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Brand Positioning: Strategies & Tactics for Small Businesses

Posted on October 26, 2021January 27, 2025 by Kaylyn Perry

Nowadays, businesses only have one thing in mind: standing out. Due to the congested nature of today’s business landscape, setting yourself apart from your competitors is becoming more and more challenging. Without differentiating yourself in such a congested marketplace, it can be difficult to sustain your growth and remain competitive. But, when it comes to getting ahead of the competition, where do you even start?

Fortunately, there are several proven strategies that you can employ to be able to stand out. One such strategy is brand positioning.

What is brand positioning?

Brand positioning is an often overlooked yet impactful part of marketing strategy. At its most basic, brand positioning refers to how a company sets itself apart from its competitors. It helps customers get an overview of a company’s values to influence their buying behavior. However, brand positioning is more than just highlighting your company’s unique selling point or coming up with a catchy slogan, it’s a comprehensive strategy that aims to boost your credibility and thought leadership.

When positioning a brand, one of the most important things you need to keep in mind is brand association. Brand association is when your customers attribute a certain quality to your brand. It fosters easier recognition of positive characteristics that help people remember your brand and ultimately differentiate you from your competitors.

Why is brand positioning important for small businesses?

Small businesses need brand positioning to stand out in a crowded marketplace. It enables them to understand their customers better and make informed marketing decisions. Brand positioning is an integral part of marketing as it encourages customers and potential customers to take notice of your company’s uniqueness. Through this, your customers will pay more attention to the quality of your product regardless of price.

What are the main goals of brand positioning?

While the main goal of brand positioning is to differentiate your business from your competitors, it should also support brand recall. Brand positioning is an all-encompassing strategy that provides consumers with visuals and concepts about a particular brand. In essence, it determines how you could best communicate to your customers in a way that’s consistent with your brand. Highlighting why your product is different and creating a unique impression in your customer’s mind positions you and your products to stay adaptable and competitive.

How to Improve Brand Positioning: Tactics and Strategies For Small Businesses

As previously mentioned, brand positioning is more than just writing a catchy tagline and developing a logo. Brand positioning enables your brand to appeal to your target market and potential customers. However, it’s important to understand that brand positioning doesn’t happen overnight. Brand positioning, like everything in business, needs constant work. Fortunately, there are several tactics and strategies that you can use to better handle your brand positioning efforts. Check out some of them below:

Know who your customers are

Before you get started on your branding campaign, you should first know who your customers are. Effective brand positioning means you have to have an idea of the products that your customers buy, what their interests are, as well as what influences them when purchasing a product. Having this information will help you create a persona for your brand and enable you to personalize your messaging in order to appeal to your target market.

Establish your brand’s personality

A critical component of brand positioning, establishing your brand’s personality humanizes your brand and makes you more relatable to your intended customers. While finding your brand’s persona sounds simple, it actually involves a lot of work.

Consider Nike’s Just Do It campaign. It has stood the test of time (it was first used in the late 80s) and is still considered one of the most innovative campaigns of all time. Regardless of how you interpret it, Nike’s Just Do It campaign served as an inspirational rallying cry that spoke to millions of aspiring athletes and everyday people that want to take care of their health.

Determine what sets you apart – and focus on it!

Determining what sets you apart defines what your company can uniquely offer. In essence, this means identifying your unique selling point or USP. Identifying your USP enables you to highlight the value you create and sell the problem that you solve.

One of the best tools that you can use to determine what sets you apart is market research. Through the use of concrete data, you will be able to obtain an unbiased view of the marketplace and recognize what you need to do in order to stand out. Not only does a unique selling point give you an edge in the marketplace, but it also puts focus on what your competitors lack.

Create a strong positioning statement

A positioning statement gives your customers an idea of what you can offer that others can’t. It essentially creates brand recall that would let you stay top-of-mind no matter how congested a particular industry is. According to Adhere Creative, a brand positioning statement defines how your product fits in your customer’s lives. This means finding the value in your product and focusing on how you do it better than your competitors. If you are in the initial stages of launching a company or a new product, make sure to establish a strong positioning statement that is aligned with your overall voice. If you’re unsure where to start, here are a couple of tips when developing a position statement:

Identify your target market
Determine your differentiators
Craft a positioning statement with your target market in mind and the unique benefits that your products offer
Evaluate your positioning statement and make sure it’s clear and concise
Communicate your positioning statement consistently (and regularly!) across all of your platforms

Consistency, consistency, consistency

To ensure brand positioning success, you need consistency. In a brand positioning campaign, it’s important to make sure that your copy, graphics, and other types of content ties-in with your overall brand voice. This is key for leads and customers to gain a holistic view of your brand and your products. Contrary to popular belief, brand positioning not only applies to customer-facing marketing collateral, but also to a company’s internal messaging. Having employees “live and breathe” what you stand for is a surefire way to bolster your brand positioning efforts.

