Strategic Funding is now Kapitus

New Year. New Name. Renewed Commitment

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It’s been a long time coming. When Andy Reiser launched this company in 2006, the name he chose for it was clear as day. After all, Strategic Funding was what the company was built to do – provide capital to business owners who would apply it strategically to strengthen their businesses. The company grew, financing $1.1 million in the first year; and remained strong through the great recession, continuing to finance small businesses through that difficult time. Since then, Strategic Funding has grown to 220 employees and has provided over $2 billion to nearly 40,000 businesses in hundreds of industries across the US.

Throughout these thirteen years, we’ve seen a lot of change. Many new alternative lenders entered the industry and advanced the fintech revolution. Many struggled to survive or prove the sustainability of their business models. Some undertook dubious practices to cover the weaknesses within their operating infrastructures.

Yet, despite all of this change on the outside, financial challenges for small businesses remain. The number of businesses that need capital to either grow or help with operating expenses remains high. Credit remains elusive and despite best intentions, traditional lenders like banks continue to be unable to help them. The need for small businesses to access financing quickly and responsibly has only grown.

Recognizing this, we started transforming ourselves a year ago with a commitment to expanding access to capital to more small businesses and making this access faster and easier. We built out a new leadership team, added new products and new partners, closed our first securitization expandable to $500 million, reduced the time from application to funding to mere hours, and launched an upgraded online portal for our ISO partners. Most importantly, we kept the human touch throughout our financing process, while improving the customer experience through advanced technology that aids in the decisioning process to improve speed to funding.

Now all business owners can access capital easily and quickly, knowing that they have each got a solution structured for their unique need  whether that business owner is the restauranteur who needs to buy cases of expensive wines for her business’ most important season…

Or the salon owner who wants to expand with a second location…

Or the physician who needs to pay his staff before money is received from insurance payouts…

Or the dentist who wants to add an advanced sleep apnea specialization to his practice practice to improve cash flow.

We continue to build it all on the same core principle that has guided us for the last thirteen years and has always served as our distinguishing feature: that each business and, therefore, each solution is unique. And that financing from us must always serve to strengthen our customers. And so it was time to give ourselves a new name – one that reflects the strength that flows to our partners and customers when they work with us. KAPITUS.

At Kapitus, our mission is to empower every business to succeed by providing the best financing options – when they need it and how they need it. Whether we are working with a business directly or through a strategic partner, we will work diligently to provide the most convenient, cost- effective and appropriate financing solution for a business’s needs.  We promise to keep the best interests of our clients at the center of the financing process by operating with transparency, fairness, and integrity.  We will continue to empower small businesses to make educated financial decisions, as we have since our inception in 2006.

We are truly grateful to our partners and customers that allow us to serve and continue our mission every single day.. Here’s to the next thirteen years!

 

Do you have too many customers?

Do you have too many customers?

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The concept of having too many customers might seem impossible to some business owners. If your business is striving to be profitable, having a high volume of total customers may seem like an ideal scenario; however, the customers who aren’t profitable can cause your business wasted time and energy that may be better spent on those customers who are.

A high number of unprofitable customers may mean your business can’t provide the best service to the clients who matter most to your bottom line. This is why it’s important to identify and focus on the kind of customers who matter most.

Create Client Behavior Profiles

Matt Sharp, who operates a gym and a marketing company in Lexington, Kentucky doesn’t want too many customers — he wants ideal customers. Causely, Sharp’s marketing firm, helps small businesses promote and manage their philanthropic endeavors. After marketing his services, he realized that small businesses which weren’t already spending $100 a month on marketing were unlikely to be interested. Immediately after filtering prospects by that criteria, his sales staff saw dead-end inquirers drop by 30%.

As Sharp probed deeper, he found that the businesses most receptive to Causely were those whose customers were primarily moms and millennials.

Based on this insight, Sharp was able to create a profile of the ideal customer to target. These short profiles highlight the characteristics and concerns of customers who will provide the highest lifetime value — the people who like your offerings, and keep coming back for more.

