As a small business owner, you wear many hats and face many challenges. You manage your business’ finances, payroll, and staffing while also providing customer service and making sure your business is running smoothly 24/7, and much more. Juggling all these responsibilities is stressful, and when challenges arise, financing helps immensely to alleviate some of that pressure so you can focus on the essential tasks of running your operation. This is how “Working Capital” helps.
Having access to cash or a line of credit can help you settle any issues that inevitably come up in a small business with so many moving parts.
In this blog post, we’ll break down the five most common challenges small businesses face, and explain how having access to financing can combat these issues.
1. Creating More Cash Flow “Breathing Room”
Small businesses have a wide variety of recurring expenses. Whether that be paying rent and utilities, purchasing inventory, employee payroll, there always seems to be more expenditures constantly coming up. These costs add up quickly, especially when you are trying to balance all your other monthly commitments. This is why having cash flow is such a pressing need for small businesses.
For example, if you own a retail store, and you’d like to invest in a marketing campaign or upgrade your inventory, you will have a hard time paying for these unforeseen expenses after paying rent, your payroll, and all other monthly expenses.
By applying for working capital, you can stash some of this financing for when your business needs it most without cutting corners on any of your other expenses.
2. Hiring More Team Members
Having happy and satisfied staff is paramount when running a small business. When your business is short-staffed, your employees’ morale suffers and performance usually follows suit. By over-working your staff, you risk the chance that they might seek a new job that offers a better work/life balance.
So when business is going well, making sure that you have enough hands on deck and not burning out your current staff is important in keeping that upward trend and increasing productivity.
Applying for a small business loan allows you to hire some new team members to grow your business and its profits.
3. Upgrading or Repairing Equipment
As a small business, you are always competing with the big corporate companies. So you understand that having the most up-to-date equipment or having some extra breathing room in case your current equipment breaks can help you stay ahead of the curve and prevent the loss of business in case of emergencies.
A working capital loan allows you to invest in repairing or upgrading your equipment or tools so you never miss a day of work due to any malfunctions or breakdowns.
4. Rent Increases and Location Maintenance
If your business’s storefront has been around for a while and is starting to show some wear-and-tear, your sales will reflect that. Customers prefer clean, attractive spaces to shop, eat, or do business. Additionally, rent increases can add to your regular monthly expenses and put a strain on all your other needs.
Working capital for small businesses can be a lifesaver in such situations. After you receive a loan, you can pay for your location’s maintenance, rent increase, or moving costs.
5. Finally Investing in a Marketing Campaign
Small business owners know how important marketing is. Marketing is essential to keep existing customers engaged while recruiting new ones. However, many small business owners don’t have the budget to make it happen.
A successful small business marketing strategy can include anything from online advertisements, promoted social media posts, or printed flyers. These costs add up quickly. Even though it pays for itself in the end, the upfront costs can seem daunting and unmanageable.
A working capital loan allows you to add a marketing budget into your small business to help your business grow.
Which of the above challenges did you resonate with most? At Capital Quickly, we assist all businesses across a wide range of industries with working capital options to help facilitate your small business’ growth.
Start your application here today or reach out and we can discuss how we can best help your small business today!