We live in a culture that glamorizes growth to the point where new business owners feel pressured to accomplish more in one year than their older peers have in their entire lives. The possibility for rapid success has prompted them to think big, envisioning world domination without even knowing if an idea is profitable.
This mentality is especially prevalent in the restaurant and retail industries. New members of these industries are often so focused on opening as many locations as possible that they lose sight of what is necessary for their first location to achieve success. And these necessities go way, way deeper than high-quality products or services.
Here are 3 things every business owner must know before even thinking about adding locations:
Can Your Team Transition Smoothly?
The backbone of any successful business is its team, which provides the foundation for productivity and revenue. New businesses can’t just hire anyone. They must take their time looking for workers who are dedicated, willing to learn, and prepared to go beyond their job description to assist the business owner in any way. These are the kind of people who will stick with you when you run into inevitable speed bumps and repeatedly prove that they can be trusted to fulfill their responsibilities when someone isn’t looking over their shoulder.
The latter attribute, trust, is extremely important for business owners who must invest time in establishing a second location. Who will run your business when you aren’t there? You cannot devote attention to your new location if you don’t have someone or a few people you can trust to take over most of your responsibilities, train new employees, and keep current employees in line. So, if additional locations are on your horizon, make sure you are gradually grooming your longtime employees to take on more demanding positions.
Are Your Customers Committed To You?
Getting customers in the door is nowhere near as difficult as getting them to come back. Customer retention is a critical element for success because loyal customers essentially act as additional salespeople for your business. You would think that high quality products or services would be enough to create this loyalty but in 2017, people want more because they are exposed to more places to put their money. They want an experience, or simply a reward for choosing your business as opposed to their usual spot.
There are several possible ingredients for a solid customer experience. You could hire employees who are too friendly or engaging to forget. You could harness social media and email marketing to maintain a constant presence in their lives. Among the more popular tactics is a rewards program that provides an incentive for spending a certain amount, purchasing a new release, or logging a certain amount of purchases.
Can You Grow While Remaining Financially Stable?
As you’ve probably already guessed, a major theme of this piece is the importance of being realistic. New business owners might not be surprised when their companies aren’t ready for growth as soon as they imagined but are often caught off guard when they realize that a steady increase in demand doesn’t immediately put an end to problems with cash flow. This dilemma is particularly valid for restaurants and retailers, both of which are affected by seasonality and therefore struggle to cover regular expenses during cyclical dips in revenue.
Other common obstacles include the rising costs of ingredients, broken equipment, the need for excessive inventory, holiday marketing campaigns, or, in the case of retailers, having to wait several months for payments despite 30-day accounts payable. You might be wondering how any small businesses manages to survive amid these conditions. The answer is small business funding from alternative business financing companies like United Capital Source.
The Final Ingredient: United Capital Source
When demand is on the rise but you haven’t got the funds to keep your customers satisfied, a one-page application and a small collection of financial documents is all United Capital Source needs to get you the working capital you deserve. Banks will make you wait at least three months to receive funding but we can put money in your account in a matter of days. Our working capital loans, merchant cash advances (a.k.a credit card processing), restaurant business loans, and business lines of credit for restaurants and retailers can be customized to avoid any noticeable impact on cash flow.
You’re probably wondering how you’re supposed to pay off these loans when cash is tight. Unlike a bank, we actually care about your business and therefore offer products where repayment is tied to sales volume for particularly difficult months. A merchant cash advance is very advantageous for restaurants and retailers because they conduct a great deal of sales via credit card and experience cyclical dips in revenue.
Another viable option is accounts receivable factoring, in which the business lender buys your existing receivables and supplies an amount based on the amount your customers owe you. Instead of making payments, you simply wait for your customers to pay their bills and then the lender takes a percentage of your revenue. Cash is never tight with accounts receivable factoring because no matter the terms of your customer, you always get paid up front.
Giving You the Best Terms on The Market
You cannot think big unless you know how to grow your business without going bankrupt. One phone call with United Capital Source will show you that as long as you know how to gain customers and clients, you can most certainly obtain the means to gain even more. This is only possible with the best business funding program for you. While we have access to countless programs, we aren’t beholden to any and can guarantee that your program is the most advantageous for your current situation, regardless of how different it is from everything you’ve heard. Prove to us that you can spot a wise investment and we will reward you with a financial position ready to tackle every opportunity in sight!