At this time of year, all around you are ghosts, werewolves, vampires and all sorts of creepy monsters – but all year ‘round, businesses are faced with real terrifying obstacles. The best way to combat these scary statistics is to learn about them and be able to create your own plan of protection against these real life monsters!
#1 Poor Cash Flow Management
The number one reason why small businesses fail is cash flow. According to a U.S. bank study, 82% of all businesses fail because of poor cash flow management. Yikes!
Cash flow problems occur when the funds exiting a business exceed the inflow of funds, or when the timing of this delicate process is thrown off. Managing cash flow at the small business level is tricky. It requires careful management of accounts receivable and accounts payable, forecasting of trends, getting the best possible terms from suppliers, diligent invoicing, and above all an “I’m prepared” attitude.
Although these cash flow woes are inevitable, small businesses can prepare themselves for this predicament. Finding a funding source to help cover cash flow gaps—before they happen—can mean the difference between a successful business, and one that ends up six feet under.
#2 Failure to Plan and Test Your Marketing Campaigns
Advertising is not marketing in its entirety—it’s only part of the pie. All your marketing efforts should be guided and informed by your marketing plan—one that aligns your tactics with your budget and goals (getting leads, building good press coverage, signing people up for demos, etc.). Similarly, give it time. Although it can hurt to invest a whole bunch of money up-front and not see an instant result, it takes time to build brand equity and foster the relationships that are needed to ensure your customers are emotionally ready to buy.
Finally, test and track your campaigns and tactics. This will give you insight into what’s working and what isn’t so you can refresh your approach and waste less money.
#3 Too Many Hires, Too Quickly
This is especially true of start-ups and those in the vulnerable first two years of business. Startups that hire too early have a 146.7% greater chance of failure than those who take a slower approach. Plus, the true cost of hiring an employee can be much higher than their hourly rate. Benefits, payroll taxes, and other expenses, such as workers’ compensation insurance, can add several percentage points onto a basic salary and burn through your revenue per employee. All this adds up to depleted cash resources when you need them the most.
Scaling back your hiring plans can equate to more hours and pressure on you—but it does give you more time to focus on your priorities without the cost and time of managing employees during the start-up phase. And, of course, you can always turn to self-managing independent contractors to supplement your own skills.
Combat your fears and start your business TODAY!
With the opportunities for small businesses booming, why wait another moment. What else is keeping you down? Financial restraints have been a complaint for many of the dreamers, limiting themselves to their immediate funds. There is an alternative. If you have the dreams and decent credit, Small Business Loans and No Doc Loans are available to you. Our goal is to provide you with the knowledge you need and the resources available to make your dream a reality. Give us a call – we have the education and the perspective to help you obtain the loans you need for your small business. Visit our website or give us a call to find out what financial backing is available to make your business soar!
Unsecured Finances has over 10 years in the consulting business! We specialized in educating and assisting clients on acquiring Unsecured Business Loans and Start-Up Business Specialty Loans including; Unsecured No Documentation (No-Doc Stated Income) Loans, Unsecured Business Loans, and Unsecured Start-Up Business Loans and Lines of Credit from $10,000 to $500,000 without Assets.
Apply on our website to find out if you qualify, or call today for a free consultation: 1-888-294-2584