Risk is synonymous with running a small business. No one knows exactly what the future holds for their industry, and the amount of reasons as to why a business can fail seems to grow every day. Just one mistake or bout of bad luck is all it takes to sink a promising business to the ground. This is why business owners are so cautious with their money and big businesses do whatever they can to squeeze every last dollar out of their customers. For all they know, tomorrow could bring the biggest challenge their company has ever faced. They need money to fall back on when the rug is pulled out from underneath them.
And this is just the kind of stuff that swirls around your mind simply by running a business. Imagine what happens when you decide it’s time to grow. Successful business owners view growth as an opportunity to put these fears to rest. They mitigated their uncertainties to maximize the likelihood of their desired outcome.
1. Figuring Out Which Uncertainties Are Most Important
An uncertainty typically refers to something that is difficult to predict. So, technically, yes, everything is an uncertainty. But this obviously isn’t the mentality that drives a business to succeed. If you are planning to grow, the uncertainties that matter most are those that are stopping you from moving forward with the initiative(s) and investment(s) you have in mind. Think about everything you have to research in order to be sure your investment is worth pursuing. Maybe you aren’t sure you can develop a product or service that solves a problem better than your competitors. Maybe you aren’t sure how it will effect your current customers, or if new customers will be only temporary.
Then, there’s the question of resources. Can you get the funding you need? Do you have sufficient evidence that you’ll make back the money you spend and go on to increase revenue? With so many sources of business funding on the market, choosing the right one for your needs can be stressful. But if your business wants to eliminate the weight of uncertainty, there’s a good chance small business loans from a company like United Capital Source is the most sensible option.
2. Put More Money In Your Pocket
The first step towards managing uncertainty is research or market analysis. Gather as much evidence as possible to support your goals or projections. After taking a close look at your competitors and customers, shift your focus to your own finances and operations. The more funding you have on hand, the less you will have to worry about your investment taking longer or costing more than predicted. Any opportunity to save money should be taken advantage of, no matter how small. Possible examples include avoiding long-term service agreements or buying used office furniture. You might want to consider using independent contractors for sales rather than paying for an in-house team
When it comes to operations, uncertainty is directly associated with complexity. So, think of ways to simplify your day-to-day routine. This could involve implementing easy-to-use project management tools, scheduled meetings with certain clients and co-workers, or asking an employee with less on his or her plate to help jot down notes during conference calls.
3. Fund Your Business The Right Way
Entrepreneurs often talk about financing growth with “smart money.” This refers to funding that comes from a source that is both strategic and sensible. For instance, there’s going to be a lot less uncertainty if you use a small business loan from a business lender that has successfully financed the growth of other businesses in your industry. And while that small business loan might not be perfect, waiting for something better only increases uncertainty. The earlier you begin your growth initiative, the less likely you are to fail. Release that new product or service or start that marketing campaign or open that new location when customers are ripe to receive it.
Need Help? Not To Worry!
If you’ve ever heard about a someone having a negative experience with a small business loan, there’s a good chance he or she did not make a conscious effort to address all the uncertainties related to the investment at hand. Some might think all they have to do is simply assess these uncertainties but this is useless unless you proactively manage each one with different strategies. One of the many major advantages of working with a company like United Capital Source is that we are willing to help you with this process because we know it will only make it easier for you to pay off your debt. Every concern of our clients is addressed when we develop the terms for our small business loans.