Small business credit and other accessible forms of financial capital are often crucial to business owners. Numerous expected and unexpected expenses come with owning a business. Keeping up with inventory demands, leasing or expanding a business location, and paying off monthly overheads are just a few reasons why small business owners might require access to additional capital or short-term funding. This is why it is important for business owners to maintain a high personal credit score.
If the owner of a small business does not maintain a good personal credit score, their ability to obtain a line of business credit or small business funding can become very limited. Cleaning up personal credit is no small task and can take a considerable amount of time. This is why it is important to avoid these common mistakes that can significantly impact your personal credit and decrease your chances of securing a line of business credit or small business funding.
This is probably the most common mistake a business owner can make in maintaining their personal credit. Any credit used should be paid on time, every time, and paid in full whenever possible. It’s also a good rule of thumb to borrow only 30% of your actual credit limit. Not only does this make it easier to make payments on time, but it shows potential lenders and funding companies the borrower is low risk and responsible. This can significantly increase the odds of receiving a positive response when applying for a line of business credit or small business funding.
On the other hand, late payments register as high risk when applying for personal credit. This is bad enough for the average person, but this can be disastrous for a small business owner. If a tough month rears its ugly head and losses outweigh profits, small businesses can drown without quick access to financial help. This is why one of the most important steps you can take to maintaining your personal credit is making all of your payments on time.
Another less known mistake business owners can make that negatively affects their personal credit is applying for too many loans or credit cards. Each application that is submitted counts as something known as a hard inquiry on your credit report. These hard inquiries inform financial institutions, funding companies and the credit bureau that you are actively looking to receive personal or business credit. This in itself is not an issue, but an overabundance of hard inquiries could signal desperation. This could be disastrous to your credit history and potentially bar you from receiving small business credit down the line.
This is probably the most surprising entry on this list of common mistakes to avoid when trying to maintain a healthy credit history. Simply not using existing lines of credit enough can negatively impact your credit score. The reason is due to the inability to assess your spending habits when that line of credit is not being used. This could potentially cause credit bureaus to negatively adjust your overall credit score.
If you’re hoping to take conventional routes for obtaining small business credit you must be very careful to maintain a high credit score. In the event of both unforeseen and standard operating expenses, business owners often rely on quick and painless access to business credit or small business funding to help them keep their doors open.
If you’re a business owner with less than perfect credit, Capflow Funding Group may be able to help your business find the best funding solutions available to provide you with the working capital you need. We work with business owners across various industries to help them keep their businesses on track. Our team will work tirelessly to see you through to success. Contact us today to find out more about invoice factoring and our other funding options, and how they can help your small business.
The peak season differs from business to business. For some, it’s months leading up to all the gift-giving holidays at the end of the year. For others, it’s the warm weather resort season which can vary depending on geographic location. No matter what type of business you own or what time of year your busy season is, the key to success is being prepared. There are steps you can take to make the most of your peak season.
When looking ahead to the next busy season, look at how your business performed during previous years. If peak season business has steadily increased year after year, it’s a good indication that you should prepare for a similar increase during the current year. If the performance of previous seasons reads more like a rollercoaster ride, with varying highs and lows, find out why.
Was there a strong downturn in the economy? Did your inventory run low too early in the season? Maybe you didn’t hire enough seasonal staff or allow ample time to train them properly? Weather can even impact performance if your business caters to the clientele of a seasonal resort. While some factors may be out of your control, looking back can provide valuable insights to help you more accurately anticipate future business and better prepare for the upcoming season.
Preparing for the peak season starts well before it arrives. Begin with your inventory. If it is produced in-house, you may be able to wait until the season is closer to scale production based on the amount of business you anticipate. If you need to order your inventory from a manufacturer, you will have to order early to ensure both the availability and on-time delivery of your inventory.
It’s important to get an early start on hiring and training your seasonal staff. Post openings on job websites at least a couple of months before the peak season arrives. This will give you plenty of time to screen applicants and choose the best candidates. If possible, bring at least a few candidates on part-time before the season begins. This will provide time for thorough training and help you build a strong core staff to get the rest of the team up to speed before the season arrives.
