Tips for Marketing on Social Media to Gen Z vs Millennials

Posted on by Amanda Levine

The power of millennial marketing should be addressed. In addition, Gen Z marketing is a game changer as well. Gen Z was born between 1997 and 2021, millennials were born between 1981 and 1996. In the Gen Z population, there are about 90 million members. Keeping a pulse on what millennials and Gen Z want and knowing how to reach them can accelerate sales. These categories of consumers are unique, and deserve special attention. Their ways can vary from that of other generations. A Morning Consult report, “Understanding Gen Z” interviewed 1,000 18 to 21 year old individuals. They found that just about half (49%) gather a vast majority of their news from their social media feed. Hence a perfect example why companies need to keep up with Gen Z and millennials. Your old fashioned TV ads, radio ads, billboards, and so forth may never reach them. Luckily, as technology advances companies can better segment their customers and find more ways to stay in front of them. Keep reading to learn more about marketing on social media to Gen Z versus millennials. 

Gen Z vs. Millennial Demographic Explained

The key difference between Millennials and Gen Z is the years that they were born. Anyone born anywhere between 1981 and 1996 is considered a Millennial. Anyone born in 1997, or later, is considered Gen Z. People who are currently being born are considered Gen Z until at some point in the future a consensus is formed that a new generation has begun. Other defined generations include Generation X and the Baby Boomers. If you are born anywhere between 1965 and 1980, you would be considered part of Generation X, where Baby Boomers would be considered individuals born between 1946 and 1964. But for the purpose of this article, we will focus solely on Millennials and Gen Z. Here are some key characteristics of the people from each of these generations.

Millennials: Millennials came to age during a very important and transformative time for not just the United States, but for the world. Older millennials most likely remember using card catalogs and the Dewey Decimal system in their school and public libraries before computers really became a central part of our everyday lives. Millennials saw the internet evolve from its earliest forms of dial-up and AOL to broadband and the rise of social media. These kinds of technological developments had a significant impact on much of the world. The way people communicate, the way they do business, and the way information is exchanged, all were transformed with the expansion of internet capabilities and social media usage. Millennials who grew up in the United States also lived through some major historical events that dramatically transformed the American way of life. The most significant historical event that Millennials experienced was 9/11, and then the subsequent War on Terror. The attacks of September 11th transformed how we live in many ways. From how we travel, to how the US Government obtains information from private citizens in the name of fighting terrorism. Additionally, Millennials were somewhat responsible for putting the first African American president in the White House in 2008. This was another significant moment in US history that defined the Millennial Generation and separated them from the previous political landscapes we saw during the Generation X and Baby Boomer years.  Millennials also lived through what is now known as the great recession. As many Millennials made their way into the workforce and attempted to become full participants in the US economy, there was a period of rampant unemployment and wage stagnation that still carries implications to the present day. Also, Millennials were, at a time, the most racially and ethnically diverse adult generation in history, that is until Gen Z came along.

Gen Z: Gen Z  is also coming to age at an interesting and transformative time in history, although in different ways than Millennials. What is most interesting about Gen Z is that they grew up with technology as a significant part of their life since birth. When the oldest individuals of Gen Z were 10, the first iPhone was released. Gen Z has always lived in a period when connectivity was constant and on-demand communication and entertainment were never non-existent. This constant connectivity and growing up in a social media-dominated society will have many implications in the future that will need to be studied to analyze their full impact. Additionally, Gen Z is coming to age in the time of COVID, and all the implications and ramifications that the disease, the lock-downs, and the political climate shapes our society. 

Although we have more evidence of how Millenials have been affected by the world that they grew up in, it is apparent that there is a clear distinction between Millennials and Gen Z. This distinction is important to make in order to properly reach an individual in either generation through digital marketing and social media ad campaigns. 

How does Gen Z use social media?

A great number of Gen Z individuals use social media as entertainment and a way to kill time. Social media is more ingrained into their everyday life as a way to kill time waiting in line for an event or riding the subway. Gen Z also expects companies to know them better based on their social media activity and interact with them with a more personalized experience based on previous interactions. They also are more prone to using social media to research new brands that they are unaware of. This means that as a small business, you may want to be creating content that promotes engagement while giving individuals the opportunity to make purchases directly from social media posts. Additionally, you will want to maintain an active social media presence that is quick to respond to inquiries, complaints, and compliments. 

