Common Mistakes Your Business Should Avoid
March 26th 2020 at 2:39pm Published by sharpshooteradmin
Running your own small business can be rewarding. You get to be your own boss, set your own hours, pursue your passion, have the freedom to follow your instincts, serve customers and communities, create jobs, and enjoy the financial independence and rewards.
But running your own small business can also be challenging, especially when your small business is new. Many of these challenges can be financial. It’s important to avoid some common mistakes, which can add to the challenges.
#1 Being Rigid
Canada is a great place to run a business with each province offering many prospects. If feasible, as a small business owner, you should be ready to take advantage of any business opportunity, even if it means stepping out of your comfort zone.
At SharpShooter Funding, we support businesses in every corner of the country. If your Canadian business needs funding, then apply through our website. Our application forms are easy to fill out and we respond quickly.
#2 Ignoring Alternative Funders
As the owner of a small business, you may need funding in an emergency to pay operational costs, buy inventory or equipment, or do repairs and maintenance. In this situation, a bank may take months to process your application before taking longer to provide the funds. If your business doesn’t have the collateral, cash flow, sales, credit, or history to satisfy them, then you may not even be approved.
At SharpShooter Funding, we’re the best Canadian small business funding online solution because we look at your overall health instead of traditional metrics to approve funding. We approve 75% of all applicants and provide funds in a matter of days so you can make payroll, pay rent, or buy the trucks you need to satisfy the spike in demand for your landscaping business.
Even if you have bad credit, we can help you. By applying for smaller funding or offering collateral you can get a more manageable funding package. As you pay it off, you’ll rebuild your credit and qualify for bigger funding.
#3 Partnering with the Wrong Funder
When seeking funding, it’s important to partner with a funder that’s honest. Avoid funders that hide fees and astronomical interest rates in the fine print. The wrong terms and conditions can leave you in an inescapable debt cycle.
Instead, partner with a company like SharpShooter Funding. Not only are we passionate about supporting small businesses but we offer complete transparency. We use cutting edge data technology to find a solution that suits your needs. Since 2015, we’ve funded thousands of businesses across the country and have earned great reviews. You can read them on our testimonials page.
#4 Choosing the Wrong Funding Package
Before applying for funding, consider your goals and calculate accordingly. Only the right funding option can maximize your business’s potential. For example, if you simply need funding to cover operational expenses until the next tranche from your conventional funder, then bridge funding you could be your best option. Likewise, if you need short-term funding but don’t want your credit to be affected, then a one-time fixed-fee merchant cash advance could be more suitable than applying for higher interest short-term funding.
You can learn more about the differences between fixed and flex funding by visiting our website. Flex funding options such as a merchant cash advance or a business line of credit are for more impulsive business owners while fixed funding options such as short-term funding or equipment funding are more for straight-shooting businesses. Here are some other funding options at SharpShooter Funding aside from those already mentioned:
- Working Capital Funding: This funding is for healthy businesses with steady revenue that need immediate short-term funding without the hassle. The funding amount is up to $300,000 with a term length of 6 to 24 months and can be acquired with bad credit.
- Long-Term Funding: These funds are available in amounts up to $250,000 and can help small business owners manage and grow their operations for three to ten years. They have lower interest rates and provide stability. Businesses that have been operating for 12 months, have a personal credit score of at least 620 and generate annual revenue of $120,000 can qualify.
- Commercial Funding: Usually provided by venture capital, this fund helps businesses cover business expenditures and operational costs when they don’t have a credit score or collateral to satisfy the demands of a traditional funder. Approval for this funding by SharpShooter is based on a business’s overall health instead of traditional metrics. Commercial funding is $1000 to $300,000 and usually approved on the same day.
- Business Expansion Funding: Businesses with a credit score of 620+ that have over $20,000 in average monthly bank deposits and $3,600 in average daily balances with over three years in business can apply for this funding if they’re presented with an unexpected growth opportunity and need access to fast and affordable working capital.
#5 Making Invoicing Mistakes
Cash flow can impact the health of any business. Not only does cash flow help with day-to-day operations, but it can also strengthen a business’s application for funding. A good way for your business to improve its accounts receivable turnover ratio and maintain healthy cash flow is to follow good invoicing practices.
Always sign a contract with your customers, invoice on time, invoice correctly, incentivize timely payments, remember to follow up, and send the invoice to the correct department and address to receive payments on time. Your business can use the latest invoicing software for help with invoicing if needed.
#6 Not Accepting Multiple Payment Options
Your business can handicap itself if it doesn’t accept multiple payment options. While some customers still prefer to pay in cash, most customers prefer to pay with plastic. The fact is that according to CreditCard.com, in 2016 alone, 98% of Canadians held at least one credit card.
At SharpShooter Funding we’re proud to offer a Canadian payment processing system to small businesses that want to optimize and solidify their revenue streams. Our processing solutions help businesses accept payments and process transactions wherever they are. The systems offer improved cash flow, convenience, and direct access to working capital. Moreover, they’re inexpensive and easy to set up.
The first few years of any small business can be challenging. However, with the right steps, any small business can grow into a healthy and thriving company.