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Small Business

Merchant Cash Advance: What You Need to Know Before Applying

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Small business cash advance

When you need cash personally, you probably try to steer clear of payday loans. These short-term loans are risky, providing small amounts of money at a high cost. The speed at which you could receive funds may be tempting, but the risk involved in taking out a payday loan should make you think twice before doing so.

On the business side, cash advance funds or merchant cash advances, present the same dilemma. Merchant cash advance companies hand over a set amount of money in exchange for a portion of your business’ future receivables, such as credit card sales. A cash advance gives you cash on hand almost immediately, but it can have long-term effects on your finances.

Although merchant cash advances represent less than 1 percent of the financing products available to small businesses, here’s how to feel prepared to make an informed decision when you consider taking this option.

What is a merchant cash advance?

Unlike an actual loan, a merchant cash advance typically doesn’t require collateral, a personal guarantee or liens. Cash advances also do not have a fixed payment schedule, whereas traditional loans do.

When you take on a merchant cash advance, the advance provider purchases a portion of your credit card sales or other receivables in exchange for a lump sum of money. Going forward, the cash advance provider receives a percentage of your daily sales until you pay off the debt. Because the repayment schedule is based on a percentage rather than a fixed amount, the cash advance provider receives a larger payment on days when your sales are high.

Business owners tend to use merchant cash advances to cover working capital needs, such as new equipment purchases, seasonal inventory, expansions or remodels, debt payoff or emergency expenses.

Cash advance providers may include a performance guarantee when you sign a contract. Generally, there is no obligation to repay a cash advance. That’s different from loans, which require various guarantees and have a promissory note of repayment to ensure borrowers pay back the funds. Companies use performance guarantees to give a cash advance the appearance of a loan and borrowers an added push to repay the debt. A performance guarantee would require you to agree not to take any action that would undermine your business performance, such as selling the business or filing for bankruptcy.

Repayment depends on the business continuing to receive credit card payments or other receivables, which means the obligation to repay the advance is conditional, exempting merchant cash advances from state usury laws. These laws regulate traditional loans that are unconditionally repayable and the laws usually put a cap on the rates that lenders can charge. Usury laws do not apply to merchant cash advances.

How a merchant cash advance works

After applying for a merchant cash advance, you could see funds in your bank account in a matter of hours or days after approval. Repayment starts automatically and could begin as early as the next day.

While some merchant cash advance companies specifically purchase your future credit card receivables, other companies may accept a range of receivables, Catherine Brennan, partner at Maryland-based law firm Hudson Cook, told MagnifyMoney. Instead of taking a portion of your daily credit card sales, a cash advance company may make a daily withdrawal from an account that holds your receivables. This type of funding is similar to revenue-based financing, in which a company purchases a percentage of your total revenue rather than just your receivables.

Several companies use the Automated Clearing House Network (ACH) to set up direct electronic transactions between bank accounts. Companies that use a fixed ACH program collect a set amount of money from your business checking account each day. Some merchant cash advance contracts allow you to adjust the company’s daily withdrawal if business temporarily slows down, Brennan said.

“One of the key benefits of this [feature] is it’s supposed to be based on what you generate,” Brennan said.

If the merchant cash advance provider wants to collect part of your credit card receivables, the company may require you to switch to a credit card processing system of their choice to collect money.

Because repayment is based on your daily credit card sales in this situation, the more card transactions your business does, the faster you pay off the advance. However, if sales are slow, you still have to fork over a portion of your daily transactions.

Cash advance companies use factor rates to determine the cost of the advance instead of annual percentage rate, or APR, which is used to calculate interest on traditional loans. A factor rate is written as a decimal figure rather than a percentage and is multiplied by your funding amount. For example, a $10,000 merchant cash advance with a factor rate of 1.25 would cost $2,500, and you would owe the company $12,500 in total. When shopping for a cash advance, look for the lowest factor rate, Brennan said.