How Millennials Use Social Media

As more Gen Z individuals use social media as entertainment and as a way to kill time, more Millennials see social media as a way to communicate and stay in touch with friends, family, and acquaintances. Millennials also use social media as a source of news and information, and as a way to stay connected to the world around them. Companies that can associate their brand with a lifestyle or a subject of interest, may do better connecting to Millennials who use social media to form online communities around certain activities.  Additionally, Millennials are more likely to use social media to address their high customer service expectations. If a company has done someone wrong, a Millennial is more likely to post on the brand’s social media page or send a private message to the company through a social media account. Just as much as Millennials will complain about bad customer service on social media, they are just as likely to rave about the great customer service they received. Keeping this in mind when addressing Millennials On customer service will go a long way to shoring up support among this generation. 

How are both generations similar?

There are many ways that Millennials and Gen Z are similar. Both generations feel that their employment should contribute to the greater good and that the company they work for, should have a clear mission statement along with defined values that detail how the company is contributing to the betterment of society. Both generations are tech-savvy and they have no problem navigating new technologies and applications they may be unfamiliar with at first. They are quick learners when it comes to technology. Both generations also depend on social media for many things. From finding a new restaurant in their neighborhood to reading reviews about a new face moisturizer, social media is a source of information that they rely on. They may also be critical thinkers who are more able to recognize false information on social media versus their baby boomer counterparts. 

How are both generations different?

The most obvious difference between Millennials and Gen Z is their age, which has many implications from what motivates them to what kind of life decisions they are currently making. Millennials may be buying houses, introducing their first child into the world, concerned about retirement savings. Gen Z may be more concerned with education, career advancement, and climbing the social ladder. 

Social Media Marketing for Millennial Tips

The best thing a company can do to foster a productive relationship with Millennials on social media is to be responsive to their praise, complaints, and inquiries on social media. Millennials expect superior customer service, and if their expectations are met, they may be the first to scream praise for your company from the mountain top. 

Social Media Marketing for Gen Z Tips

If you want to attract Gen Z to your brand using social media, you may want to ensure your content is engaging and responsive to the individual. Gen Z expects companies to personalize their experience. It may take a little more work to create personalized correspondence and attention for all your Gen Z customers, but doing so could result in building long-term, mutually beneficial relationships. 

How Kickfurther Can Help

As you begin making more marketing efforts, the investment requirement may increase, thus leaving your business in need of financing. In addition, as marketing promotes and converts sales you will need to ensure that you have a healthy inventory supply. At Kickfurther small businesses can secure the funding they need to grow their business. With a 99.5% success rate, Kickfurther is up to 30% cheaper than other options. 

Discover affordable inventory financing. . . visit Kickfurther online today!

How to Establish Credit for a Small Business

Posted on by Amanda Levine

A small business line of credit can improve cash flow while supporting the growth of your business. Even with a successful and profitable business, cash flow can be challenging. Commonly, businesses use a small line of credit to keep cash flow healthy and ensure they always have plenty of funds available. For small businesses, loans or lines of credit may be harder to secure. Small business loans may involve more risk for lenders, therefore, they may charge higher interest rates and fees. Finding affordable ways to borrow money for a small business can help keep profits healthy. Keep reading to learn more about how to establish credit for a small business and secure financing.

What Is Business Credit?

Business credit is similar to personal credit in which it is an evaluation of an entity’s ability to maintain a healthy financial situation by taking on debt and paying its bills on time and in full. Like personal credit, a business needs to build its credit profile over time by making monthly payments on time and by paying off old debts before acquiring new ones. There are many consequences, both positive and negative, depending on the credit score of your business. For example, a business that has a proven track record of financial stability and on-time payments, may see lower insurance premiums and lower interest rates on business loans and equity lines of credit. Some other positive consequences of having a good business credit score is you may be able to qualify for larger loan amounts with longer repayment periods. Additionally, if you have vendors that you do business with regularly, and they are aware of your good business credit score and you always pay them on time, they may extend to your business longer repayment terms which can help you maintain liquidity and a higher cash flow. Having a poor business credit score could lead to many unfavorable outcomes including paying higher interest rates, higher fees, and possibly being denied for the loan amount that you need. Also, vendors may feel the need to extend to your business some of the most strict terms they can offer or even require you to pre-pay for any orders that you place with them. 

Before you can start to develop a credit score for your business you need to make sure your business is legally registered as a business. There are several different types of business registrations you can choose from depending on what kind of business you are operating. Make sure you register for the business structure that makes the most sense for your situation and to seek professional assistance if you are unsure. Once your business is registered, loan payments and other credit account information can begin to be reported to the business credit reporting agencies. The type of information that often gets reported to these credit reporting agencies includes payments to vendors and suppliers as well as creditors. It is this type of information that formulates your business’s credit score. This credit score may affect your eligibility for SBA loans, term loans, and other types of business financing including net nerms and credit limits imposed by vendors and suppliers. The business credit score can also affect your insurance premiums, your ability to raise money from outside investors, and whether or not you qualify for contracts with other organizations. 

