Running a small business isn’t for the weak! You’re responsible for managing finances, hiring and overseeing employees, providing quality customer service and ensuring the productivity and quality of all areas of your business.
With so much responsibility, small business challenges will arise, and many of them require additional financing in order to be resolved. That’s where working capital comes in! In this post, we’ll detail five common small business challenges, and reveal how working capital from an alternative lender can help your business, regardless of industry.
1. Limited cash flow – Running a small business entails paying a wide variety of consistent costs. These expenses can be paying rent and other bills, purchasing inventory, compensating employees, in addition to others. Due to this, many business owners find themselves lacking extra cash flow for last-minute costs. For instance, maybe you run a restaurant, and an oven suddenly breaks. Or you run a retail store, and you’d like to invest more money into a marketing campaign. Without working capital financing, you won’t be able to execute these necessary plans. By applying for working capital from a recognized lender, you’ll be able to save some of this financing for when your business is in need!
2. Overworking staff members – Having happy employees matters when running a small business. If you’re short-staffed, your employees’ performances will likely decline. Don’t risk overextending your staff, or they might look for a new job elsewhere. It’s exciting if your small business is receiving an influx of business, but it will be hard to manage if you do not have enough employees to serve your customers. Apply for working capital financing, and you’ll be able to afford bringing on some new faces to your team.
3. Having broken or outdated equipment – It can be extremely stressful to have your business’s equipment or tools break or need a repair. In addition, you might be working with dated equipment that isn’t performing as it once did. By neglecting these repairs or updates, the quality of your service or products may suffer. Due to this, your business would benefit from additional working capital. You’d be able to replace broken equipment, and afford regular tune-ups.
4. Increased rent and physical location costs – If your business’s physical appearance deteriorates, it may affect your sales. In addition, having rent increased can also cause financial issues. That’s why working capital for small businesses can be a lifesaver. You’ll receive financing in an amount personalized to your business’s needs, and will be able to pay for physical maintenance, rent increases, or moving costs.
5. Limited resources to invest in marketing – Many small business owners want to advance their marketing efforts, but don’t have the means to make it happen. Marketing is especially pivotal for small business owners, as they need to keep existing customers engaged, while recruiting new ones. Successful small business marketing can include anything from online advertisements, promoted social posts or printed flyers. Don’t disregard new marketing ideas because of financial needs; pursue working capital and start promoting your business!
After reading about these small business challenges, which ones resonated with you? Perhaps you’re ready to purchase new equipment, or want to on-board new employees. Applying for working capital financing can help your business accomplish goals, and have cash available for trying times!