to provide a personal guarantee, a 20% down payment, and was only approved for a 24-month term at a higher rate. Some might speculate that Billy Shears may even be denied altogether. That’s the power of a solid business credit profile. It’s not just about getting approved—it’s about getting options that work in your favor. When Credit Is Holding You Back If your business credit is weak, or you don’t have one yet, here’s what to expect: Higher costs: Lenders see you as higher risk, and that shows up in the numbers. Personal guarantees: You may have to back the lease with your own credit and assets. Stricter terms: Shorter lease durations, higher fees, or limited upgrade options. The good news? You can take steps to build and improve your business credit—and the sooner you start, the better. Why Building Business Credit Pays Off—Now and Later Strong business credit doesn’t just help you lease a piece of equipment—it helps you run a more resilient and opportunity-ready business. Once you’ve built a solid credit profile, you’ll find more doors opening, from better vendor relationships to easier access to capital. Here’s how to make that happen—and where to go to stay on top of your credit health. The Broader Benefits of Strong Business Credit When you build and maintain good credit, you’re setting yourself up for long-term success, not just a one-time lease approval. Here’s what it unlocks: Negotiating Power – You can negotiate better terms and payment structures on leases and vendor agreements. Higher Funding Limits – Whether it’s leasing, loans, or business credit cards, you’ll qualify for more. Lower Borrowing Costs – Strong credit often leads to better interest rates and fewer fees. Stronger Vendor Relationships – Vendors are more likely to offer net terms and extend credit lines. **Peace of Mind** – You won’t need to rely on your personal credit to back your business as often. How to Build and Monitor Your Business Credit If you're not sure where your business stands, or if you know you’ve got room to grow, here’s how to get started: 1. Check Your Business Credit Report     Your first step is to know your score and what’s on file.     👉 Visit Experian’s Small Business site to pull your Experian Business Credit Report. You’ll see payment history, credit inquiries, trade lines, and any delinquencies. 2. Establish Business Credit Accounts     – Open accounts with vendors who report to business credit bureaus.     – Apply for a business credit card and use it responsibly.     – Pay all bills early, not just on time—that improves your score faster. 3. Separate Personal and Business Finances     – Use an LLC or corporation structure.     – Open a business bank account and use it consistently. 4. Monitor and Maintain     – Set reminders to check your report every quarter.     – Dispute any errors or outdated information.     – Keep credit utilization low (below 30%) on any revolving accounts. Final Takeaway: Credit Is a Tool—Use It to Your Advantage Leasing equipment can be a smart, cash-flow-friendly move for your small business—but your ability to leverage it fully depends on your credit. Strong business credit doesn’t happen overnight, but with consistent effort, it becomes one of your most valuable assets. It gives you access, flexibility, and control—not just in leasing but across all aspects of business financing. Start by checking your business credit with Experian and take the first step toward smarter leasing and a stronger financial foundation.

Did you know your small business has its own credit score? Discover how easy it is to check it with Experian. Just visit https://experian.com/smallbusiness, type your business name, and access your credit profile. Choose from a one-time report or a subscription for ongoing updates. Stay prepared and avoid surprises when applying for funding. Check your business credit today! Check Your Business Credit Score

If you are reading this as the owner of a small business that opened its doors in the last 24 months, you are part of a unique vintage, likely one of the record 20 million new small businesses established after the pandemic. It’s never been easier to start a business, but many of these new businesses face a common hurdle when seeking financing: they're considered "thin file" businesses, meaning they have limited or no business credit history for lenders to evaluate. That’s a problem, but it’s no show stopper. The “thin-file” or "no business credit" classification might sound technical, but it simply means your business hasn't yet built up enough credit history for traditional lenders to assess your creditworthiness through conventional means. Think of it like applying for your first apartment – without a rental history, landlords need other ways to verify you'll be a reliable tenant. Similarly, lenders need alternative ways to evaluate your business's financial reliability. The Challenges of Being a Thin File Business Being a thin-file business, aka a business with a lack of business credit history is a natural stage in any company's growth journey, but it comes with distinct challenges when seeking financing. Imagine trying to prove you're an excellent driver when you've never had a license – that's similar to what thin file businesses face when approaching traditional lenders. The core challenge stems from how conventional lending systems were set up. Traditional banks and financial institutions have historically relied on business credit scores and deep credit histories to assess risk. These scores typically require 2-3 years of credit activity to generate a meaningful profile. For a new business operating for just a few months or even a year, this creates a chicken-and-egg problem: you need credit to build credit, but you can't get credit without having credit first. Recent data from the Federal Reserve's Small Business Credit Survey (SBCS) reveals this challenge in stark terms: Startup non-employer firms are less likely than other firms to have financial services relationships and are less likely to regularly use financing and credit products. However, startup employer firms are far more likely than other firms to have sought financing in the prior 12 months. Of the 47% surveyed who applied for financing, only 43% were fully approved, compared to older businesses, 34% of which had applied for financing and 54% of those being approved. How Lenders Are Adapting to Thin File Businesses The good news is that the lending landscape is evolving. Modern lenders are increasingly recognizing that traditional credit scores tell only part of the story, especially for newer businesses. This shift is similar to how colleges now look beyond just SAT scores to evaluate potential students – they're considering the whole picture. Today's forward-thinking lenders are developing sophisticated methods to evaluate business health using real-time data and alternative metrics. Instead of focusing solely on credit history, they're analyzing: Digital payment patterns through services like Square, PayPal, or Stripe Bank account activity showing cash flow patterns Online customer reviews and ratings Social media presence and engagement Industry-specific performance metrics For example, a restaurant might be evaluated based on its daily customer traffic patterns and online ordering volume, while an e-commerce business might be assessed through its inventory turnover rate and customer return rate. These alternative data points can provide lenders with a more nuanced and current picture of a business's health than traditional credit scores alone. What Lenders Look for in Thin File Businesses Modern lenders have developed a holistic approach when evaluating these new firms that looks beyond traditional credit scores. Let's explore the key factors they consider and why each matters for your financing journey. Cash Flow Consistency Think of cash flow as your business's vital signs – it tells lenders how healthy your operation is on a day-to-day basis. Lenders typically want to see at least 3-6 months of consistent cash flow patterns. This doesn't mean your income needs to be exactly the same each month, but rather that there's a predictable rhythm to your business's financial activity. For example, a seasonal business like a beachfront ice cream shop might show strong summer revenues and lighter winters, but lenders will look for patterns that make sense for your industry. They're particularly interested in seeing that you maintain a healthy cushion in your account and avoid frequent overdrafts or negative balances. Revenue Growth and Profitability While steady cash flow is important, lenders also want to see signs that your business is gaining momentum. This doesn't necessarily mean explosive growth – sustainable, gradual improvement can actually be more attractive to lenders than volatile spikes in revenue. Consider a small consulting firm that started with one client paying $5,000 monthly and gradually added a new client every quarter. This steady growth pattern, even if modest, demonstrates both market validation and careful business management. Lenders will examine your revenue trends alongside your expenses to understand your profit margins and operational efficiency. Business Plan and Strategy A well-thought-out business plan serves as your roadmap to success, and lenders see it as evidence of your business acumen. Your plan should address: Market analysis and competitive positioning Clear revenue model and pricing strategy Realistic financial projections with supporting assumptions Risk management strategies Growth plans and major milestones The key is to show that you've done your homework and understand the opportunities and challenges ahead. For instance, if you're running a local gym, your business plan might detail how you'll maintain membership revenue during typically slow summer months through specialized programs or promotions. Steps Thin File Business Owners Can Take to Strengthen Their Case Building a strong case for financing requires proactive steps long before you submit your loan application. Here's how you can prepare your business to stand out to lenders. Maintain Detailed Financial Records Think of your financial records as your business's biography – they tell the story of your company's journey and potential. Start by implementing these practices: Create a systematic approach to tracking all financial transactions, no matter how small. This might involve using accounting software like QuickBooks or FreshBooks to automatically categorize expenses and income. Keep digital copies of all receipts and organize them by month and category. Develop monthly financial statements that show: Income statements tracking revenue and expenses Balance sheets listing assets and liabilities Cash flow statements showing money movement in and out of your business Remember to reconcile your accounts regularly – at least monthly – to ensure accuracy and catch any discrepancies early. Separate Business and Personal Finances Maintaining clear boundaries between personal and business finances isn't just good practice – it's essential for building credibility with lenders. Start by: Opening a dedicated business checking account and using it exclusively for business transactions Obtaining a business credit card, even if it's secured initially Setting up a consistent salary or owner's draw instead of taking irregular amounts from the business Consider this real-world example: A food truck owner who previously mixed personal and business expenses struggled to prove her business's profitability. After three months of maintaining separate accounts, she could clearly demonstrate that her business generated a 22% profit margin, making her loan application much stronger. Learn more about business credit – Subscribe to our YouTube Channel Build Business Credit Strategically While you might be a "thin file" business now, you can take immediate steps to build your credit profile: Start with trade