As a business person, you are constantly taking new risks. From the very first step that you take to start your own business you are taking a big risk. And big risks can pay off handsomely. Not to mention it allows us to do what we really want to do everyday. Entrepreneurship is both risky and fun.
At Merchant Advance Capital, we get to help entrepreneurs make moves in their business by providing merchant advances or small business loans. Entrepreneurs get cash that they can use to expand, advertise, renovate, or otherwise improve their businesses. As a finance company, we understand the level of risk that entrepreneurs take to achieve their goals, and we actually participate in that risk by putting our own cash into their business.
The reality is that running your own business can be a challenge. Things don’t always go to plan. Sales might not always be what you want them to be. Unexpected costs can arise. Technical issues can happen, and you can have problems with staff. The list of challenges is long. And that’s why we as entrepreneurs have the opportunities ahead of us that we have. If it was easy, everyone would do it. The inherent challenges are precisely what create long-term opportunities.
One thing that is of extreme important as an entrepreneur is your ability to communicate with your stakeholders when challenges arise. From our perspective as a finance company, we have witnessed what it is like to deal with business owners that have an incredible ability to communicate their challenges, and we have also witnessed poor communication. In this post we wanted to provide some insight with respect to best practices when dealing with your stakeholders during difficult time, whether that be with your creditors, suppliers, staff, or even your customers.
1) Do not be afraid of what might happen if you communicate the truth. As a business owner, you might think that being honest about your situation with your stakeholders will add to your troubles. You may think that if you tell the truth, your creditors will take action against you, your suppliers will stop supplying you, your staff will go looking for other jobs and your customers will flee to your competition. But we believe that is far from the truth. Why? Because uncertainty is probably much worse than the truth. If your stakeholders sense that you may be having a tough time, but you are not being up-front about it, they will get nervous. That’s when they might do some of the things we just mentioned. But if you are just open and up-front about the challenge you are having and the steps that you are taking to overcome it, more than likely people will be patient with you.
2) Remember that your stakeholders want you to succeed. This point sort of ties in with the previous point, which is that your success is also your stakeholders success. At Merchant Advance Capital, as your finance company, we want nothing more than to see your business flourish and grow. And we will be patient with you if there is a problem, because if there is a problem, we just want to help in any way that we can to get everything back to normal. That is how we succeed and you succeed. Our success is tied together. Same with your suppliers, your staff and even your customers. Remember that we are on your side.
3) Communicate clearly and effectively. Be proactive! Make that phone call to update your finance company on how things are going with the business. If things are slow, problem solve together. It is important to keep a good relationship with your financier because they may be helpful to you again in the future when you need additional financing. It is also important to reward those you took a leap of faith with you in your business by keeping them up to date on the result.
If things get tough, which they undoubtedly can, we here at Merchant Advance Capital are here to help. We understand the risks of doing business. Call us today and ask us about our small business loan program or our merchant advance program to see how we can help you get working capital for your business.