Alternative Business Lending, Social Responsibilities, and More!

Welcome back to the Being Found Show. We’re talking about business trends that will continue to grow in 2019.

Alternative Source For Small Business Loans

Chauncey: An alternative lender is one who provides loans, lines of credit, or cash advances to small businesses, outside of the traditional forms of credit offered by a bank. Alternative lending will continue to grow. Have you ever used one of these companies?

Jake: No.

Chauncey: I have. I’ve used one to consolidate a bunch of debt, and I used peer to peer lending. And I went, and I borrowed $15,000 and paid off a bunch of stuff and put it into one payment, and I paid it all off. And now I’m approved to borrow $35,000 through this website, not that I plan on it. But I do have that line of credit to me because of using this peer to peer lending.

Jake: Wow.

Chauncey: And also in my business, I’ve also looked into it, although I haven’t used it there’s also peer to peer lending for businesses. And so I am not surprised that alternative lending will continue to grow in the future. So for those of you out there, what is the website we used? I don’t know. Some website, my wife takes care of most of my finances. And it’s peer to peer lending. So what that is if you need to borrow money, you go there, and you submit what you need to borrow it for. You let them look at your credit, and they say hey, we’re going to loan you the money.

Chauncey: Now, if you’re a person who wants to make some money from loaning money, you gotta have money to make money, you can go to this website, and you can approve people’s loans.

Jake: Oh Wow.

Chauncey: And you can offer to pay 10% of it, and a group of people might approve your loan. Or maybe one person might cover it. And then they make the interest.

Jake: That’s pretty interesting.

Chauncey: Yeah.

Jake: For someone who has money may be sitting in the bank that they don’t need, it could be a way to make a few percents.

Chauncey: Yeah, yeah. I’m sort of amazed that the legality of that works out somehow, but I don’t know what it is. But you would think that there would just be tons of legal issues with that. But I feel the same way about Uber and Lyft and a lot of these things. Airbnb I just don’t even understand how legally they’re able to do it. Or Amazon with antitrust laws and stuff like that. It’s kind of amazing that I can’t tell if we’re outdated if somebody’s paying this stuff off to let it happen if we’ve decided that this is good for our economy. You can’t stop progress. I don’t know what it is, but I’m surprised.

Jake: Yeah, it’s interesting.

Customers Want Personalized Everything!

Chauncey: Going forward customers want everything to be personal and personalizable. Everything that can be personalized will be personalized. The first thing that pops in my head for small businesses with this is if you’re getting a mailing list like Jake and I, we work on a fair amount of the same clients here, and Jake tasked me the other day with putting a mailing list popup on a client. And I get that on there, and I’m trying to decide the fields that are going to be in the popup.

I finally decided that I should collect first and last name and not just the email. Because when you do that, you can personalize what’s going out. And also in the case of this client, this is a client that offers a reoccurring paying service, and so I think people know that this client would already have their first and last name and this sort of gets them tied into deals. So there might be some cases you don’t want your first and last name out there.

Everybody’s going to want customization, customers and business owners included want that freedom to customize. I have YouTube here open in another window, and I have a black background on my YouTube. And I love customizing little things. The more control that you can give customers the better and they will probably feel more secure about doing business with you.

Jake: I’m thinking too about the way Amazon personalizes the shopping experience when I go on Amazon now.

Chauncey: Absolutely.

Jake: If I’ve looked up things on other websites, if I’ve looked up things in the past on Amazon it says hey, are you interested in this? The sale just happened.

Chauncey:  I ordered a necklace for my wife, it’s weird. It’s like a piece of food, right? It’s like a little fortune cookie that smells like a fortune cookie. I mean …

Jake: Hold on. Did you buy jewelry?

Chauncey: Yeah.

Jake: Like you wear it as a necklace?

Chauncey: Yeah.

Jake: And it looks like a fortune cookie and smells like one too?

Chauncey: Right, yeah. And I mean, I know a woman’s scent should never precede her when she’s entering the room. So you got to get up on this thing. It’s not like the whole room reeks of a fortune cookie or anything.

Jake: Overwhelming. That would be unfortunate.

Chauncey: Right. So I ordered it before Christmas, and for some reason, wherever it’s coming from, it’s going to take forever to get it. So I’m tracking my package, and it says it’s going to get here between the 26th and the 6th of January.

Jake: January.

Chauncey: Right. And I’m just all the 26th?

Jake: What?

Chauncey: And so I’m tracking my package, and it’s like they haven’t even mailed it out yet, and I’m watching. It’s been a week, and they haven’t mailed it out yet. I’m just all like, did I order this from China, from Korea or some other part of the world, what’s going on here? And then it shows up at my door. So I was pleasantly surprised by the error. So I have to give it to Amazon. At least the error was in my favor at the time.

Jake: Yeah, poor tracking. Yeah, it would be pretty frustrating to say it was going to come December 24th, and then you wait till the end of January.

Be a Socially Responsible Business

Chauncey: I feel like it’s been made clear in the media that socially irresponsible firms will struggle. This is one that I think everybody should be happy with. I think that it’s good that every business should have a cause that they’re trying to support. All of them donate money to skip out on some taxes. So donate to something that you care about and get it out there and let people know.

So this is the case even for small business. It doesn’t have to be something that’s going to shake up politically. And, if you’re a small or medium sized business, I would say do not do that. I would say pick something that shows that you care about people, something that shows that okay, well, we’re going to try to evade some taxes here by donating some money. That’s not tax evasion. I’m just joking.

But you can use that to your advantage on social media and in much of your marketing. I don’t know. Okay, my mixed message here. Socially irresponsible firms will struggle. Okay. We know that. How do we flip that to make it advantageous to you? And that is support cats, support dogs, support fire victims, support something that really sort of gets ahead of this idea and puts you out front. It’ll cover tons of your social media marketing. Just sort of find something.

Jake: I mean, it’s just kind of a natural thing that’s happening in the marketplace now. People like the whole grassroots idea of business today. They get turned on by companies doing the right thing and are happy to spend a little bit more if they believe that’s a genuine thing, that they’re helping with that.

Chauncey: Right, and you definitely should. I listen to a lot of talk radio. So I listen to talk radio on both sides of the aisle. And on the right side of the aisle, you have people with mobile companies that don’t donate to specific things and others that don’t do that. But I would say in the case of small and medium business, leave all that out of there. There are easily just people who could use your help, and there’s a lot of marketing power behind it.

Thank you for listening to this segment of the Being Found Show, to hear the full show listen here: Being Found Show Episode #69 or subscribe to our Podcast.