Guide to SBA Loans

Posted on by Pavel

Securing funding for your business in order to fuel growth can be challenging. Insufficient funding may hinder your ability to implement growth strategies such as increasing your range of products, expanding marketing campaigns, or hiring qualified staff. 

Some options to alleviate your cash flow pinch are to apply for an SBA loan or inventory financing. Combining inventory financing and inventory factoring can be a wise strategy to increase your working capital.

Kickfurther is the world’s first online inventory financing platform that empowers small businesses to access funds that may be inaccessible from traditional sources. We connect brands to a community of eager buyers who help fund inventory while giving brands the flexibility to pay it back as they receive cash from their sales. This eases the strain on cash flow so brands can scale quickly without limiting financial flexibility or inventory. 

What is an SBA loan?

An SBA loan is a loan for a small business that is backed by the U.S. Small Business Administration (SBA). SBA loans are designed to help small businesses gain access to financing that they might not otherwise be able to get from traditional lenders. The SBA provides a guarantee to the lender that it will cover a portion of the loan if the borrower defaults. This guarantee encourages lenders to make loans to small businesses that might be considered too risky otherwise. SBA loans may have more flexible payment terms and can be used for a variety of purposes, including working capital, equipment purchases, real estate acquisitions, and other business expenses. Terms and conditions of SBA loans can vary depending on the specific program and the lender, but they typically have longer repayment terms and lower interest rates than traditional bank loans.

How SBA loans work

The SBA guarantees business loans from lenders.  This encourages banks to finance businesses that might not be approved for a loan in other circumstances. The process to obtain an SBA loan may take longer than the process for inventory financing.

Types of SBA loans

  1. 7(a) Loan Program: This is the SBA’s flagship loan program and is the most popular program offered by the SBA. It offers flexible financing for a variety of business purposes, including working capital, equipment purchases, real estate, and debt refinancing. This program allows a maximum loan amount of up to $5 million.
  2. CDC/504 Loan Program: This loan program provides long-term, fixed-rate financing for small businesses for the purchase of fixed assets ,like land, buildings, and equipment. The maximum loan amount allowed under this program is $5.5 million. In most cases, owners need to guarantee at least 20% of the loan. These loans are made through the SBA’ s community-based partners called Certified Development Companies (CDCs). The funds cannot be used to buy inventory, consolidate debt or as working capital. 
  3. Microloan Program: Small businesses can receive loans of up to $50,000 through the Microloan program, which aims to assist them with startups and expansion. This loan program provides capital for minorities, veterans, women and low-income entrepreneurs. It provides access to capital for underserved communities through not-for-profit lenders. The program boosts funding for small businesses and non-profit organizations that have insufficient collateral and a limited credit history.
  4. Disaster Loan Program: This loan program provides long-term, low-interest loans to small businesses that have suffered physical or economic damage due to a declared disaster. After a disaster, the SBA determines whether businesses qualify for compensation under the Disaster loan program.

How to Qualify for an SBA loan

Lenders and loan programs have special eligibility requirements for SBA loans. The eligibility for each loan is based on the business location, the character of each borrower and what each business does to earn its income. Businesses need to have a sound business purpose, meet SBA size requirements and be able to repay. You will be matched  with an SBA-approved lender to find the best loan to start or grow your business. Even borrowers with bad credit may qualify for startup funding. Your lender can provide you with a full list of eligibility requirements to get your SBA loan.

How to Apply for an SBA loan

To apply, go to the SBA website or go to your local SBA office to fill out their loan application. To get an SBA loan, you will need to provide documents and information to verify your identity, personal and business history, creditworthiness, and legal documents to verify your business. This process can take up to several weeks.

Benefits of SBA loans

The benefits of  SBA-guaranteed loans include:

  • Competitive terms:  Guaranteed loans have rates and fees comparable to nono-guaranteed loans. 
  • Counseling and education: SBA loans offer continued support to help you start and run your business.
  • Other benefits: These include lower down payments, flexible overheard and no collateral needed for some loans. 

Tips to qualify for an SBA loan

  • Provide accurate financial statements: Gather and provide accurate financial statements to show your business’s financial stability. 
  • Consider your collateral: The SBA requires collateral for some loans such as real estate, equipment or inventory which may increase your chances of loan approval.
  • Build your credit score: A high credit score is an important factor in securing an SBA loan. 
  • Approach an SBA lender: Choose an SBA approved lender who offers a loan program that fits your business needs. Be ready to answer any questions..