Business credit scores can range anywhere from 0 to 100. Many lenders may have minimum business credit score requirements that begin at 75.  

One last important thing to note is that even though some lenders, suppliers, and/or vendors may take into consideration the personal credit score of a business owner when they are applying for a business loan, a business credit score and a personal credit score are two entirely different things. As a business owner, it may be a wise decision to separate your personal and business finances as much as possible. 

Why Is Establishing Credit for a Small Business Important?

First off, a business credit score is important to show lenders, suppliers, and/or vendors how financially risky your business may or may not be. If you are a small business owner just starting out, you may not have a business credit score yet and you may need to rely on your personal credit score to obtain financing. As soon as you are able to begin working on your business credit score and separate your personal finances from your business, you should. Here are some of the main reasons why establishing credit for a small business is important. 

  1. Protect your personal credit score: Running a business is not cheap and you may need larger sums of money to hire new staff, purchase inventory, purchase real estate, or to cover one of the many other expenses a business encounters. By using your personal credit to obtain these larger sums of money, your personal debt utilization ratio can become extremely high. By having high credit usage, you can lower your personal credit score and you may find it difficult to secure financing for other things in your personal life, like a car loan or mortgage. 
  2. Obtain better terms with vendors: Vendors may also look at your business credit score to determine what kind of terms they can offer you. Common terms may include net 30, 60, or 90 days, or depending on your credit score, a vendor may ask you to prepay all your orders. The better your business credit score the more likely a vendor will trust you with larger amounts of inventory without needing to be paid back immediately. This allows your business to keep more cash on hand and to make vendor payments after you are already starting to generate revenue from sales from the purchased inventory. 
  3. Business financing is much more simple: When you have a higher business credit score, the process to obtain traditional types of financing from lenders or the SBA is much more simple and processing takes less time. You may also qualify for some of the better interest rates available depending on the business loan type that you pursue. Higher credit scores also are helpful to maximize your available credit limits when applying for business lines of credit. 

For any small business owner, having a good business credit score will go a long way to help your business expand and scale up at an appropriate pace. But what if you have zero or limited business credit? What can you do to improve your business credit score?

Tips to Build Business Credit

There are several things you may want to consider when you are first trying to build business credit or when you are trying to improve upon a less than desirable business credit score. Here are some of the most basic steps that you can take immediately. 

  • Obtain an EIN: One of the first steps to building business credit is to obtain an Employer Identification Number and to change your business entity to a corporation. This will help you to file taxes on behalf of the business as well as open a bank account under your business name. You can then also secure business contracts. 
  • Obtain a business credit card: Opening a business credit card is a quick and easy way to begin to build business credit. All payments made on the credit card will be reported to the major commercial credit agencies. 
  • Pay everything on time: Paying your business credit cards and vendors on time will help to build that credit score little by little. Any missed payments will not only hurt your credit score, but you could begin to build a bad reputation within your industry by missing payments to vendors. Vendors not only report payment information to the commercial credit reporting agencies, but they could also potentially talk among themselves and other vendors may be reluctant to extend your business any credit if you have outstanding bills with other vendors. 
  • Incorporation: At the same time that you apply for an EIN through the federal government you may want to incorporate your business. Doing so has numerous benefits including asset protection through limited liability, the ability to build credit and raise capital, hefty tax savings, and more. 
  • Break out personal vs. business expenses: As a business owner, separating your personal and business finances as much as possible is critical. 

These are just a few of the main ways you can begin to build your business credit score or to improve upon an existing one. It is important to not take on more debt than you can afford and to maintain good standing with all of your creditors. 

How Kickfurther Can Help

Establishing a small business and business credit can take time. As every business owner knows, time is money. Small businesses may struggle to qualify for financing. This is where Kickfurther can help. Kickfurther specializes in helping small businesses secure the funding they need to invest in inventory. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

Discover affordable small business inventory financing. . . visit Kickfurther online!

Types of Inventory Reports you Should Know About

Posted on by Amanda Levine

It’s common knowledge that product-based businesses rely on inventory to generate revenue and meet customer demand. Regardless of a business’s size, keeping a close eye on your inventory enables you to fulfill client orders quickly and accurately. However, one thing to keep in mind is that inventory is rarely static. To successfully grow your business, you need to analyze and monitor inventory data and leverage it to make informed business decisions.

This is where inventory reports come in.

Maintaining precise knowledge of your inventory performance is key to helping your business grow, expand, and reach new heights. Through the use of inventory reports, you can have a holistic view of your operations and allow you to optimize your inventory levels where it can sufficiently meet demand without the risk of overstocking or stockouts. But before we dive deeper, let’s talk about inventory.

What is inventory?

Simply put, inventory refers to the products that a company plans to sell for profit. Inventory encompasses items that you have bought for resale as well as the raw materials you need to produce your goods. There are three main types of inventory: raw materials, work-in-progress, and finished goods.

