Scott Asai

The Updates Your Website Might Need

10/11/2018 Scott Asai2 Comments

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If you’ve got a business in the modern day and age, then you’ve got a website, and being able to continually update and innovate it to make sure it stays relevant is a skill few possess. And because of that, a lot of us need some pointers on where to start before we know where to take our brand next! So if you’re someone who feels your website is lacking in certain areas, is too much trouble for you to run in its current state, or simply doesn’t have as much of an online presence as you hoped, here’s a couple of the best updates you might want to put it through.

New and Exciting Content

Fresh content always means you’re going to have someone new clicking on your site, reading through what you’ve posted, leaving a like or a comment, and it’s the main way you can build more and more of the following you alway wanted when you started your business. So the main update your website is going to need is a better upload schedule, and relevant content you know you can churn out on a regular basis.

Fresh content also ranks you higher on the search engines, as you’re updating regularly, and that pushes you to the top of the feed. Not to mention the potential amount of SEO content you can implement here, to make sure you get to the top and stay there!

A Better Server

A better server means better security, better storage, better content management, and simply, better service for your customers all round. And when you move servers, you’ll notice a much better stream of traffic to your website – alert all of your existing customers that you’re changing, and see how many of them flock to your site all at once to see the difference!

When you’ve got a new server on your hands, you might also notice a difference in costs and maintenance; plenty of web hosting services out there know you’re looking for them and offer specific deals for changing over, and you’re going to want a company that offers more in terms of support for your business! But you might want to invest in a vps here, especially if you’ve been a small time operation up until now. It’s a good stepping stone between what you are and the fully dedicated and extensive server you’re hoping to end up on.

Ready to Update?

Updating your website means you’ve got a lot more opportunities to take your company to the next level. Whatever that level is is your choice – you started your company with a goal in mind and you carefully planned out the steps you’d need to take to get there. All in all, running your website carefully and with consideration for the changing times puts you on the fast track for making more and more of a profit!

A Tough Sale: Convincing Job Seekers To Apply For Your Construction Company

10/10/2018 Scott AsaiLeave a comment

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A quick look at the job market will tell you that everyone and their mother is looking for work. The majority of job postings receive responses in the hundreds, and employers are often spoilt for choice. At least, those offering comfortable office jobs are.

The sad fact is that those in industries such as construction still struggle to find workers. This is an issue which worsens as we as a nation become hyper-alert to risks in workplaces like these. Not to mention that 9-5 seems like a walk in the park when you work in a field like this. That’s also worrying nowadays, in a world where there’s more focus than ever on making more time to live. Before you know, you could be posting ads which gain no response at all.

That’s not good news given that you need a team behind you to stand any chance at success. The good news is, there are ways to construct a more tempting job ad for your industry. Keep reading to find out what they are.

Offer transferable skills

No matter what, your construction company has something an office doesn’t. You operate in skilled labor. As such, starting at the bottom with you could lead your staff to no end of earnings in the future. In keeping with the current focus on work/life balance, developing skills could even set staff up to go it alone later. All you need to do is make sure you’re providing transferable skills. Some employers make the mistake of offering training with no relevance outside. Don’t do it. Offer things like forklift training which your employees can take with them. By outlining this in your job ad, you may find the applications soon start coming through.

Prove yourself as an employer

As mentioned, the risks involved in a career like this are another cause for application hesitance. Everyone that knows that construction injury is a real and regular risk. But, by proving yourself as an employer, you can somewhat put these fears to the side. It may be then, that you include a small manager bio in your job advertisements. These could outline any health and safety training or first aid courses you’ve attended. The fact you know your stuff could hopefully be enough to see people applying. You can then expand on these points during the interview process to further put minds at ease.

Get the salary right

It’s also worth noting that offering minimum wage for a career like this is never going to cut it. If you’re making that mistake, it’s no wonder you aren’t receiving any applications. The fact is that you’re asking for skilled labor with a high-risk factor. That’s the case irrelevant of the training or safety measure you offer. As such, you should make sure your pay reflects this. To get some idea here, look at job advertisements from similar companies. Then, use your new-found knowledge to develop a pay packet which sees people applying regardless of their worries.