What are some brand positioning examples?

Are you wondering if brand positioning works? Here are a few companies that have successfully positioned themselves over their competitors:

Dollar Shave Club – Quite possibly a contender for the best brand positioning strategy in the last decade, the Dollar Shave Club hit the ground running and attracted consumers towards their low-cost razors. However, that doesn’t mean that Dollar Shave Club products lack quality. The company has positioned itself as a leader in quality grooming products at a fraction of the price.
Trader Joe’s – Trader Joe’s brand positioning appeals to consumers that are looking for healthier alternatives. Put simply, Trader Joe’s highlights their health-focused products while creating a fun shopping atmosphere in each store. Another great thing about Trader Joe’s is that their products are reasonably priced. High-quality food at an affordable price? Genius.
Apple – It’s probably difficult to find a person in this world that has never heard about Apple and their products. From powerful laptops to sleek mobile phones, Apple’s message emphasizes the value that their products offer and positions them not only as a technology leader but also as a lifestyle brand.

Final Thoughts

The thing about brand positioning strategy, like everything in business, is that it really depends on the type of company you have and how you want to be perceived by the general public. It’s possible for companies to try and fail a couple of times before finding the right brand positioning formula. But once you establish the right brand positioning strategy for your company, it’ll be easier for you to shape consumer preferences and allow you to remain competitive in an oversaturated market.

About Kickfurther

Once you have established a great brand positioning strategy, expect your products to fly off the shelves! If you need additional financing to produce more inventory, check out Kickfurther. Kickfurther is an online inventory financing platform that connects brands to a marketplace of funding.

The great thing about Kickfurther is that companies go through an extensive vetting process before they can tap into the Kickfurther community. This creative funding model is an innovative way for businesses to get the funding that they need without tying up their cash flow on inventory. For more information, visit www.kickfurther.com.

Tips on Requesting a Price Quotation From a Product Manufacturer

Posted on October 26, 2021 by Kaylyn Perry

In this guide, we’ll discuss price quotations, requests for quotation (RFQs), as well as the main difference between an RFQ and a request for proposal (RFP). We will also go through a couple of tips on how to successfully request a price quotation from a prospective product manufacturer.

What is a price quotation?

Also known as a price quote, a price quotation simply refers to the fixed price required when producing a particular product. For product-based businesses, a price quotation is usually a document provided by the product manufacturer that details all the terms, conditions, and payment details associated when making a product. Once the business agrees with the provided quotation, both parties enter a business partnership with the potential to become long-term in nature.

How do I request a quote from a product manufacturer?

Requesting a quote from a product manufacturer involves a business process called a request for quotation or RFQ. Sometimes referred to as an invitation for bid, RFQ is a process that businesses use to urge suppliers to submit pricing quotations and payment terms based on specific requirements. An RFQ is an important aspect of the procurement process as it kickstarts the production of goods. The main goal of an RFQ is to solicit quotations from a group of shortlisted manufacturers with the purpose of comparing services, prices, and payment terms.

It’s important to note that a request for quotation shouldn’t be confused with a request for proposal (RFP). Like an RFQ, an RFP is a document that companies use to gather the necessary information about potential suppliers and/or contractors. While it may sound similar to an RFQ, RFPs are mainly used to acquire complicated information about suppliers and involve more than just price quotations.

The main difference between an RFQ and an RFP is that of scope. RFPs are used when a company needs detailed information about a potential supplier’s expertise, production efficiency, and logistical capabilities. In an RFP scenario, businesses are expected to use a more refined criteria when selecting potential suppliers in order to make sure that they will be able to meet their needs.

Is a Request for Quotation (RFQ) legally binding?

The short answer is no, it’s not. However, the details you include in an RFQ may be used in a legally binding document later on. A contract will only be established after a business selects a potential supplier.

How to write a request for a quote?

