What Is Retail Loss?

Retail loss, also known as shrinkage, is losing retail merchandise by theft, fraud, damage, and other instances of inventory loss. Shrinkage is damaging to retail stores because, typically, the business buys and sells inventory, so if that inventory doesn’t make a profit, the business loses a lot of money.

Loss prevention strategies formulate because of this profit loss. This profit loss comes from but is not limited to employee and consumer theft, damaged goods, and administrative errors. Here are some retail loss prevention tips and examples for small businesses.

Proper Inventory Management

Business owners should understand how effective inventory management can be when discussing loss prevention techniques.

Inventory management is vital for several reasons, but understanding what you’re losing is the most prominent reason.

Time and time again, you see managers and retail business owners lose track of their inventory. Time-sensitive inventory such as produce and food products with limited shelf life can expire if it’s not accounted for and cycled adequately onto the shelves for the consumer to buy.

Keep track of ordered inventory and double-check to ensure every item has arrived safely and undamaged. Keep track of each item and shelf as needed.

Security Measures

When discussing the best practices for loss prevention, the focal point will be security. Essentially, a security system or systems are in place to prevent theft and fraud.

Protect Inventory From Damage

Inventory is your profit. You’ll see a massive hit to your business’s profit the more you lose before a customer can buy it. Of course, products will get damaged and break once they’re in the hands of the consumer, but ensuring that your inventory as a retailer doesn’t get damaged is vital.

For a smaller business focusing on protecting merchandise is especially important. If you have one store, all your income will come from turning a profit from as much inventory as possible, so every bit of goods counts.

Protect Products From Theft

Smaller businesses can implement numerous security methods without hiring an entire security firm to deal with theft from consumers and employees.

Essentially, if a product is fragile, expensive, or easy to steal, you may want to consider adding another layer of protection. Items that usually have an extra layer of protection, for example, are video games, medicine, and computers.

Clothing is a perfect example of something relatively easy to steal.

Retail security tags are a pretty inexpensive option when bought in bulk. The best part is these tags are reusable. In addition, these tags assure that consumers and employees are mindful of stealing this particular item. With a detective system in combination with security tags, no clothing will leave the store without the knowledge of the employees.

Paying for Security Upgrades

Retailers tend to flake on security because of the expenses, but the upfront cost is well worth the investment. The security detection system and security tags are an example of an upfront fee but ensure that all of your clothing and even products will have a more challenging time moving out the front door.

Even if your business currently doesn’t have the money to cover security upgrades like cameras, glass cases, and chips, there are still options for funding. For example, retail store business loans can cover those costs and pay them back with the extra money you make from selling all your merchandise in your store.

For the pros and cons of alternative funding methods for security upgrades or, in general, check out our article on alternative business funding. Also, check out this article for more details about a business loan for retail shops.

Employee Training

Loss prevention focuses on mitigating loss on every front, even the home front. Sadly, it’s not uncommon for employees to be the source of theft or negligence. However, there are a few basic things a small retail business can do to ensure minimal loss on the home front.

Train Employees to Spot Theft

Properly train employees to spot theft from both consumers and other employees. Having clear guidelines and rules during employee orientation can drastically increase an employee’s ability to detect theft.

Giving employees incentives and rewards for reporting and stopping this kind of behavior is a proactive way of engaging your employees to prevent theft.

Make Sure Employees are Happy

It’s essential to make sure your employees don’t have a reason to steal from you. Well-paid employees tend to feel satisfied and secure in their position compared to underpaid and disgruntled employees who wouldn’t care if you lost a few extra dollars as a business owner.

Satisfied employees ensure they’re focused on doing an excellent job while not ruining their job position because of theft.

Returned Items

Unfortunately, customers aren’t always the most trustworthy shoppers, especially with returned items. While defective products are most undoubtedly prevalent, your employees should know why customers return their items.

These consumers are known to buy a new product they already own and return their old one in the box, claiming the new one they bought was defective. Sometimes they can get away with this if customer support is negligent.

Ensure your employees check the condition of the products, the serial numbers if applicable, and most importantly, the receipts of that particular product. There are numerous methods to check if a consumer is returning the original product they bought or returning a broken one and keeping that new one.

