All businesses need money. That goes without saying. The money that businesses need, however, far exceeds the profits they make from sales. Naturally, new businesses need start-up money while companies that have been operational for a while need a cash flow to be able to keep things going. Paying employees, making repairs and buying replacements as well as physical store and website maintenance are only three business tasks that require money.
So how important is it to secure extra funding for your business? In a word: very! As Eric Feigenbaum puts it on Chron.com, “it takes money to make money, so the proverbial saying goes. Businesses have to consider their finances for so many purposes, ranging from survival in bad times to bolstering the next success in good ones. How you finance your business can affect your ability to employ staff, purchase goods, acquire licenses, expand and develop.”
It should be highlighted that “bad times” are imminent. That is not to say that all business owners are bound to encounter failures within their respective industries. Instead, it’s wise to acknowledge that anything can happen at any time. Even bad weather (the winter is, after all, coming up in a few months!) can significantly impact the sales of businesses all over Canada. Preparing for the worst is an important part of keeping a company afloat.
When a business owner has secured extra funding, he/she has given the business a fighting hope. “No matter how well your business is doing, you have to prepare for rainy days and even storms,” says Feigenbaum, “Business and economic cycles bring dark clouds you can’t predict. That’s why smart businesses create financial plans for downturns.”
How can extra funding help for a business to grow? There are a variety of ways that business owners can help their enterprises to grow. They include renovations, expansion, buying new inventory or equipment and advertising, just to name a few ideas. Of course, money is required to implement any of these suggestions. Feigenbaum notes that, without extra working capital, plans for growth cannot usually be carried out.
“Sometimes to take on more business and attain greater success, a company needs significant financial investment to acquire new capital, staff or inventory,” he writes, “When business managers hit this juncture, they have to wade through their financial options, which may involve infusions of equity capitals — perhaps from venture capitalists. Every situation is different, but smart managers consider the cost of success and their options for obtaining growth financing.”
How important is payroll to a company’s success? Your employees are the lifeblood of your business. Literally. They are the living, breathing human beings who without, your business could not function. Your employees are living on the front lines, making direct contact with the members of your customer base. Keeping your employees happy is integral to keeping your customers happy. And happy customers are mandatory if you want to consider your business a success.
Therefore, it should go without saying that you need to ensure that your employees are always getting paid – both the correct amounts, and on time! “Nothing spells imminent death like a company being unable to make payroll,” insists Feigenbaum, “Even the most dedicated staff won’t stick around long once the paychecks stop. The larger an organization gets, the larger the labor costs. Above all, companies have to ensure they have enough cash on hand to make payroll for at least two payroll cycles ahead — if not more.”
At Synergy Merchants, we ensure that all of our clients receive the extra working capital they need to ensure the future and ongoing success of their businesses. For more information on our merchant cash advance program or to speak with one of our licensed funding specialists to get a free, no obligation quote, simply call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org.