As a small business owner or start-up founder, once you’ve navigated that rather perilous phase when most businesses get some sort of confirmation of their failure or promise of success, there comes a time when you can quite accurately predict when the good times will be and when things will be moving along rather slowly. To use the example of a consumer goods retail store, the periods surrounding payday always bring about a buzzing atmosphere, with lots of feet shuffling around in the store and subsequently a lot of purchases and a spike in turnover.


In the same way, during the middle of the month perhaps, things tend to go a little bit slowly, but fortunately business owners can make provision for such things and plan accordingly, like perhaps stocking less inventory or turning your focus to other important tasks like stock-taking, staff training and up-skilling, etc.

For cash-strapped small businesses and even some start-ups however, the margins with which you have to work regarding your cash flow can be so tight that you can’t even begin to entertain the idea of shifting focus a bit and entering into some small side-ventures which would otherwise have kept the cash flow going. This is when some flexibility needs to be exercised, particularly in the case of a small business owner because there are some opportunities to generate some quick cash that require a bit of quick thinking and fast action. Sticking with our example of a retail outlet owner or manager, if your business is operating on tight profit margins and at this stage it’s just all about growth for you, it’d be quite a challenge to get approved for finance to run a side-venture, even if it was just a quick one that you’re almost 100% sure would bring in some good, quick profits. The big banks will naturally cast their focus on your main business dealings in their assessment of your qualification for some financing, making it really hard for them to approve any finance you’d require, considering your tight margins.

In the case of a retail store owner, such a quick-earning opportunity to get you through the slow days could present itself in the form of exhibiting at something like a trade fair, or setting up a stall at some or other event where a good number of people have gathered. If part of your retail store encompasses a ready-made food kiosk for example, how about extending that to the outdoors and setting up a mobile food stall or just chasing those events at which people might want to grab a bite to eat?

This can be applied to just about any industry any small business owner is involved in, and as long as you’re sure you can make some good profits, you can go about funding such side-ventures through taking out a personal loan and then entering that as a personal contribution by way of your accounting requirements. The mathematics is simple really and all you have to make sure of is that the interest which you must pay back on the loan is lower than the returns you get from your quick side-venture.

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