credit accounts with your suppliers. If you regularly purchase inventory or supplies, ask your vendors if they report payment history to business credit bureaus. Many will extend net-30 or net-60 terms after a few months of consistent ordering and prompt payment. For instance, a small hardware store might begin by establishing trade credit with their main supplier. After maintaining perfect payment history for six months, they can request a reference letter from the supplier to support their loan application while simultaneously building their business credit profile. We go in-depth on building tradelines in this post: Adding tradelines to build your business. The Role of Business Credit Monitoring for Thin File Businesses Understanding and monitoring your business credit profile is like having a health tracking device for your company's financial fitness. Even as a thin file business, establishing goodBusiness credit monitoring practices can help you identify opportunities and address issues before they impact your financing options. Think of business credit monitoring as your early warning system. Just as a doctor monitors vital signs to catch health issues early, regular credit monitoring helps you spot and address potential concerns before they become serious problems. This proactive approach is particularly crucial for thin file businesses, where every piece of credit history carries significant weight. One thing to keep in mind here is, if your particular business has not generated enough activity with trading partners, you may discover that your business does not have a profile on Experian and other business credit bureaus. On the other hand, many business owners are surprised to learn that credit reporting agencies may already have a file on their business, even if they haven't actively sought credit. These initial records might include basic information like your business registration, industry classification, and any public records. Understanding what's in your file – even if it's minimal – gives you a baseline from which to build. Consider the case of Sarah, who started a small online boutique. By monitoring her business credit from day one, she noticed that her business credit report contained incorrect industry classification information. She was able to correct this error early, ensuring that future lenders would evaluate her business against appropriate industry benchmarks. This attention to detail ultimately helped her secure inventory financing at better rates. Tools and Services for Credit Monitoring One of the key steps in managing your business credit is staying informed about changes that could impact future financing opportunities. Experian’s Business Credit Advantage is designed for businesses that need real-time visibility into their credit standing. By continuously monitoring your credit and providing alerts on key changes—including score fluctuations—you gain the insights needed to build a stronger credit profile proactively. Get Started — Check Your Business Credit Score Alternative Financing Options for Thin File Businesses When traditional lending paths seem challenging, numerous alternative financing options can provide the capital needed for growth. Think of these alternatives as different paths up the same mountain – they might not be the conventional route, but they can still lead to your desired destination. Crowdfunding and Community-Based Financing Modern crowdfunding platforms have revolutionized how thin-file businesses can access capital. Take the example of Marcus, who opened a specialty coffee shop. Traditional lenders were hesitant due to his limited credit history, but through a rewards-based crowdfunding campaign, he pre-sold coffee subscriptions and exclusive member experiences. This approach raised the necessary capital and built a loyal customer base before opening. Crowdfunding success typically requires: A compelling story that resonates with potential backers Clear communication of your business vision and plans Attractive rewards or investment terms Active engagement with your supporter community Microloans and Community Development Financial Institutions (CDFIs) Microloans, typically ranging from $500 to $50,000, can be particularly well-suited for thin file businesses. CDFIs often focus more on your business's potential and community impact than on traditional credit metrics. For instance, a neighborhood bakery might secure a $20,000 microloan based on their detailed business plan and the local community's need for their services, despite limited credit history. See our post featuring Mark Pinsky from CDFi Friendly America for more details on how community development financial institutions are helping entrepreneurs to grow. Government Resources and Grants Many government programs specifically target businesses with limited credit history. The Small Business Administration (SBA) offers several programs designed for new businesses, including: The Community Advantage program, which focuses on underserved communities and new businesses. The SBA Microloan program, providing loans up to $50,000 State-specific grant programs for new businesses in targeted industries Consider the experience of Elena, who started a small manufacturing business. While traditional banks considered her too risky, she secured an SBA-backed loan through a local lender who appreciated her industry experience and detailed financial projections, despite her business's thin credit file. Conclusion Building a strong financial foundation for your thin-file business is a journey that requires patience, diligence, and strategic thinking. Remember that every successful business started somewhere – even industry giants were once thin-file businesses themselves. Start by implementing strong financial management practices today: Maintain meticulous records of all financial transactions Build relationships with vendors who report to credit bureaus Monitor your business credit regularly Consider alternative financing options that align with your business model Most importantly, view your thin-file status not as a permanent limitation but as a temporary stage in your business's growth journey. By following the strategies outlined in this article and maintaining consistent, responsible financial practices, you can build the credit profile and financial credibility needed to access broader financing options in the future. Remember, lenders are increasingly looking beyond traditional credit scores to evaluate businesses. Your dedication to financial management, clear growth strategy, and careful documentation of your business's success can help overcome the challenges of being a thin file business. Get Started — Check Your Business Credit Score

Everett Neely, the visionary founder of Elegant Renovations, LLC, has been at the forefront of Washington DC's home improvement industry for over a decade. With a passion for preserving the city's architectural heritage, Everett established Elegant Renovations in October 2011 to specialize in historical home restoration and high-quality renovation services. He agreed to sit down with Experian to share his business credit journey as a successful Business Credit Advantage customer. Watch Everett Share His Business Credit Journey A key component of the company's success is its proactive use of Experian Business Credit Advantage to monitor its business credit profile. By regularly reviewing their creditworthiness, Elegant Renovations ensures they maintain a strong financial foundation. This approach allows them to secure lines of credit and financial resources without relying on personal finances, enabling continuous growth and investment in their operations. For over a decade, Elegant Renovations, LLC has been a cornerstone of excellence in the Washington DC home improvement industry. This boutique company has carved a niche specializing in historical home restoration and high-quality renovation services. From intricate tuckpointing to structural repairs, Elegant Renovations is synonymous with preserving the charm and integrity of historical homes. With over 14 years of experience, the company has successfully completed numerous profitable projects, achieving annual revenues exceeding $800,000 in the past two years. Their expertise spans a wide range of services, including home renovations, historical restoration, and comprehensive improvement solutions tailored to each client's unique needs. The ultimate goal of Elegant Renovations is to build a solid credit portfolio that unlocks access to additional capital, empowering them to continue restoring historical homes with unmatched precision and care. Their dedication to preserving history while embracing financial resilience makes Elegant Renovations, LLC a trusted partner for homeowners and a proud contributor to Washington DC's architectural legacy. View More Experian Customer Testimonials

Business finance leader Craig Calafati shares how to be prepared when seeking financing In this episode of Small Business Matters, we tackle one of the most crucial steps for any small business owner: preparing to approach a lender for financing. With over 19 million new businesses formed in the last two years, accessing capital has become a common challenge for many entrepreneurs. However, many small business owners are simply not prepared when they step into a lender’s office. Whether it's underestimating their capital needs, being unsure about the necessary documents, or misunderstanding how the lending process works, these gaps can prevent them from securing the funding they need to succeed. Watch our interview We invited on a great expert who knows the ins and outs of small business lending like few others: Craig Calafati. He is the Vice President of Arkansas Capital Corporation (soon to be rebranded as ACC), and he brings over 30 years of experience in commercial lending—including 25 years as an SBA lender to the conversation. Craig has helped countless businesses navigate the financing process. In this episode, he offers invaluable advice on what every small business owner needs to know before they approach a lender. We discuss the common pitfalls entrepreneurs face, how to prepare your business for financing, and how to position yourself for success when speaking with a lender. Whether you're a startup, an established business looking to expand, or somewhere in between, this episode is packed with actionable advice. Topics Covered: Understanding Your Financial Needs: Why knowing the exact amount of capital you need is critical, and how to determine it accurately before applying for a loan. Real Estate Decisions: The pros and cons of leasing versus owning property, and why leasing may be a smarter option for many new businesses. The Importance of a Business Plan: How having a well-researched, detailed business plan can make or break your chances of securing financing. SBA Loans Explained: The role of the U.S. Small Business Administration (SBA) as a guarantor rather than a direct lender, and how to work with an SBA lending partner to secure financing. Building Relationships: The value of seeking advice from seasoned business owners or mentors to help guide your financing strategy. Managing Risk in High-Risk Industries: How Arkansas Capital Corporation successfully navigates lending to startups and industries like hospitality that traditional banks often avoid. Understanding Your Credit: Why it’s important to check both your personal and business credit before applying for a loan, and how lenders use this information. This episode is packed with practical insights and tips that will help you approach your lender with confidence, ensuring that you’re fully prepared to secure the financing your business needs to grow and succeed. What follows is a lightly edited transcription of our interview: Gary Stockton: Over the past two years, an incredible 19 million new small businesses have been formed in the U. S., marking a historic