Have you thought about applying for a working capital loan but simply focus on that monthly payment you’d be responsible for? If so you probably overlooked the perks of a finance-consulting firm. While you do have to pay a loan back, sorry about that, leveraging the funds correctly can allow you to make even more money for your business and that monthly payment will be no problem at all. Here are a few methods in which to apply that loan and grow your business.
Invest in Marketing
Marketing is a huge component of your business and it’s more than just selling – it’s also promoting brand awareness and connecting with your customers. A lot of time is required, as you have to get past the noise on the web but the right software you can drastically reduce the time you spend on marketing your business. There are specific types of CRM systems out there allowing you to connect all your social media platforms, provide better email campaigns or simply keep your sales and operations employees connected. There’s also a great article on thebalance.com with some digital marketing ideas.
Create a Functional Workplace
If you’re spear bedroom or (office) is filled with file cabinets and no closet space, it might be time for an upgrade. Use the loan money to find a corporate office or retail space that fits your needs. If you already have office space but need more for your ever-growing team, look for other offices in the same building or area for your expansion, change can be good for business and refreshing for employees.
If your office equipment or furniture isn’t up to par, update it. Today’s office space, sparked by silicon valley, include a more relaxed and fun environments. Your employees will be more productive if they’re not sitting on a hard office chair while they use a computer from the last decade surrounded by beige walls.
Expand Your Inventory
In many cases buying more product in bulk will get you a better deal so that working capital loan can come in handy. Now you can negotiate discounts with your vendors or, at the very least, reduce what you pay in shipping.
Preparing for the holiday season you can stock up on inventory if you’ve got the cash flow to do so. That helps you sell more during the busiest shopping season and ensures you never run out of products for your customers.
Leverage Technology
There’s a reason why the word “technology” is synonymous with business in todays world, it will help you run your business faster, cheaper, more organized and easier. But if you’re only getting started now it may require a little more investment to get going.
Something as small as using a tablet for chart demo instead of paper could close the sale faster because of the interactive experience. Using video chat for your virtual team meetings can help you stay connected to your employees without travel costs. Accounting software makes it easy to stay on top of your finances. Whatever component of technology you’re considering and use the right way is sure to have a fast ROI for your business.
Create New Revenue Streams
Have you had ideas for new business but did not explore them because of capital? A business line of credit can help you add a passive revenue stream or add additional products to your lineup, instantly boosting your bottom line. Maybe you want to add ecommerce to your website an expand your customer base for your clothing store. A loan could help you cover the costs of designing the platform, develop products and launch them on your website. If you want to add additional products, that loan can help cover R&D as well as manufacturing costs. All of which will be paid back as soon as you start selling.
Hire Extra Help
Like most small business owners, you probably do just about everything in your business – just like those 1980’s movies where the person at the ticket counter was also the bag handler and the pilot. But having an infusion of cash can give you the leverage to hire desperately needed help. An extra employee – part/full time or even a contractor, can provide assistance in areas you’re less proficient in. Two areas which typically take much time out of a business owners day are marketing or accounting. Putting a strategy in place and removing yourself from these tasks could free you up to work on other important aspects of the business.
Rather than worrying about what you have to pay back with your loan, focus on the opportunity it provides your business, that’s why you need the loan in the first place. There’s no way around it, an invest has to be made in order to make more money and a working capital loan is an excellent place to start.
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