Wouldn’t it be nice if there was a FICO for your small business?
Judging personal credit is easy. You just look at the FICO scores from the three credit agencies and see how you stack up to the statistical average. What if that existed for small business. A FICO type score that took into consideration your branding, competitive advantage, innovative ideas, and market share. This would be a useful tool for the entrepreneur in determining which ventures warranted continued investment and effort.
Unfortunately, this tool doesn’t exist. Some of the best business ideas were launched at the wrong time and others were under-captatilized. The best in those four areas doesn’t guarantee success. Rather luck often plays a role.
Yet, despite the propentency to failure… America was founded on the idea of independence. That we are free to create our own path, and therefore, our own success or failure. If you have an innovative idea then you should cultivate it. If you have consistent branding then you should be rewarded. If you have a competitive advantage then you should exploit it. If you have market share then you should defend it.
If there was a FICO score that graded your business would you listen to it or continue to forge your own way? Would you abandon a business that had an excellent small business FICO but was under-capatilized or experiencing economic difficulty?
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FICO for businesses. That’s an interesting idea.