Growing a small business doesn’t just involve obtaining more of something you already have. Your business is evolving and therefore must make a series of upgrades in order to adapt to a new environment. Demand is higher, competition is more intense, and your responsibilities as a business owner seem to have doubled. Your answer must be a significant boost in productivity as well as the quality of your products or services, and that’s the purpose of these upgrades.
The biggest upgrade is traditionally associated with an important purchase or investment, such as a new batch of workers, a new work space, new equipment or a major advertising campaign. But a successful business owner is always thinking about what comes next, and this trait will serve you well in this case because one expensive move typically results in several other elements of your operation becoming more expensive shortly after.
Here are 3 things that will almost certainly become more expensive when your small business begins setting higher goals:
The relationships your business has with vendors or any outsourced service, like, say digital marketing, will play a huge role in your future. Your new standards for performance will likely call for more service, inventory or simply the help of a larger, more established company that can do the job even better. This obviously comes with a cost, one that you might not be able to pay for on a fixed, monthly basis like you used to. Instead, you could pay your partners a portion of your profits every time you make a sale. The rewards for this expense include never having to worry about falling behind when it comes to whatever service is being performed and getting first dibs on new developments in your partner’s industry.
2. Good Work
Speaking of outsourced service, growing business often means bringing certain services in-house because there is a much higher need for them. Common examples include accounting, human resources or social media, the last of which can easily require daily maintenance. Bringing these services in-house might only be slightly more expensive in terms of cost but you’ve also got to pay for the new employees’ benefits, training, equipment, etc. And if you didn’t offer extensive benefits before, you most definitely will now to prevent your best employees from seeking greener pastures. Better or simply more appropriate compensation could tempt these employees as well, so expect to give them raises in the near future when they are putting in more work than ever before.
No more old swivel chairs, computers, air conditioners, heating systems, you get the picture. Old or outdated equipment will only make it more difficult to satisfy your new demands and give your team the impression that they aren’t in a truly professional atmosphere, making them less motivated to do their best. In the past, it wasn’t a big deal if the Internet went out every so often or the office was so cold that employees were worried about getting sick but these are now problems you cannot afford to have, especially if you want your employees to visualize a foreseeable future under your guidance.
Think You Can Afford It All?
The amount of expenses that accrue after a company makes one big move towards the future is the reason small business loans make so much sense for these situations. Sure, you might have enough money to cover one large investment, but what happens shortly after, when costs are piling up and your investment is yet to finance itself? You risk bankrupting your business by not having the funds to keep your business running in the likely event that your investment causes operations to slow down or takes place during a slow period for your industry.
This is why alternative business financing companies like United Capital Source take the time to create small business loans that are customized to make sure businesses can safely access all the benefits of growth attached to most major investments.
Pointing You In The Right Direction
If you have the funds to cover your investment but not the rising costs that ensue almost immediately after, you are a perfect candidate for a working capital loan, which supplies enough funding to keep your business running throughout the months to follow. Our number one goal at United Capital Source is not to make money but to see your business grow, and this can only be done via a comprehensive plan that accounts for inevitable increases or decreases in expenses or revenue. When you enlist the help of United Capital Source, you forge a partnership with a business financing expert who will gladly show you how to maintain a budget that will remain balanced well after the debt has been paid back.
One popular type of working capital loan is a Merchant Cash Advance, a credit card processing loan that quickly supplies a lump sum to be paid back via a fixed percentage of future credit card sales. The lump sum could easily be designed to cover not only a major investment but also the increase in expenses you experience at the same time, leaving you plenty of capital to run your business smoothly without impacting cash flow.
Let Us Be Your Next Step
At United Capital Source, we understand that sudden expenses tend to arise at the worst times, like, say, when you’re trying to pay off a small business loan. Our funding programs account for these hiccups and can even be adjusted so that you make smaller payments when finances get a little tighter. Growing a business is far from simple, so it only makes sense to trust a company that will stick with you throughout every step of this tumultuous journey!