Remember the days of youth… racing to the top of the hill, to be the “king of the castle”. All it took was being the fastest runner, persevering through the breathlessness and the stomach cramps and the aching legs. If you could push yourself hard enough and be just ahead of the rest, you could glory in the recognition that you were “the best”, most worthy of whatever power was bestowed upon that day’s winner.
Factors For Business Success
In the world of small business, becoming the “king of the castle” certainly requires a similar vein of perseverance. As a business owner, you learn that real success comes through sweat, pushing yourself hard, not giving up, and overcoming obstacles of various shapes and sizes.
But perseverance isn’t all it takes. There are many factors for success, including:
- good customer service,
- quality products,
- competitive rates/prices, and
- effective marketing.
The Driving Force
While all of those factors have their place, real power is found in something more behind-the-scenes – cash flow.
Cash flow is a driving force that can make the difference between “king of the castle” or tumbling back down the hill. Cash allows greater flexibility, more freedom, and results in more power. Having cash is critical and can mean the difference not only between success and failure, but also thriving or merely surviving.
Cash Flow Depends on Customers
A lack of cash flow is actually one of the top 3 reasons businesses fail. At any point in time, 1/3 of businesses are experiencing cash flow issues.
Timing is important. One day can make all the difference. More than 1/2 of companies with money challenges blame slow payment from their customers.
Some companies end up taking out expensive short-term loans to make up for the tight cash flow. When customers are paying past invoice due dates, your business is being used as a cheap source of credit. This puts a tremendous strain on your cash flow.
Every business has customers and every business is a customer. So if your customers are not paying, neither can you!
Other Cash Flow Factors
But customers are not the only cause of cash flow issues:
- hiring new staff
- upgrading or fixing equipment and technology
These all cost money and take a chunk out of your cash flow.
King Of The Castle
If your business has the ability to pay all your necessary yearly expenses with plenty of fresh cash available at the end, you’ve become “the king of the castle”. With free cash, you can invest and grow your business, and have a welcome cushion for unexpected expenses or emergencies.
What can a business owner do to get to the top of that hill?
Equipment lease financing is the perfect opportunity to keep your cash flow healthy. Instead of using all of your cash to buy equipment and upgrade technology, you can lease the equipment using smaller monthly payments, allowing you to keep your cash flow and grow your business all at the same time!
Helping your business thrive is our #1 priority. Contact one of our leasing specialists today to find out how equipment lease financing can free up your cash flow and help you get to the top of that hill!