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There are two kinds of growth in the world of small businesses. The first kind is the most well-known and is usually what business owners are referring to when they discuss plans to expand. In most cases, their plans revolve around increasing staff, buying new equipment, or adding property. But while these initiatives do have the potential to significantly increase revenue, it’s questionable as to whether any of them will actually make the company take on a higher level of competition or a new identity.

This is the second type of growth, in which a small business invests in rising above its current competitors. Doing so requires a deeper knowledge of your target demographic as well as the ability to satisfy their needs.

WHERE TO START

Truly effective growth is achieved through market segmentation, or the process of dividing your industry’s general demographic into smaller, identifiable groups of customers. This is accomplished by learning as much as you can about your current and potential customers. You need to figure out what they love about your industry, what they hate about your industry, when they are most likely to check their email, as well as what else they are interested in that might be relevant to your products or services.

There are many ways you can retrieve this information, but they all begin with finding the right people to do it. Viable options include hiring a full-time social engagement specialist or outsourcing a digital marketing company. If you aren’t sure which choice makes the most sense for your goals, United Capital Source can provide valuable input to help you make a decision. Our business financing experts have helped countless companies determine whether full-time employees, part-time employees or outsourcing would allow them to increase revenue without damaging cash flow or destabilizing their budget.

WHY THE NEED FOR ADDITIONAL FUNDING?

The newest additions to your team may go on to revolutionize your business but these changes will not take place in the immediate future. This is why small business loans are so crucial for any investments related to marketing or advertising. It’s going to take some time before you learn the answers to the aforementioned questions about your current and potential customers. Larger businesses might be able to afford taking on new team members that don’t contribute to their revenue stream for several months. Smaller businesses, on the other hand, need additional funding to cover increases in regular expenses while revenue decreases or remains the same.

United Capital Source offers myriad business funding programs geared towards long-term marketing campaigns or the acquisition of new hires who take time to finance themselves. A sensible option for both scenarios is a merchant cash advance which doesn’t kill your cash flow because repayment is tied directly to sales volume. Marketing campaigns must be launched at a specific date in order to achieve their desired results, which is why our merchant cash advances can be approved in less than two days and be distributed almost immediately after. Approval for merchant cash advances can be granted even if you have bad credit or are currently in your industry’s slow season and need to prepare for your busy season in the months to follow.

You would then receive a lump sum designed to accommodate the costs of your marketing campaign, the frequency in which the outsourced team prefers to be paid, and your regular business expenses (rent, payroll, etc). Since payments are tied directly to sales, you wouldn’t have to make any significant payments until sales start coming in, no matter how long this takes to occur. So, rather than worrying about damaging your profit margins with regular payments, you could spend these months concentrating on your usual responsibilities while your campaign slowly begins attracting interest.

KEEPING YOUR OPTIONS OPEN

Merchant cash advances are also very cost effective if you instead choose to hire a full-time marketing specialist, as are working capital loans or our highly competitive accounts receivable factoring services. Much like a merchant cash advance, working capital loans can be customized to safely cover an increase in payroll as well as other expenses associated with your new hire, such as paid advertising. Payments would be on the lower side as you make these investments and increase when your new hire is projected to reach his or her goals for new leads. Our terms are extremely flexible and can work around your financial cycles or conflicting investments, such as the need to buy excessive inventory as you are financing a marketing campaign.

UCS’S SPECIALTY: THE 1-2 PUNCH

Once you have found your niche market, the next step is to deliver. This could mean developing a new product or service, hiring a new team of workers, or buying new equipment. You’ll be happy to learn that at United Capital Source, our top priority is forging long lasting relationships with our clients, often by supplying multiple small business loans, one after the other. If you can pay off debt without trouble, you will most likely qualify for a second round of funding with even more convenient terms than the first. Funding could theoretically reach your bank account even quicker than the first round, so you can make your second investment fairly quickly.

Taking out multiple rounds of funding in such a short period can be intimidating, but our business funding experts are here to walk you through every step of your gradual expansion. We want you to be as comfortable with your investments as possible, and if that means providing advice on a need-to-know basis, it’s our pleasure to show you what real customer service is in 2017!

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