Trent Lee. Co-founder & President.

How did you begin as an entrepreneur?

Well I came from an entrepreneurial family; my father was an entrepreneur since the day he got home from his mission. He started a company and grew it to about 500 employees. Over the last 30 years with that company, he’s started and sold off a number of companies from time to time. It’s kind of been his hobby and has really affected how he’s parented my siblings and me. From an early age, we’ve been trained to have the mentality of an entrepreneur and a work-for-yourself-type person. That’s really how I got started as an entrepreneur. I remember I hated reading during school. I just didn’t like it; I didn’t find anything of interest. When I was 17 I really read my first book from cover to cover and had some interest in it. It was The Millionaire Next Door. That book really was the opening, the one that caught my interest. I am an avid reader now. I go through at least a couple books a month. That’s really what started it for me, finding and reading Millionaire Next Door and seeing how a lot of these people lived. A large majority of them were business owners. So that’s how it started.

What is the name of your father’s company and what is the nature of his business?

The name of his company was Sun City Services and he did janitorial cleaning, commercial cleaning at pretty much any building here in Las Vegas. They cleaned most class A buildings in town, the malls, the libraries, the hospitals, and part of the McCarran Airport. Any major building here in town that needed commercial cleaning was on their roster of clients.

So what was it about your father that sparked your interest? What sparked your interest about entrepreneurship, growing up with him?

The thing that I enjoyed most was the lifestyle. I’m not talking about the materialistic lifestyle, although I certainly had a good childhood. We were all avid in sports and different activities; I don’t think that there was literally a single game, or even for that matter many practices, that my father ever missed. It was nice to see that he had a job that not only provided for our family but that he was able to spend as much time as we needed for him to spend with us as kids. We needed our dad around for a lot of things and he was always there. It was nice to have him be there and have a mom that could stay at home and see us off to school and be home when we got there. So it really was the type of life that they led and how they parented us and the ability, the feeling that having their own business brought to us as kids, not to mention all the fun family vacations and the toys that went along with it; those are certainly perks. Really, the foundation was the time that he was able to give, not only to our family but to the Church as well. There seems to be an ability for business owners to be able to spend time with their family as well as Church responsibilities, more so than someone else that has be at work from nine to six.

Many people would dissuade family members to start a business together. What are your feelings about starting Corporate Credit Concepts with your father?

I certainly understand the hesitation, but the nice thing is we can talk about gospel-related topics more easily than elsewhere. I think that’s really made a big difference, when both of us are centered in the Gospel. We really look at each other as people who have feelings and concerns, real worries and hesitations, and we’re able to see each other in that sense, it is no longer about stubbornly doing it my way or giving in to his way. It’s worked out well because we’ve never had a problem where we’re in an argument that has rifted the family or is putting a dent in the family relationship at all. At one point we had all my brothers and sisters working for us as well, so at one time it was truly a family business. We had other employees, but at one point we had both my brothers and my sister as well working for us. It’s not just been good for my father and I as business owners, but it’s been nice to help out our own family. It’s worked out well for us, for all of us.

I understand that you’ve partnered with E-Myth Revisited. Michael Gerber is a favorite author of mine. What is the context of your partnership?

It’s been a good partnership for us, because most business owners are familiar with Michael Gerber’s book, the E-Myth Revisited. It’s really the business bible. There are a lot of great concepts and strategies that he teaches. This is how that partnership was initially formed: E-Myth does a lot of work with the SBA (they’re a technical assistance provider.) A person who gets an SBA loan typically goes through technical assistance providing before that loan can be funded, and E-Myth is one of those technical assistance providers. The type of business that we’re in is funding; we also send a lot of referrals to the SBA. There’s a loan program that the SBA has specifically for business owners, for startups, and this particular loan program is something that we use for a lot of our clients. A couple years ago our company was the #1 referral partner for the SBA for this particular loan program. We sent literally thousands of clients there for this particular loan program. Our contact at the SBA said, “You know what, you guys really should meet up–there’s a good match between what you guys do and what E-Myth does.” From there it’s history. It was almost immediately a good fit between our company and their company.

So Concepts focuses on unsecured lines of credits, loans not backed by personal credit. Please describe your process. How would I, an aspiring entrepreneur, obtain an unsecured line of credit through your company?

