Are you adding items to your business’s must-have list but aren’t crossing them off? Do you need more equipment, a larger building, more inventory, or an upsurge of cash? No matter how much effort you put into your company, do you have the feeling that you never move forward?
Source: Easier Accounting
All business owners face similar situations when growing their businesses. Many see their businesses stagnate and feel like they’re beating a dead horse to the finish line. They wonder whether now or later the right time to apply for a business loan is. Well-meaning skeptics also advise that it’s too risky to add debt to an expanding budget.
Before you step in line behind the naysayers, the following four major areas are where business owners invest money acquired from a Camino Financial small business loan. More than likely, you face similar financial needs.
Source: CNBC.com
- Staff: Hiring more employees is crucial to your business’s success. But you also have to know when is the right time to hire staff, according to startuploans. Hire too soon and your cash flow takes a hit. Hire too late and you lose valuable sales. If you turn down work or sense that your business struggles to keep up, bringing extra people onboard reduces workload. Consider hiring part-time employees so your business keeps growing without causing undue strain on the budget. As your business expands, full-time employees may become the norm. Greenhouses, lawn care services, and Christmas retailers routinely take advantage of hiring more staff for seasonal sales.
- Production: Product sales can increase in very little time or your equipment may need upgrading. Before you ramp up production, you may need to add space for more equipment, train employees, and have enough working capital to transition smoothly through changes. Additionally, entrepreneurs need funds to invest in new product lines. With a loan, they can spread out costs for years rather than pay for equipment and related production costs upfront.
- Technology: It’s no secret. The business world revolves around technology. Your clients read your online newsletter, order products, and contact you for advice and to provide feedback. Moreover, production line machines operate efficiently when using the latest computer software. Your business depends on top-notch management software for day-to-day operations. Technology protects your financial data from cyber attackers and your building from vandals. Furthermore, you depend on technology to network people from several locations who work from home.
- