How to Use Working Capital for a Recently Opened Retail Business
Congratulations! You’ve recently opened a retail business. Regardless of the products your business sells, having additional retail capital on-hand during the beginning stages of your business will offer you peace of mind. You’ll have the necessary funds to grow your business early on, and this cash flow can be used for a variety of costs. Check out our tips for how to utilize working capital for a newly opened retail business, and become a pro in no time!
1. Inventory – In order to run a successful retail business, you’ll need inventory to sell to your customers! Make sure you’re stocked on popular items, or use working capital to purchase additional products so that your retail business has variety. Regardless, you’ll want to have inventory readily available for your customers. Since your business is fairly new, make conservative choices at first, so that you aren’t stuck with excess inventory. Once you’re feeling comfortable with your business’s sales, utilize retail capital to increase your inventory.
2. Advertising – Since your retail business opened recently, now is the time to invest in marketing and advertising initiatives. With a retail business loan you’ll be able to pay for online advertising or in-store marketing collateral; whatever avenue you’re interested in, you’ll have the means to pursue it.
3. Interior decorating – If your retail business has a physical location, make sure it looks sharp from the start. Invest in décor, attractive in-store advertising and other aspects that will draw customers to your establishment. First impressions matter, and if a customer thinks your store looks drab, they won’t be as likely to make a purchase, or even visit your location.
4. Staff – Starting off under-staffed will create a stressful environment at your retail business. Make sure you hire enough employees so that you’ll be able to easily serve your clientele, and no one will feel overwhelmed while on the job. Employing capable, responsible employees will take your retail business from good to great, so consider using a retail business loan for hiring more staff members.
5. Technology – By using your working capital for technology, you’ll be able to increase your company’s productivity levels, and stand out against competitors. For instance, consider using working capital to create a mobile app that will allow customers to peruse your products and place orders. Get extremely tech-friendly by purchasing digital displays, which can be visually pleasing to in-store visitors. If you’re looking for technology that will enhance your business’s efficiency, invest in a POS or inventory system. There are so many up-and-coming technological features that can be incorporated into a retail store, so do your research, and see what works best for your business.
6. Savings – If your store does better during certain seasons, you’ll want to have additional working capital to make it through slow times. As a small business owner, you’ll be comforted knowing that you have extra cash saved away for whatever life throws at you. If your business goes through a rough patch, having retail capital could help you get back on your feet.
Running a recently opened business should be an exciting time, so continue to grow your company by applying for funding for your retail business! You’ll be able to provide your customers with top notch service, and expand as a small business owner. Let us know in the comment section below how you’d use working capital for your retail business!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.