I wish I could say that it’s as easy as just signing up to be a client of ours. Unfortunately it’s not quite that easy. There’s a process and the process takes time. It’s a bit like a 5-step process. A lot of people come to us and want immediately jump to step 5: “I need a bunch of money to start my business and I don’t want to personally guarantee it.” The challenge is that you can’t get to step 5 unless you’ve completed steps 1-4. Steps 1-4 are really what we specialize in.

I wish I could say that it’s as easy as just signing up to be a client of ours. Unfortunately it’s not quite that easy. There’s a process and the process takes time. It’s a bit like a 5-step process. A lot of people come to us and want immediately jump to step 5: “I need a bunch of money to start my business and I don’t want to personally guarantee it.” The challenge is that you can’t get to step 5 unless you’ve completed steps 1-4. Steps 1-4 are really what we specialize in.

Essentially at the beginning, we’re going to make sure the business is in what we call corporate compliance. We make sure that they meet bank underwriting criteria, because the last thing we want to do is send them to the bank to get a loan and not meet the bank underwriting criteria. We have a lot of ex-bankers, past bank underwriters that are now coaches for us, and so we know what the banks are looking for. So we’ll get the business in compliance, making sure the owners have their licenses and all the things that go with a typical, traditional business. Once that’s in place, we’ll set up the file with the business credit bureaus. There are three main business credit bureaus that we deal with: Dun & Bradstreet, Corporate Experian, and Business Equifax. There are other business credit bureaus, but they come naturally in time by going through the program and dealing with the three main bureaus. Once the business credit bureaus are in place, we teach them how to understand their business credit reports, because they’re totally different than personal credit reports. We give them tutorials and samples of business credit reports and teach them what to look for, what to watch for, how to review their scores and their ratings, and how them monitor, that type of stuff.

Once that’s in place, then we start setting them up with vendors (trade accounts is what we call them) – let’s use Staples for an example. Your business may get a line of credit for $250 from Staples. Staples will invoice you and, depending on the type of credit that they extend to you, they’ll either give it to you on net terms or revolving terms. Essentially you walk into Staples, buy $80 of products, and can walk out with it and they’ll bill you later for it. The reason that this is important is because Staples will then report your payment history to the business credit bureaus. That is what builds history and that history is what generates scores and ratings. Setting up trade credit to build your scores and your ratings is what really builds the history behind the credit file and that’s what we want to have when we go to the bank. That way when you go to the bank to apply for a loan or a line of credit or whatever it happens to be, not only do you meet bank underwriting criteria, but the bank underwriters are going to see scores, ratings and history, which means you’ve handled credit responsibly in the past. You will be a safer risk to the bank then you would be otherwise because you have proven that you can handle credit responsibly.

Many businesses purport to deliver unsecured lines of credit. A few of my colleagues have worked with some of these companies and have been disappointed. A year ago, one of my trusted colleagues told me about Corporate Credit Concepts. He said that you were one of the few that guaranteed an unsecured line of credit. What’s the difference?

I can’t speak for many other credit companies, so I can’t really say what they do right or wrong. However, what we like to do is present the reality: what can be done, what can’t be done, and the time frame. Some of these other companies that I’ve seen have a lot of marketing hype that, from my point of view, just simply can’t deliver on. They’re making promises that are totally unrealistic. The problem is when you bring in a client based on unrealistic terms and unrealistic expectations, it’s going to be hard to keep that client happy because the reality of the situation is going to be lower than the expectations they initially thought they were paying for. It’s hard to run a business selling pie-in-the-sky services and pie-in-the-sky promises. One thing we’ve found is that it’s easier to be upfront and honest; we tell people that, as much as we’d like to get them $300,000 to start their company, without a personal guarantee it’s probably not going to happen. Or we give them more of a realistic picture of how much they can get and the timeframe they can get. I think clients appreciate the honesty. They know what their expectations are, but they are refreshed to hear someone give them a realistic and honest answer.

Do you feel that you have a competitive edge in your products or services?

When it comes to the industry we’re in, there are two things that make or break the company: (1) customer service, and (2) the technology used to deliver the service. We survey our clients every other month and our coaches are paid based on the client’s satisfaction. Customer service really shouldn’t be a competitive advantage but, given the type of industry that we’re in, it is a competitive advantage because a lot of companies are not really strong on the customer service side of things.

