Conceptually, investment management entails the creation and maintenance of investment portfolios. Investment management is crucial to businesses and especially startups in the sense that it is an income diversification strategy and further provides a hedge against losses. Effective investment management strategies are characterized by good returns and enable businesses to have access to liquid cash in case of emergencies. Further, a good investment management strategy helps secure the future of your business.
A good business credit score is beneficial to a business to the effect that lenders, banks, and other financial institutions use your credit score to determine your viability and qualification or lack thereof for a loan. Essentially, your business’ credit score denotes your business’ financial health and ultimately impacts your credit worthiness either positively or negatively. It is important for businesses to maintain good credit scores since your credit score can make the difference between the ability of your business to access capital.
This checklist will provide a guide for investment management in the first part and the second part will detail points to factor in when maintaining a good business credit score.
Part 1 – Maintaining Effective Investment Management Strategies
1 Ensure that your portfolio is diversified
2 Make systematic investments towards your business goals
3 Separate your personal investments from your business’ industry of operation
4 Ensure that you have built cash reserves for your business
5 Separate an emergency fund for your personal needs from that of your business
6 Consider undertaking requisite insurance for different needs to protect all your assets
7 Analyze your business’ appetite for risks
8 Analyze your business’ securities that are available for investing
9 Consider valuing your assets on the basis of individual merit
10 Consider hiring professionals to undertake your portfolio diversification
Part 2 – Maintaining Good Credit Score for your Business
11 Check that your business bills are paid on time
12 Maintain low business debt levels
13 Ensure your personal credit score is intact
14 Monitor your credit report periodically and report any discrepancies
15 Avoid cancelling old business credit cards
16 Always aim for lower credit balances for your business
17 Consider taking a short-term business loan and repaying it on time to prove your capabilities in handling credit
18 Avoid loan defaults and negative cash flows
19 Build good rapport with your vendors
20 Maintain a good reputation for your business
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