According to Forbes, 8 out of 10 new businesses fail within their first eighteen months. This statistic is undoubtedly harrowing but it ultimately serves as a reminder that most small business owners simply don’t know what they are getting themselves into. In 2013, billionaire Mark Cuban noted that unsuccessful small business owners tend to blame their failure on a lack of capital, or their inability to obtain additional funding. It seems that such individuals believed their businesses were poised for success but couldn’t afford to make their visions a reality.
Cuban disputes this notion, arguing that it is actually a lack of research or knowledge that usually brings an otherwise promising business to the ground. Had these unsuccessful business owners done their research, they would know that it’s not so easy to determine whether or not success is right around the corner.
Being able to notice the signs for success is a requirement for any business owner who plans to seek additional business funding. This is because the paramount objective of any small business loan is to capitalize on an opportunity to increase revenue. Your small business must not only already be successful but also possess the qualities necessary for further success. Without these qualities, you can’t be 100% sure that you’ll be able to generate a return on your investment and pay off your debt.
Here’s how to know your small business will benefit from additional funding:
More Business Than You Can Afford To Handle
Small business loans were created for this scenario. Your business is too small to satisfy its rapidly expanding base of customers. There isn’t enough space, staff, equipment, or inventory to account for the reputation you have attained as the go-to source for your product or service. Yes, your business is turning a steady profit but your popularity calls for an upgrade so massive that even your booming revenue cannot cover it. You could raise prices or find a cheaper way to fund operations, though this could cause you to lose of customers or diminish the quality of your foundation.
A small business can only manage this dilemma for so long because your customer base isn’t just good; it’s growing by the month. You are seeing more positive reviews, more social media followers, more search queries that result in your business showing up as one of the top ranked answers on Google. At this rate, it will only be a matter of time before the lack of resources will make it difficult to reach short-term goals.
Your Product Or Service Deserves To Be Recognized
Every business has a target demographic but certain industries appeal to multiple types of people. In other words, if one such business produces high quality products or services, there’s a good chance it will be well-received by multiple economic or social classes all around the country. The latter part of that equation, however, comes with a steep price. Additional funding is crucial for businesses that have the potential to become big name players if they could only afford to spread brand awareness on a mass scale.
Some ways to accomplish this include expanding to a second location, doubling the size of your team, launching marketing initiatives or starting e-commerce. Alternative business financing companies like United Capital Source specialize in these efforts, especially for borrowers who possess hard evidence that their businesses would do well if they were exposed to millions of people just like their customers. Such investments typically take time to pay off, but UCS offers funding programs that do not feature the strict due dates or fixed monthly payments of traditional small business loans, such as a Merchant Cash Advance, Working Capital Loans, or a Business Lines of Credit.
You Know Your Target Audience Inside Out
A major element of efficient business is figuring out what kind of people are most likely to buy your product or service. Once you know your target audience, you can stop wasting time and money marketing to people who couldn’t care less about your business. The more specific your audience is, the more possibilities you have to turn leads into sales. But knowing your target audience doesn’t just mean knowing the age or economic status of your best customers. You must also know their opinions on your industry, other interests they might have, and any relevant information related to their spending habits.
A marketing campaign is far less effective if it isn’t primarily directed towards your target audience. Opening up a second location for your business might not be as profitable as you imagined if you aren’t situated in an area full of soon-to-be customers. The same concept applies to any investment dedicated towards boosting productivity because whatever product or service you are putting so much time into must be embraced by almost everyone who knows your business.
UCS Is Willing To Take This Journey With You
Businesses that fulfill these characteristics are capable of competing with the giants of their industries and are backed by teams that have the potential to achieve so much more. United Capital Source has helped countless businesses receive the funding they need to gain this competitive edge, regardless of how small the borrower’s business was. They earned the means to evolve thanks to their current financial standing, which is what UCS’s funding experts pay most attention to when determining approval. We even offer bad credit business loans for borrowers who, for circumstances out of their control, have low credit scores but need cash as soon as possible. If you have a proven record of success, you have already completed the hardest part about taking out a small business loan! UCS prides itself on delivering stress-free business funding, and it is our pleasure to find the right one for you.