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4 Key Business Growth Strategies

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There is a widespread myth that no debt is good. Nowadays when people talk about owing money, it is always in a negative light. For businesses, the reality of debt is far less ominous. All in all, not every borrowing is bad.Most small and medium-sized business proprietors do not have a masters degree in finance, and that is why they need a guide to direct them on healthy borrowing.

Debt is advantageous to business. When a business has a debt, it will be disciplined in the way it spends and invests its money. This is an added advantage especially to a small business that has just started. Definitely, you would not take a debt to increase your discipline on spending, but you may want to consider other key benefits that come with borrowing. The necessity to optimize every dollar fades when there is too much money on your hand. Excess is a significant threat to growing firms and this demand the business to stay scrappy and focused if growth has to take place.

The strategies outlined here will assist businesses to get to the level they have always desired to get.

1. Debt is less expensive than giving up equity
When looking forward to growing your business, do not consider the option of giving up part of your investment since it is more costly in the long-run as compared to taking an advance. Equity will cost you a portion of the business forever.This is not the case with debts like cash advances. You will pay back the debt, and your equity remains intact.

However, there are few situations where giving up a piece of the business can be beneficial to the business; that is when the sum of the anticipated cash flow is greater than the cost of the equity investment. Business Credit and Capital are good advisors when it comes to borrowing advances. They know the problems that face most small and medium sized entrepreneurs when it comes to managing cash flow, and they will guide you accordingly.

2. Grab every opportunity that comes your way
Suppose your business has an order that it has to fulfill but lacks capital. As an intelligent business person, you would recognize that a cash advance is a perfect option. If the opportunity is promising, debt is a good strategic choice for the business. You will profit from the debt and also open up new business channels that will lead to the growth of the business.

3. Stay on top of the game, innovate
Eight out of ten managers attribute their success to innovation. Innovation is a key growth strategy for every business despite the size, level of growth or the location of the business. For a business to be innovative it has to:
• Develop an innovation strategy for the firm with the help of the staff members. It should cover marketing strategies, improvements to your goods and services as well as the supply chain.
• Ask for feedback and ideas from clients, and suppliers.
• Always remember that innovation does not mean radical departure or inventions. It is gradual improvements in market approaches, and products.

4. Market penetration
This growth strategy is applicable where the business wants to market existing products in the market it has been using. When a business does not have new products or new markets, this is the way to go. Expanding the existing products in the current market will work out for the firm. Study the needs of your people. Make sure you can supply them with what they want.

Most small and medium-sized businesses plan to grow their businesses and increase their sales and profits. Business growth goes beyond wishful thinking. It takes good strategies to raise a small business to a well-known company. Use the smart strategies indicated above, and you will note a change in your business.

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Entrepreneurs: Get the Inspiration and Financial Support You Need

 

Podcast

Whether you already own or are in the beginning phase of starting a small business, it can be extremely overwhelming. Writing the business plan, choosing a business location, determining the legal structure, obtaining legal business licenses and permits, financing your business, and even ensuring you pay your business expenses can all prove to be a challenge, tempting you to just give up sometimes. But you do not need to give up! There are so much financial assistance and inspiration out there offering support to new and current entrepreneurs of small businesses.

The Financial Support
It is a known fact that one of the most important aspects of any business is the funds. Do you have enough money to continue your business operations? Do you have the start-up capital for your new business? If the answer to either of these questions is “No,” do not worry. There are a limitless amount of business funding sources waiting to help a small business achieve its financial goals, one being Business Credit and Capital.

About Business Credit and Capital
For over 30 years, Business Credit and Capital has been financing small businesses. They are aware of the problems small businesses face when they do not obtain adequate and timely funding, which is why they have great pride in their funding services. Business Credit and Capital’s Line of Credit program allows business owners the ability to only take a cash advance for what they currently need and draw on the Line of Credit when they need it. Best of all, there is no fixed payments or fixed timeframe for paying back the funds; business owner pays back as they do business.

The Inspiration Entrepreneurs Need
When entrepreneurs operate a business, it can be extremely tiresome and draining. That is why there are a variety of inspirational podcasts for both successful entrepreneurs and startups, including seven of the best:

#1: Dorm Room Tycoon
This business podcast gives both insight and inspiration that is recommended by a number of entrepreneurs. The host, William Channer, interviews innovative entrepreneurs. Dorm Room Tycoon even gives a list of many successful individuals who have given their knowledge and experiences to this podcast.

#2: Mixergy
Mixergy has held over 1,129 interviews in addition to 166 informational courses. This is a podcast geared toward assisting entrepreneurs who plan on starting their own business.

#3: The Bcast
From people who understand small businesses, Bcast discusses important and interesting information that small businesses should know.

#4: StartUp
On this podcast is the story of one man’s journey from regular guy to a businessman. Isn’t that what all entrepreneurs start from–just an ordinary person? Hearing the story of this particular man who has succeeded in his business is very inspiring. StartUp takes a look at this guy’s experiences as he chased his entrepreneurial dreams.

#5: Entrepreneur on Fire
This podcast, founded by John Lee Dumas, interviews successful entrepreneurs every single day. Entrepreneur on Fire provides a new episode every day of the week, each hosting a different guest.

#6: TWIST
Standing for This Week In Startups, gives information on web companies. TWIST features guest experts who discuss the best, worst, and craziest stories in the tech world, giving entrepreneurs in the field of technology advice and information in a blunt, humorous way.

#7: Duct Tape Marketing
This podcast is for businesses who are already up and running but need help in acquiring new customers. Duct Tape Marketing teaches one of the hardest lessons as far as operating a business–affordable successful marketing of the business in order to find potential customers.

