The traditional definition of business growth implies an increase in staff. If a company from the previous generation wanted to double its revenue, doubling its staff would have been the most likely route to take. Growing fast meant hiring fast, and an inability to hire at an above average speed indicated an inability to grow. But as any employee from a growing business knows, the traditional definition of growth is becoming more irrelevant every day. More and more companies are now able to succeed with less and less employees.
The most frequently regurgitated explanation for this change is technology. Yes, an increasing number of tasks can now be digitized and automated, allowing companies to increase revenue without having to pay for labor. But this isn’t the only reason fast-growing companies are hiring fewer people when tremendous success is on the horizon. The real culprit is the nature of the modern business model, which does not prioritize or provide the necessary resources for hiring.
Large Teams Are No Longer Mandatory
Finding good help is difficult. Year after year, companies are shocked when they realize how small their pool of qualified candidates is and that a solid resume has seemingly little to no bearing on loyalty. Hiring obviously isn’t the only difficult part of running a small business but it’s among the very few that has an alternative strategy. Businesses must simply bite the bullet when it comes to other complicated and tedious things because they have no other choice. This isn’t the case with hiring, since for many companies, it is no longer mandatory for growth. Instead of increasing staff, they can purchase advanced equipment, enlist the services of software tools, or leave all the work to the core team that first got the business off its feet. To this tight-knit group, a bigger workload is nothing compared to the roller coaster they went through in the business’s early days.
When businesses give up on hiring as they grow, they build business models designed for a smaller team. They become accustomed to the idea that hiring will always be difficult no matter what happens to their industries or the economy. Labor might be more abundant in a few years but the business model remains intact, putting a dangerous amount of pressure on the team of eight people that is doing enough work for twenty.
They Don’t Have The Time To Branch Out
With so much weight on their shoulders, growing small businesses don’t have the time to ask themselves if they are approaching the hiring process the right way, let alone change the way they go about looking for good help. Maybe they are only having trouble hiring because they aren’t devoting enough time to searching for, interviewing, and training new employees. It can take a small business well over a month to develop a pool of solid candidates to choose from. This is followed by at least a couple of weeks of training. Another six or seven months could go by before the new employee begins financing him or herself. The loss of money and productivity that occurs as a result of each stage is often too unnerving for smaller businesses to even consider moving forward.
But, what if there was a way for companies to take all the time they need to bring on new staff without worrying about bleeding valuable cash and rendering themselves unable to cover regular or new expenses? Alternative business financing companies like United Capital Source offers small business loans capable of offsetting the costs associated with increasing staff at any point of your financial cycle. Our working capital loans, merchant cash advances, accounts receivable factoring services and more can be used to cover regular and/or sudden expenses while company higher-ups are busy interviewing and training new employees. Some of our small business loans are tied to sales which can theoretically save the largest payments for when your new employee is actively contributing to your revenue stream.
Not At The Top Of Their List
It’s common for companies to postpone hiring because they have other, more “important” expenses or obstacles in front of them. If they spend the money required for new employees, they won’t be able to afford that vital piece of equipment or support themselves during their industry’s slow period. It’s either one or the other; they can’t have both. The right small business loan can eliminate this dilemma, especially if the two expenses are directly related. Depending on your business’s financial health, you could be eligible for enough funding to hire and cover your other expense simultaneously and then pay off much of the debt when cash flow has recovered.
Many clients of United Capital Source use short-term working capital loans or credit card processing loans to keep essential employees following a financial setback (the loss of a client, a project being delayed, etc) since they won’t have to pay off the majority of the debt until more cash is flowing in.
The One Thing That Actually Works On Your Terms
Small businesses usually dismiss the idea of taking out small business loans to finance complex efforts because they don’t want one more thing to worry about. But when you work with a company like UCS, getting approved and funded takes only a few business days, with no annoying back-and-forth communication afterward. You can get your money when your business needs it most, allowing you to snatch up new hires or new equipment when they would do the least harm to your finances. We say that we know the value of hiring human beings because unlike our competitors, a computer algorithm isn’t going to be chiefly responsible for approving your funding and deciding which terms make sense for you.