Having ample staff that is well-trained will be beneficial in building strong customer relationships and minimizing customer strain. A properly trained staff should work like a well-oiled machine and be able to keep up with increased business while still consistently providing quality customer service. Consumers are more likely to do repeat business with a company that meets their needs on time, every time. They may also become a brand advocate. Word of mouth, personal referrals, and online reviews are a great way to gain new customers.
If your equipment has been limping along since last year’s peak season, it‘s probably time for an equipment upgrade. Outfitting your business with up-to-date equipment will not only improve customer service but it will also help you attract more qualified candidates. The prospect of working twice as hard with old, antiquated equipment can result in the perfect candidate turning down the opportunity to work with your company.
In today’s digital marketplace, keeping your website up-to-date and working properly is important. Some business owners, especially those who aren’t running an eCommerce business will let maintaining their website fall to the bottom of the to-do list when gearing up for their busy season.
Even if your company isn’t an eCommerce business, it’s crucial that all the information on your site, from business hours and contact information to the products and services you provide, needs to be current. Your customers, especially those who are traveling from out of town, need to be well acquainted with your business before the season arrives. Remember, whether it’s the Christmas holiday or a summer vacation, your customers are planning ahead too!
Preparing for your peak season can put a drain on working capital. There are ways to keep your business on track year round which can make preparation much easier. However, if you find you cash flow dwindling due to peak season prep, Capflow Funding Group may be able to help. We work with a variety of different industries and specialize in invoice factoring and merchant cash advances. Contact us today and prepare for the best peak season yet!
The benefits of networking events are often discounted or overlooked by business owners. Some feel that they don’t provide a significant return for the time and effort invested. Typically, people go to these events with a specific objective in mind. They might want to gain new clients, meet prospective candidates for employment, or forge a mutually beneficial business relationship. However, not every business networking event attended is going to provide the instant gratification of a valuable connection.
You never know which event will yield that connection, provide professional inspiration or an innovative business idea. It’s about putting yourself out there and becoming known in your business community. With so many others trying to do the same thing, how do you make yourself stand out in the crowd? The key is to be memorable, so when the need for your services or expertise arises, your name will be a the top of the list. Here are some great ways to make a lasting impression.
It might seem counterproductive but most people love to talk about themselves. Ask open-ended, thoughtful questions, providing them the opportunity to share a bit about themselves and their business. People are more likely to remember someone who shows interest in them rather than some who just talks about themselves.
Asking questions may also reveal something you have in common with others. It doesn’t have to be business related. Maybe you both enjoy the same sport or hobby. People tend to like and trust others with similar interests. Identifying common ground helps create a bond and makes you more memorable.
It’s inevitable at business networking events – everyone asks “what do you do?”. Your answer should be more interesting than “ I own a restaurant” or “I”m in retail”. You want the answer to create interest and arouse their curiosity. For example, here at CapFlow Funding, the simple answer would be “We provide business funding”. The answer that gets someone’s attention and sparks their interest is “We help businesses realize their potential”. The second answer is not only memorable but makes people want to know more.
Did you ever go to a business networking event and think everyone looks the same? After all, a gray suit is just a gray suit. There nothing eye-catching or interesting about it. Find a style or fashion accessory that is uniquely yours. Think of Zuckerberg’s signature gray T-shirts or CoCo Chanel’s pearls. Let your personal style shine. Be the guy with the crazy ties or the woman who always wears a statement piece of jewelry.
It can be difficult to remember someone you’ve only met once or only spoke to briefly, especially when they are meeting a lot of other people at the same event. So whenever possible, follow up on that first meeting. Business cards are commonplace at networking events. Make notes on the back of the cards regarding topics you discussed or something you have in common with that person. This will give you the opportunity to reach out after the event by sending them an article or information about an event that might interest them. This gives people more reason to remember you.