Ask Lots of Questions

Score, a non-profit that offers business mentoring services, advises companies to pull together lots of data about their best customers to develop customer personas. For consumer-oriented companies, this can include age, gender, marital status, and life stage. For B-to-B marketers, the data could include industry, years in business, and number of employees.

Along with collecting data, it’s equally important to get insight directly from your customers. Social media provides a treasure trove of comments. You can also speak to customers one-on-one, or in focus groups, seeking out what they like and dislike about your offerings. Score suggests these insights to get started:

  • How do customers research product and services like yours?
  • What factors into how they decide on their purchases?
  • What newspapers, web sites, TV, and radio do they pay attention to?
  • What made them buy from you the first time, and what kept them coming back?
  • What do they get from you that competitors don’t offer?

It can be critical to approach this process with an open, unbiased mind, rather than guide customers to provide the answers you’re looking for. If you identify insights that surprise you — or even shock you — you’re on your way to improving your marketing.

Cut Through the Clutter

Based on this information, you can create a “persona” of your ideal customers that can guide your sales and marketing efforts. Many small businesses create a few personas that identify their goals, challenges and how their business can help, often including actual quotes from the focus groups as well as an “elevator pitch” that is targeted to each persona.

In Sharp’s case, he knows that his “ideal customer” always revolves around the two M’s, moms and millennials, and his successful marketing efforts always take them into consideration. He says this helps him focus his business efforts, target the right people, and lower the cost of acquiring new customers.

Best Small Business Resources by State

Best Small Business Resources by State

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In the United States, small businesses employ 57% of the country’s private workforce. And, no matter where you are in the country, the impact that small businesses have on a state is growing. In order to give local businesses the best chance of success, each state provides its own unique resources to small business owners. From the Carolina Small Business Development Fund to the California Business Portal, we’ve got you covered from “Sea to Shining Sea”!

See what organizations are available in your state to help your business succeed:

Alabama

Atlas Alabama: Atlas Alabama serves small business owners and entrepreneurs looking to grow or start their business. The website provides links to locate requirements, tips, news, and contact information for resource centers. While Atlas Alabama includes national agencies, more specialized local opportunities are listed by county.

 Alaska

Small Business Economic Development Loan Program: In order to support private sector employment growth, the State of Alaska runs a loan program for small businesses. Funds are primarily for communities of 30,000 or less, but more are available for companies in larger cities on a limited basis. Visit their website to view full requirements and to fill out an application.

Arizona

Arizona STEP Program: AZ STEP assists Arizona small businesses to enter exports or expand into new markets for the first time. With funding from the Small Business Administration and the Arizona Commerce Authority, STEP works to enable businesses to create more jobs and spur economic growth in Arizona.

In addition to financing, the program offers a variety of services and tools to help small businesses go global.

Arkansas

Arkansas Small Business and Technology Development Center: The Arkansas Small Business and Technology Development Center offers help with business creation, management, and operation. Headquartered at the University of Arkansas Little Rock College of Business, the center has seven offices around the state.

Not only does the center provides services, they provide results. Over the last decade, ASBTDC clients have 13.2% higher than average sales growth and 14.8% higher employment growth than the average business in the state. Their services are either affordable or completely free in order to make them accessible to all.

California

California Business Portal: The California Business Portal provides easy access to all government-provided small business assistance. Whether you have questions about permits, financing, or expanding your business, the portal has the answers. And, if you don’t see what you need on their website, you can submit your question to the help desk to get a response.

Colorado

Choose Colorado – Colorado Office of Economic Development and International Trade: Choose Colorado provides a small business resource guide for everyone looking to grow or start a business in the state. They also provide information on different financing options throughout the state, including the CDBG Business Loan Funds.

Connecticut

Connecticut Small Business Express Program: Connecticut’s Department of Economic and Community Development provides loans and grants to small businesses through the Small Business Express Program. Funding is provided in order to spur job creation and growth within the state. The Program provides a Project Manager to all potential applicants in order to help them throughout the process.

