It’s only natural for small business owners to be resentful of startups. A couple of kids come up with an idea for a product or service that doesn’t seem so impressive until they start raking in enough money to double in size within a year’s time. Their customers act as if they’ve discovered a pot of gold they’ve been waiting for their whole lives, even though they were getting on just fine without it just one month ago. The success of startups is so strange that it appears to exist in a separate world with no relevance to small businesses.
But any smart business owner understands the importance of adapting to a changing environment, no matter how alien it appears to be. Staying competitive doesn’t mean immediately dismissing the strategies of new players. Small businesses can learn a lot from startups, particularly in regards to why their customers feel so much pride in giving their business to them.
HOW WELL DO YOU REALLY KNOW YOUR CUSTOMERS?
A key ingredient to success is knowing your customers. Startups take this to a whole other level by targeting highly specific interests and building a culture around other values that likely apply to people with those interests. For example, one type of startup that has experienced massive growth as of late is indie cosmetics and skin care. Many of these companies cater to customers who value clean yet effective ingredients that are ethically sourced. The ingredients have a story their customers can identify with, and concern for the environment isn’t expected to dwindle anytime soon.
Small businesses should consider the common values they share with their customers as they plan their next growth initiative. This could influence the theme of a marketing initiative, the kind of team members they recruit, or even their upcoming line of products. Going the extra mile when it comes to investments of this nature might cost more than your budget will allow, but alternative business financing companies like United Capital Source are happy to supply additional funding for efforts that are poised to provide a competitive advantage. Our unsecured business loans are designed to ensure you get all the time you need to spend your funding wisely and are able to make the most significant payments when revenue is on the upswing.
CURRENT CUSTOMERS FIRST, NEW CUSTOMERS SECOND
You can’t expect to gain new customers if you can’t fulfill the needs of current customers, which should therefore be prioritized above expanding your reach. Retail and ecommerce startups adhere to this rule by eliminating any issues with shipping and logistics before even thinking about expansion. This is largely because a great deal of them have to compete with Amazon Prime’s two-day shipping and the impact it has had on their target audience’s patience. Being short on cash should not stop you from keeping customers satisfied. Clients of United Capital Source often take out small business loans to complete lengthy projects on time, order enough inventory to meet sudden surges in demand, or account for increases in business expenses, like food ingredients or medical equipment.
Receivable factoring prevents delinquent payments from whittling away at profit margins. The business lender purchases outstanding invoices in exchange for a minute percentage of revenue, allowing you to get paid almost immediately after making a sale. Among the many rewards that come with this business funding program are being able to extend more credit for lucrative accounts and receiving discounts for paying your suppliers up front or well ahead of time. As long as you invest in your ability to continuously make more sales, money flows into your account on a consistent schedule.
LEAVE NO STONE UNTURNED
Startups are always thinking about the future, even in terms of pricing. They account for profit margins, wholesale or distributor pricing, potential discounts and promotions when creating prices for retail items. These numbers will likely change as sales and order quantities increase, prompting you to consider higher prices turning customers away or lower prices limiting growth. As you can see, changing prices after scaling isn’t exactly easy, so it might be best to do this beforehand.
This the kind of work that stop people from taking out small business loans but if you choose United Capital Source, you won’t have to do them alone or worry about miscalculations obstructing cash flow. In addition to the most flexible terms for unsecured business loans on the market, a partnership with UCS provides a financial adviser who is more than willing to double-check any calculations and offer suggestions that might alter the amount you ask for.
We will watch over your numbers while you concentrate on giving customers the same quality and service that got you here in the first place. If a concern, unforeseen expense or discrepancy arises, it just takes one phone call or email to get answers. We never make clients wait for important information. You get to carry out your investments and pay your expenses when it is most advantangeous for you, not us.