Thieves may target customers themselves as well. Items stolen from consumers outside your store may try to be returned by the thief. Remember if you have return policies to emphasize needing a receipt for proof of purchase. Mandating proof of purchase will prevent instances such as this from happening. You’ll be able to report it to the authority to hopefully stop that individual from committing an act like that again.

Conclusion

Retail loss is a widespread issue, but loss prevention strategies in retail are getting better every day. Remember, when investing in loss prevention, you’re ensuring that you protect your inventory and future profits.

The post 5 Effective Retail Loss Prevention Tips for Small Businesses appeared first on ROK Financial.

Since the beginning of time, the barber industry has been around, so it is an established career path. Barbershops are everywhere in almost every city, town, or village across the country, which means there’s plenty of growing room for new businesses as well as opportunities to grow into more prominent locations with more customers coming through the door each day.

There are many different aspects of running a successful barbershop business: marketing, customer service skills, leadership abilities, and even some basic hairdressing knowledge. But you don’t need to be an expert in all of these areas to get started – you can learn as you go.

How to Get More Clients for Your Barber Business

If you’re serious about growing your barber business, you first need to get more clients. Here are some ways to do that.

Get Involved in Your Community

One of the best ways to get more customers coming through the door is to get involved with your local community. For example, sponsor a Little League team, hold a charity event, or set up a local fair or festival booth. Getting your name out there in the community will help you form a strong bond with your customers and be a great way to get started.

Focus on Customer Service

No matter what kind of barbershop business you have, customer service will be one of the most critical factors in whether or not it succeeds. If you want to know how to attract customers to a barbershop, you need to make them feel welcome, comfortable, and unique.

It means greeting them with a smile when they walk in, remembering their name, and taking the time to chat with them about their day.

Offer Discounts for Loyal Customers

Another way to show your customers how much you appreciate them is by offering discounts for those who are loyal to your shop. It could be a percentage off their total bill, a free haircut for every ten that they get, or even something as simple as a loyalty card that gives them a free sample size of their favorite hair care product.

Learn from Other Businesses

Even if your barber business is new, other companies out there have been around for a while and have figured out what works and what doesn’t. Take the time to check out their website and social media pages and see what they’re doing. Then, try some of their ideas in your shop if you like what you see. Just make sure to tweak them a bit to fit your own business and customer base.

How to Increase Revenue in a Barbershop

If you want to run a successful barbershop business, you’re going to need an effective strategy for increasing revenue. To do this, you’ll need to look beyond the immediate customers and work on finding new customers just like if you’re interested in how to grow an electrical business or how to grow a dropshipping business.

Another thing you could do is start offering various hair and grooming services to attract a wider clientele. For instance, if your shop is next to a gym or athletic club, offering haircuts for men and boys could be highly beneficial in attracting new customers and thus increasing revenue.

The Best Barber Shop Marketing Strategies

There are many different ways to market your barbershop business, but the best ones are the ones that get results. Here are some of the most effective marketing strategies for this industry.

Social Media Marketing

One of the best ways to market your barbershop business is through social media. Platforms like Facebook, Twitter, and Instagram offer a great way to connect with potential customers and keep them updated on what’s going on in your shop. You can also use these platforms to run promotions and giveaways, which can help to attract and retain customers.

SEO Marketing

Another great marketing idea (even if you want to know how to grow  an ecommerce business)  is search engine optimization (SEO). SEO includes a wide variety of marketing strategies that can help you show up in more searches and attract the attention of new customers. It works by making your website appear higher in Google and other search engines so that it’s easier for people to find. It can help build brand awareness and increase revenue.

Increase Sales through Email Marketing

If you want to boost your sales, email marketing is the way to go. With this type of marketing, you can target potential customers who are likely interested in what you have to offer. One of the benefits here is that it allows you to get personal with customers and see what they want or need before providing it. As a result, it can help you retain customers and put more money in your pocket.

Barber Shop Marketing Plan

It’s essential to have a plan for marketing your barbershop business. It will help you to stay organized and focused so that you can achieve your desired results. Here is a basic outline of what your marketing plan should include:

• Analysis of the current market situation
• Target market analysis
• Product/service offering
• Marketing objectives
• Tactics and strategies
• Budget allocation
• Evaluation and measurement

As you can see, a lot goes into creating an effective barbershop marketing plan. However, if you take the time to put in the effort, you’ll be able to see a significant increase in revenue and customer base by following your plan.