Now that you have an idea of what an RFQ is, you are ready to initiate the vendor selection process. The first step to requesting a quote from a prospective supplier is writing an effective RFQ letter. As previously mentioned, an RFQ usually comes in the form of a written document that aims to obtain critical information from vendors/suppliers. Here are some tips to help you get started:

What type of business do you have? Providing enough information about your business helps your potential suppliers understand your company better. It also gives them an overview of the vital requirements needed to be able to adequately produce your products. As a business owner, it is important for you to provide a detailed account of your business as well as how a potential supplier can help achieve your business goals.
What kind of products do you offer? As a rule of thumb, it’s always best to send RFQs to manufacturers that specialize in your industry. In this way, your prospective suppliers will already have the necessary tools and equipment needed to meet your production needs.
What are your requirements? As you may have guessed, detailing your requirements is the most important part of an RFQ. This section should include clear product specifications, delivery terms, milestones, payment terms, and cost breakdown just to name a few. When writing an RFQ, keep in mind that there’s no such thing as being too detailed. This allows you to set attainable goals for yourself and set realistic expectations for your supplier. That said, it would also help to have a clear scope of work for your production needs in order to avoid setting unrealistic goals.

Tips on Requesting a Price Quotation From a Product Manufacturer

While it’s true that price quotation letters are standard practice for businesses, not a lot of people understand that an RFQ is a fairly straightforward process. When done correctly, an RFQ is a great way to tell potential vendors what you want and what you expect from them. To help guide you, we compiled a few tips on how to properly request a price quotation from a potential product manufacturer. Check them out below!

Make a list of potential suppliers
- When making a big purchase, it’s imperative to shop around and make sure that you’re getting the best deal possible, right? The same goes when choosing a potential supplier. Try to gather at least four to five suppliers to be able to gain a better understanding of the costs involved in making your item. Through this, not only will you be able to assess the individual capabilities of each supplier but also identify the most cost-effective candidate.
Say what you are looking for
- To avoid wasting time on back-and-forth emails about your specifications, it’s best to just say what you are looking for. Adding as much detail as you can about the services and technical capabilities you need will enable you to get the most accurate quotes.
Present your requirements and conditions in full
- In addition to adding as much detail as you can in the RFQ process, it’s also advisable to present your specific requirements and conditions in full. Ensuring that the information you are providing is complete and organized enables you to speed up the quoting process and avoid the delay of going back and forth for clarifications.
Make sure your tech pack’s ready
- But first… what’s a tech pack? In an RFQ process, a tech pack refers to the technical information and components required for a manufacturer to be able to produce an item. It contains important aspects such as materials needed and construction instructions in an easily-digestible format. In essence, a tech pack serves as a blueprint that enables your potential manufacturer to turn your designs into a finished product.
Review quotations (But don’t just focus on price!)
- Once suppliers respond to your RFQ, it’s now time to evaluate their quotations. When reviewing quotations, note that one of the most common pitfalls that businesses should watch out for is solely focusing on price. In business, it’s important to make the most out of a budget. However, solely focusing on price during the procurement process may do more harm than good. Remember, lower prices may sometimes reflect goods that are of low quality, and choosing quality over price is always a more sustainable choice.
Select your product manufacturer
- Make sure to review the quotations you have received carefully. After reviewing the prices that you have received, you’re now ready to select your product manufacturer!

Bottom Line

Requesting a price quotation is a great way to gauge the technical capabilities of a potential supplier. It allows businesses to get an overview of a potential supplier’s capabilities and determine whether or not they would be able to meet their needs.

About Kickfurther

Kickfurther is an innovative inventory financing platform that puts a unique twist on the crowdfunding phenomenon by asking backers to fund a company’s inventory needs at a consigned rate. In a nutshell, Kickfurther allows a brand’s supporters and fans to fund their inventory on consignment. Supporters would then be offered a rate and get paid when a company sells its inventory successfully. If you want to learn more about Kickfurther, visit www.kickfurther.com.

5 Alternative Financing Options for Inventory Expansion

Posted on October 20, 2021 by Kaylyn Perry

Retailers, wholesalers, and seasonal businesses can benefit from inventory financing. Inventory financing can help businesses meet customer demand without interrupting cash flow. However, it may be tough for small businesses to qualify for inventory financing. The good news is there are several inventory financing lenders and several inventory financing alternatives. To qualify for most types of inventory financing businesses should have at least one year in business, sales history, and a reliable inventory system. As a business owner you may be wondering what types of inventory financing are available. Keep reading to learn more about inventory financing alternatives.

What are your financing alternatives to fund your inventory expansion needs?

