What big business can teach small business
Whether it’s using current funds or obtaining a working capital loan, leveraging resources to grow a small business into a big one is the driving force behind every entrepreneur’s goal. From the initial idea that leads to the creation of the company, owners endeavor and sweat for years trying to build up their enterprises into industry juggernauts.
While small businesses have many advantages over larger organizations, such as being agile in the face of disruptions and providing more personalized customer experiences, there are several approaches that owners can take from the pages of big business to truly succeed. Growth is important among small businesses too, since they accounted for more than 65 percent of the new jobs created in the U.S. in the past two decades, according to Get Busy Media.
Boost your marketing efforts
One error many small business owners make is not fully promoting their company. It’s understandable. There are endless fires you need to put out, not to mention getting to the never-ending to-do list sitting on your desk. And too often, small business owners either forget or never get around to putting marketing on their agenda. This can be a big mistake.
Even with a minor investment in a strategic small business marketing campaign, you can boost brand awareness and expand your customer base. This will take time and money, and might even require you to handle the majority of the work, but the pay-off could be huge. By implementing a few well-calculated marketing measures, such as targeted emails, blogging, social media, promo codes or any combination of these low-cost, high-ROI methods, you can potentially see your sales increase exponentially.
Paying for marketing doesn’t have to be a struggle. For instance, small business owners who take credit cards can take advantage of a merchant cash advance. The business can obtain up to $250,000 to use on a marketing campaign by exchanging future credit card sales for a fixed dollar loan amount. Using predetermined metrics to track the results of your marketing strategy, you can potentially generate much more than the sum you originally borrowed.
Optimize your supply chain
Is your business relying on a motley collection of vendors and contractors that materialize from nowhere and then disappear just as quickly? Do you find yourself scrambling to fill orders at the last minute with insufficient products or goods? Chances are you haven’t optimized your supply chain.
This is one aspect of operations that big businesses have perfected and it’s something you can’t ignore. There are many ways small to mid-sized operations can make minor investments in the supply chain to get major pay-offs. As noted in Inbound Logistics, advances in the Internet of Things have allowed purchasers and managers to take advantage of the real-time data available from using cloud-based GPS and radio frequency identification sensors to track and monitor shipments, communications and logistics. With this in-transit visibility, you can access all of your company’s supply-chain information from any mobile device.
Improving warehousing and manufacturing processes with enterprise resource planning solutions is another way to create more efficiency in workflows and cut waste. You can reduce asset loss, save on transportation costs and eliminate redundancies by aligning purchasing and manufacturing systems and calendars to really boost productivity. This allows you to streamline the entire supply chain and make your small business more flexible and ready for sustained growth.
Utilize leasing options
Just because you own a business, it doesn’t mean you need to own every piece of equipment you use. Companies of all sizes gain considerable savings on capital expenditures by leasing the necessary machinery required to maintain operations. In addition, both the federal government and many local municipalities offer tax incentives for leasing, such as IRS Section 179, which allows substantial deductions on federal taxes when you obtain equipment.
Not only are there considerable savings involved with leasing equipment, but also many leasing contracts allow you to upgrade this machinery at the end of the term to stay on the cutting-edge of all technological advancements. Plus, you can often get on-the-job-training for all employees so they can be as productive and efficient with this state-of-the-art machinery.
It doesn’t matter which industry you operate in, since leasing options are available for just about every market segment. Whether it’s construction, dental, farming, trucking, restaurants or numerous others, you can easily find the tools, machines and technology you need to push your small business to the next level.
Obtain alternative financing
One of the most frustrating parts about trying to grow your small business can be the lack of resources. You have big ideas and prospective clients waiting in the wings, but financial obstacles stand in the way. Maybe you’re already operating at maximum capacity and you simply cannot fulfill any new orders. Or maybe you can’t find the resources to lease more warehouse space to hold an increase in inventory. And your bank is not willing to lend you the money you need.
Using alternative lending provides an easy way to get access to the type of capital big banks usually only offer to big businesses. Even if you have less than stellar credit, you can still obtain unsecured loans with no collateral down and get funding as quickly as 24 hours. With many options to choose from to obtain capital, you can find the funds you need to build a bigger, better business.