Delaware

Delaware Small Business Chamber: This independent chamber of commerce works with local small businesses with 0-100 employees as well as larger companies that support the small business community. The chamber offers networking and educational opportunities to help businesses succeed. Membership is required to take advantage of their resources.

Florida

Visit Florida Small Business Grant Program: Visit Florida’s goal is to establish the state as the number 1 travel destination in the world. In order to achieve this goal, they provide small business grants for partners to promote the destination. Full requirements and funding information is provided on their website.

Georgia

Georgia USA Small Business Directory: The Small Business Directory provides information for people wanting to start, grow, or finance their business. The website provides answers to frequently asked questions in these categories as well as links to applicable information. They also provide access to mentoring and education, certifications, and business research opportunities.

Hawaii

HTDC: HTDC provides funding programs to support research & development, manufacturing growth, and technology community activities in order to stimulate the creation of high-paying jobs. Originally only providing matching grants to companies that received Federal Small Business Innovation Research Grants, the organization expanded in 2016 to help companies moving technology products from research into the market.

Idaho

Idaho Commerce Business Resources: Idaho Commerce offers expert guidance, hands-on assistance, and financial tools to help Idaho businesses achieve their goals. This includes no-cost consulting, technical assistance to improve products and processes, employee training and recruitment, as well as financial options.

The agency’s website provides information on tax incentives for small businesses in the state. There are also external financing options and State of Idaho grants to help fund research, market access, infrastructure improvements, and more.

Illinois

Illinois Finance Authority: The Illinois Finance Authority’s purpose is to foster economic development, create and retain jobs, and improve the quality of life for Illinois residents. They provides access to low-cost capital to public and private institutions that strive to reach these goals.

Indiana

Indiana Economic Development Corporation: The IEDC is Indiana’s lead economic development agency. The organization is committed to supporting business investment and creating new jobs. They offer a variety of programs and initiatives to serve small business owners. This includes the Capital Access Program State Small Business Credit Initiative, which is a credit enhancement program for small businesses in the state.

Iowa

IA Source Link: IA Source Link’s mission is to help small businesses in Iowa grow and succeed. In order to accomplish this goal, they provide firms with free, easy access to the help that they need.

The organization has a network of over 360 nonprofits that provide business services for Iowa’s small business owners. They also provide access to the Resource Navigator, which is a directory of public organizations that provide business services at little to no cost throughout the state, and host monthly webinars on business topics.

Kansas

Kansas Department of Commerce: The Kansas Department of Commerce provides small business services through the Business & Community Development Division.

The organization provides Small Business Innovation Resources, as well as the PIPELINE program for those needing a crash-course in business ownership. The Community Development Assistance Program assists businesses looking to reach the next level by developing incentive proposals and creating strategic plans for growth.

Kentucky

Think Kentucky – Cabinet for Economic Development: The Kentucky Cabinet for Economic Development has placed a special focus on the needs of entrepreneurs and small businesses in the state. In order to do so, they created Think Kentucky. Their services include mentoring, access to capital, business advocacy, and expansion into new markets.

Louisiana

Louisiana Economic Development – Grow A Business: Working with a variety of programs and partners throughout the state, Louisiana Economic Development provides the expertise needed to fuel the growth of any small business. Whether you’re looking for a program to work on honing technical skills or access to financing and capital, LED can help.

Maine

SCORE Maine: SCORE offers free and low-cost business education workshops on a wide range of topics. 121 mentors provide free services across the state. Volunteers come from a variety of backgrounds, but all are experienced business executives and owners who want to help others grow their businesses. The organization helped to create 578 jobs in 2017.

Maryland

Open Maryland: Maryland is investing in small business and providing resources to help you expand yours. Their website provides information on incentives offered by the Department of Commerce, links to benefits for small, minority, and women-owned businesses, as well as resources for veteran-owned businesses.