Businesses need access to capital in order to thrive. Even well established, successful businesses may need inventory financing. Inventory financing can help companies ensure they have product available and healthy cash flows. In addition, inventory financing can help businesses overcome seasonal sales spikes. Tying up available cash to purchase inventory can cause cash flow problems. Inventory financing is often assumed to be easy to secure. However, for small business inventory financing may be challenging to secure. It’s important for small business owners to know what inventory financing options are available and select the option they are most likely to qualify for. Let’s explore financing alternatives that can fund inventory expansion needs. . .

Crowdfunding

Businesses and charities can raise money for inventory financing using crowdfunding. Individuals and organizations can create campaigns that investors can choose to invest in. Crowdfunding allows individuals and organizations to pool together multiple investors’ money. So what’s in it for investors? Investors make money on the interest you pay on the loan. In addition, investors may require stake or equity in your company. Most crowdfunding platforms charge fees for raising funds, which can add up quickly. Kickfurther takes a unique approach to crowdfunding that allows individuals and organizations to create campaigns and investors to purchase inventory on consignment. Kickfurther allows businesses to get the funding they need without giving up equity.

Bank loans

Bank loans can provide business owners with a lump sum of cash that can be used for business financing. In some cases, it can take 1-3 months to complete the application process for a bank loan. For small businesses and startups, it may be challenging to qualify for a bank loan. In most cases, banks will request collateral or a personal guarantee. Before applying for a bank loan you should make sure you meet the basic requirements. Banks usually have requirements for businesses such as time in business and proven sales. If you can qualify for a bank loan it’s likely that you can secure a competitive fixed interest rate with predictable monthly payments. As an added bonus, you will have access to a professional banker that is familiar with your business and can provide advice.

Personal loans

Personal loans are often used for inventory financing. If you are a small business owner or startup entrepreneur, you may be desperate to secure inventory financing. If you are tired of not meeting basic requirements and being denied time after time for a business loan, you may want to consider a personal loan. Personal loans do not require collateral and are usually easy to secure. In addition, business owners with less than perfect credit should be able to qualify for a personal loan. However, compared to bank loans, crowdfunding, or Kickfurther, personal loans may have higher interest rates.

Credit Cards

While credit cards can be used for inventory financing, they may not be the best option. If you are confident that you can turn inventory extremely fast, you may be able to justify using a credit card for inventory financing. However, when double digit interest rates are applied to your credit card balance, the cost of your inventory can go way up. The purpose of an inventory loan is to help your business be more profitable. Regardless of the type of inventory financing you choose, there will most likely be interest and other fees. However, as a business owner you should do everything in your power to find an inventory financing option with the lowest possible fees.

Line of credit

In some cases, businesses may qualify for a line of credit that can be used for inventory financing. An inventory line of credit is usually issued by a bank or credit union. It’s similar to a credit card but should have a lower interest rate. When you are approved for a line of credit, you will have access to a specified amount of capital. For example, if you have an $80,000 line of credit and you use $50,000 of it, you’ll have access to $30,000 until you pay back the $50,000 you borrowed. Once you repay the $50,000 you borrowed you should have access to the full $80,000 again.

What is the least costly way to finance an inventory?

In most cases, bank or term loan, a line of credit, or some type of crowdfunding should be the cheapest way to finance inventory. However, if you can pay cash for inventory it will be the ultimate cheapest. Financing inventory comes along with additional fees but that’s just part of doing business. As a business owner it’s important to account for increased cost to make sure you are operating at acceptable margins. When choosing inventory financing you should take into account what it will cost.

Which type of financing is most appropriate to finance purchase of inventories?

If you need to finance the purchase of an inventory or replenish inventory, you should use inventory financing. While there are different types of inventory financing, they all share the same concept – borrowing money to purchase product. Depending on your business model, the type of inventory financing that is best can vary. For example, if you turn inventory quickly and can’t stock too much inventory at a time, a line of credit may be best. Alternatively, if you sell inventory quickly but can keep a good amount stocked, a term loan or inventory financing platform may be best.

Grow your business with Kickfurther

Inventory financing can be expensive, thus driving business owners to explore other options. Our model routinely delivers lower costs than competing platforms on terms that provide superior flexibility tailored specifically to each individual business’s cash-flow timeline where no payments are due until newly funded inventory begins selling and revenue lands without giving up equity in the company.

Wrapping Up

With 800+ deals funded, we’ve proven to be a flexible inventory financing solution for growing businesses. Our customers often see lower costs than available from other solutions and access payment terms that offer superior flexibility. Our CEO Sean De Clercq is an entrepreneur who also struggled to find sufficient funding for his growing business and created Kickfurther to help solve this problem for other entrepreneurs.

Take your business to the next level. . . apply for inventory financing today!

