It’s naturally difficult for business owners to even think about the holidays when they are outside barbecuing next to their pool. Summer seems a lifetime away but any experienced business owner knows that the key to a strong holiday performance is preparation, and now is the time to start.
According to Entrepreneur.com, 51% of retail businesses begin planning for the holiday season during the summer. Last year, one-third of businesses who began preparation at this time were reportedly 12% more successful with holiday sales than businesses who began preparation in September or later. At United Capital Source, we understand that embarking on a certain strategy or making an investment as little as one week earlier than usual can produce completely different results. This is why we offer small business loans specifically tailored for seasonal companies that rely on their busy season to balance out their financial health for the entire year.
It Starts With Advertising
Marketing campaigns take time to actually influence someone’s shopping decisions, so it makes sense that this should be the first step of your holiday preparation. But before applying for small business loans, take a look at data from previous holiday marketing campaigns to determine which strategies proved successful as well as what mistakes you made on those that didn’t work. Business lenders tend to favor potential borrowers with well thought-out business plans that explain precisely why their proposed investment will increase revenue. You should have a daily plan for social media marketing, email marketing, and product placements.
Those who are unfamiliar with alternative business financing companies like United Capital Source are probably wondering how they are going to make monthly payments during their industry’s slow season, which is followed by the season. Our business funding programs eliminate this dilemma by allowing you to make lower and/or very few payments when sales are down and pay off the majority of the debt when your investment starts to take effect.
These programs include working capital loans, bad credit business loans, and merchant cash advances (a.k.a credit card processing loans). The last option is particularly advantageous for seasonal businesses because it doesn’t feature strict due dates or fixed monthly payments and is directly tied to sales volume. You could make your investment without having to worry about monthly payments impeding cash flow as well as your ability to pay bills, rent, payroll, etc.
Preparing For A New Level Of Demand
You can’t develop effective marketing initiatives without the right help. If you are debating whether it would be more sensible to hire a full-time social engagement specialist or out-source the work to a digital marketing team, the business funding experts at United Capital Source would be happy to assist your decision. Banks will make you wait months to receive funding but at United Capital Source, we can put cash in your account in a matter days because we know how important it is to start marketing campaigns at a specific time. Marketing also requires extensive research and experimentation, so it’s very wise to allot as much time as possible to create the perfect strategy for your target demographic.
We can customize your working capital loan in order to properly compensate either out-sourced or full-time help. A merchant cash advance is paid back via a fixed percentage of future credit card sales repayment is tied directly to daily sales. This allows you to have more cash flow to work with whatever payment plan your digital marketing team prefers, whether it’s being paid upfront or on a monthly basis.
As for hiring a full-time employee, we recommend short-term working capital loans that offset the potential slowdown in operations that occurs while you are interviewing and working closely with your new hire. This business funding program is designed to cover business expenses until your new hire begins to add to your revenue stream and thus finance him or herself.
A Bonus For Those Who Made Your ROI
Last year, 62% of retailers experienced a boost in sales due to promotional offers and discounts. Many retailers send new or loyal subscribers a coupon code or create limited-time offers for free shipping during the holiday season. Between your marketing campaigns and promotions, there’s a good chance you’ll be getting quite a bit of business. You won’t have to worry about leaving customers dissatisfied as long as you secure plenty of inventory way before December rolls around.
When you build a good payment history with United Capital Source, you will most likely qualify for another round of funding with even more convenient terms. This opens up an opportunity for us to demonstrate another one of our specialties, which is helping businesses purchase inventory in bulk to prepare for the busy season. With a merchant cash advance, you would be supplied with a lump sum today to pay for your inventory almost immediately after approval, since we know vendors like to give discounts for purchases that take place way ahead of the holidays.
The Early Bird Gets The Worm
There’s very little if any downside to advanced preparation, which gives you more time to devote attention to each step of the process and increases the timeframe in which customers are exposed to your brand. Unlike your bank, we were once a small business ourselves, and are therefore well-aware of how much harder smaller companies have to work to achieve their goals. With our help, you can tackle each task associated with holiday planning one-by-one and not have to rush any major decisions. Your first holiday backed by UCS will be your most profitable to date. We’ll lift you out of that slow season slump and remind you how exciting it can be to plan the next stage of your business’s evolution!