The other thing is the technology. We have a member’s login portal that they can use to track their success, where they are in the process, what’s been done, what they still need to do, and how they communicate with their coach. That has really helped keep clients on track and it’s a visual aid to show them where they are at any given time. They can login and see what percent of the program they’ve completed, what their next step is, what they’ve done, and what’s coming up in the future. Those two things, customer service and technology, really have helped us out.

What percentage of your clients obtains loans

That’s a difficult question because not all of our clients need or want loans. Keep in mind, our value to business owners isn’t being a money finder; our value is helping them build and establish business credit. Many clients will come to us knowing that they need business credit, knowing that they need to be prepared for when they do need a loan. For example, government contracting or grants: both of those are required to have business credit history. On the flip side, we certainly have clients that want a loan immediately that we need to spend a little more time with and manage expectations and see what we can do to help them.

I understand that your book (co-authored by Chad Lee) Unlimited Business Financing was the best-selling book in 2009 in Amazon.com’s “New Business Enterprises” segment. Does your book follow the same process that one of your coaches would take one of your clients through the corporate credit building process?

Yes, it goes through the first steps of building business credit from start to finish. It gives people a really good, solid overview of what it takes to build business credit, the things that need to be done, and the time lines that someone can expect. It gives them a good perspective of why you should build business credit. A lot of business owners are familiar with personal credit, but they don’t know business credit. They think that when they need a loan they can just walk over to their bank and apply for a loan. They don’t realize the difference that having good business credit can make for them, not only the approval amount, but the approval rate, and the terms and the effects that good credit has for the business in the long-term. Our book will give them a good overview from start to finish of what can be done, time frames as well, and why you should build business credit.

So why should I build business credit?

Any potential business that wants to go into business eventually is going to come up with the need for financing. The better business credit you have, the better chance you will have of obtaining favorable financing. The nice thing about it is not only having the financing, but also avoiding co-mingling your personal credit and your business credit. There are a lot of businesses that start their business using personal credit cards to fund their startup and their launch or their expansion. When that credit is used for business purposes, it shows up on their personal credit and lowers their scores in their file. Now there is no separation of business credit and personal credit. You want to be able to build business credit separate from the personal credit. This way business credit literally becomes an asset to the company; if you ever sold that company, that business credit goes with it, and increases the value of the company.

Alright, so this issue is on funding sources. We’ve talked about Corporate Credit Concepts and how you can build business credit for your clients. In many cases, your clients get loans. There are a lot of different financial products out there – VCs, angels, banks, credit cards, et cetera. What would you say is the best way for an aspiring entrepreneur to obtain start up capital?

I know you never want to hear the answer – it depends. But it really does. That question is like asking, “What type of car should I buy?” You need to know the history behind the question. Do you have a family with kids? How many and do they need car seats? Or is it just you and your wife in your retirement years and a sports car would do just fine? You really need to have more history behind the business to say what type of financing is best depending on the business owners’ needs, their goals and their current situation. Now the nice thing is that, because of our position in the market, we don’t position ourselves as the authority to come and tell you what financing is best. No matter what type of financing they are after, they all need business credit. Whether you want a small start up loan for $10,000 or you’re looking for a million dollar expansion loan from venture capitalists, any type of a lender is in the business of analyzing risk, and as a lender they want to make safe risks or make loans to safe risks. The best thing that you can do to market yourself as a safe risk is show that you know how to handle business credit responsibly. The only way to do that is to have past business credit history. That’s the nice thing about it: no matter what type of loan you’re after, you can use business credit.

How much does it cost for me to get started with Corporate Credit Concepts?

We have a six-month consulting engagement and the consulting costs that we charge is $3,000. If the clients want to prepay they get a discount, or if they want to finance it we’ll finance it over the six months.

I understand that you teach early morning seminary at 5:45 am. What are some of the lessons that you’ve learned from teaching seminary that have helped you in your career?

