You’d be hard-pressed to find a transition from an online business to a brick-and-mortar store that went smoothly. The business owner has no idea how the new store will be received and therefore cannot fully prepare for the new demands that will ensue. Critical information such as the amount of products that need to be produced by a certain time or the amount of staff members that are needed on a day-to-day basis is largely unknown until the first few months of business have passed.
The only thing the business owner knows for sure is that he or she will soon have to make a series of investments in order to adapt to this new environment. These investments are far from small and must be made at approximately the same time because they are all directly connected.
With the help of a small business loan from United Capital Source, your business won’t have to worry about losing customers during this crucial stage of its evolution. Here are three things to consider before you take your online business to the streets:
1. Do you have enough staff?
This doesn’t just refer to the manpower required for getting your products out there. You might also need a marketing manager, social engagement specialist, production manager, strategic partnership manager, and, oh yeah, a whole new team to run online sales while you focus on building the brick-and-mortar shop. Get ready to spend several weeks looking at resumes, conducting interviews, and mulling over candidates for important positions. Depending on demand, you could find yourself hiring over 50 new employees in a matter of months.
Financing multiple batches of hires is among United Capital Source’s specialties. Production will almost certainly slow down while you search for and train new candidates, and with so many new hires coming on to the team, you can’t expect all of them to be able to handle the chaos of a upbeat shop. But with our innovative small business loans, you’d be able to customize your terms so that your repayments don’t impede your ability to periodically bring on more new employees. We allow clients to make lower or less frequent payments when they need more capital or experience sudden, temporary dips in revenue.
2. Do you need to increase production?
You don’t need much space, equipment and workers to make products that are sold online. But once you open up a brick-and-mortar store, you’ll be making a lot more products and will therefore need a lot more of all three tools. In addition to space for production, you will need further space for storage. Equipment will have to be bigger, more advanced and greater in number considering your team will be making at least 4-5 times as many products than before.
New space and equipment are not only costly but also two things you must secure as soon as possible to stay on schedule. After all, if you don’t have enough space or equipment to make your products, your only option is to close your store until you do, and this could be detrimental to customer loyalty during your first few months of business. But at United Capital Source, we can approve small business loans in 24-48 hours and distribute funding in a matter of days. You could put a down payment on your new property or equipment as soon as the opportunity presents itself and, thanks to our customizable terms, pay off the brunt of the debt when your new investments begin to thicken your revenue stream.
3. Are you tracking inventory management?
Sometimes, it takes a series of mistakes for small businesses to realize how much inventory they really need. For example, you might order double the amount of inventory you previously ordered after running out, only to run out again. Then you double inventory one more time and arrive at the same outcome. This is a sign: It’s time to sit down and analyze how much everything you are in a given time frame. If you sell a certain amount of products, how much of a certain inventory item will you have left?
Once you figure out the answer and when you need the new inventory, contact United Capital Source. Several of our business funding programs such as credit card processing aka Merchant Cash Advance and working capital loans can be specifically tailored towards ordering massive amounts of inventory without impacting cash flow. With A merchant cash advance, you would receive a lump sum to be paid back via a fixed percentage of future credit card sales, which take place very often for businesses that sell online and in-person. We strongly recommend this program for investments that must be made before business picks up and take several months to finance themselves.
If You Answered Yes Or No To Either, Call United Capital Source!
If you are considering bringing your online business to the streets, you don’t have to worry about being unprepared as long as you have United Capital Source in your corner. The transition will be bumpy in terms of revenue but we can adjust our small business loans to dodge these bumps and ensure you maintain a steady budget long after the debt has been paid back in full. Once we can confirm you have a product or service that sells, leave it to us to make sure you can get your customers what they want at all times!