 Massachusetts

MassDevelopment: MassDevelopment is the Commonwealth’s economic development and finance authority. They aim to stimulate business, drive economic growth, and help communities thrive across Massachusetts. In order to help small businesses grow, MassDevelopment provides a variety of financing options and specialty programs.

Michigan

Michipreneur: Michipreneur provides a list of resources, websites, and assistance available to the small business and startup communities in Michigan. This includes links to government programs, business incubators, financing opportunities, and informational articles on relevant topics.

Minnesota

Minnesota Employment and Economic Development – Small Business Assistance Office: The state’s Small Business Assistance Office places a special emphasis on providing in-depth information that might otherwise be too expensive for small business owners to access. The office provides individual consultations as well as a series of comprehensive guidebooks.

Mississippi

Mississippi Development Authority: The MDA is Mississippi’s lead economic and community development agency. They work to expand Mississippi industry and business. In order to do so, they provide technical and financial assistance to small business owners, as well as to minority and women-owned businesses.

Missouri

Missouri FIRST Small Business Program: This initiative was founded with the goal to expand the Missouri economy and strengthen communities statewide. The Missouri Linked Deposit Program for Small Business provides the state’s small businesses with low interest loans. In order to be eligible, a business must have between 25 and 100 full-time employees.

Montana

Montana Office of Tourism and Business Development: The Montana Office of Tourism and Business Development’s goal is to sustain and enhance the quality of life for all Montanans and their communities. They support businesses through technical assistance, research, and access to grants and loans. Check out their Business Assistance Bureau for small business counseling and assistance in marketing and exports. They also provide a list of specialized financing options for small businesses in different industries.

Nebraska

Center for Rural Affairs – REAP Program: The Rural Enterprise Assistance Program (REAP) is committed to strengthening rural communities. They offer assistance for all aspects of running a small business. So whether you’re looking to strategize, network, need some technical help, or are looking for funds to expand, REAP can help.

Nevada

NevadaSmallBusiness.com: NevadaSmallBusiness.com is a one-stop digital resource for business owners, executives, and entrepreneurs. Hosted by Nevada State Bank, the website provides informational articles on different aspects of running a business. The organization also hosts webinars and provides a newsletter to keep Nevada business owners up to date on the state’s business climate.

New Hampshire

Center for Women & Enterprise: The Center for Women & Enterprise has worked with more than 37,300 people to start and grow their companies. They offer affordable courses on growing a business that help you learn while networking with other business owners. They also operate the Veterans Business Outreach Center to work with veteran-owned businesses.

New Jersey

New Jersey Economic Development Authority: The New Jersey EDA provides creative and versatile loan solutions to small and mid-size businesses. In addition to financing, they also partner with several organizations to provide an array of services to New Jersey small businesses and entrepreneurs.

New Mexico

Grow It!: Grow It! Is an economic development initiative created by the New Mexico Municipal League in partnership with Finance New Mexico. Their website has resources for starting and growing a business, as well as a Municipal Index which shows what business resources are available in your area.

New York

Empire State Development: Empire State Development’s Small Business Division supports the development and expansion of businesses with under 100 employees. The Division directs an array of programs and initiatives to support and grow your business while helping maximize opportunities for success.

Enter information about your business into New York Business Express to find programs and services catered towards your needs. Check out the small business programs directory and business guide to find assistance for your business questions. You can also find more information on becoming a state contractor to produce a new stream of revenue.

North Carolina

Carolina Small Business Development Fund: The CSBDF is a non-profit and certified CDFI. Their mission is to foster economic development in underserved communities by providing capital, business services, and policy research to support small businesses in the state.

North Dakota

Center for Technology & Business:  The Center helps small business owners succeed through training, technology, and business development. Business advising is available to small businesses in all stages of growth. The Center also provides resources specifically for women and veteran owned businesses. The IDEA Center helps early-stage businesses take a product from idea to market.

Ohio

JobsOhio – Incentives: Ohio offers incentives to businesses in the state based on performance. This includes the Economic Development Grant, the Growth Fund, and more. Tax credits are also available to those who qualify.