Directing as Much Traffic to Your Webpage as Possible

10/05/2018 Scott Asai2 Comments

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Nowadays, increasing numbers of people are deciding to set their small business online. This is an entirely logical step for any first time business owner. Why? Well, the world of E-commerce is seriously taking off right now. Online businesses are experiencing skyrocketing success, with online giants such as Amazon taking multiple other high street companies completely out of business. Operating online means that you can offer customer lower prices on the goods and services that you offer, as operation costs are significantly reduced – you don’t have to fork out for commercial property rent, commercial property energy bills, staffing costs, security costs, or other expenses. Selling online also means that your products are available for purchase around the clock. Potential customers can log on, browse your stock, and process transactions whether you are present or not. This is convenient for consumers who work awkward hours. What’s more? With the simple addition of international postage, you can also reach out to a worldwide audience. However, when you set up online, you need to take active steps to direct traffic to your page. Here’s how to achieve this!

Understanding the Importance of Traffic

If you have a web page, you need to understand the importance of encouraging traffic to pass through. Think of traditional brick and mortar stores. Traditional brick and mortar stores benefit from being located in high footfall locations, as the more people who pass by their storefront, the more people who are likely to step in, which means more people browsing your stock, being exposed to your goods, and making purchases. This logic also applies to online stores. The more people you get onto your webpage, the more people who will browse your stock, be exposed to your goods, and make purchases!

Getting People Onto Your Page

So, by now you may be wondering how to get more website traffic. There are literally millions of websites out there and the online consumer market is pretty saturated at the moment, so you’re going to have a whole lot of work on your hands. But with the right techniques you can start shifting attention to your page and increase your number of hits. Here are a few to incorporate into your business plan!

SEO

The first step in your mission to boost website traffic is to engage with SEO. SEO stands for “search engine optimization”. This is a process where you help links to your page to get into high positions in search engine results. Why would you want to rank highly in search engine results? Well, think about it. When you’re looking for something that you’re interested in buying, what do you do? You google it! Then you proceed to click one of the top links in the list presented to you. Extremely few people go beyond the first place, so, you want the link to your page to rank as highly as possible. The best way to get your page as high in search engine results is to use the services of a professional SEO company or agency. They know the ins and outs of the process and will be able to take the responsibility off your shoulders.

Linking to Social Media

Social media is an extremely powerful tool for businesses. Sure, it may mostly be used by individuals for personal reasons, but if a lot of people have their attention focused on a given social media platform, you can use it to your advantage, using the platform as a means of exposing your brand to them. Create social media profiles for your business and draw in the attention of potential customers. Then ensure that your page or bio includes a link to your website. This allows people who are interested in your products the opportunity to find the space where they can make purchases.

Keeping People On Your Page

Getting people onto your page in the first place isn’t the end of the journey. You need to keep them on your page to benefit from the page hit! Studies have found that when people access a webpage, it only takes them a matter of moments to decide whether they want to consider browsing, or whether they are going to quit the tab and look elsewhere. Here are just a couple of ways to keep people on your page once they have accessed it

A Well Designed Landing Page

Your landing page needs to be as captivating as possible. Generally speaking, a good approach to take is to have some sort of slideshow showcasing your featured and most popular stock or new launches, as well as clear category links to different products that you have to offer. A professional web designer will be able to implement these into your web design on your behalf.

Clear Navigation

Many small businesses make the mistake of making their page too complex. You need your customers to be able to find their way from one page to another seamlessly with simple navigation options. This will prevent frustration and ensure that they can find everything that they need and make purchases without problems developing. Again, a competent web designer will be able to achieve this for you.

As you can see, directing as much traffic as possible to your webpage is essential when it comes to your small online business’ success. So, start implementing the above steps into your professional process and your web design as soon as possible!

Preventing Avoidable Problems For Your New Business

10/05/2018 Scott Asai1 Comment

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OK, there aren’t too many easy things about starting a new business. But it has to be said that sometimes new business owners don’t make things easy on themselves. While there are always things beyond your control, there are important matters that most definitely can be handled before they become issues. It’s just that the burden is on you, no-one else! Below, we take a look at four pieces of advice that’ll ensure your company isn’t sinking before it’s learned to swim.

