Business Background Checks – The OTHER Background Check

The risk involved with hiring an employee is well understood, making pre-employment background checks a routine practice for most companies. Business background checks however, are far less commonplace; but why? Excluding small daily purchases and transactions with historically reputable companies, the level of trust you (or your company) extend to a corporation you chose to deal with can be extraordinary. Yet conducting background research on companies is rare in comparison with screening individuals.

Business background checks are complex because businesses play by a different set of rules . Realistically, you and I cannot drop our identity and start over when things go bad, our debts become too great, or our reputations become tarnished. Corporations can and often do. Along with completely dissolving a business or filing for bankruptcy, corporations may operate under alternative names known as “DBA’s” (Doing Business As), appear as local companies online, but physically exist overseas, or be registered as foreign corporations while soliciting business within your state. Proper screening requires a broad and extensive expertise. Fewer companies offer business screening for these reasons. As always, watch out for companies online claiming to instantly tell you everything about a company for a small fee along with a subscription to their database. There is no one size fits all method of conducting business background research and thorough results can and will not be instant.

Americans are known for their innovation and celebration of freedom. We now have the White House calling urgently for more innovation in small businesses. Are we so behind the global competition that we need our government to remind us that we must keep up? Or are we entrepreneurs simply not getting the equitable compensation from the risk we took in business? Are there so many frustrated entrepreneurs that their children are discouraged and have no ambition in being entrepreneurs as well?

So are you ready to change your business approach so our future generation not only can compete globally but also continue to create and enjoy wealth? Are you serious about being equitably compensated for the amount of risk you took in your business? Well, in that case, you must start thinking about how to become a Business Architect.

Your business is a vehicle to create wealth, not just for you, but also for your family, employees, partners, stakeholders and society. Yes, I know you’re passionate about what you do and fulfilling your dream. But if you want to focus on wealth creation, I challenge you to work toward being a Business Architect. My friend Ginger was unable to make this leap, and the results were less than desirable.

Ginger was tired of working for corporate America. At the top of the corporate ladder, she quit her job and pursued her dream of becoming an author. Like many start-up entrepreneurs, Ginger focused on how to get her product in order to start selling the product. The learning curve was formidable, first coming out of her corporate career, which was nothing like writing a book, then producing and selling it. After putting in much of her own hard earned savings, she finally got her book published.

She then decided to use what she had learned to focus on not only selling her book, but others’ books as well. She began a self-publishing service locally and within a few years, she had some success and a few authors and their books under her belt. But during the deep financial crisis in late 2008, Ginger’s company was not immune to the crunch and it took a hard hit. She watched her own personal savings evaporate and revenue decline. They could not stay in business. In early 2009, she decided to close the doors and get a job. I’ve heard many stories like this one, but it never stops being hard to see a business colleague forced to take a different turn.

According to the Small Business Administration (SBA), of every six new businesses started, five close in five years. Despite the high risk, many people continue to try to innovate and push their passion to the limit to fulfill the American dream. Through years of working with business owners, I’ve come to the conclusion there are three categories of entrepreneurs: Technician, Manager and Business Architect.

Technician. Michael E. Gerber; The New York Times bestseller of a series of E-Myth books, used a term called “technician” to describe most entrepreneurs. Ginger, for example, was a business technician.

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