Local economies are made up of mom and pop businesses. Any mom and pop business across the nation is a symbol of American entrepreneurship. It’s no secret that the owners of these types of small establishments are experts at hard work and sustainability. They may not be “big” when it comes to size, but with passion and determination, they have managed to stay competitive for a very long time.
A perfect example of a mom and pop business is D’Style Beauty Salon in Miami Springs, Florida. The salon has been a neighborhood favorite for over sixteen years now, catering to locals and non-locals alike due to its prime location — close to the Miami International Airport. We invite you to meet the proud owners of D’Style Beauty Salon at the end of this post.
What is a Mom and Pop Business?
In general terms, it’s a small, family-owned, or independent business. While historically, the word has been used to refer only to convenience stores or drugstores, nowadays it covers many categories, including restaurants, convenience stores, hardware stores, gift shops, bakeries, beauty salons, etc. Mom-and-pop businesses are typically owned and operated by the same family for generations.
A typical mom and pop business, while it doesn’t grow in size, has proved to withstand the test of time due to their attention to preserve the customers they already have. In other words, sustainability is a critical factor in the success of any mom and pop business. Still, there are many challenges they face in an ultra-competitive market.
What Are Some of the Challenges Faced by Mom and Pop Businesses?
Mom and pop businesses struggle to compete with bigger establishments, malls, or franchises. More substantial companies offer a more extensive offer of products, a more convenient shopping experience, and usually more competitive prices.
For any business (regardless of its size and type), access to capital is vital to stay competitive. However, mom and pop businesses find it challenging to access capital in the form of traditional or bank loans. Most of the time, due to lower credit scores or lower monthly revenue than larger businesses, they don’t meet the requirements of most lenders. The average loan approval rates for small businesses are as little as 30%. This rate is even lower for mom and pop businesses.
However, financing is a real possibility for any small business when knowing where to look. Alternative lenders and online loans have emerged to meet the needs of small underbanked companies like mom and pop businesses. Not only they offer fewer requirements and more flexible terms than traditional loans, but they also reduce the underwriting process of a loan from 2-3 months to 3-4 days.
Camino Financial is one of these lenders. With fewer requirements and a fast, easy, and transparent loan process, our business loans can be used for multiple purposes: improving your cash flow, renewing your equipment, or buying inventory, for example. Most mom and pop businesses remain the same in size or look, but it doesn’t mean they can grow in their abilities and performance. Through access to capital, any business can increase its economic impact and improve its financial performance.
There’s New Hope for Mom and Pop Businesses
In recent years, in an over-consumerist society, we have seen an increase in the need for personalized services and products and the demand for home-made and locally-grown products.
Particularly among younger generations, “shop local” and “shop small” are common marketing phrases. These terms suggest better alternatives and promote the responsibility to be smarter about where you spend your money.
Millennials and the so-called Generation Z understand the effects corporations have in our world, including our environment. They know shopping local is the most sustainable way to go, and they are willing to pay the added dollar to do so.
Select dates such as Mom and Pop Business Day (March 29), and Small Business Saturday — which is a recent American tradition that takes place the following Saturday after Thanksgiving — now shine a spotlight on small and brick and mortar businesses.
- National Mom and Pop Business Owners Day – March 29
- Small Business Saturday – Saturday following Thanksgiving
Tips to Sustain your Mom and Pop Business
There are ways to grow your mom and pop business while maintaining its character and size.
- You can offer a broader range of products or services
- You can add or improve your online shop
- You can provide credit to customers who can’t pay their whole bill at once. Many mom and pop businesses use this incentive, and as a result, they promote customer loyalty. However, this practice is hard to sustain without a proper cushion of cash.
- You can use tools to improve customer service and satisfaction, which is a crucial differentiator for mom and pop businesses.
- You can enhance your digital presence or social media channels. That will attract more customers that usually wouldn’t visit your store in person.
- You also want to make sure to implement the right marketing to help with customer retention. That can be anything from an SMS reward program where customers sign up for text message marketing to providing seasonal discounts for returning customers.
To set in motion some or all of these initiatives, you’ll need some cash in hand. Consider a business loan from Camino Financial to obtain the funds that will allow you to achieve sustainability and grow wealth for generations to come.
We invite you to learn about the features and benefits of our business loans and check for yourself why we stand behind our motto: No Business Left Behind. You can also use our business loan calculator to test the potential cost of your business loan or request a free quote and instantly find if you prequalify.
Meet Lien Barales, the proud owner of D’Style Beauty Salon
Lien opened her beauty salon almost two decades ago, after working as a hairstylist at a different salon for several years. She prides herself in customer retention and has clients that date way back to when the salon first opened, as well as clients that have followed her from her previous business.
She says the most rewarding aspect of her work is the ability to connect with people. “You become a stylist and a therapist because people come to unwind and share their happiness, struggles, and successes,” says Lien.
The biggest challenge she faces is during slow months, such as summer when she receives fewer customers. She also understands that franchisees (independently owned spaces at other corporations where stylists can rent out space to work) are increasingly becoming competition. Not to mention the rise of social media, which is a handful to navigate and a job within itself.
These days, most of her new clientele comes from Google reviews. She tells her clients to leave reviews because she notices an abundance of calls from clients coming in after they see her business on Google.
In the future, she plans to increase her marketing budget to have someone properly handle her social media account and offer clients incentives to return, such as special deals and events. Lien understands the importance of a substantial digital presence and wants to implement hers to keep her current customers and attract more.
We invite you to meet other small business owners like you who are thriving thanks to the right resources and proper financing.