You never know where you’ll make that connection or when it will be beneficial. However, on the occasions when it results in a productive partnership, you’ll be glad you made the investment in business networking. Know someone whose business could use a little help reaching its full potential? Keep CapFlow in mind. In addition to our funding options, we also offer sales and referral programs. When you’re ready to get started, let us know.
There is much debate as to whether or not Monday morning blues are an actual clinical condition or just a commonly held myth. While some academics tend to dismiss them, if you take a random survey among the workforce, you’ll probably find quite a few people who claim to have experienced them at one time or another. For those people, Monday morning blues can start off the work week on the wrong foot. Fortunately, there are things you can do to combat the blues and slide into Friday with a sense of accomplishment and another productive week at work behind you.
Before you leave the office on Friday, get your desk ready for Monday morning. Finish up as many projects as you can on Friday and then spend the last 10 or 15 minutes of the day cleaning up and organizing your desk. Coming in on Monday to the remnants of last week scattered all over won’t do anything to lift your spirits.
Set yourself up with a clean workspace and make a to-do list for Monday morning. You don’t have to plan the whole week or even the whole day. The to-do list just needs to have a few tasks with tangible results. This will let you start the week off with some direction and a sense of achievement.
We get it – sometimes this just isn’t possible, especially when today’s devices and technology make it so easy to stay connected. However, when you can, avoid checking your work email over the weekend. Letting work responsibilities creep into your time off can leave you feeling like you missed out and make you a bit resentful on Monday morning.
For many people, the Monday morning blues start on Sunday night. With the weekend winding down, some stay up way too late trying to make it last longer. Others had such a busy weekend that they didn’t get enough sleep overall. Whatever the reason, not getting enough sleep Sunday night can significantly impact the Monday morning blues.
Start the week off well-rested by getting a solid night’s sleep and don’t hit the snooze button on Monday morning. According to Rafael Pelayo, MD, a sleep specialist at the Stanford University Sleep Medicine Center, when that buzzer goes off a second time, your body and brain are taken by surprise, resulting in that groggy, fuzzy-headed feeling called sleep inertia. The more you snooze, the more confused your body and brain become. You’ll probably feel more out of it despite having actually spent extra time in bed.
Jumping out of bed at the last minute and racing to get to work can have you arriving at the office scattered and unfocused any day of the week. Getting up a little earlier may not sound like fun but it will allow time to collect your thoughts and mentally organize your day. You may even find yourself arriving at the office a little earlier. This can give you the opportunity to get a head start on your day with fewer distractions. Self-made billionaire Richard Branson gets up at 5 am every day. He has indicated that one of the reasons he rises so early is so he can work through his emails before most of the world logs on.
Branson also gets his workout out of the way first thing in the morning. He believes that exercise boosts his productivity and research suggests that exercise does energize you physically and mentally. We’re not saying you have to get up and spend an hour at the gym before you head off to work. If you want to, that’s great. If not, a simple 15 to 30-minute walk can do the trick. You could also do yoga or even some simple stretching exercises. Whichever type of exercise you choose, it can help you overcome the Monday morning blues and make it the first day of a positive and productive work week
This last tip may sound silly to some, but how you dress can impact how you feel. Putting on clothes that make you look and feel good can improve your mood. Even if your office dress code is casual, spend a few extra minutes on Monday morning putting together your version of a “power suit”. When you feel good about yourself, you tend to be happier, confident and more productive.
Don’t let the Monday morning blues sabotage your week before it even gets started. These simple tips can have you feeling good about Monday morning and may even have you looking forward to it!
When growing your business, kick-starting every week with a positive attitude is important. Unfortunately, concerns about working capital can derail even the best efforts to overcome Monday morning blues. If your company is in need of additional capital, contact Capflow Funding Group and find out how we may be able to help.
With the boom we saw in the US economy in 2018, many small business owners are probably looking to 2019 to be the year they accelerate business growth. While the White House economic advisor Kevin Hassett has said economic growth in 2019 will surpass predictions, not all the financial analysts agree. Many believe the economy will slow down in the new year and fall short of the three percent growth the White House is predicting. If that’s the case, business owners may have to think outside the box if they want to grow their business and make it stand out among its competitors in the upcoming year. What worked well during an upswing in the economy may not be as effective when it begins to take a downward turn. While these ideas may not appropriate for every business, they could be worth considering for some.