surge in entrepreneurship across the country. And while this is an exciting time for innovation and growth, it also brings a significant challenge, access to capital. For many of these new businesses, securing the right financing is essential to getting off the ground, expanding, and creating, or simply maintaining operations beyond the first few years. But here's the rub. Many small business owners are not fully prepared when they approach a lender. Whether it's not knowing how much money they need, misunderstanding their requirements, or being unsure of what documents to provide. And these gaps can be a major roadblock in securing the funding necessary for success. Today we're going to break down what every small business owner needs to know before applying for financing. We've brought a great expert who knows the ins and outs of small business lending like few others. Craig Calafati is Vice President of Arkansas Capital Corporation. He has over 30 years of experience in commercial lending, including 25 years as an SBA lender.He's helped countless businesses navigate the complexities of securing financing. And today he's here to empower you with lender-side insights, Craig, welcome to the Small Business Matters podcast. Craig Calafati: Thank you very much, Gary. It's a pleasure to be here. Gary Stockton: We're very, pleased to have you on. So let's get into it, you have extensive experience in commercial lending, particularly in building successful SBA programs. How did your background as a former small business owner shape your approach to lending? Craig Calafati: I think it gave me empathy if nothing else. I think I have a better understanding than a lot of lenders on what the day to day life is of a small business owner. So, these lenders will say, hey, let's set up a meeting for one o'clock and we'll all get together and, business owner's going, man, I gotta work during the day. And so I do have empathy for that. I know what it's like to try and run a small business and be doing other things on the side, trying to get things together for a loan. And it could be, a challenge. So I think that empathy has helped me out a great deal. Gary Stockton: And you've been with Arkansas capital corporation for about four years now. What motivated you to transition from a traditional banking environment to non-banker lender focused on undisturbed communities? Craig Calafati: I half jokingly say I'm paying my penance for being a banker for 30 years. Arkansas capital approached me and we probably talked for about eight months before I finally decided to come down here and I actually moved to Arkansas for this position. And it was the opportunity to do some good. I had been running large programs, nationally, top 10 nationally ranked programs up to this point up to that point and just the opportunity to go talk to borrowers again I was used to only talking to the CEO and answering to a board of directors. I actually get to go and talk to borrowers now to help people. We concentrate on helping underserved communities, and rural communities and it's just fun it's fun to help people and to see that end result, which I'd been removed from for so many years. Gary Stockton: That's fantastic. And Arkansas Capital Corporation recently obtained a SBLC license from the SBA, making you one of only three organizations to receive this in 40 years. Can you explain what this license entails and how it enhances your ability to serve small businesses nationwide? Craig Calafati: Sure, the SBLC license is a small business lending company and it's, a license that's granted by the SBA to non bank lenders, and, there are four, there were 14 up until, the beginning of this year. They allowed three more new licensees. And as you said that first time in 40 years, they had allowed new ones. and what it does is it allows a non bank lender to lend nationwide as opposed to just their state up, up to this point, Arkansas Capital we've been around since 1957, but we've been, as far as small business lending goes, relegated to just Arkansas and, some of the surrounding communities. This allows us to go nationwide. So what we're doing with that is, obviously we're ramping up. We're doing a slow rolled out. Right now we're operating in the surrounding states and pretty much across the southern united states. We'll take it. We'll take it nationwide when we feel we have our all our ducks in a row and the entire infrastructure set up, but for right now, we're going to concentrate on just the south. And, but that's what the SBLC license allows us to do. It puts us under the, regulation of the SBA. And, right now we're regulated by the state of Arkansas. Gary Stockton: There's often confusion around SBA loans with some entrepreneurs mistakenly believing that the SBA provides direct loans. Can you talk a little bit about the role of the SBA as a guarantor and explain the process of working with an SBA lending partner? Craig Calafati: Yeah, absolutely. There's a huge misconception that, the SBA is another government entity just throwing money out all over the place. That's not the case at all. The SBA is set up. The SBA has been a remarkable resource for small businesses over the years, and what they do is they provide the lenders with a guarantee. So and what i'm talking about now specifically is the 7a program, which is what most people are familiar with The SBA provides a guarantee of that loan for say on a larger loan, 75 percent of that loan amount when the bank goes and makes the loan, they know that if there's a problem and the loan defaults, after all the settlement's done and the collateral is sold and everything else, there is still a guarantee there from the U. S. Government for 75 percent of that original loan amount or the remaining actually of the remaining outstanding balance will be covered by the, U. S. government. And so what that allows is the bank, when there is a shortfall, say in collateral, or the bank can't quite get comfortable with it, they can look to that guarantee and say, okay, maybe that makes it better. And that allows the bank to go forward and make those loans. That's the hope anyway. Gary Stockton: That's great. And ACC specializes in areas that traditional banks often shy away from like startups and hospitality. What makes your approach to these high risk industries successful and how do you manage the risks involved? Craig Calafati: I think we take our time underwriting each individual deal. We look at every one of them. It's not a matter of checking boxes with us. For instance, we have everything that we do, our, application, our document uploads, everything you need to do the loan. We do online. It's, we have a full online application and, all that. And a lot of banks and mortgage lenders will do this too. They have a set. Minimum credit score that they have, it's usually around 680, maybe even as high as 700. And if you're below that, boom, it kicks you out. That's the end of the story. We have our set incredibly low far. It's 600 actually is where we have a set because I want to look at that individual deal. You might have somebody who has a really terrible credit score, but that's because three years ago, their spouse had cancer and they had all kinds of medical bills that were unexpected and they couldn't pay him right away and they were sent to collections. It has no bearing on the character of the person has no bearing on whether or not they pay their business bills or anything else. It's an extraordinary circumstance and they should be heard. And so that's one of the big differences with us is we take that time. We look at each deal individually and we trust our underwriters. If the underwriters come in and they say, look, yeah, we have these certain hiccups, but these are the mitigations. This is what makes us comfortable with it. Then we go forward on that. And, we specialize, as I said earlier, on underserved communities, people of color, rural areas, that kind of thing. Banks typically don't, they shy away from that, sort of lending. We like startups too. We, do a ton of startups. But, again, we underwrite the people and we underwrite the business and we don't go for just check boxes and how does this look and how does this compare to everybody else? We take each one on an individual basis. Gary Stockton: That's great. Let's, pivot to preparing for financing. One of the first things, that you advise is for business owners to know exactly how much money they need to get started.Why is it so important to have a clear understanding of your financial needs before approaching a lender? And how can entrepreneurs accurately determine this amount? Craig Calafati: It varies by what it is they're trying to do. If they're trying to refinance something, that's one thing. If they're trying to buy a building, that's another they're trying to buy a business another too. But you would be amazed how many people come into the office and they sit down in front of me and I say, okay, how can I help you? And they, I want to do this, how much money can I get? And I have no idea because I don't know your business. What I'm looking to you for, especially those initial conversations is how much understanding do you have of your business? Do you know? You should know exactly how much money you need. Know what equipment you need, what you're going to need to operate, how much you'll need for advertising and all the other ancillary expenses, you should have a very good understanding of how much you need. That's going to tell me that you've done the research, that you know your business. And that for me is, everything. that's what I want to see. Gary Stockton: Yes. And you touched when we were talking previously, can, you talk and elaborate on exactly what a business owner should bring to the meeting with their lender? What is the lender most interested in? Craig Calafati: Again, depending on what they're trying to do, if they're starting a business, we want to see a business plan. And that kind of goes back to the earlier question. We as lenders, any of us, we want to know that you understand your business and what it's going to entail to not only start that business, but get it up to speed and maintain it long term. And we want to see that you've done that research, that you have a very good understanding of how it's going to operate, because how can you impart it to us and make us understand it if you don't understand it? We know a lot about a lot of different businesses, but we don't know any, we don't know anything about your particular business, so it's really important that they bring that with them. You're going to be asked for a number of different things, tax returns, tax returns, background stuff, credit information, all that, but that business plan and the projections and everything else that tells us what you want to do and what your understanding is. And it's also something that's going to follow that loan through the process. So it's going to go to the underwriter. The underwriter is going to read it, say, Oh, okay, this is what they want to do. And this is how they're going to do it. And so that document is very important in the beginning. Gary Stockton: How about, checking their own business credit report before asking for financing? Craig Calafati: Absolutely. your personal and your business, because they both enter into it. It's not just, people need to understand that too. Their personal credit is every much as important as their business credit. Some companies don't even really have much business credit just because they're they're very small and they're flying under the radar. And, so, naturally, everybody kind of gloms onto your personal credit and, fair or unfair, that's just the way it is. And they look to that to judge the character and everything else. But you should definitely have a good understanding. It's like going to buy a car. Hopefully, when you go to buy a car, when they walk back in the office after