The True Cost of Selling on Amazon

Posted on October 20, 2021 by Kaylyn Perry

How much does it cost to sell on Amazon? While you may be tired of hearing that the cost to sell on Amazon varies, it’s true. Amazon selling costs can vary depending on the price of the product, how it’s fulfilled, whether it’s advertised or not, and so on. Most seasoned Amazon sellers had to jump in and test the waters before becoming successful. With hard work and dedication, being successful on Amazon is completely achievable. For sellers that are just starting out we can help you understand the different costs you may encounter and how you can estimate them. So what does it cost to sell your product on Amazon? Let’s find out!

How much does it really cost to sell on Amazon?

Amazon provides a platform for sellers that is straightforward and convenient. However, in order to be successful selling on Amazon you should understand the ins and outs of the platform including the costs. Amazon sellers incur selling costs, referral fees, fulfillment fees, and other costs. While Amazon provides services such as FBA (Fulfillment by Amazon) that can save sellers tons of time, they do cost extra. In addition, there is plenty of competition on Amazon so you may need to invest in additional advertising to stand out. To get started on Amazon you’ll need to decide which selling plan is best for your business. Let’s take a look at some of the options and costs sellers may encounter when selling on Amazon. . .

#1. Choose a selling plan

An individual selling plan is recommended for sellers that sell fewer than 40 items per month. A professional selling plan is recommended for sellers that sell 40+ items per month. So what do the plans cost?

An individual selling plan has selling fees of $0.99 per item plus referral and variable closing fees. A professional plan has a monthly subscription fee of $39.99 plus referral and variable closing fees. The referral fee is exactly how it sounds, a referral fee paid to Amazon. Amazon referral fees are typically a percentage of the total item price. The Amazon variable closing fee usually depends on the category, it’s fixed for media products but can vary for non-media products.

#2. Choose shipping and fulfillment options

Amazon can either handle fulfillment for sellers or sellers can handle it in house. Neither option is free so sellers should really consider the pros and cons and time investment for each option. In some cases, FBA may save sellers time and money. However, sellers will have less control over costs and branding. FBA fees can vary depending on item weight, handling fees, pick and pack, and storage costs. Sellers that use FBA store products at an Amazon warehouse which is why storage costs are included in FBA costs. For sellers that choose to use FMB (Fulfillment by Merchant) there will still be picking, packing, and shipping costs. In addition, you will need to have a place to store your items. Amazon requires sellers that use FMB to follow all Amazon seller rules including providing tracking information, replying to customers within 24 hours, and shipping products within the promised time frame. Sellers that use FBM cannot sell via Amazon Prime. Amazon also offers a hybrid option known as SFP (Seller Fulfilled Prime) which allows the seller to store, pack, and ship their own items but list them as Prime.

#3. Choose advertising

Amazon offers advertising services. Amazon recommends that sellers begin with sponsored ads. Sponsored ads are pay-per-click and can fit into big and small budgets while producing results. Cost-per-click advertising allows sellers to set their own price i.e. how much are you willing to pay for someone to click on your product. However, sellers should keep in mind that how they manage their operations will result in how many sales they capture. As an Amazon seller you will want to occupy the buy box as often as possible. The buy box is a lesson on its own and may take time to master. We are mentioning it now to raise awareness. You may want to contact Amazon or an Amazon expert for assistance properly setting up your products and advertising.

What percentage does Amazon take from sellers?

Amazon takes a referral fee from sellers. This is how sellers contribute to Amazon’s profits. Because well, nothing can be free. Amazon charges a variety of fees but they also offer sellers a dream land for selling products. All sellers have to manage is the product really. Once you have mastered selling on Amazon, it should be smooth sailing. However, mastering Amazon can be quite a task. Luckily, there are a variety of ways sellers can manage the fees they pay out to Amazon. As far as referral fees, they usually vary based on the category of the product. Most Amazon referral fees range from 8% to 15% of the selling price.

Is it worth it to sell on Amazon?

Selling on Amazon is worth it for most sellers. It would take a significant time and money investment to create your own website that had as much traffic as Amazon. Once you learn how to work with Amazon, selling on Amazon should be easy money. Amazon holds over 49% of the market share for all U.S. e-commerce sales since 2018. Why compete with a player that large when you can join them?

How much money do I need to start selling on Amazon?

