Small businesses are poised to corner the market this year for Black Friday and Cyber Monday (BFCM), as 61% of shoppers are likely to do their holiday shopping on Small Business Saturday. But being adequately prepared for BFCM takes time, and brands need to plan and strategize months in advance to set themselves up for success on BFCM and beyond.
That’s where Shopify Capital comes in. Shopify Capital provides fast, flexible funding that puts founders first, with a streamlined online application process and funds in as little as two days, if approved. Shopify Capital presents an ideal opportunity for small businesses and entrepreneurs to win the holiday season by investing in seasonal marketing campaigns, securing extra inventory, hiring extra staff, and covering operational expenses.
Let’s take a closer look at why it’s crucial to stay ahead of the game when it comes to securing funding, and how funding through Shopify Capital can help you make the most of the BFCM opportunity.
Why you should seek funding early
It’s not just businesses that are getting an early start on gearing up for the holiday season—50% of holiday shoppers plan to start shopping by Halloween. That means that brands should start preparing for BFCM in Q2, if not sooner, to be ready to meet the demand for early-bird shoppers. Waiting too long to make a game plan means potentially missing out on reaching a much larger audience, which isn’t a risk small businesses and entrepreneurs can afford to take.
Here’s what businesses risk when they don’t plan ahead for the holidays:
- Missing out on marketing opportunities: Eye-catching marketing strategies don’t develop overnight. Competition is fierce as the holiday season approaches, and showing up late to the party will get you lost in the shuffle.
- Being overwhelmed and understaffed: Like many other businesses, you may need to hire extra staff to help cover the holiday rush. However, recruiting and onboarding qualified employees takes time. You’ll want to plan ahead for the help you need to avoid chaos when there’s an influx of customers at your door.
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Disappointing customers with limited supply: Inventory needs are likely to skyrocket during the peak holiday season. This means that brands that get a late start on securing funding for investing in product development and ordering extra stock risk coming up empty-handed when their customers need them the most.
The Shopify Capital advantage
Fast funds
Constantly being on the hunt for funding is energy-draining and time-consuming. It’s easy to get bogged down in a never-ending cycle of trying to secure your next round of funding. With funding through Shopify Capital, eligible businesses gain the critical funding whenever they need it—even before fully repaying a previous loan—so they can direct their energy toward achieving their goals.
Repayments on your terms
Shopify Capital also offers a helpful loan payment process tailored for small businesses, where payments are deducted from a percentage of daily sales. This flexible repayment option comes as a welcome relief to brands that are trying to make ends meet without accruing interest.
Straightforward applications
Small businesses and entrepreneurs can also face challenges when it comes to applying for traditional lending options that often have arbitrary or unattainable criteria. Shopify Capital offers a more equitable and accessible loan process for small businesses, with minimal paperwork and no personal credit checks. And when SMBs can receive funding in as little as two days, they can start growing their business on their terms right away.
Shock Surplus, an auto-enthusiast brand that sells suspension systems and shock absorbers, turned to Shopify Capital because they were repeatedly rejected when they tried to apply for bank loans even though their sales were skyrocketing.
“Banks wouldn’t lend us a dime because our average cash balance didn’t meet their metrics,” says Sean Reyes, founder and CEO of Shock Surplus. “They don’t care if you’re pouring all your profits and all your cash back into the business to grow it like we were. To them, that doesn’t matter at all.”
With Shopify Capital as an option, you can develop a new product, acquire more of your best sellers, or increase the conversion rate on your website. All of these things produce real margins for your business.
How to get the most out of your funding
After you’ve secured financing to carry you through the holiday season, you’ll want to take stock of your business’ unique needs to determine how you can best apply your funding. Shopify Capital can help brands make the most of the opportunity unique to the holiday season by providing funds to help with these initiatives:
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Map out your holiday marketing campaigns: Deciding how you want to invest in your holiday marketing campaigns will help you stay competitive during the height of the shopping season.
Maybe you want to roll out a rewards program just before the holidays hit, or collaborate with influencers to get customers excited about shopping with your brand. You may also want to dedicate part of your marketing budget to optimizing for SEO and advertising via paid marketing on social, search, and more.
Whether you’re planning an ad campaign or a series of promotions to get customers excited about shopping with your brand, you’ll need plenty of time and funds to stay competitive during the busiest season of the year.
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Make store improvements: Your business’ needs are likely to change during the holiday season. For example, if you run an online store, you can ramp up before the rush by investing in website enhancements and upgrades.
It’s also important to plan ahead when it comes to investing in extra help, including using funds to promote employees, hire extra sales staff, and bring on experts and contractors. Having extra staff will also help support additional seasonal needs like building eye-catching in-store displays or investing in extra tech to help accommodate higher demand.
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Bulk up on inventory: Having control over an unpredictable supply chain can feel impossible, but focusing your funding on securing inventory will put your business in good stead.
Whether you need to keep best-selling items on the shelves, lock-in bulk discounts, or develop a new product line, it’s important to allocate a significant portion of your funding toward purchasing the stock you need.
Shoring up cash flow before the holiday season presents a challenge to many small businesses who may not be able to qualify for traditional funding, or for companies that want a faster, more streamlined application process.
The Buffalo Wool Company, a small business that sells fine yarn, garments, and bison products, struggled with maintaining the cash flow they needed to carry enough inventory to get them through the winter. So, they turned to Shopify Capital for the financing they needed and were pleasantly surprised to find a loan option that worked for them.
We needed funds to buy supplies to manufacture our products in time for the holiday rush, and we weren’t comfortable with a traditional bank loan. We needed a straightforward way to get funding without complications.
Boost your BFCM game with Shopify Capital
BFCM presents a massive opportunity for small businesses and entrepreneurs—but only if they have the means to capitalize on the peak holiday season. That’s why it’s especially important to get an early start on securing the financing you need to expand inventory, hire staff to support growing demand, and help your brand stand out in a hyper-competitive space. However you want to expand your business during the holiday season, Shopify Capital can support you with a flexible funding solution tailor-made to fit your needs.
Available in select countries. Offers to apply do not guarantee financing. All financing through Shopify Capital is issued by WebBank in the United States.
* Shopify Capital loans must be paid in full within a maximum of 18 months, and two minimum payments apply within the first two 6 month periods. The actual duration may be less than 18 months based on sales.
