Some days entrepreneurship may seem like you’re rolling dice. You have more questions than answers.
How do you go about applying for one?
What should you consider before committing to a loan?
Without a doubt, the passion you feel for the goods and services you offer hasn’t waned, but your business seems to have stagnated a bit. Your business isn’t faltering but you sense it needs a new trajectory.
You could market additional products or step up production to boost sales but that takes money. Because you’re in charge of what happens next, all the pressure falls on you.
Maybe more capital available through a small business loan is your next viable option. More than likely, you already have ideas on how to use funding but here are four main areas business owners invest in.
1. Use a Small Business Loan to Add Staff
A local cafeteria recently renovated their shop. With the influx of new customers, it was apparent to the business owner that adding more baristas and cooks would help keep pace with sales.
Bringing more people onboard not only increased revenue but boosted the morale of existing personnel because they hadn’t been able to keep up.
Now the cafeteria is one of the most successful ones in the area.
2. Ramp Up Production
An owner of a manufacturing company produces high-end furniture sought after by local clients. Buying newer or upgraded equipment would reduce strain on the production equipment that has been in service for several years.
By having extra money to repair, upgrade, or purchase new equipment, the business owner could increase production and expand sales globally. It’s a risk this business owner decided to take because of a steady flow of interested buyers. Likewise, there was enough revenue to comfortably make payments to repay the principal, interest, and closing costs.
Now the furniture is not only sought for locally, but nationally.
3. Stay Ahead of Competition with Technology
No matter where an entrepreneur turns, technology is already in place. This became obvious to an artist that depended solely on word of mouth referrals to create interest for her paintings.
She decided her old school approach was outdated. Online presence, like a website and social media accounts, would help promote her artwork. After acquiring a 24-month small business loan for $10,000, she hired graphics and social media artists to set up online accounts to display her art.
Because she tapped into technology, within months she had new customers plus requests to exhibit her work in several galleries.
4. Make Branding/Marketing a Priority with Small Business Loan Proceeds
You may have an excellent product or service but no one knows about it. That was true for local clothing boutique owners.
They needed funds to their designer clothing. After acquiring a small business loan, they employed a marketing consultant on a short-term basis. By setting up marketing campaigns to match seasons and holidays and create a distinctive logo, sales increased by 25%.
The business owners learned tips and strategies they can use in the future.
Should You Apply for a Small Business Loan?
As you’ve realized by now, these business owners took a financial leap of faith at the right time.
As creative creators of their operations and bosses of everything, they believed in their products and services enough to drive their businesses for exponential growth.
How about you? Are you ready to capitalize on the benefits a small business loan offers?