SBA Loans vs. Inventory Financing

SBA loans are obtained from a lender and are backed by the U.S. Small Business Administration, which guarantees a portion of the loan. SBA loans offer lower interest rates than traditional bank loans and require more documentation to apply. The application process may be lengthy.

Inventory financing is a term loan where the lender provides a business owner with capital to purchase products so you can manage your inventory. The inventory is the  collateral to secure your financing and the revenue generated from these products repays your loan. These loans usually have shorter repayment terms and higher interest rates than SBA loans. This type of funding usually requires a track record of sales.

An advantage of inventory financing is that you can promptly and effortlessly respond to shifts in the market and your funds are quickly accessible. When considering whether to offer you funding, lenders usually only consider your invoice and account receivable values.

Your business will be better positioned for increased growth with inventory financing. The loan allows you to meet customer demand, upgrade products and can be helpful for seasonal businesses. Your cash flow stays unaffected by your inventory purchasing. Since your inventory secures the loan, your personal risk is lower. However, inventory financing usually has higher loan rates than SBA loans. If your credit score isn’t high enough, or your business is fairly new, you might not qualify for inventory financing. 

Inventory financing lines of credit, which are different from inventory financing loans, operate in the same way that a credit card does. They give borrowers funding they can draw from for their business needs. The business’s inventory secures the credit line. Inventory lines of credit are revolving and the line is replenished as you repay what you borrowed. You can only use the line of credit for inventory. 

How to qualify for Inventory Financing

These loans are relatively simple to apply for online, faster and you may not need as much personal credit or collateral to finance the loan. Most lenders will want a credit check, a business plan, financial statements to verify your sales and revenue, a list of inventory you plan to buy with pricing, and plans for storage of the inventory. 

Why combining invoice factoring with inventory financing is a good plan for your small business

Invoice factoring involves selling your accounts receivable at a discount. When you use invoice factoring, only your invoices and accounts receivable values are considered when a decision is made to offer you funding. Factoring allows you to choose the invoices to be included. 

Both inventory financing and invoice factoring are tools designed to improve your cash flow. Factoring has the ability to make the most significant and cost-effective impact, so it should be implemented first. Combining both Invoice factoring and inventory financing is the best way to  boost your working capital while supporting your business growth. 

Closing thoughts

Kickfurther provides small business inventory financing to help your small business respond quickly to market changes. You can receive up to 100% of the funds you need with flexible payment terms while you retain control. Without adding debt or giving up equity,  you can grow your business. Kickfurther doesn’t take equity in exchange for funding.

With Kickfurther, you don’t have to make payments until your fresh inventory order starts generating sales. You have the flexibility to structure your repayment plans according to your cash flow needs. With Kickfurther, you get quick access when you need capital so you can rapidly increase your inventory. By funding your inventory expenses,  you can free up capital to grow your business in other ways. 

Whether you are considering an SBA loan or inventory financing, it’s best to do your research to evaluate which financial product offers the best loan rates and terms. You want the best product that helps you achieve your business goals. 

Best Small Business Loan Options For Purchasing Inventory

Posted on by Pavel

Inventory is a critical part of consumer packaged goods (CPG) brands. From properly managing it to delivering it and stocking just the right amount, you’ll want to perfect your inventory system early on. As sales grow, it can be challenging to navigate how to buy more inventory without inflicting low or negative cash flows. At some point you may need to entertain the idea of inventory financing for small businesses, or maybe you already have but got discouraged. 

Small businesses often think of inventory financing as the perfect solution until they learn more about it. With strict requirements and repayment periods and high costs, it can be more harmful than helpful, even though that’s not how it should be. 

Our founder, and entrepreneur, once encountered the challenge of inventory financing that actually worked to grow 

What are the different small business loan options available for purchasing inventory?

Educate yourself on the various options available for purchasing inventory. Options can include the following:

  • Business term loans: Funded as a lump sum, general business loans can be used for purchasing inventory. 
  • Business line of credit: A revolving line of credit can supply the funds you need on an ongoing basis to purchase inventory. 
  • SBA loans: Government backed SBA loans are intended to help businesses cover expenses and help them grow.
  • Inventory financing: Designed for funding inventory, inventory financing is a top choice for businesses in need of funds to purchase inventory. 

How can small businesses determine the right amount of funding they need to purchase inventory?

Guessing is not an effective solution for managing inventory. To determine how much inventory to purchase you’ll need to closely track sales,  seasonal demand, and any activities that impact sales to understand how much inventory to stock and when to stock it. For example, the holiday season may cause sales to spike. Therefore, you’ll want to order more to be prepared for the season. Educating yourself about inventory management can help you get a pulse on how much inventory you need. 

