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Last November, journalist David Sax released “The Revenge of Analog,” one of The New York Times’ top ten books of 2016. The non-fiction work describes how even though digitization is on the verge of world domination, an increasing amount of shoppers are embracing seemingly “outdated” products that are real and tangible. Brick-and-mortar retail stores are on the rise as well as smaller restaurants and bars focusing on experience as opposed to efficiency.

This is good news for local, smaller-sized retail and restaurant businesses, which are now frequented by younger shoppers looking for items such as vinyl records, notebooks, and stationery. But these items are nowhere near as cheap as those that can be produced as quickly and cost effectively as possible.

Small businesses should therefore consider additional funding if they want to stay competitive with price and selection.

Stocking Up

It is common for smaller retailers to order mass quantities of inventory in order to compete with national chains and their signature prices. Buying more inventory allows small businesses to keep prices down, offer discounts, and sell items you could only find at a local store. This practice must be repeated all throughout the year because once shoppers see high priced items, they will most likely take their money elsewhere and forget the high-priced business ever existed.

But thanks to this new shift towards analog, however, keeping so much inventory during the slow season has the potential to cause a major shortage in available funds, especially when the inventory is on the expensive side. If you’re wondering why you’ve seen so many small retailers or restaurants unexpectedly shut down, it’s probably because they could no longer afford to pay for the uniquely authentic products that gave them their identities.

Doing Inventory The Right Way

Alternative business financing companies like United Capital Source believe that small businesses have earned the right to expand with their incomparable products and relationship with their local communities. Such businesses can only accomplish this by ordering inventory at the right time while maintaining supplemental cash flow. We have found that short term business loans against credit card sales is by far the safest and least stressful business funding program for retailers looking to make necessary purchases on a time-sensitive schedule.

Unlike a bank, UCS can distribute funding just days after the need for it arises. This is highly advantageous for retailers since suppliers often provide discounts on inventory if it is purchased well before the busy season and in bulk quantities. Credit card processing loans also do not feature the fixed, monthly payments of traditional business loans because payments are instead deducted via a fixed percentage of credit card sales. You wouldn’t have to raise prices or dig into operational or personal funding to keep your business running after buying inventory and could therefore concentrate on training new hires, altering your business’s new appearance, or figuring out which items are poised for success in the not-so-distant future.

Finding Your Niche

Recent research has shown that young patrons of restaurants and bars will actually pay more for items that are less hollow than those served by their largest competitors. Take, for, example, the success of independent craft breweries. They lack the efficiency and accessibility of beer giants like Budweiser but customers feel a deep connection with craft brews because they sense that there is a person behind the product. Patrons of craft breweries don’t mind higher prices because they are paying for an experience.

Creating such products, however, is far from cheap because you will most likely have to incorporate more ingredients, including those that aren’t as accessible as the tools of the mass market. These costs become a lot more burdensome since it is basically impossible to run a restaurant or bar without expenses piling up over time. United Capital Source offers short-term restaurant business loans tailored for these exact situations, and you can count on us to get you your money well before these increasing expenses could hurt your business. We understand how much work can get done in a single day and therefore pride ourselves on allowing you to make important purchases on the day you have in mind so you can have your business ready by a specific date.

Make This Unique Time Your Most Profitable!

Adding authenticity and intentionality to your products will not only breathe new life into your business but also expand your customer base, both in size and loyalty. The business funding experts at United Capital Source are well-aware that these two qualities are necessary for the longevity of any business and would gladly make sure your adaptation process goes smoothly with little if any impact on cash flow. If the investment you have in mind is larger than you ever expected, we can adjust your terms accordingly or assign other business funding programs that feature lower payments so you can get your other finances in order. Your business is already beloved by your best customers, and we will combine our knowledge of your industry to keep it that way!


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