The past two years have presented retail businesses with many challenges. Whether facing stiff competition from large retailers, like Amazon, pandemic-relate restrictions and overall customer hesitancy, retail businesses have had a hard time turning a profit. Even before the pandemic, businesses faced serious challenges, including difficulty keeping pace with consumer demands and staying ahead of the competition. Established retail businesses also face obstacles such as staying up-to-date with social media trends and out-marketing online businesses.
Understanding the common challenges a retail business faces in today’s market is the first step toward finding a solution.
Funding the Company
The first and toughest obstacle retail businesses face is finding funding. This is a problem for a small business in any industry, but today’s economy has made securing funding more difficult than ever. A majority of companies applying for credit are being denied, while others are too apprehensive to even apply for loans. The average small business loan application at a traditional bank takes 24 hours to complete and is a complex and demanding process.
The economy has taken volatile twists and turns since the global financial crisis in 2008 and has only gotten more unpredictable with the pandemic and soaring inflation rates. Even with these developments, the economy has shown strong promise in its ability to bounce back. However, financing pressures can prove to be too much for a retail business that doesn’t yet have the cash flow or reserves to afford everything that starting a small business needs.
Maintaining an Online Presence
Online marketing has become the most popular for people to shop. Even if people purchase in-store, they have researched the brand and product online, looking for reviews and ensuring that the company values align with theirs. Social media marketing and website optimization are crucial to a retail business’ success. Creating a strong, mobile and user-friendly online presence isn’t easy; it requires expertise and perhaps even hiring an online marketing professional or website developer. Many small businesses do not have the knowledge or resources to focus on their online presence, which damages their success in the long run.
Launching an effective online campaign with engaging, high-quality content like images and videos, requires cash flow. Time and energy also need to be given to upkeeping the business’s online presence and engaging with customers. Like most of the challenges facing retail businesses, maintaining an engaging and profitable online presence comes down to whether it can be afforded.
Meeting Customer Expectations
In addition to global economic and technological changes, retail businesses must also deal with inherent changes in typical customers. As millennials begin to outnumber Baby Boomer and Gen X shoppers, retailers must keep up with new expectations in an entirely changed marketplace. Fast fashion has taken a backseat to more expensive, eco-friendly clothing, and even a company’s political affiliations can affect the bottom line. Today’s shoppers are savvy, conscientious, and highly informed about the products they want, and how much they should cost. Customers can conduct plenty of online research on their own before ever entering a store, making it imperative for business owners to stay ahead of the game.
Learn more about Forbes’ consumer retail trends for 2022 here.
Solutions to Retail Business Challenges
Maintaining a positive cash flow is more difficult than ever, but that doesn’t mean retail businesses are doomed just yet. For each challenge retail businesses face, there’s a solution, and it usually boils down to having the funds. Sticking to a budget to manage cash flow can be difficult, but it’s necessary to avoid digging a hole your business can not get out of. It is important to utilize data-backed marketing solutions and invest in inventories that consumers today want.
Many retail business owners find that even with the best cash flow management strategy, they come across unavoidable challenges. When a business needs an instant solution to a cash flow deficit to meet payroll or pay suppliers on time, invoice financing can help. Invoice financing gives businesses a way to maximize cash flow quickly and efficiently, without adding to existing debt or incurring expensive interest fees. The process is quick and easy and Capital Quickly’s efficient team is standing by to help you get the funds you need to help your business grow.
Learn more about Capital Quickly’s Invoice Financing and other services by giving us a call at 1-888-709-7446 or email us to find out how we can help you