Owning a small business is the American dream. Be your own boss, work in a field you truly care about. Become a respected expert. Doesn’t matter if you want to own your own dentist firm, or you’re running a gas station or any other type of business. Being your own boss and working for your own ends (and profits!) is simply a dream for many. One of the mistakes some small business owners make, however, is failing to invest in themselves. On the other hand, our best clients are clients who need a cash advance precisely so they can invest in themselves.
A lot of small business owners are afraid to spend. It makes sense, spending means risking. Ultimately, you could lose money. Nobody starts a small business because they want to lose money. Small business owners want to make their dreams come true, and they want to build a sustainable future and a profitable company. In order to do that, however, you’re going to have to invest.
No matter what you want to do, it’s going to cost money. There is no way to make money come out of nowhere. It just doesn’t happen. Even if you want to start up a lower cost business, say a barber shop, you’re going to have to rent space, buy equipment (such as clippers and chairs), and probably set aside some money for advertising. Costs can rack up quickly.
Restaurants, a common business many aspire to start, are especially expensive. Costs to open even a small restaurant can easily top $100,000 dollars. You have to buy specialized equipment, such as ovens and large coolers. You have to rent and usually remodel space. Cut throat competition means you will probably have to spend money on advertising to raise awareness.
Spending money can seem counterproductive, but investing is a necessary part of doing business. Ideally, you would invest money you already have. For example, you might divert some of your profits and reinvest in your business itself. In the long run, investments can produce greater profits for your company.
Problem is, sometimes you simply won’t have money to reinvest. Maybe your business is just starting up, or perhaps an unexpected cost is putting pressure on you. Maybe an expensive piece of equipment broke, or perhaps a great opportunity has emerged but you need cash to tap into it. For example, an opportunity to expand your restaurant chain and build a second location. Or maybe, the government is building a new on/off ramp on the expressway and you want to build another gas station.
If you don’t have the money to reinvest, where can you raise the capital? Why not take out a merchant cash advance? A cash advance is a great way to raise money to invest in your business. Instead of having to deal with an inflexible loan repayment plan, you can sell a portion of your future credit card earnings in exchange for cash now.
It’s a win-win. You get cash and can expand, your merchant cash advance lender gains a great client and a cut of your future sales.