Starting a business is no easy feat, but just because you’ve got your feet off the ground doesn’t mean you won’t need a helping hand now and then. That helping hand can be a business loan if you need it.
There are some bad feelings that come with the idea of taking out a business loan. People assume that needing one means you have failed, but in fact the opposite is the case. A lot of the reasons for businesses seeking out a loan is because their business is growing. Various aspects of doing well and needing more resources, can be aided with a business loan. It has become such a vital part of the business lifespan that it is as common as a child going to school.
With that in mind, your business needing a loan isn’t a sign that you’re not coping, but that, in fact, you are coping very well. Read our guide to find out whether you’re in a place where you too will require a business loan.
To move premises
As your business gets bigger and bigger, it might outgrow your current premises. If you’re a startup operating out of your garage, or your first restaurant is fully booked most nights, it might be time to look for somewhere bigger.
However, it can be a big move, no pun intended. Beyond just the initial bill of the deposit needed for a new premise, a bigger place will mean bigger bills. More rent, more energy usage and cost, etc. A business loan will allow you to make the move without worrying about all the extra expense eating up your profits.
To train staff
If your business has got to a point where it needs employees, well done. It’s an important milestone that shows growth. But training these new staff members might be costly. Maybe they need to know how you run things day to day, or maybe they’re hired to fill a role you can’t help them with, maybe they even need training from the ground up. Whatever the case, it’ll usually cost, especially if you’re hiring a few new players at a time.
Or maybe you have staff, but you’re looking to shake up how things are run in the business. The best businesses adapt to change, and your staff will have to, as well. Having them retrained to either change their usual practices that aren’t working anymore, or to gain new skills they can use in the business would be a very effective means of adapting, one that a business loan can help you to cover. A search online will help you find the best business loans available for your situation.
To restock
Without stock, you have no business. It is the ingredients of your business, without which, you’d have no business cake. Whether you’re a store selling products, or a restaurant who needs fresh produce, or a salon that needs shampoo. So, if you need to restock, you will really need to restock – or you have no business.
A business loan can help out there. You can even take out a loan to buy all your stock in bulk, allowing you to buy your stock for a lower overall cost. The downside is that it is an upfront cost, making for an investment that a business loan can cover. Lower stock prices can mean higher margins and profits for your business. You can then repay your business loan at a lower rate than monthly stock costs would be.
To reach new customers
If your business has stagnated, it could be because you’ve reached as much of the public as you can in the state that you’re in. You have your regular customers, they’ve told their friends, and that seems to be it. If you’re looking for more customers, it would be best to get online. You can reach new people with digital marketing, but it will take some know-how. Not everyone knows what they’re doing when it comes to the inner workings of digital marketing, so doing some research would be helpful.
There’s a lot to think about when it comes to marketing. There is the social media side, the content creation side, and the data analysis side. Content creation alone could cost you depending on how high quality you’re looking for. If you were to hire someone to handle the whole campaign, it would cost even more. You could attempt it alone and take a few courses, which would also cost, but you’re also trying to run a business. You could cause feelings of burnout.
A business loan will allow you to hire someone to handle all the marketing from the filming, editing, posting, captioning to the SEO, keyword research and demographic research, letting you just focus on watching the customers come in.