The pros and cons of cash advance funding


  • Fast cash. The underwriting process for merchant cash advances is less involved than the process for traditional bank loans, which contributes to the speed at which you receive funds, Brennan said.
  • Lenient eligibility requirements. Cash advance companies often target business owners with poor credit who may not qualify for other types of funding. However, a reputable merchant cash advance provider will have criteria that customers must meet, Brennan said. Watch out for companies that don’t have any eligibility requirements.
  • No obligation to repay. A merchant cash advance contract obligates you to keep your business running so the company can continue collecting receivables, Brennan said. If the business fails despite your best efforts, you’re not on the hook for a cash advance.


  • High cost. Because the underwriting process is so quick, the cost of merchant cash advances is high, Brennan said. Underwriting typically puts your credit history under a microscope to reduce the risk for the lender. Without going through that process, cash advance companies don’t reduce any risk, which leads to higher prices.
  • Your debt could build. Because cash advances are expensive, some business owners end up taking out more than one advance to cover the costs of their current advances, which is known as “stacking.” Cash advance companies may include contractual provisions that prevent business owners from stacking, Brennan said.
  • Fluctuating payments. It could be difficult to forecast how much will be taken out of your sales each day, and it may be difficult to plan around the payments.
  • Deceptive marketing. Some cash advance companies are deceptive when advertising their products. It’s important to look for fees or penalties that are not disclosed up front, which could make the cash advance more expensive.

Merchant cash advance FAQs

When you sign a contract for a merchant cash advance, you agree to continue operating your business to the best of your ability to ensure the cash advance company will receive a portion of sales.

Many merchant cash advance companies approve businesses for funding within a few hours and funding is delivered the next day.

A merchant cash advance company may collect a fixed percentage of daily credit card transactions or make a pre-scheduled withdrawal from your business account for a bank-to-bank transfer.

You could typically use your merchant cash advance to cover any business expense.

Where to get a merchant cash advance

Merchant cash advance companies operate online, and both the application and underwriting processes are completed digitally.

Some companies are direct lenders, which means they directly supply the capital to your business. When working with a direct lender, the name of the capital provider on the application should be the same as the name on the contract for the cash advance. If you work with a company that is not a direct lender, the company may send the information from your application to several different funding companies, which may all pull your credit. When a potential lender checks your credit, it’s considered a hard credit pull. Multiple hard credit pulls in a short amount of time could bring down your credit score. A direct lender only pulls your credit once, making minimal impact on your score.

Merchant cash advances are also available from independent sales organizations, or ISOs, that act as brokers for cash advance providers, Brennan said. They may work with a variety of companies and be able to provide you with information on a range of products. However, ISOs generally rely on commission and may push you toward a product that isn’t suited for you and your business.

“As a merchant, buyer beware is a good frame of mind,” Brennan said.

Alternatives to merchant cash advances

If you’re uncomfortable with the premise of a merchant cash advance but need capital quickly, online business lenders can offer fast short-term funding that traditional banks are hesitant to provide, Brennan said. Here are a few alternatives to merchant cash advances:

Working capital loans

Working capital loans are short-term products used to cover day-to-day business expenses. They typically must be paid off quickly and often come with high interest rates. You may need collateral to secure the loan, but the application process is less demanding than other loans and you could receive funds within a week.

Business line of credit

Instead of borrowing a lump sum of money, a business line of credit allows you to draw from a set amount of funds as you need it. You only pay interest on the amount you borrow. A business line of credit may require a personal guarantee and collateral, and your personal credit may be a determining factor. But you could use a business line of credit to boost cash flow and cover daily costs, building up your business credit at the same time.

Equipment financing

If you need to purchase specific materials for your business, equipment financing could help you cover those expenses. These loans tend to have low rates, as the piece of equipment acts as collateral. Credit history may be a deciding factor and you could be required to contribute a down payment, but payments on equipment loans are generally manageable.

The bottom line

Established business owners who have a good understanding of their operating expenses and can afford to turn over a portion of their daily receivables would be well-suited for a cash advance, Brennan said. This type of financing would be best for short-term expenses like a new air conditioning system, new signage or other equipment, she said.

If you’re interested in obtaining a merchant cash advance, you should understand exactly what you’re getting into, Brennan said. Take your time shopping around to find a company that offers the funding you need and terms you’re comfortable with.

