Success in small business means understanding the capital needs and cash flow issues that might arise for your specific type of business. Every business needs working capital, but a consulting business won’t have the same types of capital needs as a lawn care business or a small manufacturer. Let’s take a look at a few types of businesses and how their capital needs differ.
Consulting businesses provide expertise and insights to individuals or organizations for a fee. If you’re financing a consulting business, human resources are your most valuable capital asset. They may be experts in management, advertising, technology, or law or have highly specialized knowledge in a field like ergonomics. Other companies are willing to pay for their insights, but first you have to pay them.
If you’re launching a new type of consulting, it could be 30 to 60 days before you collect (your client pays their bill) on your new services. During that time, you’ll have to pay your consultants, or “carry” the cost of your employee. To do this, you’ll need working capital to hire staff and cover payroll.
Manufacturing – Launching a New Product
You’ve got a company and you have plans to start building a widget that will meet a growing demand and capture market share while offering better value and quality than your competitors. The timing is right. The opportunity is there. It’s time to launch a new product… but there’s a lot to pay for first.
Before you can start selling your widget, you have to cover the costs associated with producing it, assembling it, marketing it, and housing it before you ever make a dime in sales.
Baking, Landscaping, Construction, or Car Washing
Thinking of expanding your bakery, landscaping business, construction firm, or car wash? New stoves can cost between $1,000 to 10,000 plus the cost of ventilation. The cost of an additional lawn care equipment package including a mower, trimmers, a blower, and trailer can set you back $4,500. For even the smallest skid steer, you could face an up-front capital cost of up to $12,000 to $15,0000. Adding a bay to your self-serve car wash so you can wash more cars? Over $17,000.
Expanding your business is a big investment. You have to finance your capital investment before you make a profit. Luckily, there are new types of funding that make it faster and easier for small businesses to access the working capital they need to grow their businesses.
Idea Financial Provides Funding for Your Type of Business
Idea Financial provides fast access to working capital for all types of small businesses. Use your funding to cover payroll, hire new staff, invest in new equipment, or launch a new product. It’s up to you. Apply within minutes, get approved in hours, and access funds within a day, all without dealing with a bank.