The Time Is Now
Introduction
The current economic state sucks. Purchasing power has dropped. The government bailout chickens have come home to roost. The fallout? Businesses must charge more to make the same margins they did a year ago and consumers and business owners alike are looking at angles on how to make ends meet.
It’s not all bad though. The benefit to all this is that there is always opportunity out there and when the economy sucks, there are deals to be had. Lots of lenders are out there still, sitting on a lot of cash; there is liquidity in the marketplace. What does this mean for you, the business owner? It means that if you have weathered this storm thus far and have identified opportunities to expand in this market (either through organic growth or by acquisition), the time to act is now, even if you don’t need the money right away. Accessing capital through commercial lenders is a great way for small and mid-market businesses to get the cash they need while still retaining control over their business. Commercial lending is an essential part of any growth strategy and it’s important to map out the steps required to access this capital.
Commercial Financing
You can't afford to wait for the economy to improve, by that time all the great opportunities to expand will have been explored and the great deals to acquire other assets or companies will have been picked through. It's time to act now.
Even if you have identified the opportunity and want to move quickly, it isn't always easy putting together a loan package or convincing a lender that your company has what it takes to be a worthy and deemed a “safe risk”, but it is possible with the right presentation and right professional in your corner.
There are so many uses for additional capital for the business: purchase order financing, monetizing aged receivables, new equipment or machinery, marketing or staffing up and, of course, buying another company or larger asset to compliment your existing business. The first step in this process is setting the target and identifying any challenges, so that we can evaluate your options and choose the best path for you, immediately.
Expand into New Markets
Regardless of the use of capital, the best return on any expenditure is when it is used to streamline your current operation or expand your reach into new markets, thus increasing your bottom line. Efficient retooling of your current operations can reduce unnecessary costs. Many companies use capital to bring in third party consultants who can help identify and prepare them for expansion (as us about these additional services). Exploring new markets allow you to expand your brand recognition and increase revenue, as well as provide opportunities for new partnerships that could increase customer loyalty and help bring in new customers in new regions. In order to expand successfully, however, it’s important that you do some research first. You should consider researching the market before entering it so that you know what customers would need or want from their experience with your product or service—and what those needs are worth in terms of pricing structure (i.e., how much they can afford). Additionally, once you have determined this information about the market itself (as opposed to just one individual consumer), it becomes easier for other aspects of expansion such as traditional marketing or social media efforts.
More Products and Services
When it comes to expanding into more products or services employ the LLT method:
Look at what your competitors are doing. Are they offering a service that you don’t have? What about new products? What are they doing well? What are they not doing well? If so, consider how you can improve on their idea.
Listen to your customers and see if there is anything they want that isn’t being offered by the current products or services in the market. The best way to gauge this is by asking them directly, you would be surprised how much they will want to share if their opinion is sought out.
Think about what the market needs right now and what it may need in 12 months or 24 months down the road; staying ahead of the curve is advantageous when it comes to capturing more market share in the future.
Conclusion
Don't let a bad economy hold you back; instead, use commercial financing to expand your business and make things happen now. Seize the opportunity!
If you want to expand your business, your best option is to take advantage of the expertise of The UnBankers. Our goal is simple: We want to help small and mid-market businesses grow by providing them with the capital they need in order to thrive during this difficult time. Contact us to help you source the best options.