Oklahoma

Oklahoma Department of Commerce: The Oklahoma Department of Commerce provides resources for small business owners. The website provides online guides and resource directories, while team members are available around the state to provide one-on-one business counseling in person. Businesses looking to expand can learn more about available incentives. Resources for minority and women-owned businesses are also available.

Oregon

Oregon Business Xpress: Provided by the state of Oregon, Business Xpress connects small business owners with resources that will help business run smoothly. They provide resources to help Oregon’s small businesses contract with ODOT, information on the Lewis & Clark Law School’s Small Business Legal Clinic, as well as resources for minority, women, and veteran-owned businesses.

Pennsylvania

Pennsylvania Department of Community & Economic Development: Pennsylvania’s governor created the Business One-Stop Shop to support small businesses at all stages of development. The website includes online guides to navigate common business questions, as well as contact information to for the Partnerships for Regional Economic Performance (PREP). The PREP network includes experts from different fields who can offer assistance and resources to business owners. Use the interactive map to find contact information for your region.

Rhode Island

Rhode Island Commerce Corporation: The official economic development organization for the state of Rhode Island aims to promote the state’s long-term economic health and prosperity. They offer business assistance, access to funding, and red tape reduction to all sizes of companies.

For small businesses, they offer a team of business advisors to help you meet your goals. The Commerce Corporation also has an extensive list of partners that can help with any of your business needs.

South Carolina

Business Development Corporation of SC: The BDC was established as a non-bank commercial lending company by the South Carolina State Legislature. They lead development lending and job creation in South Carolina, having approved over 2,745 loans.

South Dakota

South Dakota Business Help: South Dakota Business Help provides online guides to running a business as well as links to financing options within the state. They link business owners in the state with programs that help small businesses and partners with organizations that provide a variety of resources.

Tennessee

Tennessee SmartStart: Tennessee SmartStart matches your business to the resources that can help you. Simply create an account, enter some information about your business, and you’re good to go! The tool can connect you with a mentor, networking, and other resources statewide. Tennessee SmartStart is run by the Department of Economic & Community Development.

Texas

Central Texas Business Resource Center: The Central Texas Business Resource Center (BRC) assists small business owners through business counseling and trainings. They also host a variety of community events for learning and networking opportunities.

Utah

Miller Business Resource Center: The MBRC offers a range of services and support to Utah’s small businesses. Community and industry partners provide valuable networking and learning opportunities. The MBRC is also home to the Goldman Sachs 10,000 Small Businesses program, which provides small businesses with the tools and professional support to create a customized growth plan.

Vermont

Vermont Economic Development Authority: VEDA’s Vermont Small Business Loan Program assists growing small businesses with access to capital. Applicants are strongly encouraged to discuss their project proposals with a staff member before applying.

Virginia

Virginia Department of Small Business and Supplier Diversity: Nearly 95% of businesses in Virginia are small businesses, and the state’s Department of Small Business and Supplier Diversity (SBSD) is dedicated to helping them. This government website provides resources for businesses in all stages, including those looking to expand or searching for financing.

Washington

Washington BusinessHub:  Washington BusinessHub provides resources for small businesses in any stage. Whether you’re focused on improving your internal processes or looking to expand your business, the website has resources to help. Run by the government, this site provides extensive information on taxes. They also provide links to funding organizations and market information.

West Virginia

West Virginia Small Business Development Center: The West Virginia SBDC provides services and assistance to small businesses in any stage of growth. The organization provides business coaches with certifications in everything from finance to exporting. Check out their website for a training calendar, resources, and a small business blog.

Wisconsin

Forward Wisconsin: Run by the Wisconsin Economic Development Institute, Forward Wisconsin provides resources for Wisconsin business. They assist businesses looking to open a new location, expand, or start a new venture. The Business Toolkit provides a list of business assistance and economic development organizations that can help with everything from business counseling to resources for funding.

Wyoming

Wyoming Business Council – State of Wyoming’s Economic Development Agency: This organization provides resources for  businesses to enter new markets, receive financing, and other specialized opportunities.

