As the popularity of alternative funding continues to grow, chances are you’ve thought about the possibilities for your small business. After all, flexible funding like the cash advance can provide entrepreneurs with options those traditional lenders can’t (like funding in as little as 5-7 business days, and no need for collateral or perfect credit in order to get approved).
Still, as with anything new (and with your precious business at stake) it only makes sense to proceed with caution. The truth is, alternative funding can be a great way to not only improve your business’s cash flow, but to kick start it’s growth. All you have to do is make smart investments; read on to discover 4 of the wisest moves you can make when it comes to the cash advance.
Inventory and Equipment
There are certain staples every business needs to function properly; inventory and equipment are just two of the many necessities your business must have. Inventory is one other those investments that is worthy of a cash advance because in many cases you can get a discount for a large, bulk purchase. In addition to stocking up on the staples you know your business needs, you’ll also save money in time and effort by cutting down on multiple orders and pickups or deliveries.
Similarly, equipment that your business needs to function properly is another worthwhile cash advance investment. However, avoid the temptation to purchase unnecessary or flashy equipment that you don’t necessarily need or have the potential to not even use. In general if you spend a cash advance on direct investments back into your business, you improve your chances of increasing sales and profits that much more, but those purchases should be both modest and necessary.
Print media, TV and radio are tried and true methods for advertising a business; with that consistency comes cost. One great way to spend your cash advance is to invest it in some marketing streams. Taking the time to hire a marketing professional and creating a well-rounded cohesive campaign may be worth the effort in exchange for positive brand recognition and growth.
Keep in mind that there are marketing sinkholes with every step you take. Don’t use your advance to pay someone to run your Facebook and Twitter profiles. No doubt the investment on these platforms are worth it, but there is no reason you can’t implement them yourself (for free!). Blogs and podcasts can easily provide you with a social media education. Instead of spending your money on teachable trends, invest your marketing dollars in traditional routes that have longevity and proven results.
Whether you’re noticing customer complaints or the competition is blowing you out of the water, spending your cash advance on necessary renovations could serve your effort well. Renovations that provide more working space for employees or a more welcoming environment for customers are bound to increase both productivity and sales. However, keep in mind that the common “itch” for something new shouldn’t be scratched. If you have no other reason to renovate than your own boredom, resist the urge! Instead only make renovation moves that are logical and measurable as to how they will grant more growth for your business.
If you feel like your business can’t keep up with current consumer demands, hiring some (or perhaps some more) employees could certainly help. The wise investment in this situation is clear, as extra sets of hands will naturally increase productivity and output. Utilizing a cash advance to strengthen your business by means of employment is a smart move if the demand for more output and interaction is there.
That being said – before you dive into new hires make sure you draft a job description that outlines the necessary qualifications and desired characteristics (that will work best with your company’s culture). Consider hiring part-time employees first with the potential to go full time. Or minimize your hiring risk by asking job candidates to submit a sample/test that proves their abilities in real time.
What have been your experience(s) with the business cash advance?