By Elie Y. Katz
National Retail Solutions
There is good news for small businesses that have just been established or have been affected by the pandemic. Since more individuals have been vaccinated, foot traffic has increased at retail locations. Assuming the Omicron COVID variant can be contained, shoppers will continue to visit stores, and revenues are likely to rise.
According to Small Business Trends, https://smallbiztrends.com/2021/08/foot-traffic-up-retail-shops.html, since January 2021, customer foot traffic across all industries has increased significantly. In January, foot traffic was 10 percent; now it is closer to 60 percent. Despite these statistics, some people continue to avoid locations with large crowds.
While the retail industry is rebounding, many independent mom-and-pop businesses are failing due to a lack of funds for inventory, marketing and promotion. Many young, as well as established businesses require expansion or new equipment but are unable to act due to a lack of liquid capital.
Businesses can thrive only if they have cash on hand. With the support of openhanded family members or business loans, they may withstand the impact of the pandemic and the costly stressors of building a business. Help from family or bank loans, however, are not available to all. Borrowing money from family can create rifts in relationships.
In addition, obtaining a bank loan requires completing time-consuming paperwork, which includes difficult-to-obtain documentation. Credit checks must pass muster, and many businesses are rejected for bank loans due to poor credit. Bank loans can take time for approval and repayment includes high interest rates.
Cash advance is an optimal route for independent businesses seeking fast funding. Obtaining a cash advance doesn’t always require good credit. The application process is quicker than for a conventional bank loan. Repayment terms for a cash advance are flexible. Once approved, a cash advance can be available in the bank within 24 to 48 hours. A cash advance can help a small or midsize business in many ways.
A company may not be in dire straits to require a loan. A small to midsize grocery or convenience store may be doing so well that it wants to expand its space, but it just doesn't have enough money on hand to do so. With a cash advance, the business can expand. A cash advance is an investment in putting strategies in place that will generate enough revenue to repay the loan while keeping the store growing and prospering.
When a new business wants a location, the space usually needs renovation. The appearance of a new business goes a long way toward drawing new and loyal consumers.
Patrons will have an entirely new shopping experience and the property will have a wow factor, thanks to a bright, attractive front. Remodeling and renovation work should not be done cheaply. It will be worthwhile to get a loan to renovate properly. New customers will have a good impression of your business, and you will receive excellent feedback.
When a company has to remodel not only their facility but also their equipment, it might be tough to pay for without the necessary funds. A deli shop might want a new deli cutter or new kitchen equipment. Whatever the need, cash will be needed since the business will not thrive financially without it.
Retailers must ensure that they have enough space for inventory and the proper number of items to stock. It is their responsibility to ensure that customers get what they want when they need it. From there, the business must have adequate supplies on hand. When customers shop elsewhere, a company's revenue suffers. Taking out a loan may be daunting, but empty shelves and disgruntled customers can be devastating.
A business needs efficient marketing strategies. People must know where you are, what you're selling and that you're open—and this requires promotions. It can be difficult for SMB owners to keep up with the costs of advertising in print, online and television. But there is no substitute for a well-developed marketing plan and the ability to implement it. It is preferable to take out a cash advance than to lose money due to a lack of marketing efforts.
Everything in a shop may function smoothly until some piece of a store fails or the refrigerator conks out. Having money stored for emergencies can help for times when the unexpected expense pops up. To handle situations like this, small businesses need money set aside to cope with calamities so that operations return to normal as soon as possible. In certain cases, applying for a loan to obtain money you don't need yet may be irrational. But the cost of the loan outweighs the loss of revenue from not being able to conduct business, which can impact a business significantly.
Paying employees on schedule and avoiding check bounces is essential if a company wants to keep staff happy and productive. It can be tough to pay employees when money is tight. Paying staff on time and doing so comfortably, is a core advantage of a cash advance. Not paying employees on time can result in them leaving, slamming you with bad reviews online, lawsuits and more. Having cash on hand can mitigate this.
When business is booming, it's often time to move to a new location. However, sometimes the costs involved are too high. Moving requires not just the packing up of a business, but also setting up the new location, unpacking there, and advertising in a new neighborhood. Borrowing money to cover the costs of a relocation can be a wise move. The loan will be likely returned in full when the business expands.
When it comes to building a business, setting up a budget is essential. This includes assessing current expenses plus anticipating future needs while factoring in unforeseen circumstances. Proper planning, and help of funding needed to start, grow, sustain and build a successful operation will go a long way to reaching your business goals and financial success.
Elie Y. Katz is founder, president and CEO at National Retail Solutions, nrsplus . Contact him by phone at 201-715-5179 or by email at email@example.com.
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