Starting a small business without much money can be a difficult prospect. Typically most of us do not have a terrific amount of cash lying around to be able to make the purchases we need to get started. It can also be equally difficult for businesses that have been around for a short while, but don't have the capital needed to grow to the next level.
If you are reading this article, you already know that you need your business to expand in order to survive. We've already covered a number of factors regarding business expansion. In this article, we'll be focusing on your human resources and how company culture is important for your business' growth.
Running a business is not particularly easy. If you are starting out many of you have begun as an owner operator and you handle everything yourself. Maybe you hired someone to build a website for you or a few other basic start-up costs, but mostly you are on your own. You maybe filled your garage with a pallet of products, or you have a little home office where you wear many hats
As an online retailer, you know it's a jungle out there. Whether your selling your own branded products or you’re an online seller of 3rd party manufactured goods, competition is fierce. Having a great product simply won’t cut it. The best performing online retailers recognise that it’s about placement, establishing yourself in the marketplace, and providing a quality experience for your customers across the life cycle and at every point of engagement. Of course, all of this takes money. Assuming you don't have a boatload of cash, let's look at two scenarios.
As your company starts to grow, to be able to handle any growth, you need quality people working with you. However, as hiring people is expensive, many companies avoid hiring until it becomes absolutely necessary. They only make the change when business activity exceeds capacity. The belief is that once the need is there, they can simply bring in people to meet the capacity. This is based on this idea that hiring people should be a no-cost scenario; you only hire when capacity can handle immediate increase in your expenses.
What would you say is the biggest barrier to growth? Let's see a show of hands. I'm willing to bet you were thinking: “money.” It seems so obvious that it doesn't seem to need repeating. You don't even have to be in business to understand this piece
However there's a little more to it than that.
In order to start your business, you need some start up cash. Most likely you start by going to people that you know that might have some investment capital. Your first stop is family or friends. You've pitched them this great idea, and you either gave them a share of the business or you took it as a loan, promising that you'd pay it back. Family, if they have any money, are those most likely to have helped you out. With friends, it's a little tougher, but maybe they really liked your idea and wanted to come on board. (Of course, loans from friends are rarely a good idea if you want to keep those friends, but we won't go any further into that here). However you managed to do it, you got started.
Your offering is excellent. You've gathered together an excellent lead sheet. You have a list of prospects that you know would benefit greatly from your services. You've done some advance work and understand which areas could benefit them the most. You may even know that the client is directly interested in what you have to offer, because they have filled out a form on your website, or signed up for one of your newsletters.
So, you got into business with a little bit of capital. You had some money in the bank, enough to last you for a few years without making a profit. Maybe you had a few investors to help the initial expenses just to get rolling.
Many agencies haven't approached POS financing for a number of reasons. Let's go over the most common misconceptions.