When Winston Churchill, Prime Minister of Britain, was knee-deep in World War II tactics he said this, ” Success is not final, failure is not fatal: it is the courage to continue that counts.”
Entrepreneurs may identify with Churchill when growing their businesses. Your business started as a passionate idea that grew into a full-fledged vocation offering products and services to impact your community, if not the world.
Being your own boss means the buck stops at your desk because you’re in charge. As rewarding as that is, does your business’s momentum seem to be at a standstill?
You could improve your business plan or sell products on a global online retail outlet but will those efforts pull your business out of a slump?
A small business loan may combat stagnation and here are popular ways to use the money.
Four Potential Areas to Invest Resources with a Small Business Loan
- Staff: Any time you ratchet up your business to a new level, you’ll probably need more employees. Initially, bringing staff onboard can cost upwards of $4,000 per employee. This initial investment is small compared to having more people available to handle busier sales seasons and provide customer service. Plus, increased revenue gives your company a boost.
- Production: Equipment used day-in and day-out have a tendency to break down. It’s also possible you need more equipment to keep up with production. Small business loan proceeds can be used to repair equipment, add new pieces, or upgrade the equipment you already own to keep production from coming to a screeching halt.
- Technology: We live in a techy world that drives everything we do. People communicate via texts, emails, social media, and instant messaging. Businesses that don’t use up-to-date technology fall behind in production, lose contact with customers and miss becoming part of what’s trending in the marketplace.
- Branding/Marketing: First-time impressions may give you customers for life or turn them away forever. Your product and service must stand out as unique among a sea of others. Your brand tells others a story about who you are and what you offer. How you brand your products resonates (or doesn’t) with customers to establish how they perceive your business.
Case in Point: How a Business Loan Helped a Hispanic Small Business Owner
Gabriela owns an art shop with pieces she created and as well as ones by other artists. Lately, she’s noticed her customers aren’t buying as much even though they like her products.
Gabriela feels overwhelmed and discouraged. She needs to reach new clientele with her excellent quality products but people don’t know her store exists.
Likewise, she needs to increase store inventory and floor space, and add extra employees. Gabriela secures a small business loan to use the cash to hire staff, lease adjoining retail space, and beef up her online and community presence to create branding awareness and interest.
First, she contracts artists she already knows to create additional artwork to increase inventory by 25%. She also employs a marketing and social media specialist to send email blasts to existing and potential customers offering them a 10% discount.
Sales flyers are distributed throughout the community and posted on her business’s website and social media pages.
She’s also paid for a radio spot to make regular announcements about her business. Within months, Gabriela has increased in-store and online sales. Her investment is paying off handsomely.
Apply for a Small Business Loan and Reap Similar Benefits
Just like Gabriela, you can use a small business loan to inject cash and energy into your business.
Once you borrow money on a short-term basis to give your business a needed pick-me-up, you may be inspired to step out of your comfort zone and borrow on a regular basis.
The benefits of doing so are contagious and tangible rewards are huge. You may even become an expert at turning borrowed cash into profits.