Some sellers can get started on Amazon with a few hundred dollars while other sellers may need thousands of dollars. How much money you’ll need to start selling on Amazon depends mainly on how much your inventory will cost. Jungle Scout recently did a study on how much Amazon sellers spent to get started and how their investment relates to their success. On average, Amazon sellers reported spending $3,836 to start their Amazon business. Their findings prove that investing more money getting started on Amazon does not always equate to making more money.

Grow your business with Kickfurther

If you are planning on selling on Amazon, you may need a way to finance inventory. Inventory financing can be expensive and difficult to qualify for in some cases. If you are getting frustrated trying to find affordable inventory financing, hear us out. Kickfurther takes a unique approach to crowdfunding that is designed to provide affordable inventory financing for businesses. In addition to being up to 30% cheaper than other options, Kickfurther does not make business owners give up equity. Instead, Kickfurther allows supporters or investors to purchase inventory on consignment. To get started, small businesses can create proposals including a time frame for producing goods, a specified rate of return, and a schedule for repayment. Depending on your expected cash flow, you can set the repayment schedule between 2-10 months. Kickfurther supporters are repaid in full plus dividends.

Wrapping Up

Amazon sellers need to ensure they have plenty of capital or alternative financing for inventory. With 800+ deals funded and a 99.5% success rate, we can help your business get the inventory financing it needs. We’ve created a community for business owners, fans, and supporters. When inventory sells, supporters get their money back. Business and supporters share a common goal with us which leverages success.

Grow your Amazon business today with inventory financing. . . apply online today!

Creative Ways to Fund Your Small Business Growth

Posted on October 20, 2021 by Kaylyn Perry

Small business funding is in high demand. As an entrepreneur, you are probably searching for the best and most cost effective option for business funding. If you are reading this, you’re on the right track for success. It’s important for business owners to understand financing options. As your business grows, you may need to shift how it’s funded. The decisions you make to launch the business will dictate the future of your investment. So how do you get funding for a small business? Keep reading to find out.

How to get funding for a small business

In some cases, you may be able to launch a small business with no funding. However, in most cases, small businesses will need funding sooner than later. While the U.S. Business Administration has special programs designed to help small businesses secure funding, approval is not guaranteed and requirements are strict. Perhaps your business does qualify for a Small Business Administration (SBA) loan but you feel this is not the best option or you may just want to know all your options. Small businesses may have more options available than they realize. So which type of funding is best for your small business? Each type of loan should have its own set of requirements. Business owners should review requirements before applying in order to save time and frustration. Learning about all options before applying can also help business owners select the type of funding that is best for their business. If you own a small business and need funding for inventory, you should check out Kickfurther.

Why funding is critical to business growth

Funding is necessary in order for businesses to cover day-to-day expenses, keep cash flow healthy, and finance expansion. You could have the greatest product in the world but if you have no capital to produce the product and market it, you shouldn’t give up your day job. Most businesses need some type of funding. Even well established businesses may need funding. There is no shortage of demand for business funding, thus encouraging lenders to find ways to meet the demand. As an entrepreneur, you may have a great idea but no extra cash to invest and grow the idea. So how do you get started? In the very early stages you may need to do some self funding such as personal loans, savings, or credit cards before being able to qualify for actual business financing. While these may not be the most cost effective options for financing, you’ll need to start somewhere.

What are the top ways small businesses get funding?

Depending on the stage of growth your business is in, you may be looking at different financing options. In addition, there may be different options available depending on what you are looking to fund. For example, you only need financing for inventory, you should consider an inventory loan or applying at Kickfurther. Let’s take a look at some of the top ways small businesses get funding.

Personal loans

Startups and small businesses may need to use personal loans for funding. Some lenders offer personal loans up to $100,000 with terms up to 12 years. In most cases, personal loan funds can be spent on just about anything. Personal loans can provide small businesses with the funds they need to grow. While personal loans usually have lower interest rates than credit cards, there may be lower interest options for business financing. However, in the early stages, your business may not qualify for other options. Personal loans can help your business get momentum and establish sales so that you can qualify for other types of financing down the road.

Savings

In some cases, business owners and entrepreneurs may have cash savings that can be used for business funding. Cash is typically the cheapest way to finance a business. Whether you use cash or savings or financing, there are risks involved. As a business owner you should reserve some cash for emergencies or unforeseen obstacles.

Credit cards

Credit cards can provide funding for businesses. However, credit cards usually have some of the highest interest rates. If you decide to use credit cards you should plan to pay down the balance as soon as possible. Business owners should strongly consider using a personal loan over a credit card.

