Why NOW is a great time to become a business ownerPublished on 11th May 2017 2017-05-11T20:39:48+00:00 - Last update on 19th November 2019 2019-11-19T16:05:50+00:00
Despite the turmoil in the British economic and political climate, the desire to do business still runs strong. Whilst some might be reeling from the changes that are unfurling, others see opportunity. Change has always been greeted with uncertainty and scepticism, but in business we must always focus on the opportunities rather than the potential challenges.
Consequently, in order to survive and prosper, now’s the time to do business.
5 reasons to take the leap into business
Consumers are hungry for new things
As always, business flows around what companies can offer their customers. Rather than settling for what they’ve already got, your customers are expressing a desire for innovation. If your business can offer that something new and in an affordable manner then the UK is certainly ripe with opportunity.
Household names that once appeared unshakable are now losing their share in the market, leaving gaps for developing SMEs to slide into. Being smaller than your top competitors during times of uncertainty is no weakness and can, instead, make your business more flexible. A useful advantage at a time when most businesses will have to run their operations in more than one way. If you can persist and endure, offering customers an array of options, there’s no reason why your business can’t succeed.
Social responsibility is paying off
Consumers of today are more socially conscious than ever before. As such, when it comes to ordering goods and services, they want to know whether the materials or ingredients have been sourced fairly and humanely. Driven by a desire to make the world a better and fairer place for all, many consumers are now happy to switch to more expensive products or services if it satisfies their psyche.
It’s easier to partner
In spite of the challenges of today, the drive for innovation and collaboration is stronger than ever and, thanks to technological advancements, cross-industry partnerships are becoming ever more popular as a viable business model. The advantages of such collaborations are huge, especially among national and international markets. By working to offer more and more customers an array of products and services that blend concepts, your brand can acquire access to more customers than what it would’ve done alone.
Workforce options are expanding
Acquiring and hiring new staff for your business has never been easier. For many SMEs, acquiring the necessary funds for permanent staff can be problematic. However, that is not your only option.
Over the last decade, the demand for freelance, contractors and outsourcing has grown by around 50%. What this means for small business owners is that when they have an upcoming project they can review which skills they require. If the skill they need isn’t already available in their business, they can dip into an external talent pool and secure services for a cost-effective temporary period. Afterwards, when the project is complete, they can revert back to their original teams but keep their contact details should the need ever arise. As your business grows, you may feel the need to grow your own team and could decide on hiring them on a more permanent basis.
More access to business finance
Another excellent reason for why now is a great time to do business is the availability of business finance. Ever since the 2008 Banking Crisis, the demand amongst business owners for even more forms of specialised finance has been immense. But, rather than allow themselves to be left standing around by their high street bank, more and more businesses are turning to the Alternative Finance industry for the funds they need.
However, since its humble beginnings, the alternative finance industry has grown massively. However, by gaining exposure to thousands upon thousands of business finance solutions, it can be frustrating to know which product can offer the best value. That is why the services offered by Access to Finance specialists, Rangewell, are so crucial. With our services and expertise, you can source the perfect finance solution to suit your business’s needs, including Business Loans, Merchant Cash Advance and Invoice Finance.
Typically Secured or Unsecured, business loans are an excellent way of raising capital for a wide array of purposes, including acquiring new equipment and expanding operations. Applying for an unsecured loan lets you can borrow anything from £5,000 to £250,000 without the need to set aside assets. Meanwhile, secured loans help you acquire larger sums ranging from £5,000 to as much as £1,000,000. In exchange, the lender will require you to set down assets as security. With both options, you will be required to comply with a fixed monthly repayment scheme, plus interest.
Merchant Cash Advance
In order to qualify for this means of finance, your business must be able to support credit and debit card payments using devices such as Chip & Pin. This is because the product relies on your monthly receivables or revenue. After reviewing 3 or more of your business’s consecutive monthly sales reports a potential finance lender may offer to purchase your potential earnings for one particular month, at a discount.
However, what makes the Merchant Cash Advance stand apart from a business loan is how the repayments are structured. If a lender were to offer you a rate of 18%, this means that they recover 18p for every £1 your card customers spend, until the product has been fully repaid. Consequently, if you make fewer sales on a particular month you pay less but should you experience more then you’ll pay more.
Invoice Finance is a popular means of unlocking the money contained within any unpaid invoices in order to support your business. When considering this method finance for your business it is essential for you to understand the two types you can apply for and how they work.
- Factoring: lets you borrow a lump sum equivalent to around 90% of an outstanding invoice’s overall value. With this option you’re the credit controller, ensuring that payment owed by the customer in question is forthcoming. Until you’ve received full payment, or begin taking regular instalments, you won’t be required to begin the fixed monthly repayment process, plus interest. That said, however, lenders may choose to specify a period laying out exactly how long they’re prepared to wait. Should this period expire, the lender will begin the repayment process regardless of whether or not you’ve been paid.
- Discounting: allows you to borrow up to 80% of an outstanding invoice’s total worth. With this option, however, the customer responsible for the invoice will instead pay the sum owed directly to your lender. You also have the option of making yourself the credit controller or making use of the lender’s ledger service, if available. Once the lender has received full payment from your customer, you will be required to transfer the remaining 20% into a facility run by the lender. After the deduction of any fees and service costs the remaining sum, or balance, is returned to your account.
Our values are simple – We’re on your side. Our services are clear and transparent. We support a wide range of SME businesses of every shape and size, for finding every type of finance. Follow us on Twitter and LinkedIn for business tips and tricks, and feel free to call us on 0203 637 2340 if you’d like to chat about what we can do for you.
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