Conclusion

If you want to run a successful barbershop business, you must take steps to increase your revenue. Many online and offline businesses grow by following some of the advice listed above.

By implementing some or all of these tips, you can help your barber business reach new heights. Don’t worry about doing all these things at once. Instead, focus on doing one thing every week, month or quarter until your barbershop business is thriving.

The post Growth Tips: How To Grow a Barber Business appeared first on ROK Financial.

One of the ways you can get additional resources to get your business back in order is by applying for a retail store business loan. For those who are struggling, this might be the best option for you.

How Can a Small Business Loan Benefit Your Retail Store?

Loans for retailers work similarly to how other business owners use them for their businesses. You can use a small business loan to pay for several aspects of operation. With access to extra funds, small retail business loans can help your brand grow.

Using business loans for retailers can give you the funds to acquire equipment and technology to run your business efficiently. These items might include cash registers, bookkeeping software, security systems, signs, and inventory tools.

Some people also use loans to pay for different marketing campaigns and renovating the facility.

Another benefit of using a small business loan for your retail store is hiring new employees to create a more reliable experience for your customers and tackle the busier seasons. The more satisfied your clients are, the more likely they’ll continue doing business with you and help you gain capital.

A business owner may also use a retail store loan for purchasing more inventory to accommodate for special promotions or holidays. The amount you take out could also depend on what your retail store sells, whether food, clothing, or beauty products.

What It Takes to Qualify for a Business Loan

Before deciding on applying for a retail business loan, there are several qualifications you must meet to make the application process run smoothly.

When applying for a small business loan, you’ll need a few crucial paperwork items. Although certain lenders have different policies for what documentation they require, some of the most common ones include:

• Personal and business tax returns
• Personal and business bank statements
• Personal identification, such as your driver’s license
• Balance sheets
• Commercial leases

Another component you’ll need to qualify for small retail business loans is a record of your credit score. By knowing your credit score, lenders are more likely to trust you in repaying your loan, especially for startup businesses.

Several lenders may also ask about your time in business. While most of them may qualify you for a loan if you’ve been in business for at least two years, some may offer alternatives for new business owners. A loan for a small retail shop can cover its finances for about a year.

When Hiccups Happen, What to Do

Sometimes, you’ll run into obstacles that may affect your retail store’s cash flow. Circumstances outside of your control, such as recessions or pandemics, may prompt you to find new ways to stabilize your income.

Typically, it would be best for you to take out a retail store business loan before a recession hits. While it may be impossible to predict if one can occur, it’s a good idea to have a loan on hand to gain greater access to the cash you can use.

Another solution that would be wise for you is setting aside finances to backup your business. By having these funds on hand, you can provide additional financial support for your company.

If you create a backup plan for emergencies, you can set resources aside to start up your business.

Retail Loan Options

When it comes to navigating how to get a loan for a retail store, there are several options available. Some may offer more flexibility than others. Make sure to compare and contrast to determine which one will best fit your brand’s needs.

If you’re interested in expanding your existing retail store, you may want to consider SBA 7(a) loans. You’ll typically need your store to operate on profit and have reasonable equity for investing.

Unsecured business loans could be an ideal option for retail owners who prefer having their stores stocked up with the products they want to sell.

Retail inventory financing is a strategy best suited for experienced retail owners. This line of credit gives small business owners access to buy their inventory. You can use the inventory as collateral against the loan and surrender it if for some reason you’re unable to repay the loan.

Line of credit works similarly to how people use personal credit cards. You can use and pay these funds multiple times if you stay within your credit limit. If you pay on time, you can build credit and earn a higher limit.

How to Apply for a Retail Loan

If you’re wondering how to get a loan for a retail shop, several application processes have similar steps to follow.

One of the essential things you’ll need to consider before applying is determining how much to take out your retail store business loan. Regardless of how much you qualify for, think about what’s reasonable for repayment.

Also consider what you want to spend your loan funds on, whether inventory, equipment, improvements, or employee salaries. This will determine what types of loans are available to you, as well as what the limits and repayment terms are.

To apply for a retail loan, you’ll need to provide financial documents for yourself and your business. Contacting a trusted lender to initiate the application process is easy, and your lender can answer any questions you may have while processing your information.

Ready to Apply for a Retail Loan?

Whether it’s post-holidays or your company is recovering from another financially challenging scenario, a business loan could be the perfect solution to your needs. If you’re ready to apply for a retail store business loan, contact ROK Financial today to learn what you may qualify for and how our team can help!

