We’re all familiar with those videos promising overnight financial success from the comfort of home. “Make passive income from home with my crash course! Sign up now!” Then, the person on the screen shows checks and bank statements, fancy cars, and luxury apartments to “prove” how they got rich fast with a few quick tricks. “You could get rich too!” they tell you, “Just pay $500 for my course.” The allure of passive income streams and extravagant lifestyles displayed on screen can be captivating. Yet, behind the glitz and glamour lies a harsh truth: these schemes often serve to enrich their promoters rather than imparting genuine skills or knowledge. If they did earn enough to buy a condo on the beach, chances are it was from selling their course through these videos, not because of the “skills” they are trying to sell you
If you’ve encountered such videos, you’ve likely felt your skepticism rise. As any seasoned entrepreneur can attest, there’s no shortcut to success. Even if a business experiences rapid growth initially, it will inevitably encounter obstacles along the way. True business development requires financial resilience and prudent decision-making. It’s a journey marked by challenges, far removed from the promise of instant wealth.
Occasionally, a business may enjoy a boost that propels it to early success. Perhaps a prominent social media influencer endorsed its products, or it tapped into a lucrative niche market. However, sustaining that momentum proves challenging. Competition, economic fluctuations, and shifting consumer preferences can all contribute to setbacks, potentially leading to a crisis. This is particularly true for first-time business owners, which is why a staggering 20% of small businesses fail within their first year.
However, setbacks also present an opportunity for growth. With sound decision-making, business owners can navigate adversity, learn valuable lessons, and emerge stronger than before. Yet, this requires access to the right tools and the knowledge of when and how to utilize them effectively.
Success
The onset of 2020 marked a tumultuous period that steered the economy onto an unprecedented trajectory. Numerous businesses were compelled to shutter their operations, and regrettably, not all managed to reopen their doors. However, amid the upheaval of COVID lockdowns, liquidity remained available, and interest rates were at historic lows. According to the U.S. Census Bureau, over the past three years, a staggering 14.8 million new business applications were filed, signaling a significant surge compared to the figures of 2019. Prior to 2020, the annual count of new business applications typically hovered around the 3 million mark.
Despite the apparent success of your business, now is not the time to become complacent regarding financing matters. This juncture necessitates meticulous budgeting, the formulation of cash flow projections, endeavors to bolster your credit scores, and strategic investments in growth initiatives. Collaborating with a broker at this early stage of your business journey can facilitate access to commercial real estate loans and equipment financing, enabling you to commence the accumulation of equity. Should you require additional inventory, a broker can also assist you in securing factoring or hard money loans.
Setbacks
As cities emerge from lockdown measures and a semblance of normalcy gradually returns, the economic landscape has undergone a noticeable shift towards a less accommodating environment. We find ourselves in a scenario where accessing funds has become considerably more challenging. Interest rates have risen, inflation is dampening consumer spending, and the cost of capital has escalated. Furthermore, banks are increasingly hesitant to extend loans as they tighten their lending criteria.
The financial decisions made during this period carry significant repercussions. While the initial instinct may be to seek a working capital or short-term loan to navigate through difficulties, the suitability of such options varies depending on their utilization. Here, your broker can play a crucial role in guiding you towards the most efficient allocation of funds, ensuring that you avoid spinning your wheels. For instance, while a working capital line of credit might seem like a convenient solution, it may not be the most prudent choice for equipment purchases. A broker can facilitate access to advantageous equipment loans or leases, enabling your capital to yield greater returns in a more strategic manner.
Solutions
If your business is facing challenges in getting back on track, securing the right financing can be the key to bouncing back. If traditional avenues like banks have turned you down, exploring options like an SBA loan could be the solution. Even if your credit score is hindering your progress, our investment associates can introduce you to alternative financing solutions such as hard money loans, factoring, and secured lines of credit, which don’t necessarily require a high credit score for qualification. Whatever the obstacle, there’s a financial tool available to help. The crucial factor lies in knowing when and how to leverage them effectively.
It’s unrealistic to expect expertise in every aspect of business. You ventured into entrepreneurship because you had a vision to share with the world, be it in restaurant management, medical diagnostics, construction, or any other field. However, even if finance isn’t your forte, you can rely on the knowledge and resources of AshtonBridge Capital to possess the expertise to address each challenge with the appropriate toolkit.
Investment associates adeptly allocate funds to overcome setbacks and propel your business forward. Regardless of where you stand in your entrepreneurial journey, securing the right financing is paramount. We stand as your best ally in this pursuit. Having fostered close relationships with lenders over the years, we have access to exclusive deals you won’t find elsewhere. Take charge of your financial health and engage with our team today to steer your business towards success.