As a small business owner it is important to stay apprised of current economic news and trends. You may be in business for yourself or for someone else but the bottom line is that you want to be able to maximize your profits. In order to do this you need to find ways to reduce the cost of doing business as well as finding new ways to increase profits. Whether you are looking at developing new products or increasing the efficiency with which you deliver services, there are some interesting ideas to consider.
It is not uncommon today for small businesses to seek out outsourcing for specific materials and parts as a part of their expansion strategy. While this does indeed seem to make sense there are many problems with this approach that should not be overlooked. Outsourcing as a method to foster growth has certainly been effective in the past but it does not appear to be so today. It stands to reason that as business landscapes continue to become more challenging and economies continue to experience large amounts of uncertainty the means through which business owners get help with emergency finance are becoming fewer.
In an economy where interest rates are at historic lows there is no question that the availability of credit to small business is somewhat limited. Many business owners find that even when they do get new credit the interest rate charged is significantly higher than what they would pay if they were to refinance their mortgage on their own. While the economy is recovering, many small businesses are operating under financially constrained circumstances. In light of this fact it would seem to make sense to consider an alternative such as the Paycheck Protection Program (PPP) which can not only save small business owners money but also provide much needed assistance with the costs of payroll.
Small business owners can find a range of financial resources available to them through third party entities such as payroll processors or payroll service providers. Unfortunately, the sheer number of such third party processing entities means that small business owners may not have time to conduct the necessary research to determine which vendors are able to best meet their needs. The solution provided by PPO programs such as PayPal for payroll is not only faster, easier, and less expensive but also provides a level of security. PayPal for small business is an excellent way for small business owners to manage their payroll and for those employees who have access to a PayPal account the benefits are even greater.
The current economic crisis is not only impacting the US but also many European countries including the UK. For European businesses small business owners will find that if they have not already established a PayPal for Business Account they may be missing out on a golden opportunity to help reduce their operational costs, boost their customer base, and expand their business. PayPal for businesses has established itself as one of the most popular online merchant accounts services available on the web.
“The days when small business entrepreneurs could rely on friends and relatives for financial support are now long gone,” says Matthew Taylor of the UK’s Association of Small Business. “A growing number of entrepreneurs are moving towards becoming ‘netrepreneurs’, using technology to help them grow their businesses.” Many entrepreneurs are now turning to social media and the internet to help build their businesses.
Taylor continues, “The days when only large corporations could be relied upon to bail out small businesses are over. There is now a realisation that entrepreneurs need to explore all options, including those provided by technology.” However, he says that banks are still the primary source of support for SMEs in the UK. “Banks are good for providing loans but not at the moment when business needs are pressing. However, as with everything in the financial cycle, you’ll always find a few loaning institutions who will still want to provide loans to small businesses during this challenging period.”
Taylor adds that some small business finance companies are providing services and funding for SMEs even though there has been a significant drop in business lending in recent years. This is because many of the small businesses which were turned down by mainstream lenders have now turned to small business finance companies or lenders they know personally. He argues that it is still possible to get a small business loan if you are able to convince a bank that your business makes commercial sense to them. A strong business plan backed up with a good financial projection can do this.