The post Retailers Are Using Business Loans To Cover Post Holiday Cash Flow Challenges appeared first on ROK Financial.

Advantages of Obtaining a Small Business Loan

There are many reasons why a Small Business Loan would be beneficial for your business. They can be utilized to expand your business, hire new staff, supplement cash flow, and more. Whether it’s a loan for a small retail shop or an expanding business, there are many benefits. 

Easier Access to Capital

For businesses that are financially struggling, small business loans are the most accessible capital available. Banks are typically more cautious when it comes to approving businesses, especially when fluctuating finances. 

Repayment Terms

Most small business loans have pretty flexible repayment periods, making them a better option than other alternatives. SBA Loans offer some of the longest repayment terms available, offering up to 25 years depending on your situation. 

Building Your Business Credit

Receiving funding for a small business loan through your business can help you establish credit and build your business’s credit history. Building this positive credit history can provide your business with more loan options in the future. 

Supplementing Cash Flow 

It is common for businesses to experience cash flow fluctuations. A small business loan is helpful during these fluctuations to help supplement cash flow during a slow season. Having that cash flow cushion will also bring peace of mind that if needed, your business is taken care of. 

What it takes to Qualify for a Business Loan

Most Small Business Loan requirements 

• 3+ Months in Business: You can qualify for our top financing options with as little as 3+months in business. 
• Although limited, there still are Startup Funding options when in business for less than 3 months. 
• $15,000+ Monthly Gross Sales: The minimum revenue to qualify for financing options are $15,000 per month, or $180,000 in annual gross sales.
• No Minimum FICO: There are financing options for all credit profiles. There is no minimum FICO score required to apply! 

Not sure how to apply for a Small Business Loan? It’s easy! Complete our Simple 15-second Business Loan Application today and qualify for a Small Business Loan in 12-48 hours!

How Can Your Clothing Store Use Funding?

Cash Flow: A common challenge all retailers face is fluctuating cash flow. This can affect many things, like keeping up with inventory of the latest trends and popular items. Keeping up with inventory is essential when owning a clothing store. Making sure you have the capital to keep inventory stocked is essential in your business’s success. 

Hiring New Employees: With business growth comes the need for expansion and hiring more staff. In order to do so, you need the funds to do so. Expanding and hiring new employees is an investment, make sure you have the funds to invest. 

Payroll: One of the most important and cash flow dependent variables when owning a small business. Not making payroll can be detrimental to your business, retaining your staff is pivotal. Having that extra capital can be extremely helpful when experiencing a slow period in sales.

Advertising: A social presence and quality advertising is very important in our media saturated society. Having extra capital to produce quality advertising, such as social media, email marketing campaigns, physical hardcopy flyers, etc,  can launch your business to newer heights. 

Applying for a small business loan can be overwhelming, especially if you’re not sure who qualifies for a small business loan. Figuring out what option is best for your small business is important. Our business advisors are ready to help you find the best small business loan for your store! 

The post Growing Your Clothing Brand: How a Business Loan can Benefit Your Clothing Store appeared first on ROK Financial.

You probably have a few questions, like: how does a merchant cash advance work? And, can I qualify for a merchant cash advance with bad credit?

A merchant cash advance may be the ideal solution to your small business cash flow needs, but it’s not always the most appropriate option. Let’s explore how merchant cash advance loans work so you can decide if it’s right for your small business.

What is a Merchant Cash Advance?

Let’s start by answering the most basic question: what is a merchant cash advance?

A merchant cash advance (MCA) is when a financing company provides money upfront in exchange for a portion of the business’s future sales. It’s not a loan, it’s a cash advance, which has its own benefits and caveats attached.

Business owners use merchant cash advances in industries where credit and debit card sales are the primary forms of transactions. Restaurants, retail shops, repair shops, and so forth easily fall into this category.

For an MCA, the provider will typically look at daily credit card sales receipts for the business. Based on the number of sales, the provider will determine how much cash they can provide. The receipts also help providers calculate how quickly a business will pay back the advance.

A percentage of every credit or debit card sale is directly transferred to the provider to pay back the advance. So, for a cash-short business, MCAs provide fast money that’s only due as the business accumulates sales. For many business owners, that’s an ideal trade.

How Does it Help Your Business?

