Merchant Cash Advances can help you in many ways because its money that you need, delivered to you quickly. You pay it back in small, daily payments after an agreed amount of time. Typically, if you don’t qualify for a bank loan, and you are a retail business or something similar, this is the best way to get funds quick.
Your customers deserve a dining spot that isn’t “broken” (nothing like having a microphone or display monitor break on Karaoke night!). With a merchant cash advance, you can get thousands of dollars up front so you can fix equipment that you need to stay competitive. These things usually get overlooked due to the high-traffic nature of the industry, but it’s important to not cut corners. Even worse, what if a toilet is busted, or a drain gets clogged? Stay in the game and on top of your business with a merchant cash advance so your business doesn’t get constipated.
INVEST IN ENTERTAINMENT
Nothing brings more culture (and makes you look like the perfect host) than hiring some sort of entertainment to your establishment. Bringing in entertainment to a restaurant has the potential to bring in a whole new network of guests to your restaurant (if you do it right). It could be an accordion player during “Bastille Day” at your French bistro, or it could be a DJ for your swanky Sunday Brunch party. Whatever you end up deciding, doing it “right” involves doing your research and investing in high quality entertainment and marketing. Unfortunately, one can’t just rely on a band or DJ’s network of friends to consistently bring in crowds week after week unless they have a massive following, and even then, that only lasts so long. So, what does that mean for you? Aside from the 3-600 per day/night you should expect to give your performers, be prepared to spend another few hundred on flyers and Facebook marketing. With consistence, persistence, and time, your restaurant will have a fresh new feel, and you’ll be bringing in larger crowds.
When you don’t pay your bartenders, waiters, promoters, etc., you hurt yourself and everyone else working there. Don’t ever be the manager with the reputation for paying his staff last. The hospitality industry isn’t big enough for people to get away with being late on payroll, and this will come back to haunt you eventually. Even if you have the “best”, most trustworthy, friendly staff, being late on payments is a reputation that spreads extremely quickly, and it doesn’t leave easily. Employees will be nice to your face, but fear the worst and assume they are getting stiffed.
This alone may be the most important reason to get a merchant cash advance, as upsetting customers is one thing, but upsetting people who work for you is far worse. They are your most important connection to your consumers. Don’t get caught up in this sort of situation, and especially if you are already in it, I highly recommend fixing it with a merchant cash advance.
While in smaller towns this may not be as big a deal, when you are in a metropolitan area and have hundreds of others within a ten mile radius, image is key. You can see this all the time with restaurants, bars and clubs if you just look. Plus, you don’t need millions of dollars – plenty of smaller spots in more suburban/rural areas do this all the time for far less. If you’ve been three, four years in the game without a makeover, don’t waste any more time procrastinating the inevitable task of updating your look. Trends change, don’t be caught on the tail end of that.
Sales promotions is described as changes that inspire shifts in short term consumer behavior (as opposed to something like buying a commercial or billboard for advertising brand awareness, which is shifting long term consumer attitudes). This includes things like happy hours, buy one get one free deals, prix-fixe deals, free samples of sponsored liquors, etc. Getting the word out of these things though will be hard without some upfront cash, and sometimes you just need that extra push of opportunity to get you where you want to be. Sometimes even getting a merchant cash advance to undercut the competition can prove worthwhile, because well, who doesn’t want to have the best deals? If there are other establishments that have amazing deals, then you need to compete against that. If there aren’t any, then allow yourself to be the first to hop on that train.
Statistically speaking, sales promotion as an industry makes up a majority of the money spent on marketing, and it’s because it works. You get a quicker return when you need it. These sorts of promotions do cost money though (like the saying, “there’s no such thing as a free lunch”), so if you need proper funding before you set a promotional campaign to motion, talk to one of our experts at United Capital Source. We’re experienced in finding the right funding for the right business, for the right purposes, especially for restaurants. Check out our restaurant section for more information.