you've negotiated, you're not totally surprised by what they say about your credit. You have a pretty good idea. Yeah, I pay my bills. It's, I have a good credit. Yeah. I would have an understanding about all that. Gary Stockton: Listening to other, interviews you've given, you've mentioned that new business owners don't necessarily need to own real estate right away, and that leasing can be a viable option. Can you elaborate on why leasing may be a better choice? Craig Calafati: For a myriad of reasons. First and foremost, if you're going, if you're going to buy the real estate up front, you need that much more money. At minimum, you're going to need probably 10 percent to put down and a lot of banks are going to ask for a lot more than that. So, because it's tying up cash that you're desperately going to need in the beginning. Lease that building. You may, your business may morph over the first year or two, and you may find certain aspects that you thought were going to be very important to the business are not and something else became very important. And now your location doesn't work as well as you thought it was going to now you're stuck in the thing because you own the building. It's a lot different than trying to get out of a lease and moving to another facility that works better. They're just a lot of different reasons, but particularly in the startup hold on to your capital that's the key. It's typically on a startup, we look for and this is an anomaly in the business. Most banks want to see 20-25 percent investment by the borrower in a startup business. We're looking for 10 percent typically, we want you to hold onto your money. We, know that some kid's gonna ride by and break your picture window the second week you're open and you're going to need a thousand dollars to fix that window. You don't want to close down because you couldn't fix a window. So, hold on to your cash. And I, think that's very important. And it's, there are very few businesses that have to buy their property. Most businesses can get by with a lease property for, in the beginning in particular. Gary Stockton: Yeah, that's good advice. You encourage entrepreneurs to reach out to others who have experience in running a business. How can connecting with seasoned business owners or mentors help in financing? And, what should entrepreneurs look for in these relationships? Craig Calafati: It can help in, several different ways. Just the fact, talking to somebody who's been through it. They might help you avoid some of the pitfalls. They can also advise you on their experiences with financing. Maybe what they should prepare for ahead of time. How their lender worked and whether or not they were happy with them or not, we, I, we survive and thrive on our customers talking about us. That's the best advertising I can get. yeah, I would always talk to, what was their experience in borrowing the money? Good and bad. Would they advise going to where they went? That kind of thing. But just in general, talking about the businesses, I mentioned, how your business might morph in the beginning that you didn't know. We talked about me being in a small business and I was in the restaurant business. When we initially opened, we were a full service italian restaurant. Over the years, we morphed into pizza because that's where the money was. And that's what sold. And, the, first location did not resemble the second and third location. I can tell you that. And so, that's where I'm coming from, and a lot of that was just experience and, I imparted that to anybody who would listen when they'd come and talk to me, I would tell them the pitfalls and, the certain things that I learned the hard way, and you can avoid a lot, of costly mistakes. Gary Stockton: Yeah, and I can see how your direct experience as a restaurateur brings value to your current role as an executive on the finance side, because you bring a certain empathy to those, conversations, what it's like, to be maybe in the early startup phase or in, the struggling phase. Right Now, you mentioned the importance of micro lending, particularly for businesses that feel it's hopeless to apply for a loan. Can you talk about the challenges these businesses face and how microlending can provide a solution? Craig Calafati: Yeah, microlending is interesting. we're, starting a microlending program right now. And it's, very interesting because, and what it is, to be very frank about it, banks don't want to do little loans. It's not costly. We are going into microlending knowing that we're not going to make money at it. it's strictly mission based for us. We believe in it. And we happen to be fortunate enough, we make money in other things that we do because we're a non-profit and I'm not a bank, so I don't have other people giving us money to lend out, but we've got to raise that money. Gary Stockton: Let's talk a little bit about the pandemic and how it forced many businesses in the restaurant and hospitality sectors to innovate quickly. You know, from your perspective, what lasting changes. Have you seen in these industries and how should new businesses adapt? Craig Calafati: One of the biggest things that we saw was so many things going online, with, ordering and contactless pickup and that, that sort of thing. I think it trained a lot of people to start doing things online to not show up at a restaurant for as an example, show up at a restaurant to order to go, and then wait there to pick it up and that kind of thing. So a lot of these places they adapted they created you know, ways to do takeout ways to do delivery that didn't exist before they had to do them to survive. And so you're seeing a lot of that and but the people adapted it too And in a lot of ways they decided hey, we like that a lot better. You can see in the banking businesses is a great example. They were starting to downsize ahead of time, but the pandemic really showed a lot of people that. I don't have to go to a branch bank anymore. I can do all that stuff online. And, and so now you're starting to see a lot of banks, not so much in Arkansas, but in other states, they're closing down branches. They're learning from it and other businesses adapt as have adapted the same way. Gary Stockton: Yeah. I like the change. I do. I've become very accustomed to, Sweet Greens is a great brand. I'm not sure if you have them down there in Arkansas, but they've got the full digital experience, pick up the food. You can eat it in some locations, but they've got that nailed in, terms of, making it just easy for the customer to just go in, grab, or even have it delivered and the delivery services as well. I do lean on those because, you get time back in your day in a lot of cases. And, then if you want to go out and be social with people, you still get into restaurants. So, I think it's an exciting change. And I think we're seeing some of that, bleed into other industries too, so it's, really cool. And now we've got AI, we didn't have AI during the pandemic. Now AI is really powering a lot more. The new phones from Apple are real exciting. you're going to have Apple Intelligence built into them. So I can imagine this. Craig Calafati: Ordering my iPhone 16 gets here in a little bit. So I can take advantage of that. Hey, one thing I did want to bring up, and this is a, this is something that I think is, apropos to this conversation and something that changed with the pandemic and is still last a long lasting effect and new businesses in particular need to think about this. When you're doing your business plan, labor is a big problem right now, particularly in when you're looking for minimum wage or, that, that strata. So if you're opening a restaurant, if you're opening a retail establishment, anything where you're requiring people on the floor, lower paid people, they're difficult to find now. And I ask people all the time, they bring me, I keep going back to restaurants, but it's a good example. I look at their business plan and they have between, lunch service and dinner service and seven days a week, they have 30 to 40 employees they got to hire. Where are they going to come from? You start talking to small business owners out there, they are struggling. They're cutting back hours. They're doing a number of different things because they can't find the people. So that's something really to think about when you are doing your business plan, or you're thinking about expansion or anything else is the labor pool isn't what it used to be. And you need to really think about that. Gary Stockton: Yeah. Yeah, definitely. So when we talked earlier, you hinted at a name shift for Arkansas Capital Corporation, moving toward the ACC brand. Can you share a little bit more about that and the reason behind the shift and what it means for the future growth of your company? Craig Calafati: Sure. I think it's just in keeping with, the, with Arkansas Capital's mission and what we plan on doing as we go nationwide, ACC seemed to make more sense as a name than Arkansas Capitol, just because people would automatically think we were located, we are located in Arkansas and we're proud of it, but that we only served Arkansas. And so we think ACC is just a better, way to go about it. We'll, start rolling that out the next few months. I think it'll just better identify what we really do. and so you'll, see that in the next few months. Gary Stockton: And that's a, good opportunity to expand into those, underserved communities and small businesses that haven't had access to, capital. So that's, exciting, Craig. Craig Calafati: Yeah. and, we've talked about this earlier, I touched on it briefly, but the thing with, a micro lending with, banks, they don't want to do, they don't want to do the small loans because they just don't make sense financially for them. They take a lot of time to do. The banks also don't really typically like rural settings. If they end up with properties, they have to sell, they can sit for a long time and shareholders don't like that. Shareholders don't like it when you have, businesses out in the middle of nowhere, or, it's mainly the small thing. it's, and it's not just the banks. A lot of banks want to do the smaller loans. The loan officers just don't want to mess with it. Let's face it. A lot of loan officers work off commissions and they have a choice of doing a $30,000 loan to help out a business get started or a $2 million loan to help a business buy a couple of trucks and a garage for it. They're going to do the, bigger one that they make more money off of. And it's, unfortunate, but it's just happens to be the way the business is set up. And so we're, excited about getting into micro lending. We think we can do a lot in that space. There are a lot of people clamoring for it. It's getting through to people and convincing them, hey, I will actually listen to you and I am interested in helping you. I'm not going through the motions here. I'm not going to bleed you of all your information and then say, sorry. It's not for us. We're, serious about this and it's part of our mission and we believe it. Gary Stockton: Well, Craig, this has been so helpful. I got a lot out of that. Can you let our audience know how best to get in touch with you to start a conversation? Craig Calafati: Actually, the best thing to do is go to arcapital.com, it's Arkansas Capital's website. And there you can not only find all our contact information, but our application's online. You could apply right then and there if you'd like. And it's all automated. You'll go through, you'll fill out everything. Then there's a next page. It'll tell you what documents you need. And it's very straightforward. There's always somebody you can contact if you need help. And we're, that's what we're here for. I really appreciate it. Thank you very much, Gary. Gary Stockton: Craig Calafati, with Arkansas Capital Corporation, soon to be ACC. Thanks very much for coming on Small Business Matters.

