A new report by consulting firm IHL Group has revealed which major restaurants and retail chains are opening more locations and which are doing the opposite. The data is rather surprising because, on the surface, every brand featured seems to be doing well: Dunkin Donuts, Circle K, Starbucks, Subway, Dollar Tree, Pizza Hut, etc. But according to the report, the future will see many of these chains shrink in size unless they adapt to the demands of the modern customer.
The success of the brands that are adding locations suggests small businesses should mimic their strategies. Thanks to alternative business financing companies like United Capital Source, small businesses can access the cash flow required for the tactics of their largest competitors.
Separating The Professionals From The Amateurs
Dunkin Donuts is poised for expansion while their competitor Starbucks is on the verge of closing a great deal of stores. There are a few reasons for this, but they all revolve around the former’s heightened understanding of their customers. For example, Dunkin Donuts was smart enough to begin re-branding themselves to just “Dunkin” to avoid being associated with the ongoing donut trend fueled by over-paying hipsters. The re-branding was also a response to the increasing demand for newer brands and distaste for well-established staples of the industry.
Starbucks CEO Howard Schultz, on the other hand, has launched a tirade against corporate America despite the overwhelming notion that the only coffee drinkers who haven’t turned to small businesses are likely very corporate themselves. Dunkin Donuts gets a lot of business from low-income customers, proving that price is more important than quality when it comes to the coffee market.
What Does This Mean For You?
United Capital Source can help you obtain two vital tools for Dunkin Donuts’ success: extensive knowledge of your customers and the prices they want. The Internet has made it infinitely easier to learn about your customers, particularly through social media and paid search ads through Google. With a working capital loan or merchant cash advances you could hire a full-time social engagement specialist or outsource a digital marketing team to launch a campaign that aims to determine what kind of users are most likely to be interested in your products or services.
Merchant cash advances are especially advantageous for marketing campaigns because you wouldn’t have to pay off the majority of the balance until sales start to tick up from your efforts. Payment plans vary for digital marketing teams but we can distribute funding and arrange your payments to ensure minimal impact on revenue and operational funding. Rather than worrying about paying your bills, you could devote more time to figuring out how to incorporate all this new information into your plans for the immediate future.
Working capital loans are geared more towards increasing staff because they can cover the expenses associated with the new hire (computer, desk, etc) as well as regular business expenses until your employee begins contributing to your revenue stream in the months to follow.
Giving Your Customers What They Want
Low or consistent prices can be attained through small business loans in a number of ways. The key is not having to raise prices despite the rising costs of running your business and the pressures of seasonality. Promotions and special offers are essential for creating loyal customers, and with supplemental funding, you could keep them going all throughout the year. Several of our business funding programs, like credit card factoring and working capital loans, were designed to give businesses the ability to order and get rid of excessive inventory in a timely manner or when it is most cost-effective. Payments would be smaller during slower months and more significant when sales start to pick up.
Having working capital to spend at the right time allows you to capitalize on the best opportunities for sales. With a merchant cash advance, your payments are directly tied to sales, which can be tremendously helpful when cash flow is tight.
A Partnership With No End In Sight
At United Capital source, our top priorities are maintaining long-term relationships with borrowers and positioning them for growth. We accomplish this by designing your first working capital loan with a second round of funding in mind. In the scenario described above, we would fund your marketing campaign and, as long as repayment is timely, distribute a larger funding amount with more convenient terms shortly after so you can order inventory for all these new customers.
Not sure what to do next? That’s what we’re here for. Our guidance is at your disposal throughout your entire career, and soon enough, your competitors will realize that the real strategy to copy is enlisting the help of an alternative business financing company that is not beholden to any program, except for the one that is right for you!