How to Use Working Capital for Your Mom and Pop Business
As a mom and pop business owner, you likely gain customers due to your personalized service. Many patrons abandon big-name brands for independently owned businesses because of the intimacy and reliability they can provide. In order to continue offering this level of service to your customers, you may want to consider applying for additional working capital. By receiving small business financing, you can upgrade different areas of your business. In this post, we’ll reveal five ways that your mom and pop business can use working capital to make your business dreams a reality.
1. Increase advertising – Owning a mom and pop business is rewarding, but it can be difficult to spread the word about your business. That’s why you should expand your customer base by using working capital for advertising projects. These opportunities could be paying for online campaigns, printed flyers or social media marketing. By capitalizing on advertising efforts, you’ll be able to generate additional sales.
2. Expand your business – If your business is a success, it may be time to consider expanding. Whether that means growing your existing location or opening a new establishment, it could translate into more opportunities. Of course, expansion projects are often pricey, which is why having additional working capital could be necessary.
3. Saving money for emergency costs – As a business owner, sometimes you have to learn to expect the unexpected. That means having funds available in case your business experiences hard times. These unfortunate situations could be equipment breaking suddenly or having inventory and rent costs raised. Whatever it may be, you’ll have peace of mind knowing that your business has cash saved for last-minute needs.
4. Invest in technology – It’s important that you’re running a small business that adapts to new trends. While it may be tempting to stick to the way you’ve been doing things for years, your business may suffer as result. That’s why it can be advantageous to utilize business financing to pay for updated technologies such as CRM services or cyber security measures. These technological advances may depend on the specific type of business you run, but regardless, your business’s operations will probably benefit from modernized technology.
5. Hire more employees – Even the most talented mom and pop business owners need a little help. That’s why you should consider hiring extra employees to work at your mom and pop business. You’ll have more people working that can serve your customers, and you can focus on other areas of your business as a result.
In honor of National Mom and Pop Business Owners Day, reflect on how you can continue to improve your business. Applying for alternative financing can be a wise way to prepare for the future, and ensure that your business is able to evolve with your customer base. If you’re a mom and pop business owner, make sure to let us know in the comment section below!
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.