The key piece of information when it comes to cash advances is factor rates, and you should find a company with the lowest ones, Brennan said. Many cash advance providers have become more transparent in disclosing factor rates upfront, Brennan said. Otherwise, you may not find out the rate until after you’ve gone through the application process.

Before selecting a merchant cash advance, you should pay close attention to the total amount that the company expects you to repay, because that will tell you the true cost of the advance. The percentage of your daily sales that the company will take is also important to note, but it won’t show the full cost of the advance.

Merchant cash advances are a relatively new financing product, which creates an opportunity for customer confusion, as well as deceptive practices, Brennan said. Because lending laws do not apply to merchant cash advances, business owners don’t have much legal standing if they want to get out of a bad agreement, she said.

However, if you’ve read the fine print and feel comfortable with the level of risk involved, a merchant cash advance may be a workable option to cover your immediate business needs.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]


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Small Business

Small Business Grants: 10 Programs to Get Started

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Small business grants
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When you need funding for your small business, receiving money you don’t have to pay back would be the best case scenario. Various organizations award grants to small businesses without expectations of repayment. The catch: steep competition and stringent standards.

Government grants for small businesses, as well as corporate and private grants, are highly sought after, and are given to businesses that meet specific eligibility criteria. The application process can be time-consuming and competitive, but your efforts could pay off if your business is selected.

We’ll help you better understand what types of small business grants you may be eligible for, as well as a few programs that could be a good fit for your business.

Who can apply for small business grants?

Many grants are targeted toward certain types of businesses or owner demographics, such as women, minorities or military veterans. Grants could also be industry-specific, and recipients could be restricted in their use of funds.

Business grants can be separated into two general categories – grants from federal agencies and those from private groups or entities, including nonprofits.

Federal grants are available to all levels of government entities, like city or county governments or independent school districts, nonprofit organizations and for-profit businesses. provides a searchable database of federal grant programs. State and local governments also have grant and assistance programs for small businesses. In these programs, federal money is typically awarded through state agencies. Recipients are typically chosen based on statewide social or economic concerns. You can find resources for business owners in your state at It’s also possible your city or county could have available grants for small businesses, so check your local government websites as well.

Private grants are available from for-profit businesses or nonprofit organizations. Corporations and foundations offer private business grants to small business owners, and these programs are usually competitive and focus on certain types of business.

Government grants are usually distributed to businesses that could help advance certain causes or initiatives or stimulate the economy in a specific way. Private grants are typically awarded with similar intentions, and grant makers would select businesses that support a particular focus or goal.

How to apply

Grant eligibility requirements would be based on the goals of the organization: who they want to give money to and how they want that money used. You could also expect a grant application to ask for common business information including how many years you’ve been in business and your annual revenue.

You may have to disclose additional personal information depending on the grant program. Your gender or income level could be a factor. You could be required to submit a personal statement or resume, as well as a business plan and a proposed use for the grant.

10 business grant programs to get started

The competitive nature and strict requirements of grant programs could make it challenging to receive a small business grant. But if you are chosen as a recipient, you would have access to debt-free funding for your company. We’ve compiled a list of general small business grant programs for which you could apply.

Government business grants

1. Small Business Innovation Research Program

The Small Business Innovation Research program, or SBIR, encourages research and development among small businesses. Through the Small Business Administration-powered program, federal agencies allocate a percentage of their research and development budgets to eligible businesses. Participating agencies include:

Grants for first-time applicants could be up to $150,000. Recipients can then apply for a second grant up to $1 million.

2. Small Business Technology Transfer Program

The Small Business Technology Transfer program is associated with the SBIR program and promotes technological innovation in business. Five federal agencies participate in the SBA-backed program:

The program has the same maximum grant amounts as the SBIR program – up to $150,000 for new applicants and up to $1 million for recipients continuing in the program.

3. Environmental Protection Agency Grant Programs

In addition to providing grants through the SBIR program, the Environmental Protection Agency offers grants for a range of environmental activity, such as making improvements to air quality and public health. Grants are available to small business owners, as well as community organizations, tribal programs and college students.