This week on The Small Business Matters podcast, we tackle the labor shortage crisis through the lens of productivity with none other than Kris Ward, the powerhouse behind "Win The Hour, Win The Day." As small business owners grapple with a lean labor market and escalating burnout, Kris brings a fresh perspective that shifts the focus from delegation to creating dynamic, self-sustaining systems for your business. As you will hear from our interview, Kris is no stranger to life change. After suffering a personal tragedy, she fine-tuned her business to operate efficiently even in her absence. Our conversation is not just insightful; it’s filled with actionable strategies, debunking traditional delegation myths and introducing her concept of deploying 'Super Toolkits'—a transformative approach that ensures efficiency and independence within any team. Kris discusses how these strategies are not only about keeping your business afloat but propelling it forward to scale and thrive, allowing entrepreneurs to reclaim their time and avoid perennial burnout. Whether you're a solopreneur or running a team, this episode will change how you view productivity and team management in a challenging economic landscape. Watch Our Interview Episode Highlights 02:07 The Problem with Delegation 04:19 Super Toolkits: A Game Changer 07:09 Avoiding Burnout: Strategies for Entrepreneurs 09:05 The Importance of Team and Systems 10:52 Daily Habits for High Productivity 14:50 The Power of Super Toolkits 17:19 Working with Kris Ward: Success Stories 21:00 The Profit and The Importance of Processes 25:58 Win The Hour Win The Day Podcast 29:11 Setting Long Term Goals Kris Ward's Website – Win The Hour Win The Day The following is a lightly edited transcript of our interview Gary Stockton: In today's hyperspeed, do it now, do it fast business climate, small business owners are faced with a growing crisis. According to Ramsey's State of the Business Owners in America research study, a staggering 11. 3 million business owners report struggling to find capable employees to do the work they need to be done. A challenge exacerbated by rising unemployment and a persistent labor shortage. This scarcity threatens not just business performance, but the very survival of many small firms. But an increasing number of entrepreneurs are shouldering the burden alone, spiraling into overwhelm and burnout. Is there a light at the end of the tunnel? Indeed there is, and her name is Kris Ward. Kris helps entrepreneurs overcome their obstacles by teaching them effective productivity strategies that enable them to scale successfully. After suffering a personal tragedy, Kris tested her own business resilience and strategies that not only allowed her to step away, but return to a business that was fully thriving.With accolades from Shark Tank veterans and features on global media platforms, Kris now dedicates her expertise to helping entrepreneurs like you navigate these lean labor markets. Kris, welcome to small business matters. Kris Ward: thank you for the invitation. I have to say with your radio voice and your accent already, I feel like I'm going to say smart things just because it sounds like I, the setup sounds like I'm smart. Gary Stockton: Oh, you know what, I took it all from your bio. I, when I heard you on the Jeff C., on, on Jeff C. 's podcast, about a month ago, the thing that kept ringing through my head as I listened to you was the ongoing situation in the labor market with so many small businesses struggling to fill job openings, you were talking about productivity and being able to get more done through smart systems and processes and your book and the ideas behind it, "Win the Hour, When the Day", struck me as a really helpful resource for our listeners. Can we talk a little bit about delegation? Why do some business owners struggle with delegation? And what advice do you have for someone struggling to delegate tasks effectively? Kris Ward: Well, first of all, I'm going to push back a little bit because that is a word that everybody uses is delegation. And I would argue that delegation at best is a lateral move because the work still has to come through you. So I think delegation in itself is a problem. You don't actually want to delegate because that's what happens is, I hear so many entrepreneurs, coaches, consultants, small business owners, and founders saying "ah, I got somebody and then it ended up being more work and it was just easier for me to do it myself." And what happens is if you think about it, we often emulate the corporate model and we have this idea that when we grow up to be a bigger business, we're going to use the foundation, the outline that they have, the playbook that they have, but it's very flawed. So let's say Gary, you were, really good at sales. You're excellent at sales, your numbers are great. The company loves you. And then what they do is we want you to be the sales manager. We want you to teach other people how to do the sales. Let's get Gary's talent to multiply by 10 or 20. What happens is they remove you from sales. You're not doing sales anymore. You're managing the people reacting to that. And so then that formula translates into a small business and we don't have the bandwidth for that. You're like, no, I need time to be focusing on the real work the work that my clients pay me to do the work that brings in new revenue the marketing whatever. So I don't have the time to be pulled off this to be managing my new VA or whoever we hire because that's a very parentified model where it's almost like a parent checking on a child or a teacher checking on a student. So the whole starting point of discussion of delegation that in itself is the problem Gary Stockton: Interesting. And it's, delegating the right things so that you can focus on the right thing. Kris Ward: Yeah, so, what we talk about is there's, a lot that goes into that. When I work with my clients, we work with what we call team time and toolkits, right? So yes, I would tell you right off the bat, 90 percent of people do not know how to use their calendar effectively. That's a problem right from the get go. We could talk about that for sure. Then I would say team is a philosophy, not a number. So you can have a team of one, but it's how it's set up. And a part of that setup is what we have our Signature Super Toolkits. And our Super Toolkits are like SOP standard operating procedures on steroids. So what they are is they're dynamic breathing documents that allow for constant bandwidth and efficiency in your calendar. And what really separates them is their ease of use and how easy they are to create and adjust. And so what happens is. Then your team member can use the super tool kit and everything becomes really, they have a job with independence and efficiency and ownership and they feel really invested in it and they're really super excited about what they're doing. And the super tool kit takes care of monitoring. There's no human error. There's no checking on their work because anything you do, anything you do, you create a super toolkit for. So it's one and done. It's Oh, okay, great. And even if it's something new, you start off let's say, I don't know, you're new to doing lives on LinkedIn. You start the super toolkit. And then tomorrow you start with what you learned yesterday and go, okay, let's add these two steps. So you're always what we call queuing it, creating, using, and editing it. And there is a whole thing to creating these super toolkits, which what is what makes them so powerful and efficient, but it's these basic things that create an infrastructure in the smallest business, but allows it to be efficient and allows it to go from that startup where we're in survival mode, then, we get to, if we're lucky stationary mode, and then we want to get to scalable mode so that we can have a business that supports our life instead of consuming it. And we're not working crazy hours, 10 years in. so many of my clients, they look really good on paper but they're working way too many hours for where they are at this point in their journey. And that's why they come work with me because they've heard themselves say long enough, Oh, once I get past this next thing or this next thing, and there's always a next thing. And I often say too, That if you are bouncing around thinking, once I get past this next thing, things will be different. That's really having a car that only drives in good weather. Gary Stockton: Yeah. Wow. Wow. And we know that's going to long term that's going to lead to burnout. And we could talk a little bit more about these, Super Toolkits, in the interview here. Let's talk a little bit about, the business owners that you work with, and I'm sure you've, worked with a fair share of, business owners that are on the verge of burnout. How do you keep their head in the game? And how do you stay motivated to avoid burnout as a business owner? Kris Ward: Sadly, we're all slow learners. So, what I would say to you is most of them have gone through burnout a few times before they find me. And, I remember when my business was new and I was working insane hours, I didn't even know what burnout was. Like, I went through it a couple of times and I just thought wow, I don't feel like myself. Suddenly I just don't care. Or I don't have my usual energy of, I started self diagnosing. Is it a cold? Is it whatever? It's not like me. So you don't even know what it is. And then you just think, oh, okay, I just have to try harder or get it together or whatever. So that's a whole conversation on its own. So really, my clients tell me all the time that working with me within the first month, they get 25 hours back a week. Now that seems like a bold promise, but the sad thing is they're working so many hours. If you take Tuesday and Thursday evening out and then Sunday, you get a lot of hours. And I would also argue so many times people are working and they're not counting it as work. Oh, I go in on Sundays to get ahead of my emails, but that's not really work. Oh, Tuesdays I stay late because I'm taking this course, but that's not really work. You know what? You're not at the beach it's work. And so that's a problem there. So yeah, the burnout is a real serious thing and it doesn't have to be that way because here's the thing. We hear all these stories all the time about, oh my gosh, the