If you don’t know where the economy is headed, how do you know if investing is the right choice?
When it comes to spending money on your business for renovations, staff, marketing or new equipment, many small and medium sized businesses are currently taking a very conservative approach. It seems lean and mean is alive and well in Canada’s small business environment and rightfully so, considering the current economic climate. But how lean is too lean? Could being overly cautious when it comes to investing your business be doing more harm than good?
As a small business owner, it’s just good sense to continuously watch your costs. At the same time it shouldn’t come at the expense of investing in your business to make it more efficient or take advantage of a great opportunity. Many small business owners are opting for a “do nothing” strategy right now, waiting for signs of economic improvement. Other businesses are seizing the opportunity to invest in growth, while their competitors are in that wait and see mode. New equipment, renovations or an increase in marketing can give you a head start on your competition as the economy improves. However if business is slow, how do you pay for those improvements?
The more I learn about this business, the more I see its value – now more than ever. What sets a merchant cash advance apart from a bank loan, especially in this uncertain economy, is the flexibility it offers. Rather than making large monthly payments, business owners make small payments daily based on their sales. If it’s a slow week, payments are slow. If business is booming, the advance pays on sooner. We’ve taken into account that “if” factor and instead, offer a product which makes room for seasonality, a slow month or just general uncertainty.