This may sound silly since we’re talking about stimulating business growth. After all, look at the online retail giant Amazon. You can find almost anything you could possibly want to buy and there is a multitude of product styles and options to choose from. However, such a vast selection can cause some consumers to become overwhelmed and not make a purchase at all.
There have been various studies on what is known as the “paradox of choice”, a concept explored in a book of the same name by the psychologist, Barry Schwartz. In 2000, joint research was conducted by Stamford and Columbia Universities that found that when given too many choices, many people simply chose not to make a purchase.
During the years that followed, there have been both supporting and conflicting studies. Most recently, a study by Stanford Graduate School of Business marketing professor Itamar Simonson revealed that while people do like larger selections, it depends on where they are in their decision-making. For the person who is still at the point of deciding if they even want to make a purchase, a larger selection can have a positive impact. However, the person who has definitely decided to make a purchase will be more receptive to a smaller selection.
What does all this mean for business owners looking to grow their companies in the new year? Instead of expanding their product or services offerings, some small businesses may want to consider limiting their offerings to their best sellers. Focusing on what they do best could be the key to business growth in an uncertain economy.
While slimming down product or service offerings may be the right choice for some businesses, others may want to look at adding more value to what they are currently offering. New products or services are often meant to grab the attention of potential customers. When looking to add value, listen and evaluate what existing customers are asking for. What do they want that you’re not providing?
Once you’ve analyzed your customers’ needs and expectations, dig a little deeper. What do they want that your competitors aren’t providing? It could be better quality, faster delivery, expert assistance or streamlined services. Whatever it is, this is your sweet spot and incorporating it into your current offerings will not only grow your business, it will set you apart from your competition. This may involve some big changes to operations, branding, and company culture but they will be well worth the investment.
It’s easy to stick with what you know, but to sustain business growth in the new year, many businesses will have to look beyond their existing audience. That’s not to say you should abandon them, just find a way to increase their numbers. Is there a demographic you’ve overlooked in your marketing that could benefit from what your business offers? Do you need to offer something else to lure them in?
Doing what you’ve always done isn’t the way to fuel growth. We can all name brands that became insanely popular and then completely disappeared. For a business to become and remain successful, it must constantly adapt to changes in the market, and the current perception of a market leader. Look at your business and its offerings from the customer’s perspective, and adapt to address their changing needs. It’s equally important to remain aware of your competitors’ intentions and capabilities.
Growing a business is a big investment that takes both time and money. If financing is holding your business back, Capflow Funding Group may be able to help. We specialize in factoring to businesses in need of short-term working capital. We also partner with other lenders to provide funds for businesses that require financial services other than ours. Contact us today and find out how we can help you grow your business.
Customers are the lifeblood of any business and probably the most powerful force fueling small business growth. Attracting new customers can sometimes be difficult and keeping them can be an even bigger challenge. If despite your best efforts, you’re not seeing your goals realized, these tips could help increase your customer base and stimulate small business growth.
Your existing customers know who you are and where to find you but what are you doing to help make new customers aware of your business? In order to stand out from the crowd, you need to up your game when it comes to marketing.
In today’s competitive marketplace, that means having a strong online presence. You need a website that is up-to-date with relevant content and is also user-friendly. Also, having a site that is mobile friendly is no longer a luxury, it’s a necessity. Don’t forget social media. Find out which platforms are popular among your target audience and get social.
As with any new relationship, it’s extremely important to make a good first impression. A new customer’s initial impression could make the difference between a one-time transaction and a long-term relationship. Even though you strive to always give the best possible service, with a new customer you want to exceed rather than just meet their expectations.
Offer an additional free service such as gift wrapping or expedited delivery. Provide a coupon for a discount on their next purchase. It is also beneficial to engage customers in a conversation to learn a little bit about them. If the first time transaction is online, offer free shipping for that purchase or a discount on a future purchase. Be sure to follow up with a thank you email.