heroes or the people that are making all these millions of dollars are so kind to tell us on social media. And they talk about when they started, they're working these crazy hours and they're sleeping on the floor and doing all this stuff. Gary Stockton: The grind. Kris Ward: What they don't tell you, the most important part of that story, what they do not ever talk about is when their life and their business turned around and the business started taking off and they started making money. That's when they did get a team and that's when they did put systems in play. That is the story, but it's not, it doesn't have any juice. It doesn't have any glory to it. It doesn't have any drama. So what they don't talk about is when the change happened is when things really turned around for them is when they started putting things in play, like their team, their time and the toolkits. So we're following this false premise that working hard, I know for a long time, I remember saying to my mother, who knew I'd have to learn not to work so hard. That is the best thing you could say about anybody, right? I think it trumps being smart because it's like, she's a hard worker, like her character, she'll, go until the job's done. So it's the whole my, it's the whole concept of that's, if you're working so hard and you're so busy, somehow it's just going to sort itself out, but it's not going to. That's how you get feast or famine. You get a few new clients, you get really busy, and then you're too busy with the being busy, and then you lose a client or two, and then you're back to famine, and the cycle continues. Gary Stockton: Yeah. Wow. That's, it's interesting how, and I would say, yes, if you're an entrepreneur, if you're particularly a solopreneur, there's probably that worry when you get to those, famine stages that you've got to double down and sleep on the factory floor. take it to extremes. I like to do a daily exercise every day. I like to get up nice and early and get at least three or four miles walking in and clear my head. What daily habits do you consider essential for maintaining high productivity? Kris Ward: I do believe in treating yourself like a business athlete. So how can you make yourself physically your best version of you? Because that's again where we go wrong. We start, when you're working insane hours, listen, let me back up for a second. When I started my business 14 plus years ago, I started out, we were focused on market messaging. And the first couple of years I was in business, I worked insane hours. I was like, my husband said I was always stealing from sleep, getting up earlier and earlier, staying later and later. And I'd be here to tell you that when you work those crazy hours and you start running around doing things, for the first time in my life, I stopped exercising. I wasn't eating well. If you're answering emails with one hand and you're multitasking and doing all this foolishness, you're not shoving a salad down your throat with your left hand. you're eating something that's quick and not good for you. I was told about the two year mark that I was starting to lose some of my charm. I was like, oh, this cannot be. Here is, my husband's my biggest cheerleader and I'm now short tempered because I'm exhausted all the time. So I literally went from working 16 hours a day down to six. Now that did not happen overnight. That's a whole story on its own. But luckily I did cause it was a couple of years after that, that my husband was diagnosed with colon cancer and I was pulled away from the business for about two years. When I returned after his passing, my existing clients had no idea of my absence. It was just not how we navigated his journey. We were very positive in nature. And so they started to come to me and say if you could do that, like, how could we have not known your way? If you could do that, then maybe you could help me get to my kids soccer games and things like that. So we started working with them with their team, their time and the toolkits. And that's when I realized so many of the clients that needed me most, were either small business owners, entrepreneurs, or even corporate people with teams that were just. they looked good on paper, but they're still putting in too many hours. So that's a, huge component of that. And so I know for me, when I started getting back to some sort of healthy routine and getting enough sleep at night, Oh my God, I don't think there'd be wars if we all slept. So, sleeping for me, it's fitness in the morning. I work out in the morning for me. It's also having hobbies. I rock climbing now I'm kayaking and doing these different things. I treat myself like a business athlete. We know that Olympians or anybody else, whatever their role of significance, they take care of themselves for their best performance. And more than anything, you need your brain for the nature of your work. You're a knowledge worker. You have to show up. And when you're hung over from being exhausted, you don't have the best resources. So, whatever it is that you find, takes care of you, you have to put those parameters in place to treat yourself like a business athlete. Gary Stockton: Great advice. and I put sleep up there, in, the top priority. I actually got a full eight hours last night and I, for this interview, I feel so alert and ready for it. and I've done podcast interviews on maybe four or five and it's just not, it just, you don't feel your best. And also. You, there's a, I noticed a reluctance to just take on more, it's the, it, the knock on effect for me is a little bit of procrastination, putting things off to the next day. So for me, yes, I agree with you. Sleep. Let's talk about the book. When the hour, when the day. Tell us about it. Kris Ward: Again, that came from realizing that the people that needed me most were not going around explaining like, they're not putting it online, that they need help. 'cause part of them didn't understand that they even needed help. So what I would say is if you hear yourself say, once I get past this next thing. Ding, ding, ding, ding, that's a warning sign. Because there is always the next thing, and there's always going to be something. I know for us, I remember a couple of years ago, we had somebody that had worked with us for years, my social media manager, and she, long story short, it was when the lockdowns were coming off and all this kind of craziness in the world. And she had applied years before that to go to Canada from the Philippines to be an International student. So she was given like two weeks notice. Oh my gosh. Okay. I got accepted. Now, the funny part of that story is she wanted to stay on with us. I'm like, you can't go to college full time and work full time with us. It's just not going to work. But the nature of how we run our teams and our clients teams, The turnover is we've got a 90 percent retention rate with our hiring process because we do find hire and onboard, for any of our clients, just because we want to get to the real work. So we don't want the learning curve of you having to find your own virtual assistant or whatever. So, we do that, but we've got this 90 percent retention rate and they stay a really long time because they're so invested when the setup is done differently, right? Now we found a new person to come in and do that job. And she was up to capacity within, I don't know, the next week because we had these Super Tool Kits. So almost think of it like a carpenter. If you had to hire a carpenter for your, let's say you made tables as a company. You don't need to teach them how to be a carpenter. You just need to say, "Hey, here's how we do it. Here's the specs to this table." And so you can have really simple things in play like that. So you're not, susceptible to every little hiccup, every little problem, every little thing in your business. And that's the difference. That's when you have a business versus being at best self employed and you're bouncing around all over the place. It just, you never get to the real work because you're always reacting. Gary Stockton: That's really smart. 90 percent retention. that's admirable. and, so, you work with companies, let's spell it out here. You work with entrepreneurs and companies. Do you find them the help to, keep these, processes. running, make them more productive. You use super tool kits, you build them. they're bespoke for those businesses. And, if there are any changes in the team, it's no problem because you've got the infrastructure set up for that company to continue and grow, because I'm sure you're looking to expand businesses as well, right? Kris Ward: Yeah, so absolutely. So yeah, we work with small business owners, coaches, consultants, whatever. And then we deal with also corporations that may come to us with, say, I have a team of 10, whatever. Sometimes they have different units within the corporation. And As one of the services that we provide we will find hire on board virtual assistants or admin teams for them. We do work with someone's existing team for sure. But we're not an agency in that capacity. Why I say that is because agencies tend to go out and then they find somebody for you but you're not set up for them so even if they find a great virtual assistant, you don't know how to run a scrum meeting or how to create leadership or how to don't just dump what we call dump dismiss or delegate to them those the 3D. So that doesn't work at all and the turnover is high and we're also not looking for billable hours So agencies, you could find it if let's say I was wrong on everything you find this amazing virtual assistant and it all works out, you have to stay for two three years and then if you end your contract with that agency you lose your VA. As well, the virtual assistant has to sign a non disclosure agreement. So, you might be thinking you're paying them $5 or $6 U.S. dollars an hour and you're paying them $2, right? So we don't do any of that. We just find it because we want to get to the real work. And so we'll help you with that. And then we'll show you later how to do that for yourself. So we often do things for you for speed or with you for independence. So that's one of the bonuses of working with us, but you're right. Then we help them not only, provide Super Toolkits for them, but show you how to build your own because it's a breathing