Small businesses need more revenue in order to grow, and there are many ways to make this happen. All you have to do before moving forward is choose which direct source of revenue to improve. But taking this avenue will only achieve the desired result if it is accompanied with indirect sources of revenue, which are basically strategies designed to attract interest and increase the likelihood of a lead turning into a customer. Nailing down every requirement for increasing revenue will tell you exactly how much funding you’ll have to spend as well as whether or not it makes sense to pursue debt financing.
The first step is figuring out which direct source of revenue is chiefly responsible for sales and who your biggest customers are. These are the people who pay your bills, so catering to them should be your top priority.
SO YOU WANT TO SELL MORE PRODUCTS…
A common outcome of the aforementioned research is that your best chance at increasing revenue is to offer more new products or carry more inventory of current products. This requires more inventory, space to store the new inventory, and space to display it. Now comes the big question: Do you have the funding and resources to accomplish all three? In addition to a small business funding, you might need to consider using a storage unit, securing additional property, relocating to a larger space, or renovating your current space to make room.
Remember, inventory is a direct source of revenue, meaning it will only sell with the help of an indirect source. In the case of inventory, the second part of the equation is usually related to marketing. There’s magazine ads, social media ads, pay-per-click ads, and other tactics you will most likely have to pay an expert to take care of.
What to emphasize in your marketing campaign, however, depends on who you will be competing with thanks to your new inventory. Research might tell you that your biggest competitors are ecommerce businesses, as evidenced by your customers’ tendency to check their phones to compare prices as they shop. Some brick-and-mortar stores have used this annoyance to their advantage by offering to match or beat the prices of online competitors.
HOW TO PAY FOR EACH PIECE OF THE PUZZLE
This is just a small window into the complications and variables associated with business growth. Alternative business financing companies like United Capital Source exist to make this process less complicated and stressful. Before deciding which unsecured business loan makes sense for you, our business funding experts would determine which expenses (bills, inventory, marketing) should be covered by debt financing and which should come from your own operational funding. Another concern is the chronological order in which each investment should be taken care of, and how long it will take each one to contribute to your revenue stream.
Banks don’t normally work around these conditions but at UCS, we usually see no issue with the largest payments coming in when sales volume is on the rise. With a vast product line of working capital loans including business lines of credit and merchant cash advances, our small business loans can be tailored to accommodate any number of elements of your general strategy.
GETTING THE MOST OUT OF YOUR EMPLOYEES
Aside from inventory, your most important direct source of revenue is likely your employees. More employees should logistically result in more sales, higher quality work, and an array of internal benefits that stem from each employee’s unique skill set. But what makes employees such a wise investment is the various indirect sources of revenue you can utilize when you have more of them. There’s customer sampling or in-store product demos, both of which have proven extremely effective for shoppers who would otherwise buy online. These shoppers would also likely be very pleased to find that, unlike your ecommerce competitors, returns are easy thanks to your increased staff. The tediousness of shipping returns is a two major downside of buying online, so allowing in-store returns will make customers much more likely to give you their business once again.
Hiring is a specialty of UCS because a great deal of our clients rely on our business funding programs to keep top talent in their corner at all times. And like the aforementioned situation, numerous complications can arise throughout the hiring process like the different benefits of filling different positions or how long it will take for different employees to begin financing themselves. Since both factors will effect your ability to repay your debt, we can theoretically ensure the terms and the amount of your small business loan will only be appropriate compared to the employee(s) impact on expenses and revenue.
ONE LAST SOURCE OF REVENUE YOU PROBABLY HAVEN’T THOUGHT OF
Working with an alternative business financing company will likely expose you to an indirect source of revenue you might not always remember: credit score. A high credit score can get you the highest amounts and most convenient terms imaginable, but building credit takes time. This is why we offer bad credit business loans that let borrowers with little or poor credit get access to funds that give them a chance to succeed.
To prove how valuable a good credit score can be, most UCS clients who pay off their first small business loans without trouble become eligible for a second round of funding that can accommodate a much larger investment. In a way, bad credit is an indirect source of revenue because it will only lead you to companies like UCS, which will eventually grow your business more effectively than you ever imagined.