  • Raw Materials – Raw materials are the items that a business needs in order to create its products. For instance, a business that sells footwear sources textiles, rubber, leather, synthetics, as well as dyes to be able to produce quality shoes.
  • Work-In-Progress (WIP) – Work-in-Progress items are partly-finished materials that are currently undergoing conversion into finished goods. More often than not, you can see these materials on the production floor where they are being assembled. For accounting purposes, WIP inventory also includes all the costs related to the production of goods such as raw materials, overhead, and labor.
  • Finished goods – As you may have guessed, finished goods are products that have completed production. These products have been sourced as raw materials and converted into finished goods that are ready to be sold. Typically, retailers consider finished goods as merchandise.

What is an inventory report?

Now that we got that out of the way, what exactly is an inventory report? An inventory report can be described as a comprehensive summary of a business’s existing stock. It helps businesses manage inventory, track its movement, and mitigate the risk of stockouts or overstocking. Essentially, an inventory report provides value to a company by giving insight on top-performing products as well as slow-moving ones.

Do inventory reports improve inventory management?

Excellent inventory reports include timely and relevant information that aids businesses in their inventory management practices. From better inventory accuracy to greater insights into stock control, inventory reporting ensures that businesses have the ability to make more profitable business decisions. Fortunately, there are several types of inventory management reports that businesses can use in order to help them increase efficiency and reduce costs. Check out some of them below!

What are the different inventory report types?

Reports provide useful insights for better inventory management especially in aspects such as inventory levels, spending, profits, and growth opportunities. Here are some of the most common types of inventory management reports:

1.) Inventory performance report

Put simply, an inventory report serves as an overview of a company’s inventory performance. It makes it easier for companies to gain insight into how profitable their products are while also ensuring that their stock is at an optimal level. An inventory report should also shed light on significant performance metrics regarding sales, operations, as well as storage and logistics.

2.) Inventory value report

An inventory value report, used mainly for inventory valuation, is a document that details the costs associated with inventory such as acquiring, transporting, and holding inventory. This type of inventory management report allows businesses to understand the cost of goods and evaluate the value of their goods accordingly to make sure that inventory remains profitable.

3.) Inventory profitability report

As the name implies, an inventory profitability report tracks inventory performance by looking at gross margins for a specified period. An inventory profitability report enables companies to determine worst-performing stock and make room for higher-performing items.

 4.) Inventory forecasting

Inventory forecasting is a great way for businesses to analyze past data and observe current trends to predict the amount of inventory to hold in the future. This type of inventory report empowers businesses to make informed inventory decisions and prepare them for busy shopping seasons. Most inventory forecasting methods involve the use of historical data, past sales trends, and expert opinion from industry experts.

5.) Stock level report

In inventory management, a stock level report shows the current stock level of all products in all storage facilities. A stock level report is useful when it comes to monitoring your reorder point and identifying the right quantity to reorder from your suppliers.

6.) Stock reorder report

Stock reorder reports are one of the most useful reports that businesses can use when managing their inventory. Essentially, reorder reports tell businesses when the best time is to restock their inventory based on past data. Determining your ideal reorder point is crucial to save holding costs and prevent lost sales.

7.) Sales report

Using sales reports is a great way to gain a better understanding of your cash balances and overall sales performance. This type of inventory report assists businesses in analyzing their sales activities through the use of various key performance indicators (KPIs). Sales reports may also uncover trends that may supplement your inventory forecasting methods.

What are the benefits of inventory reporting?

Perhaps the most obvious benefit of inventory reporting is that it fosters proper inventory management. It ensures that businesses have enough goods to be able to meet demand without creating excess inventory. Some of the other benefits of inventory reporting include:

  • More accurate inventory planning – Having an inventory reporting method in place prepares businesses in managing customer expectations through more accurate inventory planning. As a business’ most expensive asset, inventory reporting aids businesses in differentiating slow-moving products from the best-performing ones.
  • Better inventory tracking – Inventory reporting equips businesses with the necessary information to improve customer satisfaction. Through the use of data, businesses can improve the accuracy of inventory orders and avoid unnecessary costs. It also helps you figure out exactly how much stock you have at any given moment and determine the optimum time when to reorder goods. Inventory reporting also prevents product shortages and allows you to keep the right amount of items in your storage facility.
  • Improved financial planning – An inventory report should provide businesses with precise data to forecast the necessary capital needed to reinvest in inventory. Leaving inventory management to guesswork may put your business at risk due to inaccurate financial planning.

