Here in the United States, we enjoy many freedoms and personal liberties that highlight what America is known for. Of these freedoms includes a free market economy — the ability to have an idea and start a business truly is remarkable when you really think about it. Dissatisfied with a current product or service on the market? Make it better by starting your own. Want to fill an open market gap by starting a business unlike any other? The economy is your oyster.
Small Business Lenders In Los Angeles Dedicated To Your Success
With the right ideas, actionable business plans and small business financing services, matched with your innovative drive and ambition as an entrepreneur, there’s nothing stopping you from achieving success. That is, you don’t have any cash flow issues by working with our small business loan providers in Los Angeles here at The Commercial Finance Group. As experts in solving cash flow problems, our small business lending solutions in the form of factoring and asset-based loans have helped countless mom-and-pop shops and healthcare organizations thrive over the years.
Whether you’re just launching your business or you’re trying to grow your company but cash flow struggles are holding you back, don’t let your financial situation define you. For the best small business loans designed for entrepreneurs like you, discover how The Commercial Finance Group can help your business by checking out our unique approach to lending.
In our last blog post, we touched on some industries that are arguably less lucrative to invest and start a small business in than other industries. In the interest of advising and guiding our readers, The Commercial Finance Group is going to continue covering some of these industries that you might want to think twice about before investing in. Continue reading below to gain some valuable insight, or feel free to reach out to our small business loan providers in Los Angeles with any questions!
Getting Your Foot In The Real Estate Door
When aspiring entrepreneurs look at the real estate biz, they might see a lucrative industry that yields high returns. Even more attractive in the eyes of the entrepreneur is the fact that getting started in the real estate market typically presents a low barrier of entry in terms of both capital investment and required training. Beyond being a real estate agent, it might also look easy to get started as an appraiser, title company, loan broker, and other positions.
However, before you jump the gun on starting a small business real estate company, keep in mind that competition is fierce when it comes to real estate. Typically, there’s a relatively small number of top realtors that control the vast majority of business in a certain area—including who does business with whom. Naturally, earnings and revenue within a real estate business are almost exclusively commission-based, and it can be very challenging to build up the number of clients you need to keep your small business going strong.
Whether your small business is centered around property management, appraisals, inspections or title or loan management, the key to success in the real estate industry is to build connections and relationships with relevant individuals. While it’s possible to build a lucrative company purely on the basis of hard-work and talent, real estate is considered one of the toughest industries to succeed in for aspiring small business owners.
Hospitality: Starting an Amusement or Recreation-Based Business
No matter how the times change, people are always going to want to blow off some steam or have some fun after work or school. Whether that means visiting a kid-friendly laser tag center, getting out of an escape room, or having some drinks on the golf course, opening a business that provides a fun, recreational service might also seem like an attractive prospect.
While our small business lenders aren’t trying to downplay the value of these kinds of companies, think twice before diving in head first. Things like fixed costs of operation, stiff competition and the significant impact of various economic ups and downs present unstable challenges for small businesses dabbling in the recreation/amusement industry. If your customers have ample cash, then you might do pretty well, but if they’re strapped for dollars, your services will likely suffer.
Starting a Lodging or Travel Accommodations Company
In a similar vein to hospitality and leisure, opening up your very own bed and breakfast or small hotel might seem like a good idea. With more dedicated and personalized service than a mere Airbnb, people are always going to enjoy a nice stay, right? It’s true, but this seemingly-simple small business venture is actually rather challenging to get off the ground.
In reality, starting your own lodging company can actually pan out to be very…well, not lucrative. Fixed costs of operation, stiff competition and a high impact of economic ups and downs (like we mentioned with amusement and recreation-based businesses) can leave you struggling to turn a legitimate profit. Competition with well-established, low-priced chain hotels and budget Airbnbs could force you to rent out rooms at minimal prices just to maintain occupancy rates. This is simply not sustainable.
Becoming a Specialty Retailer
Whether or not your dreams will actually pan out to be profitable and lucrative, you always have the option to pursue your passions and open a business around something that you actually enjoy and are knowledgeable in. While selling niche products and knick-knacks online might prove to be more successful for you, tread carefully if you’re planning on opening a niche brick-and-mortar retail shop.
With high overhead costs and pricing that’s just about impossible to beat from the big retail giants, opening a local specialty retail shop is not a wise move. The best (and safest) way to sell your niche goods is to do so online, either through a service like Etsy or another ecommerce platform. Though a website might not meet your ideal, picturesque storefront vision, it’s a much smarter move from a business perspective.
Your Path To Funding Success Starts With The Commercial Finance Group
To reiterate, we don’t want to sound like we’re hampering your dreams or discouraging entrepreneurs from doing what they really want to do. After all, we enjoy a free market economy and we have the total economic freedom to roll the entrepreneurial dice and try our hands at starting a company.
Regardless of what business ideas you have in mind, if you’re serious about growing your business and achieving long-term success, let The Commercial Finance Group take care of the funding. With the help of our small business loan providers in Los Angeles, our factoring agency can help you clear up any cash flow issues. Contact our small business lenders today!
