Perhaps the smartest mentality for a small business owner to possess revolves around this question: Why would someone choose me over my largest competitors? Small businesses compete with big businesses, which are the logical choice for the average customer. Big businesses have bigger selections, a bigger reach, and more accessibility. Their stores are located in the busiest areas, and their websites are among the first to appear on the results of page of a Google search.
How can small businesses ever hope to survive when the odds are so clearly stacked against them?
The answers become clear as soon as you realize the disadvantages big businesses have to give up in order to serve so many people. One company’s weakness is another one’s strength, and it’s up to small businesses to continuously remind customers that they made a good choice in forgoing Amazon or Dunkin’ Donuts for you.
1. QUALITY AND AUTHENTICITY
Customers of small businesses almost always value quality over convenience. They come to small businesses to get something they feel they can’t get anywhere else, even if the differences are fairly minute. This is particularly relevant for smaller retailers, restaurants, or any product-based company. They develop their products using high quality materials in a way that their largest competitors cannot because they are more concerned with having as many products available as possible.
These materials might not be so easy to come by but without them, you’d just be another big business with only a bottom line to look out for. You wouldn’t have started a small business if making money was your primary goal, anyway.
The problem is that numerous obstacles are bound to arise when it comes to obtaining essential materials at certain times all throughout the year. Food ingredients, for example, have a tendency to become more expensive, especially if they are shipped from a far off location. A change in season could give you a lot less money to spend, as could increases in other expenses like payroll, fuel, or equipment.
KEEPING YOUR IDENTITY AFLOAT
Companies that don’t want to risk losing customers by using cheaper resources would be wise to consider working with an alternative business financing company like United Capital Source. We can even help you if you need to place your order in just a few days, but that doesn’t mean we only offer one business funding program with generic terms. Every unsecured business loan we distribute has its own terms based on the individual expenses and circumstances associated with the investment at hand. Our working capital loans, can be customized to make sure you don’t have to worry about large payments when you are concentrating on developing your products during surges in demand.
2. PUTTING CUSTOMERS FIRST
Let’s say you own a food service business that has gained a huge following. Your customers love your items so much that they want to enjoy them at house parties, order them in larger quantities, or have them delivered as gifts to friends all over town. Putting your customers first means coming to them when they can’t come to you. In this extremely common case, the business could handle these new responsibilities by securing a food truck or outsourcing a delivery service.
But until the deliveries become more popular, you might not have enough cash on hand to afford this additional expense in its first season of service. This is another perfect opportunity to enlist the help of United Capital Source, which can quickly supply the funding to get your delivery service up and running. Our business funding experts have years of experience with this industry and would first tell you whether your own truck or a delivery service would be the more sensible investment. We might then recommend a credit card processing loan because food service businesses conduct a great deal of sales via credit card, and this type of working capital loan only deducts payments when a sale is made. You would have no trouble paying your regular expenses while your delivery service begins to take shape and your largest payments would be made when bulk orders start coming in.
WHEN THEY DON’T COME TO YOU, YOU COME TO THEM
Your initiative to put customers first should be implemented online as well. The idea for deliveries arose because customers were unable to come to your store. What if customers aren’t coming to your website or social media pages? The solution is to proliferate your content to the online places they are hanging out and mine these hangouts for vital information about your target market.
Hiring a social engagement specialist or out-sourcing a digital marketing team brings your product or service to your customer, rather than simply waiting for your customers to come to you. But much like your new service, this investment might not begin to finance itself for several months, or however long it will take for you to gain the attention of Internet users located within your store’s vicinity. United Capital Source presents an array of funding programs for this predicament based on how much more revenue you expect to generate over a specific period of time. Traditional working capital loans are typically better suited for in-house hires compared to a credit card processing loan for an outsourced service, since it would have minimal impact on the revenue you generate from your usual, over the counter sales.
SOME EXPENSES CANNOT BE CUT
Smaller companies shouldn’t have to sacrifice their greatest strengths just to keep their lights on. Rather than eliminating vital expenses, they should turn to United Capital Source and be reminded that they are not alone in this inevitable struggle, one that is so common that companies like UCS have figured out how to work around it. We can get you the resources you need at almost any stage of your financial cycle and create a budget that will remain stable after your debt has been paid back in full. It’s our job to make sure your business is operating in full force at all times, even when the circumstances of your industry say otherwise.