Now that we know what a merchant cash advance is, let’s look at a few ways it can help your business.

Quick Money

As mentioned, an MCA provides money quickly, sometimes in as little as a few hours. For a small business owner, that can be a huge benefit.

Maybe there’s a short term opportunity you want to take advantage of, or perhaps you need a little help getting through a slow period. Either way, a merchant cash advance may be a good idea.

Repayment as a Percentage of Sales

Another plus to merchant cash advances is the repayment method. Since a business pays back MCAs using a fixed percentage of sales, repayment automatically adjusts based on how your business is doing.

If there aren’t any sales on a given day, you don’t pay anything to the MCA provider. Alternatively, if your sales are high, you end up repaying the advance that much faster.

Forgo Traditional Loan Requirements

Merchant cash advances also forgo typical loan requirements. Because you’re not working with a bank, you don’t have to provide collateral. And you don’t have to have good credit.

That said, you may need to provide a personal guarantee. That’s a signed document which makes you accountable should you fail to pay back the MCA.

What Type of Business Can Benefit?

Like we said, any business that relies on credit or debit card sales can use a merchant cash advance. Restaurants, auto repair shops, contractors, retail shops, and many other small businesses can benefit from them.

In general, if a small business needs cash to take advantage of an opportunity or issue, an MCA is a good option. Maybe inventory is available at a discounted rate, and you want to purchase it in bulk. Or, maybe your store’s heating system went down, and you need to repair it fast.

A merchant cash advance for startups is a possibility as well. If a startup business cannot secure traditional financing, sometimes a merchant cash advance is an option.

Typically MCA providers want to see that your business has been successful for at least three months, which disqualifies many new businesses.

If you own a business and have bad credit, a merchant cash advance might be your best bet for quick cash flow solutions because a good credit score isn’t required.

The provider may still pull your credit score during the application process. However, unlike traditional financing options, a poor score will not negate your chance of receiving a merchant cash advance.

Can I Qualify?

If your business relies heavily on credit and debit card sales, you likely qualify for a merchant cash advance. That’s true even if you have poor credit or wouldn’t qualify for a traditional loan.

You’ll need to fill out a quick application that asks for basic information like how many years you’ve been in business. The provider will also ask for annual or monthly sales numbers.

At ROK Financial, there’s no minimum FICO credit score required for a merchant cash advance. As long as you’ve been in business for at least three months with $15k in monthly sales, you’ll likely qualify for a top-financing option.

Knowing Your Options

Merchant cash advances are a great way to fix cash flow issues, but they’re not your only course of action. Other financing options may be a better fit given your situation.

• Small Business Loans are available to any business that needs to stabilize its operations. They come from banks as well as other lending companies and have traditional terms. Your sales don’t need to come from credit or debit cards.

• Startup Funding works well if you’re starting a business from scratch. Good credit is required, but you don’t need to show time in business or monthly sales records.

• Business Lines of Credit exist so that businesses can scale-up as they grow. The lender won’t provide funds as a lump sum but instead makes them available as needed.

Frequently Asked Questions

At this point, you may have a few questions about the ins and outs of merchant cash advances. Let’s see if we can answer them.

What Happens if I Default on an MCA?

When someone gives you a cash advance, it’s always best practice to pay it back. Given that MCA’s are paid back automatically as sales come in, this shouldn’t be a problem.

But, of course, sometimes it is an issue and what happens next depends on various factors. If your business closes, you’re not responsible for paying back the MCA. However, should you ever reopen the business, you retain responsibility for paying back the advance.

More so, if there’s any indication of fraud, the MCA provider can pursue legal channels to recoup their investment.

Will a Merchant Cash Advance Hurt My Credit Score?

Taking out a merchant cash advance has no direct impact on credit scores. Securing one does not hurt your credit score, and paying it off does not help your credit, either.

Do You Pay Interest on a Merchant Cash Advance?

It’s technically not interest; it’s a factor rate or fee. With an MCA, traditional lending terms don’t apply, but the concept is similar.

Factor fees usually vary but will be based on the provider’s evaluation of your business.

Merchant cash advance business loans are one way to secure fast cash for your business, even if you have bad credit. Talk to a ROK Financial advisor today and learn if it’s the right option for your business in a matter of minutes.

The post How Does a Merchant Cash Advance Work: The Complete Guide appeared first on ROK Financial.