document because what you probably know, but sometimes it's hard to recognize when it's your own business. It's like when I wrote my book, Oh my gosh, when I was done, I thought there'd be like a parade in my honor. Okay, the book is done. Sound the drum, the drums, whatever you start the parade. Then I had to pitch to be on podcasts and to promote the book. And then I needed time to be on those podcasts and doing the speaking gigs and all this stuff. So there's always whatever got you here will not get you there. And there's whatever exciting project you just completed just creates more work. So then you have to be able to have things like the Super Toolkit and an effective, what we call a Win Team, a What Is Next team so that you can get to what is next and find more bandwidth on your calendar to do more things. There's always the next thing. So you have to be able to, you have to be able to constantly move forward, not get stuck in the repetitive admin work, busy work. Gary Stockton: Win team. What is next? I like that. Podcast listeners, you're going to want to hit rewind and mark that. there's a great show I like watching called Restaurant Impossible. And one of the themes that seems to be pretty constant is. The business owner who lets the accounting and bookkeeping go, how would you coach the chef that doesn't have time to keep his accounts in order? Kris Ward: You know what? Oh my gosh, there's a show I used to love called The Profit and he, it was very similar to that where he went into businesses of all different levels that were struggling. And here's the funny part, sometimes they were businesses that were bringing in like $10 million a year, and yet they were in debt. And he focused very similar to me on product, people, product and process. And 80 percent of the time, it was just, they didn't have the processes in play, right? They're just ad hoc one thing after the next. And they're, And what people don't understand is you think when you are a smaller business, or even if you have a smaller team in a corporation, you think, once we get out of this thing, or once we start making this amount of sales, somehow these processes are going to magically fall into play. But, they don't because you never had them. So they're not going to evolve and grow because there's nothing. You might as well go out and water cement. There's no plant in there to grow. And that's the foolish thing that we all have this concept of. Once I get high, I know I thought that once I get higher up the mountain, then as I do the climb, then I'll get the team in play and I'll get these things in play. You don't get up the mountain. You just slip and slide back and you won't get there. You don't get to build the team when you get there because there's no getting there without the team, without the processes. And so that's what I would, if people would just understand that. The only complaint I get from my clients is they'll say oh my gosh, why did I not find you sooner? Why were you not louder? So many of them one I often talk about is Kristine. She had come to us And she was a referral and one of my previous clients had recommended her and I'm not saying this is okay, but it happens. She missed the first, our strategy call and a lot of people I deal with, their hair's on fire. They're running around like crazy person. They need me. I'm not saying it's okay, but sometimes they miss the first appointment. So she's I'm so sorry. And we made another appointment. Well she missed the second one. I'm like, all right, who's the fool I'm out. And she begged me to meet with her a third time. And so I did. And cause she was a referral and all this other stuff. So we met and she said, Kris, I don't know how you can help me. Cause she helped $5 – $10 million companies set up systems to sell their business. And she goes, I help them with systems. There's just too much work to do. And they, so many clients will come to me and say, there's just too much work to do. I just need more time. And I'm here to tell you, you don't need more time. You just need better results. She would be the person I have clippings on my website and LinkedIn from actual conversations with her. Not even her just doing a scheduled testimonial just raw conversation with her and she would say Oh my gosh. First of all, her income went up four times since she started working with us. Her hours went down to one fifth of what she was working. She, within the year, went to Costa Rica for a month with no wi fi and the VA we found for her ran the business. I mean, that's huge. And that's the thing, is what people don't understand. Sometimes the thing that I think is the saddest thing to hear at all is somebody will say to me, I really want to work with you, but I can't afford it right now. And our fees are very affordable. Why they can't afford, it's not because of my fees. It's because you are never going to make more money. When you are caught up in all the pre and post work to what you do, all the busy work, all the admin work. It's if you had a small cafe and you're trying to be the chef. And then you're also being the hostess, or you also have to go get the groceries. And you're also going out and trying to get flyers and stick them on cars. And you're trying to do all these things. How much more money could you be making if you were in the kitchen, just banging out the food and then somebody else is bringing in the customers and just like the volume would be night and day, right? You cannot do all those things and think somehow you're going to make more and more money. You just can't. It just doesn't work. Gary Stockton: I'm a big fan of The Profit too. Marcus Lemonis. yeah. Great show. Kris Ward: yes. Gary Stockton: And he, I've said this before, we've talked about The Profit, He's able to have very clear, cogent, conversations with the, these business owners and lay it all out there, where, their weaknesses are, where their strengths are, and even in the organization of businesses, if it's a manufacturing type company, it's obvious to him the flow where they need to re situate equipment and get things working more productively. Great show. But you, another great show is you have a podcast. What's it called? and what kind of things do you talk about there? Kris Ward: Yeah. On the podcast, Win The Hour Win The Day podcast, you know what, we actually talk about anything from sales to social media. We don't really focus on this. And why? Because so many people, I find that like fitness podcasts, the people who are already fit listen to them for better tips, right? So again, the people I that need my help the most don't understand it's a systems issue.They think that they just have to work harder because the problem with most of my clients is they're the go-to person for most people in their life. They're the one that gets the most done. So then they just think there's more to do. So my show, it's just generic business stuff to help you get your next win now. It's really fun for me to meet amazing people and things like that. But what I really want people to understand is if you understand that. First of all, it's really not about time management. It's learning how to use your calendar and energy management. That's a game changer. Energy management over time management and understanding that, a team is it's your biggest asset, and as we talked about those super toolkits, it's really like thinking about, let's say, I had houseplants and I was like, Oh my gosh, you know what? I've never had plants before, Gary, I went to the store and I got a couple of houseplants and after a few weeks I thought, I'm really loving this. This is fantastic. They're growing. It makes me feel good about myself. And after a little bit of time, I think, you know what, maybe this is my new thing. I am actually, what I'm going to do is I'm going to, I think I'm gonna have a business where I start a farm or a nursery. And what I would ask you to think about is. What would be the difference between the house plants and that farm or nursery? And it's just infrastructure. So, on the left hand side, if you had in your hand a house plant, most businesses go like from three plants to say five and then one dies off and you have to go get another one and very interesting parallel to clients and you just, you never really get past that. But if you're going to have a nursery or a farm, think of that something that you visualize to the right. What's it's the infrastructure you put the right infrastructure in play and you can easily yield a hundred or a thousand plants And it's going to be done simultaneously, very easily, very effective, but why? Because of that infrastructure. But also don't confuse that infrastructure is something that is going to limit you. That's another thing. People will come to me all the time. You don't understand my work. It's very creative. And I'm like, great, then you need this more because if you think you can be creative running in and out of things on your to do list, that's not how the brain works. And science will show us that, right? You cannot. You, all the best inventions in humankind were done in times of relaxation and play and you cannot rush creativity or jam it in at the end of the day when you think you've got a bunch of, okay, I got all the crisis is over, let me now be creative. So that's the other thing is these things will free you, not limit you. Gary Stockton: Yeah, that's a great point. And I love that energy management, overtime management, great one. How important is setting long term goals for productivity? And how do you break them down into manageable steps? Kris Ward: So that's very interesting to me. Cause I had that conversation with just one of my clients the other day, and here's my pet peeve with goals. I find that people defer to goals, when they feel frustrated in present day. So for example, she was getting frustrated with something she's new to working with us. And she was like, Oh, my team, they're not doing this, not doing that. And there's a whole conversation about that. She's, she doesn't have the ability, she's new working with us. So she doesn't have the leadership thing set up yet. She doesn't know how to communicate with them. There's a whole bunch of problems that people don't understand. You hire someone and then you magically think that they're just going to be able to