Wyoming Women’s Business Center: Established to help, encourage, and support women in starting and running a small business. They offer in-person business training opportunities as well as monthly roundtables to help Wyoming’s business women network and learn from each other. They also run a micro-loan program to help start or expand small businesses across the state.

Strategic Funding Adds 3 New Members to its Executive Team

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PRESS RELEASE

STRATEGIC FUNDING APPOINTS NEW CHIEF FINANCIAL OFFICER; ADDS TWO NEW ROLES – CHIEF RISK OFFICER AND CHIEF PRODUCT OFFICER – TO EXECUTIVE TEAM

New York, NY – Strategic Funding, a leading provider of alternative financing to small and midsize businesses, today announced the expansion of its executive team with the appointment of a new Chief Financial Officer and the addition of two key roles to the team. Anthony Rose has assumed the role of Chief Financial Officer; Jeffrey Newman joins the team as the company’s Chief Risk Officer; and Arun Narayan has been promoted to take on the new role of Chief Product Officer.

Rose, who developed strategic and financial initiatives at JPMorgan Chase, Credit Suisse and most recently, Dime Community Bancshares, brings over 15 years of leadership experience in the finance industry. In this new role, Rose will be responsible for charting the financial direction of Strategic Funding, while serving as the company’s strategic and tactical financial expert.

Newman, most recently Chief Credit Officer at Citibank’s US Retail Bank for Consumer and Small Business lending, will be leveraging over 25 years of experience to refine and enhance Strategic Funding’s credit, risk, and fraud management models. In addition, he will play a key role in managing the organization’s portfolio to ensure that the company meets its profitability goals.

Narayan, who has been with Strategic Funding since 2014, will be taking on the newly created role of Chief Product Officer to deliver the company’s next phase of growth through innovation across product development and management.

“We are excited to welcome our new executive team members,” said Andrew Reiser, CEO of Strategic Funding. “With the addition of these leaders we are confident that we now have the right team to transform our organization and bring Strategic Funding to its next level of growth.”

ABOUT STRATEGIC FUNDING
Founded in 2006 and headquartered in NYC, Strategic Funding has been recognized by customers and the industry as one of the most reliable and respected names in small business financing. With flexible financing options, we provide small businesses with the working capital they need to take advantage of opportunities and grow.

How to Run a Company With Hardly Any Human Capital

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Here are the 3 ways you can help run your company with minimal human capital

1. Provide customer service after hours

Customer service is very important at a small company. Every client may make the difference if your company can live to see another year. But it is challenging for small companies to offer customer service out of hours when the phones aren’t staffed 24/7. One trick to improve service is to have the business phone number forwarded to employee phone numbers out of hours. For example, sales calls can go to your Head of Sales’ phone. Of course, make sure you take turns who will be getting calls and equip people with the proper tools (such as a PDF file with how to answer calls) to set them up for success outside of the office. And overnight, it’s okay to connect your voicemail too!

2. Use chatbots to service clients

Another way to improve your customer service (and save your employees’ time) is to use chatbots to help service your clients. For example, if you are a retail business that offers free returns and your customer wants to return something, you can use an AI-powered bot like Nanorep to collect the information you need from your customers. Using chatbots can make your company not only look bigger with a full-service customer service operation; but it can also make your company look tech-savvy because you’re utilizing AI in a smart way to improve customer experience.

Need more help getting up to speed on chatbots? Check out some of our past guides: Creative Ways to Use a Chatbot In Your Small Business and5 Ways SMBs Can Improve Business with Chatbots

3. Add additional business addresses

Some customers trust larger companies more than they do smaller ones. Adding a New York City or London address to your office contact details may help drive the perception your business is growing, or planning for future growth. There are numerous services that allow you to purchase a postbox in these cities. While you shouldn’t expect loads of fanmail, psychologically, it can be reassuring to customers to know you have a presence in major cities.

Use Expensify to Reconcile Travel Expenses Faster

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One of the biggest time sucks for employees in the modern era is filling out expense reports.