Once you understand how much inventory you need, you can work on determining what it will cost you. When you’re ready to gather funding, visit Kickfurther to get started. 

Are there government-backed loan programs that offer favorable terms for small businesses acquiring inventory?

Under the SBA (Small Business Administration) loan program you’ll find the SBA inventory financing option. SBA loans are partially backed by the government and issued by SBA-approved lenders. Designed to provide favorable terms and funding for small businesses, you may want to consider this option. The pain points here though are usually the strict requirements and lengthy funding times. For businesses they need regular access to funding for inventory this may not be an ideal solution. 

How does inventory financing work, and what are its advantages for small businesses?

Generally, inventory financing is secured by the inventory purchased with the funds. Funding may go directly to the business or it can go toward the supplier. Depending on the lender or source of the funding, repayment terms can vary. 

At Kickfurther, our model works as follows:

  1. Create an online profile 
  2. Launch your deal to attract buyers 
  3. Get funding within minutes to hours 
  4. Set your ideal repayment schedule 
  5. Sell inventory and repeat the process when you’re ready again! 

After a successful round of funding with our community, it’s likely you’ll be able to get lower rates the second round. 

What documents and information should small businesses prepare when applying for inventory loans?

Similar to other loans, inventory loans usually require plenty of documentation. Before applying, make sure you can prove why you need the amount of inventory funding you’re requesting. Documentation that may be required can include the following. 

  • Bank statements
  • Business plan
  • Balance sheet
  • Sales history
  • Legal documents and licensing 
  • Budget
  • Tax returns 

Be able to prove to the source of funding that you can benefit from the funds and that you can live up to the promise of repayment. 

How long does it typically take to secure a small business loan for purchasing inventory?

Getting a business loan, for inventory or anything else, can require a lot of time, patience, and energy. With traditional methods getting inventory financing can take anywhere from a few business days to a few weeks (or even months for SBA loans). When funding runs out and you need more, the cycle starts again. If you use Kickfurther for inventory funding, getting more funding when you need it is streamlined. As a business owner your business and growth actions deserve all of your attention. We recognize how hard you work and hope to make inventory funding one less thing to worry about. 

Are there any alternative financing options or creative strategies to consider for inventory purchases?

As a business owner, creative strategies are probably your go to, we know they are at Kickfurther. Our platform is an idealistic example of a creative way that’s legitimate and safe to access the funds you need for inventory. Investors and alternative types of funding often prey on desperate business owners, which is wrong. Because we all deserve the opportunity to succeed, we’ve created a platform that levels the playing field. 

How does inventory financing work, and what are its advantages for small businesses?

Generally, inventory financing is secured by the inventory purchased with the funds. Funding may go directly to the business or it can go toward the supplier. Depending on the lender or source of the funding, repayment terms can vary. 

At Kickfurther, our model works as follows:

  • Create an online profile 
  • Launch your deal to attract buyers 
  • Get funding within minutes to hours 
  • Set your ideal repayment schedule 
  • Sell inventory and repeat the process when you’re ready again! 

After a successful round of funding with our community, it’s likely you’ll be able to get lower rates the second round. 

How Kickfurther can help

Kickfurther funds up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

Why Kickfurther?

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
  • Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory.

Kickfurther puts you in control of your business while delivering the costliest asset for most CPG brands. And by funding your largest expense (inventory), you can free up existing capital to grow your business wherever you need it – product development, advertising, adding headcount, etc.

Closing thoughts

What’s best for your business is something you’ll need to decide. What we know though is that there’s no shortage in demand for affordable inventory funding in the CPG world. 

Kickfurther can help small businesses obtain inventory funding for up to 30% cheaper than comparable options. Because growth mode is the only mode we know, we’ve created a platform for CPG brands to obtain the funding they need, in the manner they’ve always dreamed of. At Kickfurther you can get inventory now and pay later, all while having fun doing so. Our platform connects business owners to a community of backers that can fund up to 100% of inventory. 

How to Optimize Cash Flow for Your eCommerce Business

Posted on by Pavel

Businesses in the e-commerce space face high pressures for healthy cash flows, as businesses do in other industries. With money flowing in slower than it may be flowing out, combined with high costs of inventory, e-commerce businesses can face challenges. As an e-commerce seller you maintaining healthy inventory levels is critical. One way to alleviate cash flow challenges for e-commerce sellers  is to leverage e-commerce inventory financing. 

At Kickfurther, we provide e-commerce sellers an affordable and flexible solution for inventory funding. Here’s what you should know about optimizing cash flow for your e-commerce business. 

