5 Tips for Small Business Owners
Before reading any further this is an unbiased view that explains both sides of both the good and bad of small business loans or what some would call Merchant Cash Advances. In general consensus in running a small business the fundamental and conceptual values remain the same. However, the things that do change are the decisions made by the business owner that can lead to success, med city or complete failure. As the Owner and Principal Managing Partner of VIP Capital Funding we help business owners obtain working capital through tailored consultations. I have experience with thousands of both successful and unsuccessful businesses. To put it quite simply a successful business has a great revenue model while an unsuccessful has a mediocre revenue model. A good business owner will deploy capital that will return profit such as a piece of machinery or advertisement as needed, while an unsuccessful business owner may deploy capital on staff when he or she doesn’t even have enough demand for their supply to begin with. It could also be luck as well, an old cliché it’s all about location some businesses may fail just because the location they are at isn’t the best for the for the surrounding customers in the aura.
Tip # 1: Allocating your working capital
You can have all the capital in the world in business but if not deployed correctly your business will either break even or take a loss. Business is all about taking calculated risks and strategically invested to return a profit. In order to return a profit, you must have a market with a demand for your product or service. To have your product or service you must have working capital. Makes sense, right? Business is all about making sense, but it’s the fear that stops people from pursuing their entrepreneurial dreams, and lack of capital is not an excuse, if you want something bad enough you will bust your ass until you get it, and with certainty would get majority agreement for any multi-millionaire reading this.
Tip # 2 Obtain working capital
A good Segway to tip #1 is accelerating the growth of your business by taking on good debt and scaling your business responsibility. But first you must find the right degree of success that is working, for instance deploying of capital into advertising, equipment, staff, product, service, etc. need to be fine-tuned as you scale. Any leak along the lines needs to be plugged up fast or your risk of failure down the line with your business the bigger the business, the more the reward, but bigger the loss. The smaller the business the less reward but less the loss. If you’re just starting out, start small, adversity is faced even for small businesses with 10 employees or less so if you can’t fix leaks for a business with 10 employees or less how will you be able to fix leaks for businesses with 50-100 employees. Focus on constant progression, but don’t stagnate or settle. Business is 24-7-365. Along the journey you will find luck, you will find hardship but as long as you are waking up day in and day out marching forward, your chances of failure are dismal. With the right amount of working capital which VIP Capital Funding offers its clients and does a great job in doing so, you can expect to see your business grow 300%-500% fast if you were not to do so without it.
Tip #3 Good business loan debt
Obtaining the right amount of capital that will be beneficial for your business. At VIP Capital Funding our consultants are highly trained financial experts who unlike other financial institutions have no disregard for the businesses long term health, VIP Capital Funding does. We want to help fund your business and watch it grow year in and year out, but that will not happen if you are stacking over 3 loans that you’re paying back on. VIP Capital Funding examines the financial problems, heals it with short term solutions and builds upon a long-term solution so the business can prosper.
Tip #4 Bad business loan debt
Biting off more than you can chew is bad debt, at VIP Capital Funding we have saved many business owners from filing bankruptcy through Real Estate Owned Asset based loans. When you have over 5 positions and your business isn’t covering enough revenue to pay for the debt schedule it leads to inevitable bankruptcy and dissolving of the business. This is why VIP Capital Funding keeps a plethora of products in our arsenal and a Real Estate Asset Based Loan can get the adequate capital needed to consolidate the borrower’s debt positions and allow him or she to continue operating.
Tip #5 Stay Strong and the trust
In business nobody writes your checks, you get paid in direct correlation to the problems you solve in the marketplace. This can be a scary feeling for some people as many people are used to the safety net of a salary or hourly job, But as a business owner you need to be strong as you will be rewarded for the problems you solve as you, weather adversity and make the proper adjustment, no matter what scale you are doing it on. Whether your annual revenue is $100k a year or $100,000,000 a year adversity as problems need to be solved each and every day. No one size fits all either, a merchant cash advance isn’t going to solve your problems, a long-term bank loan will not solve your problems, a good product or service will not solve your problems, and a good marketing strategy will not solve your problems. But what will solve your problems is a combination of everything written in this article. There will be ups and downs at every level of business, and life will keep going with or without you. This is analogous to business because the economy as a whole will continue to move off tall basic fundamentals of supply and demand of product and service.
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