read your mind and do all these things, right? So she's I think we need to set up some quarterly goals. And I'm like, okay, let's talk about that. You're saying you can't get them to do what you want to do this week. So now we're going to set up goals. All you're doing in my mind is moving the deadline, right? So that I won't be frustrated about it. I think for most people, we know the difference between a wish and a goal is a deadline, but what makes this goal, how are you going to get, that's like me saying, okay, you know what? I want to by Christmas lose, you know, whatever, 50 pounds, although people, I don't actually have 50 pounds to lose because I feel the need to defend myself. But anyhow, somebody says, I need to lose 50 pounds. If I need to lose 50 pounds by Christmas, great. Do you have a strategy? That's a goal. What's the plan? So one of the things I would say I talk about is working backwards. We do this in our personal life, we don't realize we do this. Let's say, Gary, you have to be you know, at the in laws what, Saturday at 1 o'clock for somebody's birthday, and you think, okay, they're an hour away. That's noon. Okay. And then we're going to, so you start working backwards in your day. So we need to get up and leave. We need to get up and get going at 10 a. m. to be there at 1pm because I want to do these things along the way. So when I wrote my book, I found out from my editor for her to do the editing, she needed it by June or she couldn't do it till September. So I worked backwards and I figured out, Oh, Hey, I have to do five pages per day, Monday to Friday to get this to her by June because I did the math. It's going to be about a hundred pages. Here we go. The old me and so many of us would jump up and say, okay, I'm going to write every day at the end of the day, whatever. And there was some days that I was, first of all, let me back up for a sec. Do the work that requires the most attention or focus first thing in the morning because your brain is freshest. There's a whole bunch of science. Also, when you come back to the same task at the same time every day. boom, boom. And then also when you go into emails, there's decision fatigue and attention residue. So you want to be doing the most important work that requires the most attention or focus first thing in the morning. Okay. So now there is times where I was like, Oh, I don't know if I've got it. I don't know if I have five pages in me today, whatever. I'm tired. I'm this. I'm that. The old me would be like, Oh, that's okay. I won't do it today, but tomorrow I'm just going to come back rested. The pages will fly off the computer. But when you work backwards, a first thing I'd have to do is say, okay, if I don't have five pages in me today. Will I have 10 in me tomorrow? That sobers you up real quick, but it also shows you really quickly, let's say I wasn't well today and I didn't come into work. Then I know when I'm off course, instead of this ambiguous, Oh, I want to get a book out this year or by summer or whatever. So what I would say about the goal you asked about is too many of us business owners or even corporate managers, whatever, you have a new assignment or new project or new client that you're excited about, and you jump all in guns a blazing only then other things resurface later that you like neglected. Cause you don't again have these things on your calendar, but you didn't have a plan of working backwards to see where this work would fit. You can't just make this your new thing up until midweek. trying to get all this stuff done. And then the novelty of that wears off. So I find working backwards helps a lot. Gary Stockton: Kris, this has been so helpful. I really got a lot out of that. Tell our audience where they can find you and how best to start a conversation. Kris Ward: Yeah. So you can say that you heard me on this fantastic podcast. I hang out a lot on LinkedIn. So send me a DM, do whatever you need to do to get my attention and we will become fast friends. And you can also check out. freegiftfromkris.com, that's free. freegiftfromkris.com. We've got a couple of goodies in there. People get a lot of insight from our biz personality quiz. I have found after years of working with entrepreneurs, they fall into one of five categories. I myself am a recovering rush a holic, so you get a customized result within seconds. People find that very enlightening, but for your audience, Gary, I put something special in there. I put a free version, a free audio version of my book and it won't be up there very long. So grab it quickly, but you can grab that and, learn something while you drive.Excellent. Thanks so much for coming on Small Business Matters, Kris.

What Business Owners Need to Know As of January 1st, 2024, a crucial new reporting requirement will take effect for business owners across the United States: the Beneficial Ownership Information Report (BOI). This mandate, part of the Corporate Transparency Act, is designed to increase transparency within the business community and to combat illegal activities such as money laundering and fraud. Business owners have until January 1st, 2025, to comply with this new regulation, making it essential to understand who must file and what information needs to be reported. Watch Our Explainer Video The Corporate Transparency Act: A Brief Overview The Corporate Transparency Act is a significant piece of legislation aimed at enhancing corporate transparency in the U.S. One of its key components is the Beneficial Ownership Information Report, which requires certain businesses to disclose details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This effort is intended to curb illegal activities by making it more difficult for individuals to hide behind anonymous corporate entities. Who Is Considered a Beneficial Owner? Understanding who qualifies as a beneficial owner is critical for determining your company's obligations under the Corporate Transparency Act. A beneficial owner is any individual who meets one of the following criteria: Directly or indirectly owns or controls 25% or more of the company Exercises substantial control over the company This definition can include company founders, executives, and significant shareholders, all of whom may be required to be listed in the BOI report. Does Your Company Need to File? Not all businesses are required to file a Beneficial Ownership Information Report. To determine if your company must comply, consider the following criteria: Your company is a corporation Your company is a limited liability company (LLC) Your company has 20 full-time equivalent employees or fewer Your company is registered to do business in any U.S. state or Tribal jurisdiction by filing a document with a secretary of state, similar state office, or Tribe If any of these conditions apply to your business, you are likely required to file a BOI report with FinCEN. Information Required for the Beneficial Ownership Information Report Filing a Beneficial Ownership Information Report involves submitting specific details about each beneficial owner. The information required includes: Full legal name Date of birth Residential or business address Unique identifying number from an acceptable identification document, such as a passport or driver's license Providing accurate information is crucial, as it ensures the ownership of companies remains transparent and accountable, a key goal of the Corporate Transparency Act. How to File Your BOI Report The process of filing a BOI report is straightforward, but it requires careful attention to detail. Here's how to get started: Gather Required Information: Collect all necessary information about your beneficial owners, ensuring that each detail is accurate and up-to-date. Submit Electronically to FinCEN: Visit FinCEN’s secure online portal at boiefiling.fincen.gov. You can submit your BOI report in one of two ways: PDF Submission: Download the form, fill it out, and re-upload it to the portal.Online Filing: Complete the information directly on the website and upload any necessary identification documents. Seeking Professional Assistance Filing a BOI report can seem daunting, especially for business owners unfamiliar with the process. If you feel more comfortable working with someone who has experience in this area, consider reaching out to a legal or financial advisor. These professionals can offer personalized assistance and ensure your report is filed correctly and on time. Final Thoughts: Stay Informed and Prepared The introduction of the Beneficial Ownership Information Report represents a significant shift in the regulatory landscape for U.S. businesses. By understanding your obligations and taking the necessary steps to comply, you can avoid potential penalties and contribute to a more transparent and accountable business environment. Finally, as you prepare to file your BOI report, it may also be a good time to review your business credit report. Knowing what others see about your business can help you better manage your credit score and overall financial health. Checking your business credit report is quick and easy, and we recommend doing so through trusted services like Experian. This new reporting requirement is an important step toward greater transparency in business ownership. By staying informed and acting promptly, business owners can ensure they meet their obligations under the Corporate Transparency Act. Frequently Asked Questions Who is considered a beneficial owner? A beneficial owner is someone who owns or controls at least 25% of the company, or who has substantial control over it.https://www.fincen.gov/sites/default/files/shared/BOI_Reporting_Key_Questions_Published_508C.pdf What information is required? A reporting company must provide its legal name, address, jurisdiction of formation, and Taxpayer Identification Number (TIN). Who can file the report? An employee, owner, or third-party service provider can file the report on behalf of the company. When is the filing deadline? Companies that lose their exempt status between January 1, 2024 and January 1, 2025 have until January 1, 2025 to file their first report. Should my company report beneficial ownership information now? FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://boiefiling.fincen.gov) on January 1, 2024.A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.