One of the things that I’ve learned, especially this year in teaching seminary, comes from 2 Nephi 32. It says in verse 3 that if we will feast upon the words of Christ, they will tell us all things that we should do. In my seminary scriptures I’ve got a little glue-in quote from Elder Packer: “If [you] are acquainted with the revelations,” talking about the Book of Mormon in particular, “there is no question – personal or social or political or occupational – that need go unanswered.” An apostle of the Lord is here promising that we’re going to find answers to all questions, personal or social or political or occupational, in the Book of Mormon. I’ve really found that to be true, especially in the last year as I’ve been teaching the Book of Mormon. It’s not so much that I open up the scriptures and I find the answer to my question specifically in the Book of Mormon regarding this problem I’m having, but there seems to be a door that’s opened to inspiration, even revelation, when one begins a serious study of the Book of Mormon. That’s where I think those questions are answered, after you spend time in the Book of Mormon, and after you spend time in prayer. That door to inspiration and revelation opens, and that is where those questions are answered.

I love the quote by President Ezra Taft Benson explaining that the moment you start a serious study of the book, you’ll receive light, inspiration, and guidance in your life. There’s absolutely a power in the Book of Mormon that will come into your life when you really begin, not just casually reading the book in bed at night, barely keeping your eyes open, but a serious study like Pres. Benson talks about. There’s literally a power in the book.

What are some of the greatest lessons or principles that you’ve learned over the last 5+ years as an entrepreneur through the hardships you’ve experienced and so forth?

There is safety and there is counsel in following the Brethren. One of the things I’ve noticed over and over, especially because of the line of work I’m in, is that I’m reminded almost on a daily basis of the counsel of the prophets, not just one in particular, of the same counsel year after year after year to “stay out of debt.” I know that’s a little bit ironic because I help people get into debt, but I think about the counsel to stay out of debt as much as they can. I understand that there is appropriate debt and there’s debt that can be used the appropriate way, but at the same time I see too many people go into too much debt and they don’t know their numbers. They think, “Oh I need $100,000” when they really only need $50,000; the burden that the debt repayment has on their business really makes them suffer more than they need to. If you can fund a business through internal funds, have it self-funding, use business credit as a resource to get only the amount of financing that you truly need, and stay out of debt as much as you can, it really seems to make running a business less of a burden because you don’t have that debt to service.

What advice would you give to the aspiring entrepreneurs of our community?

I have a couple thoughts. There’s a quote I think about often from Walt Disney: “Do what you do so well that they will want to see it again and bring their friends.” I think about that because there is a lot of wisdom behind that. If you “do what you do so well” that means that there’s a key, there is innovation. If you “do what you do so well,” that means you’ve innovated yourself and differentiated yourself from the competitor; you’ve set up a solid foundation for your business. And then to “do what you do so well that they will want to see it again,” he’s essentially talking about repeat customers. If you’ve innovated yourself well enough and you’ve systematized your business, as E-Myth would reference it, and you’ve got a marketing program and the ability to have your current clients come back as repeat customers, that’s a huge help.

Then the quote goes on to say, “Do what you do so well that they will want to see it again and bring their friends.” So not only do you have current, repeat clients, but you’ve got referrals. Now there’s something in place to bring those repeat clients and have them bring their friends and their family. Innovation is really key.

The next thing is marketing. I find that a lot of business owners don’t know how to market themselves. I was just in a meeting yesterday with a gentleman wanting to put together a whole conglomerate of services, including ours. His mentality was, “If you build it, they will come.” I didn’t tell him this specifically, but I don’t agree with that. Just because you have a great company, just because you’ve come up with a great idea, doesn’t mean that all of a sudden people are going to flock to your doors and want to do business with you. You need to have someone to help you with the market, someone who is a good communication expert. I find that a lot of businesses have a great inside reality, meaning that their business is very innovative and very good. However, what potential clients see is that there is disconnect between the inside reality and the outside perception; they haven’t marketed why they’re different and really capitalized on that innovation.

Marketing is important, as is financing. If someone starts a business without enough capital, or tries to expand without enough capital, they’re going to run into problems. They need to be well-funded, whether that is through angel investors, venture capital, from their own savings, or whether it’s from a line of credit, they need to have something in place instead of a hope and a dream. They really need to innovate, to have their marketing down, and to have their financing down. It would be best if they didn’t have to go into a lot of debt to start that company – it would really make things easier. Those three things are important aspects of any business and I would recommend them to any aspiring entrepreneur.

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