Importance of cash flow optimization for e-commerce businesses

Cash flow is the movement of money in and out of a business. 

Healthy cash flow is critical for eCommerce businesses. Businesses need cash on hand to cover expenses such as inventory. In the eCommerce space, there can be delays in incoming cash flow. Furthermore, cash can be tied up in inventory, which is the lifeblood for your business. As an e-commerce seller you face high competition and therefore, should always have enough inventory on hand to never miss sales. 

Keeping a pulse on cash flow and planning ahead can help you optimize cash flow. In some cases, you may need to put solutions in place to optimize cash flow. Afterall, a negative bank account won’t get you far in business. Cash flow can be difficult and stressful to manage, but step up and dig in. Failure to manage cash flow can be detrimental to e-commerce sellers. 

Common factors that can impact cash flow in an eCommerce business

  • Inventory costs: Inventory can tie up cash flow, but it’s not something you can avoid as an e-commerce seller. However, there are some e-commerce selling models that allow you to eliminate inventory costs. E-commerce sellers often use inventory financing as a way to finance inventory to free up cash flow. 
  • Shipping costs: As an e-commerce seller, shipping is an important business function. However, it can also contribute to cash flow dilemmas. When a  buyer orders a product, there is a delay between the purchase and the shipment and the delivery of the product. All of this can contribute to delays in cash flow. While you may not receive funds until after a product is delivered, you’ll still need to cover the costs associated with the sale. When shipping mass amounts, shipping costs can add up quickly. 
  • Storage costs: Storing inventory can tie up a significant amount of cash flow. As an e-commerce seller it’s important to have adequate inventory management techniques so that you don’t overstock or understock inventory. 
  • Shipping times: The quicker you can get products to customers, the quicker you can get paid in most cases. This is a simple way to improve cash flow. Remember that fulfillment involves more than just shipping times. The faster you can find, package, and ship the product, the faster it can be delivered. 

Tips on how to reduce  costs to optimize your cash flow

  • Negotiating better deals with suppliers: Ensuring you keep costs as low as possible, without taking costly shortcuts can contribute to the bottom line. While this may not immediately help improve cash flow, it can have an impact. Suppliers may be willing to offer discounts on regular or bulk orders. You want to be reasonable with your supplier, but you should ask them from time to time if there are any ways you can negotiate a discount.
  • Using more efficient shipping methods: Shipping is a big expense. From packaging to actual shipping costs, e-commerce sellers should evaluate shipping costs and methods on a regular basis. By doing so, you can grow the bottom line and optimize cash flow. 

Importance of understanding your cash flow and creating a budget

Cash flow is not a black and white topic, and expenses can fluctuate. It’s a topic that should be evaluated on a regular basis. While budgets are important, monitoring cash flow on a regular basis is more important. When it comes to setting budgets, you should understand where money goes and how much activities cost. When you evaluate business finances and try to identify ways to improve cash flow, you’ll want to pay attention to the bottom line to ensure you are in the green, despite any cash flow delays. 

Tips on how to forecast your cash flow and track your expenses

Forecasting cash flow is a skill that business owners should master. Here are some tips that can help track expenses in order to improve cash flow. 

  • #1. Invest in technology: Technology can help you track expenses and manage cash flow. Invest in systems that can help you automate expense tracking and learn how to use these systems. 
  • #2. Leave room for error: When it comes to forecasting cash flow, expect for some things to go wrong. Leaving room for error can be a useful tactic to maintain healthy cash flow. Plus, it can allow for expenses to fluctuate without causing cash flow to go red. 

How inventory financing can help to improve cash flow

Inventory financing is a valuable way to improve cash flow. Rather than using cash reserves to fund inventory, use financing instead. While financing comes with costs, freeing up cash flow can create the opportunity to invest and 

grow business. One of the challenges of inventory financing is often the costs associated as well as the requirements to qualify. At Kickfurther we strive to offer small businesses a funding solution for inventory that is affordable and flexible. 

One of the biggest perks of inventory funding with Kickfurther is the ability to purchase inventory without having to pay upfront. Take advantage of the freedom to repay as inventory sells, so that you can maintain the healthiest cash flow possible. 

How Kickfurther can help

E-commerce sellers may struggle to find affordable inventory funding that works. We understand the feeling of hopelessness as our founder was once in your seat. With the mission of helping small businesses obtain affordable inventory funding without the headache, we created Kickfurther. At kickfurther you can fund up to 100% of your inventory costs on flexible payment terms that you customize and control. With Kickfurther, you can fund your entire order(s) each time you need more inventory and put your existing capital to work growing your business without adding debt or giving up equity.

