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Why Restaurant Owners Should Think Carefully About Their Menu Design

There are many things to consider when you are planning to open a restaurant. You need to find the right space, hire employees and create the perfect menu. In the hustle and bustle of trying to get a new restaurant off the ground, one important step is often not given enough importance and is quickly completed at the last minute before opening. This step is menu design, and one that can have significant impact on yo

ur business. Read on to find out why!

Why is Menu Design Important?

While a menu can seem like a simple list of food and drink options offered in your restaurant, it is so much more than that! It is an internal advertising tool that every single patron of your restaurant, as well as online visitors, have access to. This document does much more than describe what people can expect to eat or drink, it “should communicate a brand, the vision, the ambiance and feel of the restaurant and the food and the experience a guest can expect to have,” according to one source.

What are Tips for Successful Menu Design?

Involve the Chef

While anyone in your restaurant can jot down the food and drink choices, it is only the chef that can transform a boring list into an appetizing and enticing experience. By highlighting special ingredients and local and organic products, the menu can provide more details to your customers.

When creating a menu description, focus on senses, such as the look, taste and texture of food when describing “the experience” in your menu. Use descriptive words that will bring the image of the items to life!

Finally, ask the chef to suggest pairings between food and drink options that can help your patrons have a more-pleasing experience (and help you push sales!)

Focus on the Image

Since a menu is typically a one or two-page document, it provides a small space in which to communicate your entire brand. It can be beneficial to employ the services of a professional menu designer to craft your menu.

Consider that the layout, fonts, colors, images and type of paper used in the menu – this will not only describe the food, but will also speak volumes about the type of restaurant (casual or upscale), food (Mexican or French) and environment customers can expect.

Add Value

One source suggests that there is a way to make a dish more enticing by highlighting its value. This strategy includes stating the geographic region where the item is from, such as:

  • Tuscan Olives
  • New England clams
  • Parisian baguettes

To differentiate yourself from the competition, highlight the exclusivity of the item by mentioning the very farm it came from, such as Sun Valley local eggs. You can also mention brand names if they are well-known and considered to be premium.

Whether you are opening a new restaurant, or simply reinventing your image with a new menu design, you may need financial assistance. IOU Financial can provide you with the help you need with a loan of up to $150,000. Contact us today to find out more!

How to Successfully Market Your Small Business on a Tight Budget

Television ads, billboards, direct mailers — these are all common ways world-known companies market their products and services. However, if you don’t have thousands of dollars to invest into your marketing budget, how do you engage with your potential clients?


Small business owners often find it difficult to stretch their tight budgets to effectively market their offerings. However, with a little creativity, there are ways to advertise your business on any budget!

Referral Program

Multi-million dollar companies hire marketing experts, PR gurus, and sales executives to advertise their products and secure sales. Although a small business owner with a handful of staff cannot compete with that, they can “hire” existing customers to help them market their brands.

One way to do that is with a referral program, where you reward your customers for bringing in new business. Offering discounts or freebies to those that help you generate sales has been a strategy many businesses have relied on for their success.

For example, Dropbox’s referral program, which offers 500MB of free cloud storage to individuals who refer their friends, increased their sign-up rate by 60 percent! PayPal’s financial incentive for referrals helped them achieve “7 to 10 percent daily growth” and “turned out to yield better marketing ROI than traditional marketing channels.”

It’s free to start a referral program, and the discounts or expenses of paying for the referrals will be offset by the new sales!

YouTube Videos

Another low-cost marketing tactic consists of creating self-made YouTube videos showcasing your products or services. All you need is a device with the ability to record and upload videos, and you’re ready to start marketing!

Skateboarding shoes company, DC Shoes, took this approach in 2009, when they started uploading short videos of Ken Block, the company’s co-founder, “driving a tricked-out race car around closed-off airports, theme parks, and even the port of San Francisco… the stunt driving is interspersed with glamour shots of footwear.”

These efforts paid off immensely, resulting in “180 million views—and in 2011 alone, sales jumped 15%.” Experts say this type of marketing would cost about 5 million dollars had it been done through traditional methods.

Cross-Promotion

Form a team with other, non-competing business owners to market each other’s services. Visit other small businesses in your area, and form agreements that will benefit each party involved. You can leave business cards or flyers in each other’s locations, cross-link on each other’s websites, and/ or create bundled promotions (get a haircut at Moe’s salon and a manicure at Lee’s Nails, and get 10 percent off both services!)