Start Slow

Enthusiasm is a powerful tool, one that can be used as a force of good to grow your company. But it can also be your undoing if you’re not careful. If you’re rushing through all the steps to get your business up, running, and making money, then you’re more likely to make a mistake. A business isn’t something that should happen overnight; it’s a long-term goal. So take your time. If you’ve got all the details planned, all the pieces in place, and the energy to handle the rush of work that’ll soon be coming your way, then you’ll have a smooth entry into the world of business.

Make Sure It’s Legal

There’s nothing worse than putting much time, effort, and money into getting your business up and running, only to then find out that it’s not legal. It’s highly unlikely that someone’s going to inform you of this before you market it to the public, so take steps when you’re still in the planning stages. If you consult with a business lawyer, they’ll be able to inform you of all the steps you need to take to be on the right side of the law. Depending on what industry you’ll be in, there might be many more rules you need to follow than previously thought.

Cash-Flow Issues

You’ll have a pretty solid financial plan for your business. But it’s not enough just to have earmarked cash for the various aspects of business development; you also need to ensure you have the funding for day to day expenditures, too. When you’re starting out you might not have all that much money coming in – especially if you’re sending invoices – but will need to outlay cash. If you don’t have that cash to hand, then your business is going to take a backward step before it’s even had the chance to move forward.

Charging the Right Amount

Nobody wants their business to be a failure. However, there’s a right and a wrong way to tackle this fear. The right way is to make your business the best it can be, and give your customers a reason to choose you. The wrong way is to undercut everyone and have rock-bottom prices. You’ll get plenty of business – no problem there – but your profit margins will be too small, and you’ll be in financial troubles. So find the right amount to charge for your services. If you’re good at what you do, charge what you’re worth and what will generate a profit.

Putting Together A Career Management Plan

10/05/2018 Scott AsaiLeave a comment

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Everybody gets to the point in their career where they start considering a change. They take to the Internet and have a look at the different jobs available. They think about what it would be like to work elsewhere. For some people, this is because they simply want a change. They are tired of remaining stagnant and feel like they need a fresh challenge. For others the necessity to move may be more serious, they may hate the job they are in or feel as if it is a dead end one.

The reasons are vast. Nevertheless, before you seriously head out and try to bag one of the available jobs, you first needed to put effective career management into place. Ask yourself some key questions to ensure the move you are considering making is the right one. This is the only way to guarantee success. Otherwise, you dive right in without contemplating the consequences and this never tends to end well.

What have you got to offer?

Firstly, you need to consider what you have got to offer. If you are going into the job market then it is imperative that you know what you have to sell. Head to https://jobs.theguardian.com/article/how-to-do-a-self-assessment-of-your-skills/ to figure out how to assess your own skills. Make a list of your career capital. This includes everything from knowledge, to the certain skills you have, to your contact book, to your reputation, to the experience you have acquired. You have to try and be as objective as possible.

What is your personal work style?

Once you have made a list of everything you have to offer, you then need to determine what your personal work style is. This is something very few people make the effort to do. However, it is important to step back and understand what your personality in the workplace is like. How do you approach tasks? This is imperative when it comes to determining the roles that are right for you. In addition to this, it is also extremely important when selecting a company and a working environment as well.

What do you want from your career?

The next step in your career management plan is determining what you actually want. The more specific you are the better. This can be anything from a greater level of pay, to a boss who appreciates you, to evident opportunities for progression in your career, to a job whereby you have the potential to better yourself through in-house training and alike. These are your career goals.

What opportunities do you have?

The next thing you need to do is make a list of all the options available at your disposal. Is staying at your current company a possibility? Can you move internally within your organization? Do you want to keep the same role but move to a different company? Or is a completely radical change in career direction called upon?

Putting everything together

Last but not least, you now need to tie everything together. All of your options just made in the previous points should then be compared against your skill set, your career goals and the personality you have in the workplace. By doing this you will be able to determine what option is the best one for you and which is going to present you with the best basis for career success. You can then put everything together in your CV. Head to https://www.hloom.com/resumes/ for some templates to help you to get started with this, and then use all of the steps you have carried out above.

So there you have it: your ultimate career management plan! Follow the above to reach your goals.

