Throughout the previous three years, small company owners have faced enormous economic challenges. They have had to deal with record-breaking interest rates, inflation, an unstable supply chain, and a historically tight employment market while surviving a pandemic. To put it simply, small company entrepreneurs are quite resilient.
Luckily, the forecast for 2023 looks to be more optimistic. Over half of small company owners are optimistic about the national (49%) and global (45%) economies. They anticipate increasing revenue and sales in the coming year, resulting in higher earnings and larger investments to fuel continuing corporate expansion.
As compared to more traditional types of finance such as company loans, the perks and incentives of business credit cards give distinct advantages for establishing and scaling a firm. Here are a few ways credit cards may assist.
- Strategizing To Recruit And Retain Talent
Recruiting for small company owners has never been more tough. While the current labour market poses issues for firms of all sizes, small businesses are disproportionately affected because they frequently lack the cash reserves required to offer competitive pay or benefit packages.
Credit cards, with their associated cash back and benefits, may be used by business owners to offset expenditures, freeing up resources to recruit and retain top staff. Fast-growing firms, such as Mvnifest, are expanding so swiftly that every cent earned is reinvested in the company.
A good firm is linked to happy employees, and business financing can give possibilities to engage in culture building. Small company owners may want to consider utilising their card points to buy gift cards to celebrate their employees’ accomplishments. Others may think about leveraging their travel points to bring together distant employees for company retreats and gatherings.
- Inventory Investment to Counteract Inflationary Pressures
The growing cost of goods is making life more difficult for business owners, virtually all of them (94%) claim inflation has affected their expenditures. To ensure long-term success, business owners must weather the inevitable ebbs and flows of the supply chain, whether caused by inflation or seasonality.
Utilizing a company credit card to pre-purchase inventory and obtain necessary supplies might assist business owners in preparing for unexpected growth prospects. This technique not only locks in business owners to existing, known margins in an uncertain inflationary climate, but it also allows contractors and manufacturers to respond to buy orders with greater confidence, without concern of supply chain problems derailing a possible transaction.
Wholesalers typically offer items in quantity at lower costs, thus investing in inventory may result in further financial benefits. Having consistency in a volatile economic environment is a big competitive advantage.
- Establishing Connections Through Business Travel
Success frequently opens up prospects for development into other target areas, necessitating additional business travel. Travel advantages linked with business credit cards may be used by business owners to attend in-person pitches or sales meetings, visit with manufacturing partners, or check out potential retail venues.
While business travel is an important tool for maintaining ties with clients and suppliers, it has also become critical for fostering camaraderie among remote teams in a post-pandemic labour market. More than half (52%) of poll respondents in our 2023 Business Leaders Outlook consider remote work a permanent aspect of their business model, and business travel—for employees and business leaders alike—will be crucial in developing the team connectedness that will lead to success.
- Automating Financial Processes To Drive Efficiency
Entrepreneurs benefit from tools that automate business finance procedures because they save time, eliminate mistakes, and boost efficiency. Accounting software and programmes enable company owners to collect payments from customers, monitor and pay bills, and conduct payroll procedures all in one simple system.
Similarly, simplifying financial service providers streamlines accounting, shortens deadlines, and decreases the number of manual operations. Company owners are increasingly searching for an integrated financial solution, such as Chase for Business, which includes business credit, banking, and payment solutions.
This allows company owners to get their money as soon as possible with no-fee, same-day deposits. It also gives you access to value-added services like Customer Insights, which offer businesses with performance information to help them reach out to consumers more effectively and manage their bottom line.
Source: Chase Ink