Cross-promotion is an beneficial tool that doesn’t just benefit your business, but your community by helping small businesses succeed.
There are times when you will need the funds to invest in marketing your business. When this situation occurs, contact IOU Financial to provide you with a business loan up to $150,000 in 24 hours!

How To Tweak Your Small Business for Success

Small-business owners usually don’t have the time or money to routinely make big changes to their businesses. However, you can consider easy changes that have the potential to make a big difference to your company’s bottom line. Here are four tweaks you can make to help ensure you spend your money wisely and increase your success:

Use financial tools:

It’s hard to optimize your business if you don’t perform proper financial management for critical areas such as revenue, taxes and payroll. You can cut this seemingly daunting task down to size by using relatively inexpensive financial tools like these:

  1. QuickBooks: A mobile, cloud-based accounting system that provides real-time insights into your business and accomplish tasks, such as banking and invoicing, via your computer, tablet or smartphone.
  2. Cyfe: A dashboard program that consolidates information from multiple websites you use, such as PayPal, Shopify, QuickBooks and social networks, to save you time and help give you the big picture.
  3. Mint MyBusiness: A business version of the popular financial tracking software that keeps tabs on your spending habits and even suggests budgets.
  4. Couponbox: A coupon calculator that shows the cost-effectiveness of your coupon-based marketing programs, so that you don’t hurt the bottom line with overly generous discounts.
  5. Trigger: Track part-time employees, freelancers, and contractors as they work on projects and tasks, a great way to measure productivity.
  6. TurboTax: The business version helps you prepare your taxes, maximize your deductions, and handle all the forms you need to file.

Streamline operations:

Businesses require more time to manage as they grow. Here are some ways to streamline your business and save yourself precious time and money:

  1. Cut back on email: Set a time limit on the amount of time you spend each day responding to email. Only spend time on urgent messages, and consider programs like Slack to handle internal communications.
  2. Outsource: Use accounting and HR services instead of tying up your own time doing tax prep, payroll, benefits administration, etc. It’s less expensive than you think and frees you up for more important tasks.
  3. Throttle meetings: Some meetings just suck the soul out of your business by being non-productive and boring. Don’t schedule meetings unless they directly contribute to your monthly or quarterly goals.
  4. Hire expertise: It’s easy to begin a company by hiring friends and family rather than expert talent. Fight this urge and hire great people from the outset. It might cost a little more, but it will help you avoid mistakes, wasted time and bruised feelings down the line.

Build company morale:

Happy employees are productive employees. There are many inexpensive ways to build morale, including company picnics, birthday parties, relaxation breaks, good medical benefits, employee discount programs, and allowing pets in the workplace. You might even organize a nearby child care center if you have several employees with young children.

Revamp your image:

Does your marketing image provide the best return on investment. Perhaps you can tweak it to give your brand(s) more oomph. First, conduct an image audit to find out what customers (and demographics) think of your branding. Pick a new logo, font, colors and designs that are more relevant to your target audience. Update your website and employ the latest SEO techniques. Get involved in the community and listen to customer suggestions.

There are many other ways to tweak your business, but these are a good start. If you need extra help organizing your business budget, be sure to check out our smart sheet. 

 

How Corporate Social Responsibility Can Help Your Business

Corporate social responsibility (CSR) is a strategy many small and mid-size business owners should embrace for two reasons: to help society and to help their own image. There are many causes you can choose to support, such as saving the rainforest, helping refugees, or contributing to a local boys & girls club. A source lists the most common causes of US companies as the following:
1. Efforts to protect the environment (74%),
2. End discrimination or restrictions based on sexual orientation (59%) or gender (54%),
3. Improve access to quality education (59%)
4. Protect human rights abroad (49%)
5. End discrimination/restrictions based on gender identity (52%)

Why adopt CSR into your operations? For these three reasons:

Set Your Business Apart

Regardless of what niche your business is in, you have competition. A way to identify your brand and let potential clients know what sets you apart from your competitors is with the adoption of a social initiative. For example, TOMS shoes, is a great example of an owner who built CSR right into the business model. For every pair of shoes bought, the company donates a pair to those in need around the world. This cause helped people connect with the brand, and sales soared!

People like feeling good about themselves and know that they are making a difference in the world by spending their money. If you align your business interests with a social or environmental cause, you can set your business apart and grab more market share away from your competitors.