The Things That Will Always Make You Stand Out When Applying For Jobs

10/04/2018 Scott Asai1 Comment

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When you’re applying for jobs, you want to make sure you get through the mounds and mounds of other applications and resumes and actually get noticed. Then, once they have noticed you, you want to make sure you go one step further and actually land the job! Below are some ideas of things that will make you stand out when applying for jobs. Take a look and see what you can use!

Creating An Amazing Resume

Having an amazing resume is so important, whatever job you’re going for. If you’re not sure where to start or how to lay it out, you can use a site like https://livecareer.com/resume-builder to help you. Make sure you take your time crafting an eye catching profile, only talk about relevant experience and qualifications, and show examples of what you did using facts and figures. The more facts and figures you can use to back up your results, the better.

A Great Cover Letter

Never ever forget to write an awesome cover letter that backs up your application. In your cover letter you should tell the employer who you are, where you would fit in their company, and why you want to work for them. This is your opportunity to back up the profile bit in your resume and talk a little more about yourself. If you’re unsure of where to begin, again you can find a ton of examples online.

Making Sure You Fit The Company Culture

Hopefully, you’ve done research on the different companies you’re applying to when job hunting; making sure you fit the company culture is imperative for your happiness and success at a company. Plus, if you’ve already made sure you’re an awesome fit, all you have to do is highlight that in your resume and cover letter.

Have Some Glowing References Behind You

Make sure you have some glowing references behind you – they should know they might be getting a call, as well as what your goals are for your career. This means they can tailor what they say and make sure they show you in the most positive light.

Have An Awesome Online Portfolio

An online portfolio can be a fantastic way to show off your work. Create one and direct potential employers to it so that can immediately see what you can do.

Make An Awesome First Impression

The first impression counts during an interview, or even when you drop your CV in. Dress for success, practice your handshake, and make sure your body language is positive. Really listen to the person interviewing you by practicing active listening. Imitate certain gestures and body language (not in an obvious way) and you may be able to build a faster connection with the interviewer.

The above things will nearly always make you stand out when applying for jobs. See what you can do and you should find yourself with a position in your dream role or company before long. Leave your own thoughts and advice below!

When To Turn Your Side Hustle Full Time

10/03/2018 Scott AsaiLeave a comment

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Are you someone with some very clear business ideas? Maybe you took one of them and turned it into your bit on the side, making money whenever you’ve got the time to work 5 to 9? Well, if you managed to succeed with that side hustle plan, the one you were promised would bulk out your bank account beyond belief, now’s the time to get more serious about it.

Your side hustle was one of the best business decisions you ever made, and now you want to be sure it goes on making you money – and having that confidence in mind is a surefire sign that it’s time to take your side revenue to the next level! But if you’re feeling a little ambivalent over this plan, here’s a couple more of the most prominent signs you’re ready to go full term with your side hustle, and never look back.

You’ve Got Everything Saved Up

Your side hustle was a way to bulk out your main revenue, and give you a bit more spending or rent money when your real job just wasn’t paying out well. But if you’ve noticed, more times than not, that your side hustle pays better, this might be the time for you to move on to full time.

Of course, you’re going to need savings in place to cover the first few months where you’re not likely to bring in much of a full time profit. So make sure you’ve got at least a 3 or 4 months rent in the bank before you make your move – you’re going to lose a portion of your yearly income, and that could set you back massively.

You’re Looking into Your Legal Options

When you’ve got a side hustle on the go, and you’re looking to turn it into a full time business, you’re probably researching every law, rule, and regulation to make sure you’re operating on the right side of the legal circle. And that means you’re already planning to take your side hustle to bigger and better heights, so why not get it going as soon as possible?

Sure, you’ve already got your tax issues down to an art, but you’re going to need to look into every facet of the law that could apply to you. And that takes some time and effort, so the sooner you start, the earlier you could turn your hustle into a thriving company. For example, when you’ve got plans to buy up a small fleet of vehicles, you’ll need to look into areas like that of https://www.grayandwhitelaw.com/practice_areas/kentucky-truck-wreck-attorney.cfm – starting your own courier or fleet service means you’re at a higher risk of accidents at work, and that’s got to be on your mind from the get go.

There’s been a lot of success stories surrounding entrepreneurs who took their hustles full time, and you could be another one of them! Just make sure you’re ready.

What Does It Take to Set up a Successful Side Hustle?