Ultimately, inventory reporting makes it easier for businesses to manage inventory more effectively and efficiently. Tracking stock regularly enables businesses to hold a sufficient amount of goods to be able to meet customer demand. Without inventory reporting, it is highly likely for your business to incur higher holding costs and miss out on sales opportunities.

Key Takeaway

Inventory management and reporting are crucial to a business’s success. Knowing which inventory reports to use and understanding their importance lets you track the performance of your products and mitigate the risks associated with holding too much or too little inventory. If your business is experiencing an increase in demand, an inventory report empowers you to fulfill customer orders regardless of your supply chain circumstances.

About Kickfurther

Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund a business’ inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

How to Finance Your Company Expansion

Posted on by Amanda Levine

As your business starts to grow, you may find yourself in need of financing to support the growth. While revenues and profits are increasing with the growth, cash flow may be tight. If you operate a product-based business you will want to ensure that you have enough inventory on hand so that you keep growing without missing any sales. So what is the best way to finance business expansion? Keep reading to learn how to finance business expansion and what financing options for business expansion look like.

How to Finance Your Company Expansion for Growth

When you are considering an expansion of any size and you are hoping for growth, there are two main things you need to do. First, you need to prepare and plan for the expansion by creating a strategy and forecasting your finances. The second thing you need to do is to determine which method of financing is best for your business and then take the necessary steps to secure it. Let us take a look at the two main portions of the planning phase that should be completed before applying for any type of business financing. 

  • Create a strategy: One of the most important things to do before expanding your business and looking for financing to fund that expansion is to develop a strategic growth plan. A strategic growth plan is essentially a business plan that focuses on the strategies you need to implement and the goals you need to achieve in order to grow your business. Your goals should be realistic, specific, and time-sensitive. This strategy should also reinforce some of the basics of your company, for example, your business identity, the problem you are attempting to solve for consumers, how your business is the solution to this problem, who your customer is, and who your competitors are and how your business is different. From there you can identify your current market share, your current monthly revenues versus expenditures, etc. Based on your business identity and your current standings, what kind of goals do you want to create? Do you want to increase your market share? Facilitate a takeover of a competitor? Increase revenue by a certain percentage? These goals should also have deadlines. For example, a 15% increase of market share within 6-months and how the business plans to achieve this, might be something you may include in a strategic growth plan. 
  • Forecast your finances: A complete and thorough financial forecast may go a long way in convincing investors or lending institutions of your business’s viability. An accurate forecast will help you to identify how much financing you will need to fund your expansion goals. The forecast will also let lenders or investors know how you plan to allocate the funding once you have acquired it. This practice of showing where the money will go will not only be good to satisfy potential lenders or investors, but it may also help you manage your money better to get the most out of the influx of cash. 

Once you have a complete strategic growth plan and a detailed financial forecast, you can then begin to explore what types of financing may be best for your business and your situation. This is a crucial time to weigh all the options and to make sure you are making sound financial decisions. 

How to Fund Your Business

When you are ready to fund your business and its expansion, you may become a little overwhelmed with all the options available to you. There are traditional-style term business loans, SBA loans, venture capitalists, angel investors, financing from friends and family, and inventory financing through Kickfurther. Let us take a look at some of these options and more in greater detail. 

  • Traditional loans: You may want to consider a traditional-style term loan from a bank or an online lender if you want to get a small business loan that can be paid off through monthly payments. This may be a good option for you if your business already has a proven track record of successful operation and if your business has a good credit score. If your business does not have a credit score yet, you can still use your personal credit score to receive a loan. 
  • SBA-backed loans: SBA loans are loans that are backed by the federal government but issued through private lenders. You can apply for an SBA loan at most banks, credit unions, and online lenders. There are several types of SBA loans depending on your business structure and needs. There is the SBA 7(a) loan, the SBA Express loan, SBA 504 loan, SBA Microloan, and the SBA Disaster loan. There are also a few less common SBA loan types that only apply to very specific situations. SBA loans typically contain lower interest rates and longer payback periods than traditional term loans. 
  • Venture capitalists or angel investors: Seeking funding from a venture capitalist firm or an angel investor may be a wise decision for some companies looking to expand. It is important to fully understand the terms of any agreement entered into with a venture capitalist or angel investor as sometimes they can expect a larger share of the return or some control of the company in exchange for their upfront investment. 
  • Personal loan: Some small business owners start by using a personal loan to fund their startup at first. Depending on your credit score, personal loans may be an option to acquire up to $100,000 for up to 12-years. Be wary of using a personal loan to finance a startup because you may be able to find much better interest rates through an SBA loan or other financing options. However, they can be a good option to increase cash on hand. 
  • Equipment loans: Equipment loans may be an excellent option for someone who may be looking to make large investments in vehicles, machinery, or any other type of equipment that is deemed instrumental to the overall operation of your business. Equipment loans use the equipment being purchased as collateral to secure the loan which can sometimes make interest rates much lower than term loans. 
  • Invoice factoring: If you have large billings but need cash now, you could consider invoice factoring. Essentially you are selling your unpaid invoices to a 3rd party company who will then give you an upfront payment of somewhere between 70% and 90% of the total amount due. Once the invoice is paid in full, you get the remainder of the invoice amount minus the fees the company charges for their invoice factoring services. 
  • Friends and family: A common practice for some startups is for business owners to receive loans from friends or family when they are first starting off. Make sure you are honest and upfront about when you can start to make payments on the loan and be sure to incentivize the loan by paying them some interest in return. Be careful going with this route of financing because bad business dealings between friends and family can have long-lasting interpersonal effects. 
  • Small business grants: By doing a little research you can quickly discover that there are thousands of grants available through the federal government, private businesses, and non-profit organizations that are intended to help small business owners expand their operations or help them become established. Each grant may have its own specific requirements for qualifying and you may want to consider hiring a professional grant writer to help with drafting the grant proposals. 
  • Kickfurther (for inventory financing): Inventory financing is another great way to get the funds you need to make investments in inventory purchases or for launching a new product. 