Staff Engagement

While a CSR can help you connect with your audience, it is also beneficial to your own staff. Although they are motivated to come to work every day to receive a paycheck, they can become more engaged with the company and invested in its success if there is a cause they believe in involved.

For example, some real estate agents participate in a network called Charitable Agents, which donates 10 percent of commission from homes sales to charities. Agents can feel good about not only making a profit from a sale, but also contributing to a cause close to their heart. This benefits the business with more exposure, as people looking to make a difference when buying or selling a home will find an agent through this network, bringing new business to the agency.

Lower Costs

Corporate social responsibility doesn’t only have to involve donating money to causes, it can also benefit you within the confines of your company. For example, companies who pledge to help the environment should start with changes in their own offices, such as recycling, switching to energy-friendly appliances and technology, reducing water usage, etc.

Not only will these actions represent your true commitment to your cause to your clients and employees, but it will cut costs and promote your own sustainability in the years to come.

Oftentimes, small business owners need funds to market their CSR efforts, otherwise their clients may not know about them. IOU Financial is committed to helping business owners make a difference in the world, which is why we offer small business loans in as little as 24 hours.

How Redefining Your Core Values Can Benefit Your Business

As the new year momentum continues, it can be beneficial to review the core values of your business to see what you can amend and improve upon. Redefining your business core values to make them significant and actually mean something to your staff, partners, and customers can play a monumental role in the way your company is seen and how others relate to your brand.

A source for Harvard Business Review, who has helped companies refine their corporate values for over one decade, states that bland or meaningless values can damage the credibility of the company and alienate employees. To prevent this, revisit your current core values, find room for improvement, and take the following steps to redefine them.

Review Your Current Core Values

To start, re-familiarize yourself with the current corporate values you have established. Are they still relevant, achievable, and actually being implemented? For example, if one of the values is transparency, do your firm’s daily operations reflect that goal? Does information freely flow from top to bottom and in reverse? Are you open and honest with your investors, business partners, and clients about any issues, roadblocks or failures?

Remove any core values that are no longer important to your brand, don’t say anything about your corporate identity, or are simply impossible to achieve.

Survey Your Team

An organization is made up of the team members employed there; therefore, it can be beneficial to survey your employees to find out what their personal values are. If you able to align the personal beliefs and values of your staff with your business values, you can create a better corporate culture and overall working experience for your team.

Send out an email or online survey and ask employees to write down three to five personal values that matter to them. Review these answers and narrow down the top five to 10 choices based on popularity, significance, and relevance to your brand.

For example, if the majority of your staff value sustainability and the green movement, you may consider adding an eco-friendly component to your company’s philanthropic efforts. This can increase employee loyalty by supporting a cause that is important to them, and also start to promote your brand image with a new and important initiative.

Implement the Newly Established Core Values

Once you remove outdated and irrelevant values, and have worked with your staff to come up with meaningful new principles, you must create a plan to implement them. Core values must be ingrained in every decision and practice of the organization because they are the foundation of the brand’s identity.

If you added honest communication as a core value, for example, consider investing in training that would improve the communication skills of your managers and other staff members. Teaching them to better read nonverbal cues, actively listen, and understand difference in multicultural communication can lead to a more productive work environment.

Redefining your core corporate values can unite you with your clientele, partners, and employees by exposing the main principles that define your company and creating common goals for all staff to follow. Revisit your business’ core values while you’re still riding the momentum of New Year’s Resolutions and betterment initiatives!

5 Ways Your Small Business Can Innovate like Big Business

The New Year can mean new goals, products, developments and much more for small and large businesses alike. For many businesses, growth leads back to innovation and how it is essential. Without staying current and developing creative approaches, many businesses find the New Year a not so happy one. This is where small businesses can learn from bigger businesses about not only sales tactics, but how to come up innovative ideas that could keep them a contender in their industry for years to come. Let’s look at 5 ways your business can innovate like big business.  

Expand your Network of Ideas

Many larger companies are starting to go outside their walls to find the next best thing, newest idea, or latest innovative approach to delivering a similar product or service. Consider expanding outside your walls to see what other smaller companies are working on and how a partnership or collaboration could be more beneficial than competing. Harness new innovations by looking beyond your business.

