One of the greatest and most widespread challenges business owners face is charging appropriate rates for their products or services. Younger businesses often charge well below their true worth for a multitude of reasons, all of which are completely understandable. For example, they might develop a price model based on their business’s current financial situation rather than anticipating what their net worth will look like in the not-so-distant future. Then there’s the fact that clients or customers always seem to want things at the cheapest rates imaginable, and a young company isn’t as willing to shrink its target demographic.
Failing to charge within your worth can seriously jeopardize your ability to grow because you aren’t taking in enough money to keep your business running. But thanks to alternative business financing companies like United Capital Source, companies can receive the funding they need to serve the clients and customers that are willing to pay appropriate rates.
DON’T BE DESPERATE
Let’s be honest: Businesses that are young or often short on cash tend to operate with a sense of desperation. This leads them to give in to demands for cheaper rates because they aren’t confident that people will do business with them if they ask for more money. Seasonal businesses might lower their prices during slow periods as they scrounge for money to pay their bills. The future is uncertain, and they’d rather take what seems like the quickest route to getting paid rather than waiting for more educated people to come around.
But as any experienced business owner will tell you, charging low rates usually attracts low value business. Someone who doesn’t understand the value of your expertise is not someone you can count on. And you’re bound to lose their business anyway, because the rate you are charging is not sufficient to fulfill your responsibilities on time. But if you sell high quality products or services, United Capital Source can protect you from bending or breaking when it comes to negotiating appropriate rates.
TURNING UNCERTAINTY INTO PREDICTABILITY
A major advantage of our accounts receivable factoring services is turning this aforementioned uncertainty into the complete opposite: predictability. By allowing a business lender to purchase certain unpaid accounts, you go from having a previously unstable budget to having money in your pocket as soon as someone agrees to do business with you. So rather than desperately chasing accounts because you need the money, you can only do business with those who are willing to pay you what it costs to maintain your operations.
A merchant cash advance is another great option for businesses that need to stay competitive with price despite inevitable dips in revenue. By receiving a sizable lump sum whose repayment time goes up and down based on your sales volume, you can charge the same prices all throughout the year and solidify a high value reputation, regardless of how many people are coming in to your store.
NAILING DOWN THE COST
Almost every entrepreneur on the planet likes to have his or her hand in everything, at least early on. They wear too many hats, potentially taking their focus away from more important tasks. The two most plausible reasons for this tendency are; number one, they trust their own judgment above anyone else’s, and two, they don’t want to hire more people to handle these tasks on their own. How does this hinder growth? Think of it this way: If you are heavily involved a project, shouldn’t you charge more money than what it costs to pay the other people who worked on it with you?
United Capital Source provides working capital loans, merchant cash advances and other unsecured business loans to companies looking to build self-sustaining teams. Delegating tasks to a specific amount of workers helps you determine appropriate prices because you know exactly how much equipment and manpower went into performing or developing a service.
THE PRICELESSNESS OF REPUTATION
You can’t grow without experience. Companies that can basically charge whatever they want do so because they have a proven track record and/or reputation within their industry. Their customers, many of whom were probably referred by friends or relatives, know what kind of quality they are paying for. Should a new customer question their prices, the company would just defer to their army of loyal followers, particularly the opinions they express about the company online.
This concept evokes the purpose of small business loans in general. A great deal of UCS clients, from auto repair shops to consulting firms, have used working capital loans, merchant cash advances or accounts receivable factoring to fund larger projects or multiple projects at a time. They took advantage of opportunities as soon as they presented themselves and thus opened themselves up for similarly lucrative opportunities in the future.
This was possible largely because UCS specializes in approving and distributing funding in a matter of days, even for borrowers who are cash poor, trudging through their slow season, or have less than perfect credit. While other business lenders can replicate this speedy time frame, UCS is among the very few that can do this for several different types of unsecured business loans as opposed to just a single, generic product. We also understand that such investments aren’t easy to execute, which is why our repayment terms are designed to be as least stressful as possible when you are working your hardest. Just a few minutes of your time is all it takes to apply at UCS, so what’s the point of not exploring the next opportunity that comes your way?