Just like your website, it’s important to keep your business technology up-to-date as well. With today’s busy schedules and on-the-go lifestyles, customers appreciate hassle-free transactions. Complicated online purchases or slow, antiquated POS equipment can discourage repeat business.
If you are a B2B company, offer online invoicing and payments, allowing your customers to get back to their business. Providing customers with efficient service that permits them to get what they want and get on their way quickly will help create customer loyalty and repeat business.
Do you do business with similar but non-competing companies? If so, this can provide you with an additional opportunity to increase your customer base. Network with these companies and set up a plan to refer customers to each other should either business be unable to provide what they need. Not only will this be a source of new customers. It will also help strengthen and build lasting relationships with the cooperating businesses.
This is more important than ever with online reviews. Studies have shown that 97% of consumers looked online for local businesses in 2017. Moreover, 12% looked for a local business every single day, and 85% trust online reviews as much as personal recommendations. When a customer expresses their satisfaction with your business and customer service, politely ask them to leave you an online review. It’s no different than asking them to tell their friends!
Efforts to increase your customer base take time and in many cases, money. If unpaid invoices have you lacking the capital necessary to implement a strategy to attract new customers, CapFlow Funding Group may be able to help.
We specialize in factoring to provide businesses with short-term working capital. We also partner with other lenders to provide funds for businesses that require financial services other than ours. Contact us today and find out how we can help you grow your business.
There’s a lot of talk these days about company culture. Although some business owners and managers think the workplace should be about work only, a little levity can significantly boost morale. Whether they buy into cultivating a company culture or not, most business owners and managers agree – positive workplace morale can be very beneficial.
A positive, fun work environment can boost productivity. Employees who can share a laugh or have a little fun will not only be more productive – they will produce better results. The opportunity to laugh can provide comic relief for stress. A workplace where a little fun and laughter are encouraged will make for happier employees and even have them looking forward to coming to work.
This positive attitude combined with increased productivity can result in significant improvements to a company’s bottom line. The reduced stress level can also cut down on lost work days and paid sick time. Studies have shown that health care costs in high-stress industries are nearly 50% greater than at other organizations. According to the Harvard Business Review, the American economy loses $500 billion a year due to workplace stress.
It doesn’t have to to be a major event. It could be something as simple as sharing a silly GIF or funny facebook post with everyone. It can also help to take a little time to recognize and celebrate each other’s personal events and achievements such as birthdays, workplace anniversaries and promotions.
When employees can have fun together, it creates camaraderie and a bond that goes simply being coworkers. This is one of the key components to building a strong team, which can benefit employers and employees alike. Team building exercises and outings are a great way to foster group cohesion and have a little fun. Once they become a regular feature in your company culture, you will probably even find your employees looking forward to them.
When employees know they are part of a team, it builds confidence in their ability to tackle projects that would seem impossible on their own. It also provides employers with peace of mind knowing they have a strong team that will work together to problem solve and gets the job done.
When you have a position to fill, you want to attract the most skilled and qualified applicants. Applicants of this caliber will be in demand and will be researching prospective employers. In addition to salary and healthcare, they will be looking at the company culture. Essentially, you will be competing against others in your industry to obtain the top talent.
It can be extremely beneficial for your company to present itself as a fun place to work where employees feel they will be part of a team. It’s also important to show how you support the work/life balance as this is extremely important to today’s workforce. This could include anything from wellness programs and flexible work schedules to cutting-edge equipment and personal development programs.
It doesn’t matter if you’re a big corporation or a small, business, company culture matters. It can help grow your business or elevate it to the top of your industry. Whether you are just putting a company culture into place or you want to improve your existing culture, it can take a little extra cash. If waiting on outstanding invoices are holding you back, factoring with CapFlow Funding can be a great option to get the funds you need.
If you’re not waiting on invoices, but still need a little extra cash to kickstart your company culture, CapFlow has partners that provide services complementary to ours. We work with these partners to get you the appropriate funding for your business. Contact us today to find out how we can help.
