Countless businesses make the mistake of abiding by the mantra, “Don’t hire until it hurts.” This translates to not hiring until you are 100% certain there is a need to do so. A larger team is harder to control, a business owner might think, so why make my job even harder unless I absolutely need to? In other words, don’t try to fix something that is not only unbroken, but working better than ever.
Then, your company unveils a new product or service that brings you twice as many customers than you had last month. You need to double your team, which wouldn’t be so hard if you had just started hiring a few months before your latest release.
Anticipating The Rush
This nightmare can be avoided by planning ahead in terms of strategy and finances. If this is your first major expansion, you need to create a process for finding, interviewing, and training new hires to be ready for a surge in demand. From start to finish, this entire process can take several months. But wait, isn’t this the time you’re supposed to spend perfecting your new release? And if the goal is a surge in demand, your current revenue must be on the low or stagnant. How will you afford such a significant increase in staff?
Forward-thinking companies seek small business loans in order to ensure that they hire the right people at the right time. With enough funding to run day-to-day operations and cover additional expenses associated with hiring, you can take your time bringing new workers up to speed while concentrating on other integral elements of your business.
Extra Funding = Being Prepared
United Capital Source offers numerous business funding programs designed specifically for taking on new hires when cash it tight and/or current employees have enough on their plates already. These small business loans acknowledge that hiring often results in a drop in productivity but when you receive funding at precisely the right time, this drop’s affect on revenue is minimal at best.
Banks take months to approve applicants and distribute funding but at UCS, we can accomplish both tasks in a matter of days. So, if you tell us that you need a certain amount of funding by a specific time or a certain amount left in your budget to make payroll, we can easily customize your terms to match this completely understandable requirement.
Outlining The Different Scenarios
The decrease in productivity begins when instead of assuming their usual responsibilities, the business owner and/or the new team members’ supervisor spend hours or even days sifting through resumes, responding to emails, and scheduling interviews. Businesses usually interview a few weeks’ worth of candidates before finding the right fit(s).
If the new team member will start contributing to your revenue stream immediately and is coming aboard during a slow period, a working capital loan is likely the most appropriate business funding program for you. Depending on your industry, working capital loans can supply enough funding to cover regular business expenses (bills, payroll, etc) for a number of months as well as any equipment the new team member may need. While you might not have to make significant payments right away, these funding arrangements are typically short-term since revenue is projected to grow very soon. At UCS, our working capital loans can be arranged so that your largest payments are made when your new employee is fully acclimated to the daily grind, so you don’t have to worry about spending too much time training.
Why This Would Work For You
Traditional small business loans are geared more towards long-term investments that will not produce returns right away. Some new employees, like marketing specialists or sales associates, cost their employers thousands of dollars in payroll before bringing in revenue on their own. Maybe the new employee was hired solely so current employees could devote more focus to revenue-generating activities. Either way, payroll increases but revenue remains the same. Only until at least three or four months have passed does the new employee’s cost begin to decrease, and it’s not by much.
Don’t Refuse To Hire Until It Hurts
In addition to the most convenient terms on the market, a major advantage of working with United Capital Source is the ability to plan your investments in accordance with your industry’s financial cycle. Our business funding experts have helped hundreds of businesses across dozens of industries increase staff, so we know exactly how much investments of this nature cost as well as approximately how long it will take to reach your desired revenue goals.
All you have to do is tell us when you’ll need your funding and what your cash flow situation looks like for us to create the perfect small business loan for your unique circumstances. So instead of waiting to increase staff at the last minute and allowing cash flow to suffer soon after, we can make sure you receive funding at the most ideal time and stabilize your budget to cover any financial speed bumps that might occur.
Your credit history likely will not decrease your chances of approval, nor will the size of your business. As long as your business is alive and kicking, United Capital Source can give you the means to expand the moment it is necessary!