Small & Medium Businesses:Take Your Business to the Next Level

The Opportunity for Small & Medium Businesses

In today's dynamic financial environment, businesses — ranging from multinational corporations to small and medium enterprises (SMBs) — must maximize every dollar to maintain their competitive edge. A frequently overlooked opportunity lies in utilizing excess cash flow to produce consistent and high-yield returns. For SMB owners, this approach presents a valuable opportunity to transform idle funds into a substantial income stream, reduce financial risks, and enhance overall profitability.

In this thesis, we will articulate why our strategy provides exceptional value to SMBs and illustrate how it can foster transformative growth. Urban Bear Capital offers an innovative solution tailored for SMBs, providing a fixed and guaranteed return of 10% on investments. This rate significantly outperforms traditional low- yield instruments, such as U.S. Treasuries, which currently yield approximately 4%.

The Challenge for SMB’s: Inefficienciently Managing Excess Cash

Excess cash flow often sits dormant in low-yield accounts or is reinvested in underperforming business initiatives. This creates two challenges for SMB's:

1) Missed Opportunities for Income Generation:

Unused cash fails to contribute meaningfully to a company’s bottom line, acting as a drag instead of maximizing the businesses growth potential.

2) Operational Inefficiency:

Suboptimal reinvestment strategies, such as maintaining poorly performing products, can further reduce overall profitability.

To highlight an example, if a small or medium business has 10 products, and 5 of the products are bring in less than 10% net profit margins, the business could then drop those 5 products and earn their 10% through Urban Bear, in a passive way. This would enable the business to refocus its efforts on their highest performing products, increasing operational efficiency while diversifying their income stream.

Our Solution: Redefining Cash Optimization

Urban Bear Capital provides small & medium businesses with an opportunity to earn a fixed and guaranteed 10% return on their excess cash. This return, free from management fees, effectively doubles what treasuries offer today (2024).

Our solution is specifically designed for businesses looking to:

1) Diversify Income Streams:

The guaranteed return provides predictable, risk-managed growth, creating an additional revenue source.

2) Reduce Reliance on Low-Margin Products:

By channeling excess cash into Urban Bear’s program, businesses can offset losses from underperforming products or services.

3) Reinvest in Growth:

Higher returns from optimized cash can fund strategic initiatives, such as expanding operations or upgrading technology.

Case Studies: Lessons from Large Corporations

Microsoft:

The tech giant demonstrates the power of cash optimization by parking a large portion of their $70 billion cash reserves in treasuries, earning steady returns. While treasuries provide security, their yield is limited. Had Microsoft access to a 10% guaranteed return, its annual cash earnings could double compared to the 4% offered by money market funds.

Airbnb:

From the time of booking a property, till the time the host gets paid (once the stay is completed), Airbnb sits on the cash paid by customers which has racked up to around $900 million in cash holdings at any given time. They then invest this in treasuries giving them 4-5% in gains. Airbnb’s business model inherently benefits from cash investments as these temporary holdings should be generating returns instead of sitting idly. These examples illustrate the value of strategic cash allocation and emphasize why SMBs must adopt similar practices if they want to grow much like the publicly listed companies.

YOUR INVESTMENT IN ACTION

Below is a step by step play of how this would work for your Small or Medium Business, using a real example.

ABC Whole Foods Inc. generates about $10 million in net income every year.

Jim and Jane, business owners, typically pull out 25% for their personal expenditures and 25% is reinvested into the business, with the remaining 50% sitting in a basic checking out earning them almost a 0% yield.

Jim and Jane were always wondering what they could do with the remainder of the cash, but were too focused on their own business to do anything with it. They were then introduced to Urban Bear Capital and decide to invest in the SMB product.

Now, with $5 million (50%) of the net income sitting in cash, they invest half of it, $2.5 million, with Urban Bear Capital, which will deliver 10% a year for 3 years.

Every year, Urban Bear Capital sends ABC Whole Food Inc. $250,000 as their profit from their investment.

After 3 years, ABC Whole Foods Inc. has netted $750,000, or 30% in profits on their $2.5 million investment with Urban Bear Capital. Now, at the end of the contract, ABC receives their principal back and can choose to reinvest again if they can.

In 3 years, ABC Whole Foods Inc. has added an additional revenue stream netting them 10% annually. If they left the cash idle, they would have missed out on $750,000 in profits as the cash would have sat in a low yield account.

Jim and Jane are very happy with their investment. They also realized that out of the 100 different fruits and vegetables they grow and wholesale, 10 of them have profit margins of around 6%.

After speaking to the team at Urban Bear Capital, Jim and Jane realized that it wasn’t worth the sweat equity to produce and sell those 10 items. So, instead of investing in those products, they remove the 10 sku’s from their inventory and reallocate that capital to Urban Bear’s SMB program.

This allows them to:

1) Boost profits, netting 10% as opposed to the 6% they were making all while reducing the work load

2) Diversify their income stream

3) Focus on the higher profit margin products.

THE PATH FORWARD

Urban Bear Capital offers a proven, high-yield investment strategy that empowers SMBs to maximize their financial potential. By adopting this approach, SMBs can emulate the cash optimization strategies of Fortune 500 companies while achieving even greater returns.

For SMBs, the decision to invest with Urban Bear Capital represents not just a financial choice, but a strategic imperative. In a world where every dollar counts, earning a guaranteed 10% return is a game-changer.

By choosing us, you can:

• Transform idle cash into a high-yield asset

• Diversify with a reliable income stream to support growth

• Minimize reliance on low-margin or underperforming business activities.

  
  

The opportunity is clear: invest with Urban Bear Capital and unlock the power of your excess cash today while maximizing your potential!