Small business owners are accustomed to unprecedented misfortunes and the sacrifices required to move forward. To them, it is completely normal to be constantly worrying about the immediate and distant future because it’s better than being caught off guard. Their concerns, however, aren’t just limited to whether or not they can sign that new client or release that new product in time. As if these decisions weren’t stressful enough, small businesses are frequently faced with numerous external or internal financial hazards with the potential to put a major strain on cash flow.
Spending money wisely is one thing but businesses must grow in order to survive. They can’t let industry-wide changes or limited funds stop them from moving forward.
1. RISING EXPENSES
No matter how strong the numbers were for last year, the business does not want to see the same numbers show up on their financials one year later. They aren’t just being hard on themselves. Expenses are always rising, often for reasons outside the business’s control. Restaurants located in big cities, for example, have seen a massive increase in occupancy and labor costs over the past few years. This industry was already notorious for low profit margins, and now they have shrank even lower while revenue remains relatively stagnant. A more universal situation might be the need for more advanced and expensive equipment, such as basic computers or machinery for medical practices.
Virtually all businesses are worried about rising expenses, and history justifies their fears. But with the help of an alternative business financing company, the affect these new expenses would have on cash flow would be minimal at best. Several programs like working capital loans, credit card processing loans, and business lines of credit can ensure your business is able to pay its bills in the months when new expenses are you hitting you the hardest, especially if it is leading into your industry’s busy season. Small business loans from alternative business financing companies are designed to allow you to make the investments necessary for offsetting higher costs, like widespread marketing campaigns, renovations, or a new batch of workers.
2. UNFORTUNATE EVENTS
Sometimes, increases in expenses or decreases in revenue come from events that are unrelated to your industry but certainly make an impact. When the economic recession struck about ten years ago, myriad industries were forced to resort to unfamiliar strategies, like taking on smaller, seemingly random accounts they wouldn’t usually work with. Similar measures are taken when a business’s target demographic is suddenly directed away from their everyday lifestyle due to things like torrential storms or a presidential election. Troubling times appear to lie ahead but with a little extra funding at the right time, you can turn misfortune into a new opportunity and set the stage for an incredible comeback.
The question is this: What can you do to stay vital while positioning yourself for success once your audience returns to their lives? This obviously calls for a multi-layered answer but the first step is undoubtedly to seek help from those who have kept countless small businesses just like yours alive and well when it became more difficult to attract interest and stay relevant. Working capital in the form of a merchant cash advance could provide the means to develop a new service that caters to your audience’s new needs or, like the aforementioned scenario, sign multiple accounts all at once as soon as your larger clients make cuts.
3. AM I WASTING MY MONEY ON POOR HELP?
Arguably the biggest challenge of growing a business is finding the funding and talent to put a plan into action. The right time to increase staff isn’t always clear, largely because it’s hard to tell if your new hire is in fact a wise investment. One thing you do know is that new hires are one of the most important investments for business growth, so it’s only logical to ensure a high likelihood of a strong return. Small business loans can make this happen in a number of ways, such as giving you the proper time and resources to search for and train new hires so they take as little time as possible to contribute to your revenue stream and perform to the best of their ability. Rather than hastily filling an empty position just to keep revenue steady, you could find a candidate that fits all of your requirements and then let him or her settle into the position without worrying about lost productivity doing damage to your operational funding.
YOU’RE NOT IN THIS BY YOURSELF ANYMORE
Let’s not forget that even if these three challenges don’t put your business in jeopardy, their effect on your mental and emotional well-being is undeniable. It’s a lot harder to get through your day-to-day routine with so much to worry about. But with a company like UCS in your corner, you can always know you are never alone when times get rough. Clients of United Capital Source rave about how stress-free the process of applying for and receiving funding can be, even with bad credit. When everything seems to be going wrong, it’s very calming to know that getting funded quickly is not among your laundry list of stressors.