(Michael, 1996-2016)

The process of starting and keeping the business running takes a lot of effort on the entrepreneur’s part. Because of the many challenges business owners will face, both financially and emotionally, having an inspirational and financial source to lean on is a wonderful idea.

Reference

Michael, J. The 15 Best Business Podcasts for Startups (and Our Podcast Too…). 1996-2016. Access via: http://articles.bplans.com/11-business-podcasts-for-entrepreneurs/

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When Does It Make Sense to Take a Business Loan?

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Business loans promise to give your company the cash it needs to operate, but you understandably want to avoid going deeper in debt. Keeping a lid on the cost of capital while maintaining enough operating capital can challenge almost any firm, so learn the conditions when taking a business loan makes sense.

You Win a Large Customer or Contract

Small to mid-sized companies often turn down large transactions because they lack the cash reserves to buy the supplies and inventory needed to serve big clients. Cash flow problems can hamper any organizations even during periods of healthy sales. Large companies often expect Net payment terms that further exacerbate pressures on cash flow. Rather than let sales go to competitors, businesses can stop letting opportunities slip away by taking a business loan to maintain cash flow.

Turn a Profit on Cash

Borrowing money makes sense if the money enables you to earn more than you pay for capital costs. You can compare your expected profit margin with your interest rate, or compute the Net Present Value of your project with the Net Present Value of the cash you get from your loan. Regardless, if you can earn more money than you spend on your loan with the money you borrow, taking a business loan might make sense.

You Need Extra Capacity

As your business trends toward growth, your existing team members and their equipment can’t keep pace. With money tied up in inventory and bills coming due, your firm might not have the ability to hire new employees and invest in equipment or facilities. A business loan will supply the cash you need to expand your company without having to turn away customers.

Emergencies

Sometimes emergencies happen. Equipment can fail while processing a job or facilities need repair. Similarly moving your company can cost a lot of money, making a business loan necessary. Emergencies almost always occur at the wrong time, and taking a business loan can help a company survive. Regardless of whether a company truck breaks down or a forklift gives out, a business loan might make sense if no other way exists to pay for repairs. No one can predict the pressures on cash flow that might occur during business, so having plenty of options exist can help.

Available Financing Options

Small to mid-sized businesses have credit and funding options available to them including traditional cash advances and credit lines. ACH programs that apply to firms that do not accept credit card transactions and hybrid programs give companies more options. Canadian businesses can also take advantage of some borrowing opportunities.

Business Credit and Capital helps companies navigate changing economic and market conditions by making loans available to them at reasonable rates. The firm has a fast approval process that gets business owners an answer within two days. Businesses like the simple funding process that requires minimal documentation and, upon approval, can deposit money directly into your business checking account. The financial solutions offered by Business Credit Capital provide needed cash for planned and unplanned expenses, so companies can continue operating without interruption.

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Making Great Customer Service a Habit

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It may seem counter-intuitive, but the customers that contact you with complaints are usually wide open to becoming your biggest fans. The reason for this is simple: Most customer service in the world is lackluster at best. Having a great customer support team will immediately distinguish your company from its competitors.

Good Vs. Bad Customer Service

For example, let’s look at a customer who purchased a product and is not happy with it. They call the customer service department and say that the product is not working as intended. A normal customer service process would involve them being placed on hold for a long time or talking to a robotic voice for a while before even getting to a real company employee. That company service representative may say there is nothing they can do, or suggest that the customer is using the product incorrectly. This will not make the customer happy and they are unlikely to return.

In contrast, what if the customer service experience is exceedingly positive? If the customer calls in and is immediately greeted by a friendly customer service representative, they will already think that your company is treating them well. If the representative offers helpful advice that respects the customer’s intelligence and suggests that a refund is available, the customer will walk away with a positive impression.

The next time the customer is talking with a friend about your company, that customer service experience will be the first thing to come to mind. They expected to be put on hold and argue for a refund, but instead they were greeted immediately and given the kindness and attention they deserved. This will be one happy customer and they will be sure to let other people know.

Making Good Customer Service a Habit

Making good customer service a habit involves routine attention to this department. Ask customers for feedback on the customer service experience and act upon that feedback. Regularly review best practices with your customer service representatives. Take care to hire the best possible employees for this area of your business.

It can be tempting to stop paying attention after you get a good customer service department set up. Do not fall into this trap. It is critical to continue to get feedback from customers and employees as time goes on so that your customer service department keeps up with the rest of the company.

When in doubt, keep in mind the golden rule: The Customer Is Always Right. Even if the customer seems misinformed, do not challenge their intelligence or allow representatives to argue over small details. Keep the focus on gently guiding customers towards healthy solutions where everybody wins. In the end, if a customer is truly unhappy, a refund will always be cheaper than the cost of bad word-of-mouth.

Funding Great Customer Service

Many companies have built an entire brand on good customer service, but this certainly requires money and effort to get started. After all, most new businesses are so focused on product development and marketing that they simply don’t have the time or money to train and uphold a quality staff of customer service representatives.

Rather than let this aspect of your company go neglected, it is a wise choice to seek funding that will enable you to give your customers the service they deserve. After all, these are people who have already paid for your service or product and should be considered your most valuable asset. Business Credit and Capital is one example of a service that can get your company the funding it needs to establish a top-notch customer service team.

It can be crucial to find a business lender who can provide you with the tools you need to make this part of your company as good as possible. Services such as Business Credit and Capital who have easy application processes and decades of experience can be a serious boon to any new business in this situation. Give your customers the attention they deserve and your company will reap the benefits for many years to come.