What You Should Know About High Propensity Business

Propensity exists in dozens of different forms in the world of economics, either to invest, spend, save, import or export. Ordinarily, propensity is a natural tendency to behave or do things in a certain way. For example, cats have a tendency to hunt birds, while humans are inclined to acquire material possessions.

So high-propensity businesses can be defined as those that have a higher likelihood of becoming businesses with employees and payroll capabilities. High-propensity businesses include those that:

• Define themselves as a corporate entity.
• Indicate a plan to hire employees.
• Have a date for providing first wages and planned wages.
• Have been registered under corporate affairs commission that aligns with accommodation and food services, construction, manufacturing, retail, professional, scientific or technical services, educational services and healthcare.

To be seen as a high-propensity business, it is not enough to simply state your intent to hire employees but you must also prove you’re prepared to compensate them.

There are different way to position yourself as a high-propensity business and they include:

WRITE A DETAILED BUSINESS PLAN

Creating a thorough business plan will attract investors and allow you to demonstrate the value of your business. When you have goals written down on paper and are able to explain your company’s vision, interested investors recognize your willingness to take your new business idea seriously and can see what you’ve thought through potential challenges and come up with solutions.

The most efficient business plans include:

• Your company’s mission statement and values.
• A thorough description of your product or service.
• Long-term and short-term business goals.
• Explanations of your business structure or business model.
• A thorough financial analysis.
• Financial projections, including how you’re planning on repaying a loan or providing a return for potential investors.
• A detailed marketing plan.

When filling out your business application, make sure you point out that you are actively hiring employees. This statement can be included in your business plan or listed directly on your application. It may help your business’s stance to provide job descriptions for your employees and how your business will utilize the skills of potential employees. If you’re not sure about these details yet, it’s acceptable to give general descriptions about where employees fit into your business plan.

PROVIDE A FIRST WAGES-PAID DATE

To be seen as a high-propensity business, it isn’t enough to simply state your intent to hire employees but you must as well prove you are prepared to compensate them. It is important to provide proof of planned wages, including when your employees will be paid and what their wages will be. Indicating a first wages-paid date increases the likelihood that you will be seen as a high-propensity business with your intent to form employee payroll.

CLEAN UP YOUR CREDIT SCORE

Factor in your credit score (list of creditors or people you owe), because it will determine if you qualify for a loan that can assist you in jumpstarting your business and being seen as a high-propensity operation. Here are a few ways to clean up your business credit score:

• Pay your credit bills on time. Look at your payment history and determine whether you’ve missed payments, as these will negatively impact your credit score.
• Ensure public record information is accurate. If your account holds judgments or tax, it is important to be certain that this information is complete and precise.
• Open a business account and get a business credit card. So you sign up for a business credit card to separate your business expenses from personal expenses, while boosting your credit score.

ENSURE REGISTRATION WITH CORPORATE AFFAIRS COMMISSION

When a business has been registered, it attracts benefits such as enhancing the reputation and perception of your business, better access to investors and boundless opportunities.