Create an Atmosphere of Innovation 

It sounds obvious but does your business really foster an environment that promotes innovation? Many big companies are creating innovative “labs” or “programs” often called Accelerator teams tasked with developing new ideas, testing them out, and pitching the top ideas to the company. Start thinking about ways you can start to create small teams to create a new product, develop new ideas for marketing, or even ways to modify an existing service to make them more profitable. Test it out and if it renders good initial outcomes take it to market.

Innovate from Within

On the flip side of looking outside-look within. Ask for new ideas, discuss concepts with current team members, and research ways you can provide solutions to any problems. Many big businesses are learning more from the day-to-day employees and current teams on projects about various ways to stay above the technology fold. Look inward towards the employees you have on payroll to suggest and implement new ideas.

Diversify What you Have

Look at current products and find ways to expand and diversify that service. Offer it on new platforms and add new features as part of existing ones. If you sell sunglasses find ways to repackage, make small modifications, expand the line currently sold, or add new colors to your line. It is no surprise that this works… some companies add Emoji options to their platforms and call it the “next best thing.”

Access to Training/Resources Digitally

Are you accessing the most current training and trends in your field? If you are, how much time and money does that cost? Many companies are utilizing technology platforms to attend training online, developing training programs for employees to view, and even using in-house technology to expand messages to others without having to pay for costly travel expenses and meal reimbursement. Have staff take online courses from the office they work within. Many new companies are embracing the technology they used to develop their product to learn about ways to enhance it. Use technology to your travel and budget advantage.

Big or small, businesses can all learn from one another. Learning ways to maximize the market and stay atop of the newest trends and consumer “wants lists” can help carry businesses longer and further. What ties the success together is not only the implementation of innovation, but continuing to to execute innovative ideas all year long. So whether big or small, implementing the above 5 methods in the workplace can make or break the coming New Year’s resolutions.

Protecting Your Intellectual Property

Intellectual property (IP) is a creative work, such as a design, invention or manuscript, whose rights are owned by your company. Those rights are established through a legal mechanism, such as a trademark, copyright or patent. IP is valuable – sometimes the most valuable asset a company can hold.

Here are the three major ways to protect your IP:ip-blog-image

  • Patents: You apply for a patent at the U.S. Patent and Trademark Office. Patents provide 20 years of protection from the filing date. You can apply for a:
    • Utility patent: Available to anyone who discovers or invents a new, useful process, mechanism, product, or composition of matter. You can also patent a significant improvement to any of these.
    • Design patent: Used for new designs of manufactured items
    • Plant patent: For use when you discover or breed a new, asexually reproducible variety of plant
  • Trademarks: Protect symbols, names, phrases, logos, artwork, colors and sounds used to distinguish your goods and services from others. Registration is not required, but is available. Trademarks remain in effect indefinitely.
  • Copyrights: Provide protection for original works of authorship, including musical, literary, dramatic, and artistic, whether published or unpublished. Copyrights automatically attach to original works, but you can also register them at the U.S. Copyright Office. Copyrights last from 70 to 120 years.

A startup company might, in its rush to get a product or service to market, not fully protect its IP. After all, it takes some time and money to register a patent. However, failure to protect IP can ultimately be very expensive and dangerous to a company. You have to worry about a partner, executive or employee stealing your IP, not to mention the threat of corporate spying. Here are some tips for protecting your IP:

  • Educate yourself and your team on the topic of IP. Learn the differences among trade secrets, patents, copyrights and trademarks. The time you spend up front understanding IP will pay big dividends later on.
  • If you have a novel idea, make sure it isn’t already patented. Do a Google search to see if it makes sense to spend your money on a protected idea.
  • Patent your valuable ideas, even if you don’t necessarily plan to develop them on your own. Someone else may want to buy a patent from you.
  • Use an expert attorney to file your patent. Always insist on a fixed fee.
  • Do not delay filing your patent application. It’s like taking a number at the deli counter – it holds your place in line. After initial submission, you have 12 months to augment your application and fill in any missing details. The approval process requires patience, since it takes up to five years. That’s why you often encounter the term “patent pending.”
  • Identify through an audit your non-patented IP, such as copyrights and trademarks, whether registered or unregistered.
  • You may need to file for international patents, because a U.S. patent won’t protect you from international competition.
  • Use non-disclosure agreements with all employees and consultants to prevent them from stealing your IP.

To research and file patents may cost you tens of thousands of dollars. A commercial loan from IOU Financial is an easy, fast and low-cost way to finance the protection of your IP. We can provide funds within 24 hours of approval, so contact us today.

