You’re in a slump, and you need to get out fast. Here are 4 off the wall ideas that will jumpstart your company and make it easier to exit when the time comes.
Getting A Short-Term Loan
A short-term loan can provide you with the financing you need for operating expenses, R&D, or pretty much anything else. These bad credit business loans aren’t that difficult to qualify for, either. As long as you’re still making some money, you can probably qualify for a small loan to get you going.
Move Your Company’s Money Into Insurance
If you’re worried about an exit strategy for your business, don’t. Premium financing can help get you out of the company without having to settle for less than you’re worth. Premium financing is a little-known strategy that allows you to quickly raise capital through an outside bank, fund a life insurance or annuity policy, and then let the borrowed funds grow tax-free until you want or need them.
Loans are secured by the insurance policy, and they’re typically taken out for the full value of the business. In essence, the bank is paying you the full value of your company now, you’re earning compound interest for 10, 20, or 30 years, and then you’re cashing out – no buyer needed. Companies, like Entaire Global, have mastered this process and refined it so that pretty much anyone can do it. It’s literally signing a bunch of documents and then letting the money sit and earn interest. It doesn’t get any easier than that.
Make Your Pricing Model Incomparable
When customers or competitors can easily compare your prices to other goods or services in the marketplace, you open yourself up to fierce competition. But, if your product or service is unlike anything else, it can’t be compared. This is an excellent way for you to dodge competitors but also increase profits.
For example, when Apple puts out a new product, it rarely sells it on the specs because, really, those specifications aren’t all that different from its competitors. What it does is optimize performance of its chipsets, and configures RAM and other hardware to run optimally with the OS.
The result is a product that can’t really be compared with any other product. Why not? Because Apple has designed its computers to run more efficiently. So, suddenly, a gigabyte of RAM doesn’t mean what it means in other computers. That gig of RAM might perform like 1.3 or 1.5 gigs when you take into account optimization tweaks.
Try to do the same thing in your business with your products and services.
Focus On Value and Raise Prices
It seems like a lot of businesses these days are in a race to the bottom. Price-cutting through discounts and promotions is one of the oldest ways known to bring new business in. But, there’s a problem. What happens after the price cut is over? You have to make up for lost profits.
This is the hard lesson Groupon-driven businesses have had to learn. Yeah, there’s a rush on the business in the first 30 days, but after that, you have to service those customers and they’re not paying full price.
Resentment sets in. Now what?
Ditch that model and take the high road. Increase the value of what you have to offer by selling a premium version of your product. Charge more money. Now, instead of discounting, you’re attracting an entirely new crowd – a crowd with money to burn.
David J. Norris is an experienced small business financial consultant. He also likes writing about his research and industry insights. His articles can be found mostly on business, finance and entrepreneurial blogs.