Bank loans

Bank loans are usually challenging to qualify for and have a lengthy application process. However, if you can secure a bank loan it may be a smart option. Bank loans usually offer competitive fixed interest rates with predictable monthly payments. As an added bonus, you will have access to a professional banker that is familiar with your business and can provide advice. In most cases, banks will request collateral or a personal guarantee. Before applying for a bank loan you should make sure you meet the basic requirements. Banks usually have requirements for businesses such as time in business and proven sales.

Crowdfunding

Venture capital

Venture capitalists may be willing to fund businesses. Venture capitalists are usually just wealthy investors focused on the long -term growth perspective of a business. While businesses can secure funding using venture capital, business owners usually have to give up equity and some control.

Should I borrow money to start a business?

Borrowing money to start a business can be risky yet rewarding. Of course there is always the possibility of failure that may deter some of us but there is also the possibility of great success. If you believe in the business you envision, you should borrow money and go for it. Just be sure that your plans are well thought out. If you borrow money, outline how it will be spent and what it will do for the company. What you want to avoid is borrowing money and throwing it into areas of the business that are not critical for success. It’s better to have a slow growing stable business that you can sustain as opposed to a fast growing business that you may lose control of. It’s perfectly acceptable to borrow enough money to get going and borrow more later on rather than borrowing too much too soon and becoming overwhelmed in debt.

How to apply for funding for a small business

Before applying for small business funding, you’ll need to determine what type of funding you want to apply for. Most lenders will require businesses to complete an application to get started. It’s likely that businesses will be asked to submit cash flow statements, business plans, and other documents. In addition, business owners may need to provide a personal guarantee. If you choose to apply with Kickfurther, you can get started online by creating an account and submitting your funding proposal. Once Kickfurther approves your account, most deals are funded within a day.

Grow your business with Kickfurther

We take a unique approach that allows supporters or backers to purchase inventory on consignment. Therefore, businesses can get the inventory financing they need without giving up equity in their company. With Kickfurther, you don’t have to start making your payments on funding until that inventory has begun selling, which eliminates the cash flow pinch caused by immediate repayment other finance lenders use. Brands that use us can repeatedly increase their total funding amount while decreasing their costs. To get started, small businesses can create proposals including a time frame for producing goods, a specified rate of return, and a schedule for repayment. Kickfurther supporters are repaid in full plus dividends.

Wrapping Up

If you need funding for business operations, you should consider one of the options above. However, if you need inventory financing, consider Kickfurther. At Kickfurther, business and supporters share a common goal which leverages success. Kickfurther was founded by Sean De Clercq, an entrepreneur who struggled to find affordable inventory financing for his own business. As an entrepreneur, he found a problem and was determined to provide a solution. With 800+ deals funded and a 99.5% success rate, we offer extremely low fees, no paid subscription, and can be up to 30% cheaper than other options.

Secure inventory financing without giving up equity in your company. . . apply online today!

How Much Should I Invest in Inventory?

Posted on October 20, 2021 by Kaylyn Perry

What’s an appropriate inventory investment? This is a question that all businesses visit from time to time. Determining the right amount of inventory to carry may take some time but it’s so important you figure it out. Carrying too much inventory can cause companies to fail or suffer cash flow problems. It may be tempting to place a larger order and receive discounts from your supplier but be careful. While you always want to find the cheapest way to obtain inventory, over purchasing inventory is not the answer. Whether you are going to use inventory financing or pay cash for inventory you need to determine how much inventory you should carry at a time.

How much inventory should you carry?

Knowing how much inventory to carry is key for optimizing sales and operating a profitable business. There’s a difference between how much inventory you should carry and how much inventory you can carry. Business owners should set aside the financials for a bit and calculate how much inventory they should carry. To do this you should start by analyzing past and current inventory data to discover sales patterns. Next, you’ll need to determine your inventory turnover ratio (inventory turnover ratio=COGS/avg cost of inventory on hand). After you have determined the turnover ratio you should consider supplier lead time and internal lead time. If it takes your team one week to process 70 units and you receive about 140 orders per week, you’ll need to carry at least 140 units. Lastly, businesses should determine how much safety stock they need to cover emergencies or seasonal changes. Once business owners have determined how much inventory they should carry, they can move onto determining what it will cost to purchase and store the inventory. If businesses are unable to afford enough inventory, they may need to turn to inventory financing.

How do you calculate inventory needs?