  • No immediate repayments: You don’t pay back until your new inventory order begins selling. You set your repayment schedule based on what works best for your cash flow.
  • Non-dilutive: Kickfurther doesn’t take equity in exchange for funding.
  • Not a debt: Kickfurther is not a loan, so it does not put debt on your books. Debt financing options can sometimes further constrain your working capital and access to capital, or even lower your business’s valuation if you are looking at venture capital or a sale.
  • Quick access: You need capital when your supplier payments are due. Kickfurther can fund your entire order(s) each time you need more inventory..

Strategies to Help Your Business Combat Inflation

Posted on by Pavel

Inflation can increase the cost of goods sold which can negatively impact businesses. Even with the power to increase the cost of your goods or services, inflation can impact your business.. As costs increase, your bottom line can take a hit and your cash flow can be interrupted. Additionally, borrowing money can become more expensive as interest rates can rise with inflation. 

By taking a proactive approach though, there are ways your business can combat inflation. Keep reading to learn more. 

What is inflation?

Prices rise on a regular basis, which is known as inflation. Inflation is typically expressed as a percent at which goods and services increase in cost over time. Some may view inflation as a positive while others may view it as a negative. What we can say about inflation is it’s unavoidable for business owners. As a business owner, you should always prepare for prices to fluctuate to some degree, up or down. When it comes to combating inflation in terms of interest rates and borrowing money, the cost of borrowing is an ongoing challenge. For CPG (consumer packaged goods) brands keeping up with demand can impact cash flow. With inflation, the challenge may be even more difficult. At Kickfurther we help CPG brands access affordable inventory funding to combat inflation. 

How does inflation impact businesses?

Inflation impacts personal and business finances. When every aspect of doing business increases, changes will need to be made to adapt. Beyond that though, inflation increases the cost of living for consumers which can also impact businesses. 

The point – inflation impacts more than just the bottom line for businesses. It affects every aspect of a business. 

The good news is that with a little bit of creativity and a desire to maintain a successful business, you can combat inflation. 

What are some specific things businesses can do to combat inflation?

As a business owner, creating a plan, and revising it frequently, can help you combat inflation. Nothing is ever perfect, but ignoring reality is not a solution. Operating a business takes a lot of work as does making educated decisions. Combating inflation means protecting your bottom line, which is critical to success. Here are some ways business owners can work to combat inflation. 

  • Strengthen your supply chain: As we mentioned, inflation will impact all areas of every business. As you work to combat inflation, you’ll need to prioritize keeping enough inventory in stock so that sales don’t unnecessarily suffer. You may also need to change how much inventory you stock as sales can shift. Whether you manufacture products on your own or outsource, strengthening your supply chain will be critical as you navigate inflation. Work with suppliers to find solutions that benefit the both of you. Take their pulse on their financial health. Afterall, you rely on them for inventory. While inflation can be devastating for businesses operating the right way it should not lead to failure. If you are manufacturing products, find ways to improve efficiency and keep costs down. As you try to protect your bottom line, you’ll need to analyze all activities contributing to it, many of which will be in the supply chain. 
  • Be strategic in your pricing: Pricing products right is key at all times, but especially when prices are rising. Invest time into surveying and analyzing as much data as you can to determine what the market can bear. You will likely need to raise prices but you won’t want to raise them so much that you lose sales. Find the happy medium that allows your business to thrive while keeping customers happy and coming back. For products that are purchased on a regular basis, some customers may not notice a small price increase, but a little extra from every sale can add up. The good thing about pricing is you can always change it in the event you make a mistake. 
  • Streamline your offerings: Efficiency is key when it comes to keeping costs down and beefing up the bottom line. Simplifying your portfolio is a great way to lower costs. If you offer three similar products, ask yourself if there’s a way to combine them into one while still meeting all needs of the customer. Streamlining offers can improve the bottom line in many ways from simpler fulfillment to bulk order discounts. When inflation occurs, making adjustments to keep a closer eye on costs will be critical. By streamlining, you can do just that.
  • Stockpile inventory to ensure stability: As prices rise, the cost of your inventory may rise too. While we usually always encourage business owners to only stock as much inventory as they need, this could be an exception. Stockpiling inventory can help you acquire it at a lower cost. It can help you ride the inflation wave until you have a more defined plan. However, it can also tie up working capital. 
  • Negotiate with suppliers: You are not the only one suffering from inflation. While negotiating is always important, you want to ensure suppliers have healthy operations as you need the partnership. Be honest when negotiating, especially during trying times. Find ways you can both benefit.  