10/02/2018 Scott Asai1 Comment

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Everyone should have a side hustle. An extra source of income, something you can do in your spare time to generate money. Whether you want to save, get out of debt or have a backup option for if you ever lose your job, a good side hustle is accessible as well as being fun. But what do you need to make it a success? Here are a few ideas.

A good idea

First of all, you’ll need to decide what is it you’ll be doing to earn money. If you already have an established blog, why not look into ways to monetize? Having a new template and header installed and working on boosting your domain authority will help. Go through old posts and replace pictures that look shoddy or out of date with beautiful free ones online. Sites like Kaboom Pics have plenty on offer and will improve the aesthetic of your blog. You could do some work on a freelancing site, or you could set up your very own business. Theres are plenty of things you can do from home which don’t require that much money to begin. Just have someone design your website and then use Internet marketing services to promote and you’re halfway there. Perhaps you will sell things you’ve made and utilize a hobby, or maybe you’ll buy and sell items for a profit.

Self motivation

With a side hustle you don’t have a boss breathing down your neck, meaning you need enough self motivation and discipline to be able to get things done. While you don’t have a manager or boss in the usual sense, when you work for yourself you do have clients and each project you take on will come with a deadline that needs to be met. Start messing clients or customers around and you damage your reputation and massively hurt your chances of success. The best thing you can do is to choose a side hustle based on your skills and things that interest you. That way, it doesn’t so much feel like work and it makes it much easier to get motivated. Side hustles are exactly that- on the side of your other commitments. This is something you’ll be doing around a full time job, childcare or other things in your life. So it takes a fair amount of self motivation to grind down and make it work.

A place to work

You can improve your chances of success by giving yourself a proper place to work. If you have a spare room in your home, turn this into your own office. It helps to keep work and life separate, and gets you into a good frame of mind for work which is good for productivity. Have your desk and computer, the right storage and everything you need in the room so that when it’s time to get down to business you can do exactly that.

Be The Perfect Boss In 5 Simple Steps

10/02/2018 Scott AsaiLeave a comment

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If you have recently expanded your startup, the chances are that you have taken on staff for the first time. What started as a one person band sort of enterprise has now grown to a fully fledged company complete with employees. You now find yourself in the enviable and slightly daunting position as a boss. You were once used to being the full time employee, with excellent promotion prospects, a steady wage, and job security. You remember moaning to your colleagues about your overbearing employer, the incessant demands on your time and the targets that you felt that you unrealistically had to meet. You don’t want to be that boss.

Being a good boss isn’t about giving commands, orders and terrorizing people into submission to do what you want. You need to be more nuanced in your approach to your employees. The buck stops with you. Your company is your livelihood, and you need to foster the same sort of passion and productivity within your staff team. Take a look at these five simple steps you can take to ensure that you are the perfect boss.

Be Honest

Employees hate nothing more than being lied to or having things kept from them. This can lead to resentment and anger, and eventually a high turnover of staff. You need to be transparent with your workforce even when things aren’t going particularly well. You have to lead from the front and be empathetic to the needs of your staff.

If you have an employee who works hard, enjoys what they do, has bought into your business vision and does everything they can to help you realize your profit projections, cut them a bit of slack when they ask for the morning off to see their offspring receive an award at school. Being fair and accommodating, without being a pushover, is vital if you are to get the most out of your employees. Being a strict disciplinarian, as with parents, can lead to rebellion. You don’t want to be that boss who has to cope with skiving employees who fancy a few too many duvet days because you have been pushing them too hard.

It’s vital that you give your staff team a voice and you respond to their concerns with honesty. Send out a weekly email just to keep your team in the loop. They need to know when things are going well and they need to understand why things might be a little less certain in times of hardship.

Communicate

A weekly email is also an effective tool to communicate with your employees. You should be praising the good work that they have been producing. Single out one or two staff members each week and give positive praise where it is due. This boosts morale, motivates others to succeed and can help your workplace remain productive and buoyant. Set up an employee recognition scheme and allow their colleagues to nominate one another for awards or praise. This can help an environment of productivity to flourish.

