Whether you’re trying to boost your market share, improve your products and services, or grow your small business, funding from a small business loan can give you the foundation you need for long-term success and continued growth. However, having more money comes more responsibility. With that said, you need to create a strategic payback and spending plan for your loan to help make sure that you make the most out of your small business loan.
Try Saving Money
Before spending your loan, whether it’s a fixed-rate loan or an SBA loan from your lender in Ogden, ensure that you have sufficient cash reserves and cash flow for repayments. Check out your projected and current revenues so you can create a practical repayment plan, detailing how you plan on using the loan money and how you’ll repay your loan balance. Consider opening a separate savings account where you can put money for repayments so that you won’t be tempted to spend it on other things. While you have the option of taking out loans using asset collateral, don’t risk your assets if you can’t pay off your business loan.
Buy the Needed Equipment
Whether you are selling services or goods, it’s vital that you offer up-to-date offerings to sustain the growth of your business. The funds from your business loan can provide you with the flexibility you need to invest in new items that prospective or existing customers might be looking for, or offer you the extra money you need to purchase more inventory. If you’re looking to buy new items to offer your customers, don’t buy too much to reduce your risk if these items don’t sell as planned. If the items sell like hotcakes, however, that’s a great sign to buy more on your next order.
Even if your business isn’t service-based, buying new equipment can help you run your business more efficiently and smoothly. Consider purchasing technology to upgrade critical equipment, improve customer service, or perform much-needed maintenance to keep up with the demands of your customers.
Invest in Marketing
If your business is in a position where a loan will help you expand your business, you will have to obtain new customers to boost your market share and raise your profits. Allot some loan money that you can use to improve your marketing efforts. Don’t just stick to radio and local TV ads; take advantage of online marketing through content marketing, blogging, etc. It’s a great idea to grow your digital presence through social media, join community organizations, and refresh your website because potential customers will search for you on Google to know more about your company. Make sure you that you keep your social media and website updated and monitored regularly.
Your small business loan will come with an influx of funds. But you need to make sure that you spend it wisely and strategically. So consider the advice above to help ensure that you can pay back your loan on time and grow your business at the same time.