What are the risks of not combating inflation?

Ultimately, if business financials are not healthy, the end will come sooner than later. While we are talking about inflation here, it’s always important to keep costs as low as possible, without taking any shortcuts. It’s also important to price products competitively so you capture as many sales as possible. If you choose to ignore inflation and wait for it to pass, that could be a huge, costly mistake. While you may make some temporary adjustments to see how things sort out, you should always be planning long term as a business owner. Playing devil’s advocate is a good thing, but we strongly urge business owners to not ignore inflation.

How Kickfurther can help

Kickfurther connects CPG brands to our community of backers that can provide working capital. At Kickfurther you can get inventory now and pay later, so you can combat inflation while improving the bottom line. Our unique funding model highlights the following. . .

  1. No immediate repayments. You control repayment. Don’t pay until your product sells.
  2. Non-dilutive. Maintain equity in your business, we know how hard you worked for it. We are here to work with you, not against you. 
  3. Not a debt. Because you have enough financial strain, this is not a loan. 
  4. Upfront capital. Pay suppliers faster with upfront capital, there when you need it! 

Closing thoughts

In our current economic state, inflation is a real challenge for business owners. Finding ways to combat inflation while preserving quality and value for customers can be accomplished. Through educated business decisions and careful planning, you can combat inflation. For affordable working capital solutions, lean on our platform. We’re here to help – and we mean it. 

How to Create a Startup Pitch that Gets You Funded

Posted on by Pavel

When seeking funding, you’ll need a startup pitch that entices investors or backers while earning their vote of confidence – and hard earned money too. The startup pitch also provides a way to differentiate your brand from competition. The idea of a startup pitch is pretty simple but the execution of it is not. You’ll want to invest plenty of time into perfecting the pitch, just as you do all elements of your startup. Need funding for a startup? Here’s what you should know about funding for startups and how a startup pitch can help. 

What is a startup pitch?

A startup pitch is a combination of verbal and visual presentation tools that are presented to investors. In your deck, a startup pitch should showcase your business plan at a high level. With the use of data, creativity, market analysis, and a million dollar idea, you can be on your way to nailing a startup pitch. It can be tempting to include too much information. As you weed out what to keep and what to delete, consider why you are including the information. You’ll need to determine what’s most appealing and applicable to what you are asking for. The stage of your startup can impact how long your pitch is, but typically, startup pitches are between 10-20 slides. As you craft a startup pitch, be mindful of your audience and your brand. You want to spark a connection between parties. 

Importance of a compelling startup pitch

A compelling startup pitch can serve several purposes. From attracting investors to serving as a canvas to define your business, a startup pitch can help you secure funding – but that’s not what it’s all about. The importance of a compelling startup pitch is much more than money. It’s a way to define your brand and showcase it, all the while it provides an opportunity for you to think through your vision and details. Coming back to your startup pitch as your business evolves can help your business grow. In order to thrive in a competitive environment you’ll need to differentiate your brand and stand out. You must deliver value and authenticity. Find ways to do that and demonstrate it in your startup pitch to compel investors and build your brand. 

Types of startup pitches

  • Elevator pitch: An elevator pitch is exactly what it sounds like; a pitch that could be given in the time of a short elevator ride. It’s concise and to the point. To be effective, it should be persuasive too. In a quick elevator pitch you should cover the basics, but present them in a compelling manner that leaves the audience wanting to know more. For networking events or unplanned encounters, it’s helpful to have an elevator pitch planned and ready to go. 
  • Pitch deck: A pitch deck is a more in depth startup pitch. Depending on the audience and objective, the length and content of the pitch deck can vary. However, pitch decks are essential in the startup space. 

What are the most important elements of a startup pitch?

A startup pitch sets the stage for a partnership that requires buy in from all involved. The journey of your business can impact what should and should not be in your startup pitch. While there is guidance available, there’s really no right or wrong way to make a startup pitch. Get creative. Be bold. Afterall, that’s how you’ll survive in competitive climates.  Here are some elements that a startup pitch should include.

  • Mission statement
  • Vision 
  • Value proposition 
  • Opportunity
  • Market analysis summary (How do you stand out?)
  • Problem > solution 
  • Your team 
  • Organizational background (Who are you? Why should you be trusted?)
  • Metrics / track record
  • Product showcase 
  • Sales strategy
  • Financials and how funds will be used 

Tips on crafting a compelling startup pitch to get you funded

  • Be creative
  • Think through ideas all the way
  • Let your brand shine 
  • Know your audience 
  • Revamp the startup pitch from time-to-time 
  • Leverage key metrics 
  • Ensure information is accurate 
  • Be prepared to answer questions 

What are some common mistakes to avoid when creating a startup pitch?