Government agencies post contests on to crowdsource innovative solutions. Small business owners, academic researchers, hobbyists and students have won past challenges, which come with prize money to carry out the proposed solution.For example, the Department of Health and Human Services is awarding a total of $400,000 to three winning ideas for improving Alzheimer’s and dementia care through technology.

5. State Business Incentives Database

To help business owners find local assistance programs, The Council of State Governments provides information on available resources through the State Business Incentives Database. For instance, the site lists the Kansas Tourism Marketing Grant Program designed to help businesses and organizations in the tourism industry with innovative marketing strategies.You can’t apply through the database, but it could be a valuable resource when searching for state grant programs.

Private and corporate small business grants

1. NASE Business Growth Grant

The National Association for the Self Employed awards $4,000 grants each month to business owners looking to grow their enterprises. Applicants must be members of the organization to be eligible. Purchasing an annual membership for $120 would allow you to apply immediately after joining, but you would have to wait 90 days to apply after buying a monthly membership for $11.95.

2. Tory Burch Foundation Fellows Program

The Tory Burch Foundation, created in 2009 by fashion mogul Tory Burch, awards $5,000 to women entrepreneurs as part of a one-year fellowship. Recipients also receive four days of workshops with experts in the Tory Burch office in New York, as well as one year of access to the foundation’s online resources and peer network. Each year, 50 fellows are chosen to participate in the program, and a select few are also invited to pitch their businesses to industry professionals.

3. FedEx Small Business Grant Contest

FedEx chooses 10 businesses each year to receive grants and FedEx Office services. One grand-prize winner receives a $50,000 grant and $7,500 in print and business services, while a second-place winner receives a $30,000 grant and $5,000 in print and business services. Eight additional winners each receive a $15,000 grant and $1,000 in print and business services. The general public can vote for contestants online, and FedEx selects winners from a pool of 100 finalists who received the most votes.

4. Street Shares Veteran Small Business Award

Business owners who are veterans, active-duty military members, spouses of military members or children of military members who died on active duty can apply for grants from the Street Shares Foundation. Eligible businesses must have some sort of social impact on the military community. The Street Shares Foundation awards a $15,000 grant to a first-place winner, while a second-place business receives $6,000. A $4,000 grant is reserved for third place. The Street Shares Foundation is a philanthropic branch of Street Shares, an online lender that specializes in loans for veteran-owned businesses.

5. Visa Everywhere Initiative

Visa awards business owners in the financial technology industry who pitch winning solutions to various business problems. For instance, Visa challenged applicants this year to create solutions that make it easier for consumers to access digital payment tools. Applicants’ ideas must be relevant to Visa’s business and should have the potential to add value to the company’s clients. The winning business receives $50,000 from Visa and a possible partnership with the company.

Alternatives to small business grants

Applying for grants may feel like a pointless effort because of tough eligibility requirements that are often tied to the agenda of the grant sponsor, whether it’s a federal entity or a private corporation. The way you use the funding could be regulated as well.

There are other ways to secure business financing if you would rather avoid the grant application process and competition for funding. Consider these alternatives, but keep in mind you would typically have to repay the money you receive, possibly with interest.

Small business loans

Different types of small business loans are available to meet your funding needs. You could take out a long-term or short-term loan and pay back the money over a set period of time. You may need a strong credit profile to qualify for a business loan, and lenders would also consider your business history, cash flow and assets that could secure the loan. If you need funding right away, you may want to consider a short-term loan rather than taking your chances on a grant. Short-term financing typically has fast time to funding because of minimal application requirements.


Small business owners can solicit funding from the general public through crowdfunding. Platforms like GoFundMe, Indiegogo and Kickstarter provide a platform for you to collect contributions for your business. Some platforms require you to offer products or equity in your company in exchange for funds, but others allow you to accept donations. Like applying for a grant, starting a crowdfunding campaign doesn’t ensure you’ll receive funding. It could take time to generate contributions, and you may not raise as much money as you’d like.


Microloans are disbursed in small amounts less than $50,000 and are typically reserved for businesses involved in community development. Like many grants, some microloan programs target underserved demographics, such as the SBA Microloan Program that prioritizes low-income, women and minority business owners. A microloan may have higher interest rates than a traditional bank loan, and the small loan amount could result in a quick repayment schedule.