This task can be painful if it involves finding receipts, photocopying them, and taping them onto a piece of paper. Expensify can be an excellent solution to solve this problem. It lets you scan receipts with its app and allows employers to reimburse employees within a day. The Expensify software also syncs up with other accounting software, which will likely put a smile on your accountant’s face.

Findings from the State of the Cities Report: What They Mean for Your Small Business

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What are the issues currently facing local communities?

Each year, the National League of Cities (NLC) releases its State of the Cities report, an analysis of mayoral speeches from across the U.S., ranking the top issues discussed by mayors. For business owners, the report can provide insight into national economic and social trends by looking at the local level.

If you’re a business owner, here are the top issues currently facing local communities:

Economic Development

Economic development is top priority for U.S. mayors for the fourth consecutive year. Within economic development, job creation is the most important issue facing administrations. For this reason, 39 percent of mayoral speeches include it as a priority. Small businesses employ nearly half of all U.S. workers, according to the Small Business Administration. This means that attracting and nurturing small and midsized enterprises is vital if cities want to meet their goals. Mayors specifically mention the importance of working with their cities’ businesses to reach their goals. It can be important for small business owners to become an active participant in your area’s Chamber of Commerce.

Business Growth

Attracting new businesses is a major priority for the nation’s mayors. They realize the impact each new employer brings to their cities. To attract those businesses though, mayors realize they must invest in infrastructure, education, housing and amenities. In addition to tax incentives, government officials are now putting plans in place to ensure the local workforce has the skills and education necessary to fulfill employers’ demand.

Employment

With 19 states increasing minimum wage for 2017, some businesses are planning upcoming cost increases. Many businesses will be forced to raise prices or cut back in other areas to handle the increase in payroll costs. However, this could be good news for many small businesses that hire workers on salary or a higher hourly wage. As the average minimum wage earner sees a boost in weekly pay, the local economy may see an increase in consumer spending. The report also acknowledges the overall positive sentiment of wages and employment are at levels that have not been since the Great Depression.

4 Things Small Businesses Can Offer That Big Stores Can't Compete With

4 Things Small Businesses Can Offer That Big Stores Can’t Compete With

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Small business owners face plenty of challenges and keeping pace with larger big-brand companies is often at the forefront. Playing David to the corporate giants’ Goliath is no easy feat. When you find yourself fretting over how you’ll compete with bigger stores, it helps to concentrate on what your small business brings to the table that larger retailers can’t.

1. Deeper customer connections

As a small business owner, you have a unique opportunity to connect with people on a personal level. Get to know the people who are frequenting your business and take the time to understand their preferences. Listen to the people who are contributing to your bottom line, so you can mold your business and create personalized customer experiences.

If you own a bookstore, for example, you’re likely in tune with what your regular clientele is reading. That knowledge makes it easier to make recommendations or create in-store events that can lead to sales. A customer who walks into a large bookstore, on the other hand, may be on their own when it comes to picking out their next read.

2. Increased agility

In the business world, trends can change at the drop of a hat.  Because of this, business owners have to be able to roll with the punches to stay competitive. Small businesses have an advantage over larger companies in terms of their ability to pivot and reshape their game plan when the market changes.

For instance, adopting a new form of technology, such as an upgraded Point of Sale system, may be less arduous for a specialty grocer who runs one store. A large supermarket chain may take several months to upgrade their system. The same is true for projects such as updating your business website or launching a re-branding campaign. When you operate on a smaller scale, there may be fewer delays and less lag time when a change is necessary.

3. Tighter focus

Running a small business means there’s less room for error, but that can be a positive when compared to bigger businesses. Think of it this way: Big box retailers can be like a buffet. They always have to stock many different items. Their customers can stock up on groceries, buy new tires and fill prescriptions all in one spot.

While that’s certainly convenient, a smaller business is better positioned to hone in on exactly what products and/or services are most important to customers. That in turn makes it easier to see what’s working and what’s not, so you can ditch any dead weight dragging your business down.