Mistakes are bound to happen, and can be channeled as an extremely positive incident. That does not mean that we should not try to avoid mistakes though. Mistakes can be costly to us and our customers. So while we understand they happen, lean in and do what you can to nail your startup pitch. Save the mistakes for later. 

  • Not being passionate: Being a business owner is a huge responsibility. There’s no clocking out. There’s no PTO. It’s your whole life really. And while we like to remind our fellow entrepreneurs to have fun and prioritize family, we know the commitment it takes to operate a business. Whether presenting in person or delivering a deck, passion should always be demonstrated in the work you do. From quality content to error free decks, there are many ways passion can be proven. If you are not passionate about what you’re doing – do something else. 
  • Not doing your research: Investing time upfront to research and think through ideas all the way is critical. While you can write down a vision and mission, investors or partners want to see more than black and white writing. They want to know they are investing in an expert. Someone who is absorbing all the information available to grow their business. Always research and pay attention to what’s around you. 
  • Not using the right words: Words are extremely powerful. In a startup pitch you are painting a picture of your business and trying to earn the trust and buy in of others. Go over the startup pitch as many times as you need and really think about what it is you want to say. Choose the right words and make sure your messages are clear and powerful. 

How Kickfurther can help

Kickfurther helps CPG brands gain access to affordable and flexible working capital. Through our business centric platform, business owners can create a business profile to showcase their startup pitch. Through the details you provide, our community of backers can choose to provide the funding you need. This creates the opportunity for two passionate parties to come together in pursuit of success. 

At Kickfurther you can get inventory now and pay later, all while having fun doing so. Our platform connects business owners to a community of buyers that can fund up to 100% of inventory. 

  1. No immediate repayments. You control repayment. Don’t pay until your product sells.
  2. Non-dilutive. Maintain equity in your business, we know how hard you worked for it. We are here to work with you, not against you. 
  3. Not a debt. Because you have enough financial strain, this is not a loan. 
  4. Upfront capital. Pay suppliers faster with upfront capital, there when you need it! 

Closing thoughts

Great ideas can come on quickly, but take time to execute. Through the details, you can start to bring your vision to life. Take advantage of the opportunity to reflect and create a startup pitch that can help your startup get the funding it needs. Intentional startup pitches are the difference between startups that make it and startups that don’t. 

Top Marketing Strategies for Beauty and Cosmetics Brands

Posted on by Pavel

In the highly competitive beauty industry, effective marketing strategies are a must for brand success. They help increase brand awareness, build customer engagement and loyalty, showcase product differentiation, drive sales and revenue, and adapt to changing trends. Kickfurther offers a unique beauty business inventory financing, and provides access to working capital. This streamlined process enables businesses to maintain optimal inventory levels and support their marketing efforts, fostering growth and success in the dynamic beauty market.

Importance of effective marketing strategies for brands in the beauty industry

Effective marketing strategies play a crucial role in the success of brands in the beauty industry. In this highly competitive and dynamic market, the importance of beauty business marketing cannot be overstated. Here are some key reasons why effective marketing strategies are essential for beauty brands:

Increased Brand Awareness: In a saturated market with numerous beauty brands, effective marketing helps create and increase brand awareness. It allows brands to establish their presence and identity, making them recognizable and memorable to target customers.

Customer Engagement and Loyalty: Marketing strategies enable beauty brands to engage with their customers on various platforms like social media, email, and influencer collaborations. Building strong relationships with customers fosters brand loyalty and encourages repeat purchases.

Showcase Product Differentiation: Effective marketing helps communicate a brand’s unique selling points and product differentiation. Brands can highlight what sets them apart from competitors, whether it’s their ingredients, eco-friendly approach, or innovative formulations.

Drives Sales and Revenue: Well-executed marketing campaigns can boost sales and revenue for beauty brands. By creating compelling content, offering promotions, and using influencers, brands can attract new customers and encourage existing ones to make purchases.

Adaptation to Trends: The beauty industry is constantly evolving with new trends and consumer preferences. Effective marketing allows brands to stay relevant and adapt to changing market dynamics, ensuring they meet the demands of their target audience.

Building Trust and Credibility: Consistent and authentic marketing builds trust and credibility with consumers. Brands that communicate transparently about their products and values are more likely to gain the trust of customers.