As well as emails being the go-to method of communication, ensure that you still have face to face meetings with your staff. Don’t always hide in your office. Have a weekly catch up at the beginning of the week before fatigue sets in. Have short term goals for the week and share them with staff. Also allow this to be a forum to enable them to air their views on new initiatives, and targets. By listening to them, demonstrating that you see value in their contributions and acting upon their opinions, you are showing your staff that you care. Communication isn’t giving commands; it’s a two-way respectful process.

Provide A Suitable Workplace

It can be difficult at times to motivate yourself to go to work. Getting up early on a particularly gray day to venture out on a long commute to the office is tough at the best of times. However, think about how this can be compounded by the fact that your office might not have adequate heating and the coffee machine is broken yet again. If this sounds like the workplace you head up, then it’s time to sort it out. You cannot expect your hard-working team to be working in conditions not conducive to top quality work.

Whip out the paint and give your office a facelift. Bright white walls complete with artwork and photographs that are inspirational and relevant to your industry can really lift the mood of your employees. Replace the polystyrene ceiling tiles and replaster where necessary. Ensure that the heating is up to scratch, install some air conditioning units for the summer and upgrade the hardware you possess as necessary. You cannot blame your employees’ frustration if your servers are always down, your laptops keep freezing, and everything takes an eon to download from the cloud. By investing in your workplace, you can be sure of an upturn in morale and productivity.

Add a touch of greenery here and there to bring a bit of color and nature into your workplace. Studies have shown that brighter, greener and more natural spaces can boost morale and lift mood. If you need to, reconfigure your workspaces from the individual pod-like atmosphere to a more collaborative space encouraging teamwork and fostering the creation of shared ideas. You need to generate a buzz of work and a hum of positive morale. Develop shared spaces and chill out zones for when your employees may need to take a load off. A stressful workplace with no respite can lead to poor productivity. Be the boss that understands the needs of their staff team and caters for them.

As well as the physical aspect of your workplace, you need to provide the necessary benefits to your team. Investigate retirement plans and wellness benefits with a company like Vita Assure and maximize your ability to foster a happy, healthy and productive workforce. It’s important that you go the extra mile to show your employees that they are valued. When it comes to interviewing the best candidates for new roles, and they ask about the benefits you provide for employees, you want to show off your credentials.

Know Your Team

Don’t be the boss that doesn’t know their staff team. While you won’t want to know all the details of your marketing manager’s divorce proceedings, it’s vital that you know that they are going ahead and that your staff member may need some extra support. Understanding that your employees are humans and as fallible and in need of support as everyone else is vital if you are to get the best out of them.

Take a couple of away days each year to really get to know your team on a more personal level. When your employees know one another on a deeper level, their working relationships become more meaningful, and they care more. While you will still want to keep your distance and maintain a professional relationship, there’s nothing wrong with going for drinks after work at the end of the week and getting the first round in to show your appreciation for their efforts before sneaking away. Encourage your employees to let off steam and allow them to play hard if they will reward you with working hard.

Teamworking sessions have a bad reputation for being pointless with numerous imaginary bridges being built and marshmallow and spaghetti towers being constructed. However, certain activities that foster collaboration can utilize skills that can be transferred into the workplace. Consider heading to an activity center and enjoying some orienteering, raft making and team games to have some fun and hone your team’s listening skills, ability to empathize and leadership.

Invest In Your Team

The chances are that you won’t be able to keep your staff members forever, no matter how much you want to. However, you can create promotion opportunities to keep your brightest stars for as long as possible. To ensure that you don’t end up with a high turnover of staff, you have to financially invest in your team. Fund qualifications, send them on relevant and meaningful professional development courses and encourage them to continue learning. While they may eventually utilize these skills with another company, they will be able to apply any new knowledge into their current workplace, harnessing new skills, developing more efficient ways of working and passing on their new methodologies to others in your staff team.

To be the ideal boss, you need to put yourself in your employees shoes and think about what they need to do their jobs well, and what they desire to see in their employer. Lead by example and don’t be afraid to get stuck in and get your hands dirty. If the printer breaks down, head out into the office and fix it. A boss with no airs and graces is more relatable to staff. It’s up to you to create the ideal ethos for your workplace. An environment of continual learning, hard work and recognition are imperative if you are to strive to be the perfect boss.