Aside from this detailed list of small business financing options available, you should know that there still exist many options not mentioned here. When you have a strategic growth plan and a thorough financial forecast in hand, you are then ready to begin to review all the different financing options available to you to fund your business’s expansion. This is a critical step of the process and it is important to spend an adequate amount of time to ultimately determine which avenue is the best for you and your business. 

How Kickfurther can help

While we mentioned several ways above to fund your business, you might just need inventory financing. If this is the case, some of the options above may work but you may want a more affordable solution. For companies that need inventory financing, Kickfurther can help. Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

Sell more inventory now and pay later. . . discover affordable inventory financing at Kickfurther!

 

Inventory Financing: Top Options Explained

Posted on by Amanda Levine

Inventory financing is needed by most businesses in order to ensure they have plenty of products to sell. With products going in and out, cash flow can be challenging. To overcome cash flow challenges and maintain a healthy supply of inventory, financing may be the answer you are searching for. Inventory financing can offer several advantages and disadvantages too.  If you have researched inventory financing  you may have found that it can be quite expensive. For affordable inventory financing solutions, keep reading to discover some of the best inventory financing companies.. 

What is inventory financing? 

In the most basic terms, inventory financing is a loan against some or all of your inventory currently in stock. A lender may evaluate your inventory and then make a loan offer for a certain percentage of the value of your inventory. When you do this type of financing, essentially you are using the inventory as collateral to secure the loan. If for any reason you go into default on the loan, the lender then can seize some or all of your inventory in an attempt to collect on the debt. Ultimately, you may be able to use the funds to pay for any number of business expenses, however, most businesses tend to use the financing to purchase additional inventory. Or, some business owners realize that most of their capital is tied up into inventory, so in order to create some cash flow to cover day-to-day expenses, taking a loan against that inventory is a great way to add some working capital to the ledger. As you sell off your existing inventory, you then pay back the loan to the lender plus interest. 

Additionally, if a business needs to stock up on additional product before a busy season like the holiday shopping season, or if their product is more popular during a certain time of the year, like an inflatable kayak that sells extremely well before the summer vacation season, then they can leverage their existing inventory to create the capital needed to fund the manufacturing of new inventory. The business then will make sure that they have enough inventory on-hand to cover the increase in demand during that time of the year. As they sell the new and old inventory, the business then will have more than enough revenue to pay off the loan. Examples of these types of businesses include retail stores and wholesalers who require enormous amounts of inventory in stock to meet the demands of their customers, whether that be retail customers or other retail businesses. 

What are the top options when it comes to inventory financing?

Inventory financing may be one of the most powerful tools for any business that deals in large quantities of product. It can be hard to see your cash reserves depleted as you make large purchases of inventory to meet holiday demand or to be a properly supplied wholesaler that is able to keep all of their retailers fully stocked. However, it may be the nature of how your business operates. That is why inventory financing is so important to fill that cash reserve void as you have all your value tied up into inventory. There are many different types of inventory financing. Some may work better than others when it comes to the structure and specifics of your business. Here is a quick breakdown of some of the inventory financing options that you may want to consider for your next loan. 