4. Added value

One mistake business owners can make is in believing they have to slash prices to stay competitive with larger stores. While that may help drum up some business, lowering your prices not only diminishes profits, but can also have the unintended consequence of causing customers to view your products and services as being lower quality.

A smarter alternative is to take a step back and look at what your business offers to its customers beyond monetary value. Do you have a deep well of knowledge about a particular topic that you’re able to share? Can you provide products or services faster than a big-name company would? Does your store offer a welcoming atmosphere that customers will want to return to again and again?

These are the kinds of questions you should be considering if you’re having trouble figuring out what gives your business an edge over the corporate competition. The more detailed you can be in your answers, the better. Listen to customer feedback and monitor your sales trends if you’re drawing a blank. Ultimately, knowing what your customers want, need and expect is essential for solidifying your business’s position in a crowded marketplace.

Strategic Funding provides needed operating funds to small businesses. Strategic Funding has helped businesses in hundreds of industries.  Industries served include: restaurants, personal services, construction, medical, manufacturing, agriculture, retail stores, automotive, and food stores.

Small Businesses: Shore-Up Your Supply Chain with these Eight Tips

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Your business is growing – which means the demands on your supply chain are increasing. So how do you stay ahead of your supply chain and keep both your customers and your bottom line happy?

These eight tips will help you check in with the health of your supply chain and calibrate your next steps for growth.

Start with good data

You can only make decisions based on what you can see. How much of your supply chain data can you truly see? Make sure you have centralized methods for storing your supply chain data, from vendors to pricing. For example: Do you have a way to easily access all of your vendors for a particular item, along with accurate historical order/invoice/pricing data? Do you have an easily accessible way to review vendor payments to assess who pays invoices early/on-time/late? All of this “good data” will help negotiate future pricing, build better vendor relationships, and keep both your bottom line and customers happy with fewer surprises in your supply chain.

Track your vendors

After you’ve shored-up your data, keep an eye on your vendors. By tracking your vendors, including pricing history, shipping time, and reliability, you have better information to negotiate future orders. You can also decide whether to continue the vendor relationship.

Establish a vendor review process

All of your vendors should be subject to periodic review. It’s just good business to know who your best vendors are. On top of that, regular calls with your vendors can help identify potential opportunities for improved pricing and discuss ways you can help one another speed and smooth operations.

Plan, plan, plan 

Examine how you order for both ongoing and incidental events. Whether demand ends up being lower or higher than expected, that good data you started with can help you have fewer out of stocks and less waste. By employing both advanced planning and demand planning into your supply chain strategy, you’ll become a small business thinking like a big business.

Count your middlemen.

How many people are between you and your goods? When you started out, it’s possible you were looking for sources who could get you what you needed, when and where you needed it. As you’ve grown bigger, however, you might be facing unnecessary layers between you and your goods. With that good data you’re building, make sure you know every step of the supply chain for every good you take in. From there, you can look for ways to potentially purchase direct or negotiate price breaks due to increased volume.

Use relationships to your advantage.

There’s a reason data was first on this list – solid supply chains all begin with good data. Relationships in supply chain are built on data. As you build relationships, don’t be afraid to leverage them – openly discuss pricing options, more favorable invoice terms, and potential price breaks on shipping. Relationships are the valuable partners in your supply chain. As a result, the bigger you grow, the more you’ll need those trusted vendor relationships.

Invest in supply chain management software

The larger your business grows, the more moving parts your supply chain will have. If you’re not already using supply chain management software, now’s the time to begin exploring options. By being an early adopter of supply chain management (SCM) software, you’re putting your business in a position to succeed. Furthermore, visibility across your entire supply chain is key for healthy growth, and software can put technology on your side as you look ahead.

 

Strategic Funding provides needed operating funds to small businesses. Strategic Funding has helped business in hundreds of industries.  Industries served include: restaurants, personal services, construction, medical, manufacturing, agriculture, retail stores, automotive, and food stores.

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