Credit Scores: A Plain-English FAQ

10/02/2018 Scott AsaiLeave a comment

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Your credit score is a three-digit figure that has the power to control a huge number of areas of your life – yet the realities of credit scoring remain obscured by myth, confusion, and lack of transparency. This is concerning given the power that credit scoring has, and can mean that a vital component of the overall management of your personal finances is deeply misunderstood.

In an effort to shed some light on the realities of credit scoring, below, we’ve put together a list of the most common questions people tend to ask about the practice, along with the answers you need to know. So, without further ado…

What is a credit score?

A credit score is a three-digit number that is used as a reference point for your personal financial management. Credit scoring is popular with banks and other financial institutions as it allows for a quick, at-a-glance assessment of the way you manage your finances, and has become the primary method by which applications for credit are assessed.

Who decides a credit score?

You may be surprised to learn that you do not have a definitive “credit score”; the number can vary between companies, though they will usually be fairly closely aligned. The companies that compile your credit scores are known as credit bureaus, the best-known of which are Equifax and Experian.

Credit bureaus effectively act as a third party between you and the companies you hold a financial history with. If you apply to a new lender, the lender will “ask” a bureau for your credit score, and then interpret that score based on their own criteria.

So you can have a credit score with a credit bureau you’ve never interacted with?

Yes. Credit bureaus are not financial institutions in and of themselves, and you don’t register an account with them or apply for their products. Their role is to act independently, assessing your financial affairs and then providing a quick summary of that assessment – as your credit score – when you apply to a new lender.

What information do credit bureaus hold?

Your personal details, such as your name, phone number, and address
Any existing debts you have
Your existing financial products, such as bank accounts, loans, and credit cards
Information on your utility bills, such as whether they are well-managed or in default
Your current and past income
A history of defaults against your account; for example, if you have missed payments on your credit card in the past, the credit bureau will know this
Details of any financial relationships you have with companies, such as your cell phone contract
Details of any personal relationships you have that may influence your finances, such as someone you share a home with

How is a credit score created?

The exact methodology is something of a trade secret, but credit scores are essentially formulated by assessing your income, your existing debts, and your history of financial management (such as whether you have any defaults on your file) to produce a number that is designed to be reflective of your creditworthiness.

What is a good credit score?

With credit scores, the higher the number is, the better; your score would need to be over 670 is considered to be ‘good’. The current US average credit score is 687.

What is the impact of a bad credit score?

If your credit score is ‘fair’ or lower, then you may find that you struggle to obtain financial products such as loans and credit cards. However, there are exceptions to this, and some specialist companies will offer lending to those with lower credit scores, and you shouldn’t have too many problems finding bad credit loans near you with a little searching. Similar options are available for credit cards and, to a lesser extent, mortgages, though this may depend on the amount you have available for a deposit.

Outside of the financial implications of a bad credit score, you may also find that a bad credit score influences your ability to find jobs or even rent an apartment. The use of credit scoring to assess these kinds of applications is rather dubious but is nevertheless a reality for the moment.

Can bad credit scores be improved?

Yes, to an extent.

You can improve a bad credit score via a number of different methods, but it is important to note that these methods cannot fix a bad credit score – they can just improve it from its base starting point. If your credit score is being impacted by signs of previous financial issues – such as defaults or late payments – then there is relatively little you can do to ‘fix’ the score in the short term.

So these signs stay there forever?

Thankfully not; after six years, all defaults and similar issues will be automatically removed from your credit file and will no longer be considered when calculating your score.

There are also some suggestions that defaults tend to lose their power over time, though this is unconfirmed, and may be more hearsay than anything. However, many people have found it to be true, so it’s worth knowing: a default that has been sustained in the past 12 months may impact your score more dramatically than a default sustained five years ago would.

Can I challenge my credit score?

If there is information on your credit score that is incorrect then yes, you can challenge this with the credit bureau who has recorded the inaccuracy.

However, you cannot challenge information that is correct; nor can you ask for defaults that have been fairly applied to be removed. Credit scoring is used by companies as a way of protecting themselves when lending; as a result, there is a huge onus on credit bureaus to provide a genuine representation of your financial management, so there’s no way to persuade a bureau to remove less-than-ideal information from your file.

In conclusion

By paying close attention to your credit score, protecting it, and – if necessary – improving it, you can be confident that a crucial element of your personal finances is well under control.