  • Inventory Loan: An inventory loan is the most basic type of inventory financing. A lender evaluates the value of your inventory and lets you use that value as collateral to secure a loan. You then can simply pay back the loan amount in installments, or you can agree to pay back the loan following the sale of the inventory. If you default on the loan, you then sacrifice the inventory to the lender who will then sell it in an attempt to collect on the debt. Typically, once the loan has been repaid and the inventory has been sold, you may need to take out another loan to pay for another batch of product. Ultimately, the only thing you are out on is the interest that you pay to the lender. That interest can be calculated directly into your profit margins, allowing you to set prices that are competitive, that make your business a profit, and that cover the interest on your inventory financing. 
  • Inventory line of credit: An inventory line of credit is a revolving line of credit that you can borrow against at any time. Once you enter into a funding partnership with a lender, the lender will allow you to borrow as much money as you need up to a debt ceiling. You continuously make payments and take loans out from the pool of money that the lender has appropriate to your inventory line of credit.  
  • Working capital loan: Working capital loans are designed to give businesses enough cash on hand to cover everyday expenses during periods of time when revenue may be lower. This is ideal for seasonal businesses that see a bulk of their revenue generated in only a few months of the year. When a business owner takes out a working capital loan, most often they are borrowing against their personal credit. 
  • Cash advances: If you operate a retail location and you accept credit cards, you may be able to qualify for a merchant cash advance which borrows against a certain percentage of your future credit card sales. You and your business are given an upfront lump sum of money, and in exchange, the lender gets access to a certain percentage of every credit card sale going forward. Usually paid out bi-weekly or monthly.
  • Kickfurther: Kickfurther is the world’s first online inventory financing platform that enables companies to access funds that they are unable to acquire through traditional sources. We connect brands to a community of eager buyers who help fund the inventory on consignment and give brands the flexibility to pay that back as they receive cash from their sales. This alleviates the cash-flow pinch that lenders can cause without customized repayment schedules, allowing your brand to scale quickly without impeding your ability to maintain inventory or financial flexibility.

Which option is best for financing your inventory?

There really is not one best type of inventory financing. The best type of inventory financing is the one that works best and makes the most sense for your business. Are you a seasonal business? Do you have times of the year where you need large quantities of inventory on hand, and then other times you do not. It may be in your best interest to research each type of inventory financing thoroughly before making a commitment to one type of inventory financing over another. 

How do I qualify for inventory financing?

Inventory financing can be a bit more complicated than other types of business financing. The reason being is that you are essentially using your inventory on hand as collateral to secure a loan from a lender. The lender wants to be sure that you are doing everything you can to accurately report the contents of your inventory, and to protect that inventory. Here are some requirements that a lender may ask of a small business looking for inventory financing.

  • A well-managed inventory: A lender will want to see that you have a trusted inventory management system that allows you to keep constant and up-to-date information on quantities, sales, returns, and basically any piece of information that has to do with the movement of inventory through your business. They may also require that you complete a full-audit before applying for the loan. Often an internal audit may not suffice. You may have to pay upfront for the services of a 3rd party auditing service. 
  • Protected inventory: If your inventory has a short shelf life, then getting inventory financing may prove more difficult. However, if your inventory can sit on shelves for a long time without issue, then lenders will be more happy to lend you money using your inventory as collateral as long as they see you have taken steps to protect the inventory from potential damage. 
  • Open door policy: If you are acquiring inventory financing you should always be prepared for a lender to show up unannounced for a surprise visit to ensure you are doing your best to protect the inventory. 
  • Accurate records: Lenders want to see a business that is doing well and that is selling their product. In order to demonstrate a certain level of sales, a business should have accurate sales records.

If you are looking to qualify for inventory financing, at a minimum, you should expect the above mentioned requirements from most lenders. Some lenders may actually have additional or more strict requirements for you to meet in order to receive financing.

How Kickfurther can help

Most small businesses need some type of inventory financing, regardless of how established they are. Inventory financing often sounds like an easy answer for stocking products but it can be costly. After searching hopelessly for affordable inventory financing, Kickfurther was founded by an entrepreneur just like yourself. Compared to other financing options, Kickfurther is up to 30% cheaper and allows business owners to pay back loans as inventory sells. 

Searching for affordable inventory financing? Visit Kickfurther today!

How to Better Market Yourself & Your Business

Posted on by Amanda Levine

Deciding how to market your business can be challenging. You will need to determine the best way to reach customers along with what fits in your budget. You will also need to determine how to market yourself and or your company. The internet helps companies expand their reach and effectively market products and services. Keep reading to learn how to market your small business online.

Best Strategies for Marketing Yourself

Marketing yourself can be one of the toughest things to do for an entrepreneur. However, a fundamental part of brand positioning is presenting yourself and making yourself available to your existing and potential customers.  You should want to build relationships with your customers to let them see the human side of your brand. The main issue then is how do you present yourself? What kind of content would people be interested in? How can you build a strong social media presence and not overwhelm your followers to the point of annoyance? Here are some basic strategies for marketing yourself in a safe, responsible, and effective way. 

