Whether your business has opportunities to accelerate its growth, or you’re just trying to stay afloat, you may need money that exceeds normal surplus cash flow. Here are some ways our customers use extra cash:
1. Expansions/additional locations
Capacity limitations may be a good but costly problem to have. If you are thinking about expanding within your building or adding an additional location, there will be new, out-of-budget expenses. Expanding your business is a long-term investment, though sometimes with short-term payback.
Situation: An established neighborhood restaurant is busy from open to close with a line out the door and an average waiting time of 25 minutes. Edward, the owner is considering expanding his current location or adding an additional location across town to accommodate his customers.
Outcome: The restaurant owner bought and completed an empty building in a growing part of town. The increased space allows him to accommodate more customers every day.
2. Developing new products & services
Innovation is a great way to stand out in the crowd. Offering something new can keep your customers coming back and attract new ones.
Situation: Mark always wanted to add custom paint jobs to his list of services in his auto repair shop. The nearest auto paint shop is over 25 miles away. His customers were asking for referrals to a closer auto paint location.
Outcome: After researching how much it would be to hire additional staff as well as stock his store with paint and supplies, Mark moved ahead. He used a short-term business loan and grew his business as customers stayed with him for their auto paint needs.
3. Marketing and advertising
Promotional efforts are sometimes overlooked, and can be among the best investments you can make. Good marketing strategies will not only bring customers in, but will keep them coming back to you instead of your competitor. An updated website, coupons and special offers, social media, and traditional print ads are all ways that will bring awareness to your business.
Situation: Marie’s website keeps crashing and she just doesn’t have the resources to upgrade it. She hopes to add printable coupon and allow customers to place reviews for her services.
Outcome: With additional funds, Marie was able to hire a marketing expert who made several changes and upgrades to her site, the rolled out print ads in local print and social media. She saw an increase in business and can identify it’s because potential clients are using the coupons and getting updates on special offers and sales.
The customer experience should be on the top of your priority list. Make sure you have a welcoming environment for your customers. New carpet, flooring, tables and décor are nice and necessary from time to time. You might also benefit from installing energy saving equipment.
Situation: Chain restaurants were appearing along the same busy street as Roger’s Café. The shiny, new competition made Roger’s business look worn and out-of-date.
Outcome: Borrowing enough to cover a nice facelift to his restaurant, Roger was able to give his café a fresh, exciting ambience. The increase in business paid back the loan and raised the daily level of business at the café.
Whether you need to add people to your team, stay on top of payroll, or expand employee benefits, taking care of your employees and staffing needs is vital to your business.
Situation: Ramon’s bakery was popular with walk-in customers, but he knew he had the capacity to prepare more product if he could identify an audience for it. His idea was to bring in a part-time sales rep to introduce his business to new groups.
Outcome: The new hire landed a number of hotels and local restaurants as regular customers. The extra, ongoing business more than repaid the loan cost to start his new hire. Within a few months, the position was more than paying for itself. Ramon’s now wondering if making the sales position full-time will help him take his bakery to the next level.
6. Unexpected Situations
What happens when a machine or piece of equipment breaks down? What can you do if you understocked your inventory for the season? Or even if there is new technology that will help you stay on top of the competition as well as assist with day to day operations? Having additional funds when you need it can provide peace of mind.
Situation: Bob’s retail store was approached by a vendor who offered him a great deal – exclusivity on a popular new item, but only if Bob could take a full allotment of inventory. Bob knew he’d make money handling the merchandise, though he didn’t have the cash on hand to purchase the stock.
Outcome: A quick business loan covered the additional inventory cost, which he was able to repay as his store processed credit card sales. The new items not only sold well, they helped bring in new customers who also bought other goods from Bob.
You may be one great idea away from reaching the next level in your business. Don’t let finances be the reason you miss achieving your goals. You have more options than you may realize. Reliant Funding is here to help you get the funds you need and the serve you deserve.