Launching New Products: Marketing is important when introducing new products to the market. It helps generate excitement, create anticipation, and reach potential customers who may be interested in trying the latest products.

Expanding Market Reach: Effective marketing enables beauty brands to expand their market reach beyond their immediate geographic location. Online platforms and digital marketing tools allow brands to reach a global audience and tap into new markets.

Influencing Purchase Decisions: Marketing plays a significant role in influencing consumer purchase decisions. Engaging and persuasive marketing campaigns can sway consumers to choose a particular brand over competitors.

Competitive Edge: In a competitive landscape, brands with well-executed marketing strategies gain a competitive edge. Resonating with consumers can lead to higher market share and long-term success.

Top marketing strategies for beauty businesses

Create a unique brand design

A well-defined brand includes a distinctive logo, color palette, and visual identity to help beauty businesses stand out in the market, making them easily recognizable to customers. Consistently use the brand across all marketing materials, including social media posts, packaging, and advertisements, to reinforce identity and foster loyalty. Incorporating the brand into the customer experience,  including on the website, in-store displays and product presentations.

Invest in creative packaging for your products

Eye-catching and innovative packaging designs capture consumers’ attention and create a positive first impression, leading to increased product interest and sales. Packaging that reflects the brand’s values attracts customers who align with the brand’s vision. Investing in sustainable, eco-friendly packaging appeals to environmentally conscious consumers and enhances the brand’s reputation..

Develop a professional website

A well-designed, user-friendly website serves as the digital storefront for beauty businesses, providing customers with easy access to product information, promotions, and purchasing options. Implementing search engine optimization (SEO) strategies on the website improves online visibility and drives organic traffic, increasing the chances of reaching potential customers. A mobile-responsive website is crucial as an increasing number of consumers shop for beauty products through mobile devices.

Create high quality content

Producing informative and visually appealing content establishes the brand as an authority in the beauty industry and fosters trust with customers. Content marketing through blogs, videos, and social media posts engages the target audience, encourages sharing, and boosts brand visibility.

Build a community of beauty enthusiasts

Engaging with customers through social media, forums, and online communities fosters a sense of belonging and loyalty among beauty enthusiasts. Hosting events, workshops, and beauty-related discussions creates opportunities for brand interaction and customer feedback, leading to valuable insights for product development and marketing strategies. Incentivizing customers to participate in brand activities and refer friends can help expand the community , encouraging  word-of-mouth marketing.

Create marketing collaborations with influencers

Partnering with influencers and beauty bloggers who align with the brand’s values and target audience can expand brand reach and credibility. Influencer marketing allows beauty businesses to tap into niche audiences and leverage the influencer’s authority to promote products effectively. Collaborating with other beauty brands or related businesses on cross-promotional campaigns can mutually benefit both parties by reaching new audiences and maximizing exposure.

How Kickfurther can Help

Kickfurther serves as a beneficial resource for beauty businesses seeking inventory financing through its distinctive crowdfunding approach. By linking businesses that need working capital for inventory with a community of supportive backers, Kickfurther offers a one-of-a-kind funding solution.  Here’s how Kickfurther can help:

Access to Working Capital: Kickfurther allows beauty businesses to access the necessary funds to purchase inventory without selling off their existing stock. This ensures that businesses can maintain optimal inventory levels and meet customer demand efficiently.

Flexible Repayment Options: Kickfurther offers flexible repayment options based on the beauty business’s sales cycles and inventory turnover. This allows businesses to adjust repayment amounts during slower periods and allocate more funds during peak sales, providing financial flexibility and stability.

Community Support: By engaging a community of backers who share an interest in supporting sustainable and responsible business practices, beauty businesses can foster transparency and communication, strengthening their brand’s reputation and loyalty.

Streamlined Process: Kickfurther’s online platform simplifies the application process, eliminating lengthy paperwork and delays associated with traditional lenders. This results in a faster and more efficient financing solution for beauty businesses.

Brand Exposure: Through the collaboration with buyers and the platform’s community-driven approach, beauty businesses can gain exposure and potential new customers, expanding their market reach and visibility.

Closing thoughts

Kickfurther’s inventory financing model offers a collaborative and accessible funding solution for beauty businesses, helping them manage inventory needs and support their growth in the competitive beauty industry. Using a simplified, online loan application, streamlined approval process and flexible repayment options, Kickfurther allows beauty businesses to access the necessary funds for inventory purchases without selling their existing stock. Accessible funding can help drive effective marketing strategies and provide an indispensable tool for beauty brand success and growth.