The bottom line

Small business grants are often referred to as “free money” from government entities or private organizations. Although you wouldn’t have to repay a grant, it’s not a handout for just any business.

Many grant programs are designed for certain types of businesses or business owners. You may have to meet strict requirements to be eligible. Competition is usually fierce for business grants, especially those from giant corporations like FedEx. Your chance of receiving a coveted grant could be slim.

However, if you do qualify for a small business grant, you would be able to fund your venture without the worry of paying off debt. There are numerous small business grants available both nationally and locally, so it could be worth your while to find grant programs that align with your business.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]


Advertiser Disclosure

Small Business

Most Profitable Industries for Small Businesses in 2019

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.


The economy is growing and the market is (mostly) thriving, so if you’ve been thinking of launching your own small business into the world, the time just might be right. But if you’re an entrepreneur, there can be such a thing as too many ideas. You might have a dozen or more brilliant concepts but perhaps you don’t know how profitable a certain industry is likely to be.

We’re here to help. Working with data from the U.S. Census Bureau, Bureau of Labor Statistics and software company Abrigo, we’ve pulled together the most profitable small business sectors. Whether you’re a small business owner interested in where you rank or an entrepreneur doing market research, there are some important insights ahead.

Most profitable industries

The Census Bureau ranks, among other things, profitability by sector in its Annual Survey of Entrepreneurs. Here are the top 10:


% businesses reporting profits

Finance and insurance


Professional, scientific and technical services


Management of companies and enterprises


Real estate and rental and leasing


Health care and social assistance




Wholesale trade


Administrative and support and waste management




Retail trade; accommodation and food services (tied)


Source: U.S. Census Bureau 2016 Survey of Entrepreneurs

Management of companies and enterprises topped the list as well when Abrigo looked at the most profitable small businesses by net profit margin for a 12-month period ending April 30, 2019. Net profit margin is calculated by taking a small business’ revenue minus all expenses, including interest and taxes. As part of its services to the banking and accounting industry, Abrigo collects financial information on private companies that is then anonymized and aggregated by industry.


Net profit margin (%)

Management of companies and enterprises


Lessors of real estate


Financial investment activities


Commercial and industrial machinery and equipment rental and leasing


Accounting, tax preparation, bookkeeping and payroll services


Legal services


Agencies, brokerages and other insurance-related activities


Activities related to real estate


Offices of real estate agents and brokers


Support activities for mining


Source: Abrigo

Fastest-growing occupations

Clues may also be gleaned from the Bureau of Labor Statistics’ employment projections in the decade between 2016 and 2026. Clean energy and health fields dominate this list of the 10 fastest-growing occupations:


% change in employment

Solar photovoltaic installers


Wind turbine service technicians


Home health aides


Personal care aides


Physician assistants


Nurse practitioners




Physical therapist assistants


Software developers, applications




Source: Bureau of Labor Statistics

Steps to getting started

But before you start a business, you’ll need to put in some leg work. We’ve rounded up four key steps that are essential to starting a business. Here’s what it takes to get your business off the ground.

1. Do your research

If you’re reading this article, congratulations. You’ve already started tip No.1: doing your research.

To start a business, you’ll need to do your homework — a lot of homework. That means thorough market and competitor research, as well as an analysis of financial feasibility, before you start making any business moves. You want a good answer to the question: “What does your business do, and what sets it apart from competitors?”

Some questions to get you started include:

  • What’s the demand for your product or service?
  • How big is your potential market?
  • Which competitors are already out there, and how many are there?
  • What do these consumers already pay for your product or service?

2. Make a plan

You won’t get very far without a well-researched, clear and solid business plan. This plan is a map — it will outline where your business is right now, where it’s going and how you will get there. If you’re not sure what a good business plan looks like, the U.S. Small Business Administration has a few templates and samples to help you get started. Most business plans will have the same information, but how you structure it will depend on how much detail you want to use.

3. Figure out financing

This is one of the most crucial steps to making a successful business. You need funding to grow, but you may not be able to get it as easily as an established venture. The first step is to figure out how much funding you need. That will determine where you get it from: if you’ll be self-funded, need to find investors, or apply for a loan. Your funding will obviously have an enormous impact on what your business will look like in the future, so it’s important to make figuring out how you’ll get capital one of your first steps.