The main part of calculating inventory needs is determining the turnover ratio:

Inventory turnover ratio = COGS/average value of inventory on hand

For example, if your COGS was $50,000 and the value of inventory held was $10,000, your inventory turnover ratio would be 5. This means your company should sell out of stock 5 times a year. If you compare this figure to national inventory turnover averages for your industry, you can learn a lot. If your ratio is low compared to industry averages there’s a good chance you may have extra inventory. This can cause funds to be wasted as well as storage space. If your ratio is much higher than industry averages, it may mean that you are not holding enough inventory.

What is a good inventory percentage?

Maintaining an inventory turnover ratio between 4 and 6 should mean that your restock rate and sales are well balanced. However, businesses can differ. In addition, if your inventory systems are not accurate it can lead to incorrect calculations which can disrupt inventory. The goal is to find a ratio that allows your company to neither run out of product or have a surplus of product. You want to find a way to meet demand efficiently.

How much does inventory cost for a small business?

When it comes to calculating inventory costs, you’ll need to consider more than just what the actual product costs. It’s important to also consider shipping, storage, and other costs associated with inventory. Retailers typically allocate 17% to 25% of their budget to inventory. However, this figure can drastically vary depending on the type of products you sell.

What are inventory costing methods?

In addition to effectively calculating inventory turnover ratios, small businesses should choose the appropriate method of determining the cost of inventory. The four inventory costing methods we are going to discuss are first in first out (FIFO), first in last out (LIFO), specific identification method, and weighted average cost method.

FIFO:

If you sell perishable products this is probably the method you’ll use. However, FIFO is gaining popularity for other types of products too. It’s known for being simple yet intuitive and accurate. The concept behind the method is simply, sell old inventory first and know that not all inventory is created equal. FIFO usually results in higher profit margins and is generally calculated by multiplying the cost of oldest inventory by the amount of inventory sold.

LIFO:

Rarely do retailers choose LIFO over FIFO, but it is an inventory costing method so we’ll discuss it. LIFO is the opposite of FIFO. Companies using LIFO sell the newest products first. Some businesses may choose to use LIFO for accounting purposes but FIFO is usually more effective.

Specific identification method:

Small businesses can achieve very accurate numbers by using the specific identification method. This method requires every piece of inventory to have a specific cost assigned. Balances are adjusted as inventory is bought and sold. If you have high-volume operations this method may not be feasible.

Weighted average cost method:

The weighted average cost method is one of the easiest ways to track and cost inventory. In a nutshell, this method averages the price of all purchased inventory. When items are identical or very similar this method can work well. The weighted average cost method assumes all items are equal, thus if prices vary you may have inaccurate inventory stock and costs.

What is inventory turnover?

By now you probably realize how important knowing your inventory turnover is. But what exactly is inventory turnover? According to Investopedia, inventory turnover is the rate at which a company replaces inventory in a given period due to sales. Inventory turnover can help companies determine how much inventory to carry as well as improve pricing, manufacturing, marketing, and purchase decisions.

How do I calculate inventory turnover?

Inventory turnover ratio = COGS/average value of inventory on hand

Is it better to have high or low inventory turnover?

In most cases, businesses are better off having high inventory turnover. High inventory turnover usually means a business is selling goods promptly and demand is healthy. If a company over estimates demand and over purchases inventory, this will result in a low inventory turnover. Having a higher inventory turnover should mean that you won’t miss out on sales opportunities. The key to achieving high inventory turnover is to ensure that sales and purchasing departments are in sync. Achieving the perfect match of sales and inventory should result in healthy cash flows and well managed operating costs.

Grow your business with Kickfurther

Stocking enough inventory means taking advantage of every sales opportunity. However, stocking inventory can tie up cash flow and be costly. Most companies need some type of inventory financing. For small businesses, it may be challenging or too expensive to secure inventory financing. Yet, somehow you need to find a way to finance inventory to grow your business. If you’re looking for affordable inventory financing, Kickfurther is the answer. We take a unique approach that allows supporters or backers to purchase inventory on consignment. Therefore, businesses can get the inventory financing they need without giving up equity in their company.

Wrapping Up

Kickfurther can help small businesses that need inventory financing. In addition to providing affordable inventory financing, Kickfurther has favorable repayment options. Depending on your expected cash flow, you can set the repayment schedule between 2-10 months. Kickfurther supporters are repaid in full plus dividends. Kickfurther was created by Sean De Clercq, an entrepreneur who struggled to find affordable inventory financing for his own business. As an entrepreneur, he found a problem and was determined to provide a solution. With 800+ deals funded and a 99.5% success rate, there’s no doubt that Kickfurther can help your business get the inventory financing it needs.

Unlock the funds you need to purchase inventory. . . apply online today!