I know you are either laughing or puzzled at this blog title, but let me explain. Every Saturday, my wife and I take our two children Max(2) and Noah(6) to Saf-T-Swim™ for swimming lessons. As I was sitting there watching the pool from the viewing room, I began thinking about work. When I think about work after hours I typically take a macro view and try to take in all the complexities involved in small business funding and how everything fits together to ultimately benefit the small business being funded.
As I watched the fairly crowded pool filled with children and swim teachers I thought, “how could I use this business to help explain the benefits of a merchant cash advance to a potential client?” I only had 30 minutes to hammer out the details mentally but I came to the solution fairly quickly. I could imagine a fledgling saf-t-swim that was just getting started. As they grew they were beginning to get some traction after great word of mouth client referrals. I imagined that the overhead for such a business, an indoor pool complete with locker rooms, changing rooms and a fairly nice viewing room for parents, would be very high. Perhaps they were only able to hire 10 teachers at first but very soon the company would begin getting more requests than it could fill.
As you can see, this would be a fairly common plateau for a business to get stuck on. While they were grossing $25,000 monthly consistently for a year now, their high overhead and payroll stopped them from adding teachers and getting ahead. This is the perfect situation to apply for a small business loan(advance) working capital infusion. The way I imagined it would turn out was that saf-t-swim would get $30,000 within days of applying and start hiring swim teachers to immediately fill the customer waiting list requests with some left over money for a website, Facebook page, and other basic online marketing. It wouldn’t be long before they will have grown to $50,000 gross monthly and have their loan paid off in full. Additional they might perhaps be ready for another, larger advance as is typically the case.