4. Make it legal

This is not the most exciting part of starting a business, but everyone has to do it. You can make the process more painless by figuring out early what permits, licenses and forms you’ll need to fill out in order to become a business in the eyes of the law. Figuring out what paperwork you need early on in the process is one way to stay on top of things and make sure there aren’t any legal surprises later on.

A closer look at top industries

Specialized services

Industries such as legal services and mining activities are regular fixtures on the list compiled by Abrigo and formerly Sageworks — Sageworks became part of Abrigo after it was acquired in 2018 — said Libby Sharman, Abrigo’s vice president of marketing. One reason for this is steep barriers to entry or high degrees of education required. Keeping the talent pool small benefits these businesses.

They also may not require steep overhead costs, added Sharman. In the case of businesses involved in support activities for mining such as exploration, “they’re not necessarily buying and maintaining all the heavy equipment necessary for running a mine,” she noted. Low overhead costs may also apply to some of the professional industries on the list, firms where their primary expense is the people they have in revenue-generating roles. Without much overhead to account for, “they can have a higher than average profit margin. So many of these industries, legal, accounting, there’s so much training [for business owners] to get to that point, their experience is going to be a calculable asset relative to other small businesses.”

Machinery and equipment rental and leasing

“Construction may be a significant driver of profitability for this industry,” Sharman said. Smaller, local stores that provide machines to rent are more likely to be able to charge a slight premium because of their convenience or react quickly to the inventory needs of their local clientele. According to industry research firm IBISWorld, a key factor of success in this industry is the ability to control stock, so keep this in mind.

Construction equipment rental

This business provides construction equipment rentals to local contractors and property owners alike. Swift delivery and pick-up and a commitment to customer service will set you apart from larger competitors.

Medical equipment rental

Medical equipment rental businesses are also a part of this sector. Customers can rent everything from a hospital bed to a breast pump from these businesses.

Activities related to real estate

This has been one of the hottest growing sectors in the country recently, both for residential and commercial real estate (albeit one predicted to grow slightly slower in the near future, in the case of the latter). “These shops can also benefit from a low overhead since there is no inventory carrying costs or high-tech needs in the business,” Sharman said.

Under the umbrella of real estate are other types of work:

Property management

Property managers deal with the operation, control, and oversight of real estate, often acting as a go-between for landlords and tenants. The key to building a property management company is building a robust client base — so network, network, network.

Property appraisal

Property appraisal is generally an area of steady work (particularly if you live near a hot real estate market). Different areas and markets will often have different licensing needs, so make sure you do your research before beginning your training.

Traveler accommodation

This is the sector that includes short-term lodging. Aside from a place to sleep, these businesses might offer other perks like food services or recreational activities. Location is key for these businesses — hotels in touristy areas are always a good bet, but filling a niche in a less-trafficked locale means there’s less competition. U.S. travel bookings and revenue swelled to nearly $800 billion in 2017, according to Deloitte. Even though the accounting giant predicted growth in 2019 as well, it warned of challenges ahead. Here’s how small businesses can fit into this global business.

Bed and breakfasts

Bed and breakfasts aren’t always the cheapest option for accommodations, but they can offer travelers character and charm that chain hotels can’t compete with.


Small, seasonal resorts occupy a similar niche to bed and breakfasts. “Given their smaller operating levels and boutique experience, they may be able to charge a premium to guests and avoid franchise fees, which protect their profit margin,” Sharman said.


Location and upkeep is everything — weary travelers are more likely to choose a well-maintained and attractive motel near major roads to turn in for the night.

The bottom line

No single factor will determine whether your small business is profitable. Decisions you make as a business owner, conditions in your particular city and in the country as a whole may affect the success of your enterprise. The important thing is to leverage your particular expertise and follow best practices for developing a solid business plan. These will help you weather the inevitable ups and downs of starting and running your own business.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Kate Rockwood
Kate Rockwood |

Kate Rockwood is a writer at MagnifyMoney. You can email Kate here