  • Become an expert in your niche: When you are beginning to market yourself, you should do your homework and know what you are talking about. Anyone who consumes your content should be able to rely on you for accurate information, and if they happen to know anything about the subject matter, they will easily be able to tell when you are not fully educated on the subject. The result is, you will lose credibility and followers. That is why it is important to choose a niche and then become an expert in it. Identify who you are, what you represent, and figure out what makes you unique. Too many times people choose too broad of a subject and they can get lost in the endless sea of brands and personalities that fall within that subject. The first thing you may want to do is to research your subject and identify what areas are currently being underserved and unaddressed. Then you may want to consider whether or not the market or subject you have chosen is niche enough or if there are ways to get even more specific. The same goes for whether or not you are getting too specific and risk alienating large portions of the market. 

Once you have found the perfect niche that is not too general and not too specific, it is time to educate yourself to the point of expertise. Trust is extremely important when you are beginning to market yourself. If you give incorrect information, your reputation can become tarnished. You may want to set aside some time every day to read up on your niche. Additionally, if any certifications exist that are related to your chosen field, you may want to consider obtaining them. Other steps you can take may involve reading articles and/or market research about your industry, setting up conference calls and phone conversations with other experts in your field, and looking into attending industry conferences or events. You may even be so bold as to ask to speak at an industry conference or event. All of these steps work to help you build the established reputation of being an industry leader and expert in your market.

  • Build a social media following: The first key to building a large social media following is to know your audience and determine what platforms they are using. Is your audience a younger crowd that uses more of Instagram, Tik Tok, and WhatsApp? Or, are they a little older and have settled into using Facebook and Twitter more. Although most demographics use Facebook and Twitter, you may be able to target a younger demographic much easier with a platform like Tik Tok. Essentially, you want to know where your audience is based on the demographics you are trying to target. Once you create the social media accounts that will be the most effective for your goals, you then want to determine how you can make meaningful content and connections with your audience. Also, you can use your social media accounts to interact with potential customers and other experts in your industry. Make sure you are prompt when responding to customer inquiries. Finally, you want to edit your social media profiles to link directly to your landing page. 
  • Educate others: A fair exchange of knowledge between experts and inspiring experts is not only good for business, but it is also good for elevating the industry in general. It is important to remember that competition does exist, however, networking, even between competitors, can be a powerful tool. 
  • Look for speaking opportunities: One of the best ways to make a name for yourself in your industry is to participate in speaking opportunities or Q&A’s at industry conferences and events. When you finally get to book some speaking events, you want to keep in mind you are not selling your product, instead, you are marketing yourself as an expert in the industry. You can reference your product at the end of the speech, however, the main focus of the speech is to help your audience learn more about a particular subject. 
  • Seek recognition for your expertise: Acquiring certificates and participating at speaking events in your industry is most likely the most effective way of gaining recognition. Other ways may include effectively utilizing your social media and creating a YouTube channel that gives users informative information about your industry and your product. Again, the focus should be education rather than simply selling a product. 
  • Build relationships: Networking networking networking. Networking is so important that we mentioned it three times. Face-to-face contact can be difficult at times due to COVID and geographical restraints, however, face-to-face interaction is critical for developing long-term relationships that can flourish into unexpected and fruitful business possibilities. For example, if you participate in a speaking event, take time after your speech to talk to people and exchange contact information. Same thing if you are not necessarily the speaker, stick around after a speech from a keynote speaker to introduce yourself and also exchange contact information. Another way to build relationships is to identify important people in your industry and set up business meetings and/or lunches. Offering to buy lunch in exchange for some potentially game-changing knowledge is a cheap and effective way to learn valuable information, or to make an ally in the industry you can call upon in the future. 

Considerations When Marketing Yourself

The most important thing to remember when it comes to marketing yourself is that even though it can feel uncomfortable at times presenting yourself to strangers, it is critical for brand positioning and for doing your best to ensure the future of your business. Remember to always be an expert and to do the work necessary to maintain that expertise. Remember, social media and industry conferences or events are essential to marketing yourself to existing and potential customers or business partners. Remember to network and to build long lasting business relationships that have the potential to be mutually beneficial. There are many other things to consider when thinking about how to market yourself, however, there are some of the basic principles that you should always keep in mind. 

Conclusion

While you may know and believe how great your products and services are, you need to communicate and show others. Marketing is extremely powerful when done creatively. Startups or small businesses often struggle with marketing budgets as it can be expensive. However, it can help increase sales while in turn should improve profits and cash flow. As sales start to increase, you may need to find affordable inventory financing. At Kickfurther, companies can access the funds they need to finance inventory for up to 30% cheaper than other options. With over 800+ deals funded and a 99.5% success rate, Kickfurther is helping companies sell more inventory now while allowing them to pay later.

Discover affordable inventory financing. . . click here!