5 ways credit lines can help you stay competitive
5 ways credit lines can help you stay competitive
Being ahead of the competition is essential to building a thriving business-and the key to staying competitive is innovation.
“Consumers reward innovators,” said Dave Munson, who is Saddle Leather Company, A store selling high-quality leather goods and accessories. “They like companies that strive to improve things.”
However, improvements often require funding.according to 2019 Small Business Credit Survey, 56% of small businesses seek financing to expand their scale or seek opportunities. The extra cash allows you to freely generate ideas, try marketing strategies and take risks.
“Funds and credit are essential to tap growth opportunities. ” CareDash, An online healthcare review directory. “The market is innovating very fast now-whether it is debt or equity, funds can launch new products or service lines to capture opportunities for rapid change.”
Commercial Credit Line Particularly flexible. Unlike term loans that provide you with one-time cash, the line of credit is revolving. As long as you reset your balance to zero, you can continue to use your funds and use them repeatedly.
Are you ready to enhance your game? You can use your capital to stand out from the competition in the following five ways.
1. Develop new products or services
Developing unique products or services can help you attract new customers and increase revenue.
“One of the best ways to stay competitive in any field is to keep up with trends and always put the needs and needs of customers first,” said Lydia McConnell, the founder and creative director of the brand. Fashion Miami, A shop selling handmade jewelry. “What can your customers benefit most from? How can you provide them with the best experience?”
For McConnell, this means collecting customer feedback on their favorite jewelry styles, and then experimenting with designs, colors, and concepts. For other companies, meeting customer needs may require market research, adding new features to existing products, or investing in unique platforms or products.
“We use our credit line to build our core product CareDash healthcare catalog,” Chan said. “Keeping ahead on key trends such as the consumerization of healthcare, telemedicine, and value-based care are critical to our business growth.”
2. Increase output, increase output
If you cannot compete with large companies on price, try to compete on output.use funds Simplifying your production process can help you take on more work and grow your business faster.
When McConnell used the credit to buy a laser cutting machine for her studio, she was able to handle larger orders. “Previously, when I used a laser cutting machine at my local Makerspace, I could only use their machine for two hours a day.” Using this efficient tool full-time also helped McConnell improve the quality of her products. “It really allows me to create complex shapes and more complex designs,” she said.
Consider which aspects of your company’s production process are slow or outdated. For example, if you have difficulty organizing inventory or packing items quickly, you can use the credit line to purchase inventory management software or purchase packaging equipment.
3. Meeting increased demand
Regardless of whether your business operates seasonally or not, you will need to deal with surges in demand at certain times of the year. Munson said: “We always hope to have our most popular products during the season.”
One credit limit Can help you pay for the upfront costs of raw materials, labor, production and storage. Or, if you run a service-based business, you can use temporary cash injections to hire seasonal employees or contractors.
“We use our credit line in August or September and start producing an additional 10-15% of products every month to prepare for the holidays,” Munson said. “We have to buy a lot of leather and pay for the labor costs, but no sales, but once the sales come in, they far exceed the interest on the credit line.”
When demand surges, it is critical to have sufficient resources to meet customer needs; companies that do so are more likely to see repeat customers and benefit from recommendations.
4. Investment Marketing
It’s tempting to cut your business Marketing budget When cash is tight, but consistent marketing is essential to expand the customer base. The line of credit can provide you with a financial buffer to adopt new marketing strategies or try different allocation methods.
For example, if your content marketing consists mainly of articles and blog posts, you may want to browse videos and infographics. Or, you may want to double your investment in strategies that have a solid return on investment, such as email marketing campaigns and social media advertising.
Funding also allows you to freely rethink how to find and retain customers. Chen said his company uses Judo strategies, which include responding quickly to market changes and adding new features to its products before competitors. “Then, we actively market these functions as differentiating points. ”
5. Take advantage of growth opportunities
Taking advantage of growth opportunities can give you long-term success, but you need capital to act quickly.Credit line can provide cash Necessary for acquiring smaller competitors, relocating to a busier side of town, or bidding for large projects.
For Munson, the opportunity came when his customers started asking him to make it for them. “In addition to working hard to grow the company and continue to maintain inventory, we must also hire employees for a few months and pay their salaries and training costs,” he said.
Despite the upfront costs, this work has brought long-term benefits. “The more I develop the factory, the more it can allocate the factory’s fixed costs and make us more competitive in terms of pricing,” Munson said.
Ahead of the game
Staying ahead of the competition is essential to the longevity and financial stability of your business.To see if you can get the funds needed to help gain this competitive advantage, please apply Fundbox credit limit now.
Fundbox and its affiliates do not provide tax, legal or accounting advice. This material is for reference only and is not intended to be provided and should not be used as a basis for tax, legal or accounting advice. Before conducting any transaction, you should consult your tax, legal and accounting advisors.