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IOU Financial is Expanding Its Fast, Easy Loans to Canada

The demand for business lending in Canada is red hot, according to official statistics from the Canadian government. The Biannual Survey of Suppliers of Business Financing, last updated for the second half of 2014, shows business lenders disbursed 9.6 percent more money compared to the first half of 2014. That reflects the highest growth rate since 2011 and continues several years of consecutive increases.

Figure 1 Value of Credit Outstanding and Disbursed to All Business (CA$ billions).

Figure 1 Value of Credit Outstanding and Disbursed to All Business (CA$ billions).

The figure clearly indicates the need for significantly greater lending resources in Canada, which is why IOU Financial, one of America’s fastest growing commercial lenders, has launched its Canadian business loan product. With this lending program, Canadian small businesses – both English speaking and French – are able to borrow money in as little as one business day.

Canadian small businesses will appreciate the many advantages we offer to small- and medium-sized enterprises:

  • Quick Application: If you are accustomed to the mountain of paperwork banks collect from prospective borrowers, you’ll be astonished at how quickly you can apply to IOU Financial. It takes 10 minutes or less, and you can get a pre-approval right away.
  • Convenient Repayments: Unlike many conventional lenders that hit you with a huge monthly payment, IOU Financial collects daily fixed payments directly from your bank account. This greatly reduces the impact on your working capital.
  • No Upfront Costs: There are no upfront costs or hidden fees when you deal with IOU Financial. The application process is completely free and no-obligation.
  • No Prepayment Penalties: You can repay your balance at any time without penalty. We charge simple interest on our loans, which means you pay interest only on the principal you owe, not on accrued interest.
  • Affordable Rates: Our loan rates start as low as 6 percent. Our rates are half of what you would pay for a cash advance.
  • Loan Renewals: You can renew your IOU Financial loan after you’ve repaid 40 percent of the principal amount.

The Power of “Yes”

The biggest difference between IOU Financial Canada and ordinary banks is that we do everything possible to get you funded quickly, whatever your credit history or score. You see, we look at the whole picture when you apply for loan, including your company’s equity and cash flow. Many of our customers in the U.S. come to us after being turned down by a conventional bank. We are proud of the fact that we approve 85 percent of applications, based on the overall health of their business.

Our clients rave about our services. Voodoo Vapor Inc. told us, “We received our funding from IOU within days and it enables us to put newer product on our shelves more frequently. This gives us more reasons to engage with our target market on social media, attract new customers, and build relationships with loyal customers.” You can read the full case study here.

Our staff is ready to assist you with any questions you have! Canadian merchants and brokers are invited to call 844-750-5468 for more information on how the IOU Financial small business loan product could impact their business.

How Small Business Owners Can Learn From US Olympians

When you hear the words Olympics and Team USA, the pure dominance at the Rio games from athletes such as Michael Phelps, the women’s gymnastic team, and the women’s beach volleyball team come to mind. But when you hear the words Olympics and business owner, you may not see a connection. Competing in the Olympics and being a savvy small business owner may have more similarities than you think.

When you’re a business owner in today’s competitive market, it can be hard to stay on top each day, quarter, and year. However, by learning from how Team USA trained their way to an amazing showing at the Olympics, your business may be better prepared for market dominance.  Here are 5 ways that business owners can learn from the USA Olympians’ success in the Rio games.

 

  1. Teamwork

When you watch the communication between beach volleyball athletes Kerri Walsh Jennings and April Ross, it is pure magic. Their understanding of their respective roles and how they fit together makes it easier to find the correct location when it’s their moment to strike, and their approach to teamwork has translated into domination of most matches by large margins. Follow their lead. Work as a team, communicate with each other, and be clear in your team’s objectives. Working as a team will only make your business more dominant.

 

  1. Know the talents of each person

Many small businesses fail because they force employees to do tasks they lack the skillset to execute well. The women’s gymnastic team is a clear demonstration of getting it right. Their coaches know the skillset of each gymnast, and they allow those athletes to execute their specific events.  Putting the brash employee at the helm of sales calls or putting your best communicator behind the scene helping new hires fill out their time card is not a good use of your talent pool. Sometimes making a change and switching the person you’re paying to do a task with the person who is the right fit is a smart logistical move. The women’s gymnastics team changed their rotations and identified the right talent for each event. Play to your strengths and let those talents rise!

 

  1. Preparation

Have you seen the preparation that goes into a single event at the Olympics? If you haven’t, you should watch any athlete’s story and see where they started in their event preparation. Winners are not built overnight; they put in work for years before they can aim for gold. Your business should follow the same path.

By bringing on the right talent for the future, your business can prepare for the road ahead. Sure, you have immediate needs, but you should also look to bring on and train a team for the future. Prepare for growth and hire visionaries. Anticipate rough times, so hire great problem solvers. Look for the talents you need to weather storms and when the rain comes you’ll be ready to find good use of the extra water.

 

  1. Know your focus and focus on what you know.

It’s not a question that Michael Phelps knows swimming. He knows the events he is good at and the ones he is not, and he uses this knowledge to direct his focus. Do you know your business model? What product does your business excel at providing consumers? Knowing what your business is and how to develop that product or service in a focused and exact way will only add success. Trying to do too much or expand too fast may give you excitement, but it could also leave you watching other competitors take home gold.

 

  1. Adaptability

Structure is good, but failure to adapt is business suicide. Times change, interests change, and your business should adjust. This is no different than when Olympians get to the games. They size up who is in the lane next to them and push a little harder down the stretch. Relay teams see if they are ahead or behind and adjust to the difference, and when setbacks happen, the U.S. has found ways to get back up, refocus, and go after it even harder. Your small business should focus on its niche but also be ready to re-focus and adapt to the changing environment around your company and its customers.

 

 

It is no question the United States Olympic teams have dominated in Rio. Domination has come with preparation, focus, and other skills needed to rise above the crowd and take these games by storm. Running a business is no different. Watching the ways of Team USA can be a lesson in how to not only make it to the top tier in your field, but also walk away with gold to show for your hard work.

6 Ways Overstocking Costs Your Small Business

When you are running a small business money is often tight. Companies need to make sure they allocate their cash strategically, because too much spending in one area can cause shortfalls in others.

One costly mistake can be overstocking inventory and materials. In a merchandising company, inventory represents the goods that will be sold. For a manufacturing company, overstocking can result from buying too many raw materials and components. In either case, overstocking can create several unwanted costs that can overwhelm the savings that comes from buying in bulk:

  1. Storage costs: When you have a large amount of inventory or raw goods on hand, you need sufficient space to hold the materials. That translates into leasing, buying or building storage facilities and warehouses, which must be secured, powered, insured and staffed. If you create additional warehouse space, you might see an increase in your transportation costs as well.
  2. Deterioration: Many things can go wrong when you have an overstocked warehouse. Often times, your merchandise and raw materials wait longer before they are removed for use. This is a critical problem for items that can spoil, such as foodstuffs, agricultural goods, pharmaceuticals and anything with an expiration date. In addition, every time an item must be moved, it is subject to damage that can ruin its value. Overstocking items can result in additional movements and staging that can lead to wastage.
  3. Shrinkage: The more materials your small business keeps on hand, the harder it is to guard it all. It’s easier for a worker to steal an item when it’s one of many, since its loss is harder to recognize. To help prevent shrinkage, you will have to spend extra money on security precautions. Any way you slice it, shrinkage is costly.
  4. Obsolescence: You might get a great deal on a huge order of some item, only to find out that it has gone out of style before you can sell off your excess inventory. Fads come and go, and the public can be fickle. Furthermore, you don’t want to get stuck with an item when a new, improved version is announced that makes your current inventory obsolete.
  5. Economic downturn: A recession can happen at any time, and with it a downturn in demand. They last thing you want is to be stuck with too many raw materials just as you cut back on production. That’s exactly what can happen if you buy too much at one time. Overstocking is the enemy of just-in-time manufacturing, which is the best way to keep your production in sync with demand.
  6. Unbalanced spending: Overstocking means over-allocating working capital to inventory and raw goods. You then might find yourself short of funds to finance the purchase of equipment, facilities and other capital goods, as well as to pay other expenses and liabilities. For example, you might order extra raw goods in anticipation of increasing production, and then realize you’ll need more trucks to transport the goods. If you can’t afford to buy the trucks you’ll need, your extra raw goods won’t increase production, but they will boost costs.

Sometimes, it does make sense to buy in unusually large amounts, such as when you are certain that all of the purchases can be used quickly to increase sales. If you find yourself short on working capital but want to take advantage of a great deal from a supplier, contact IOU Financial for a quick and easy commercial loan to tide your business over until you turn your purchases into sales.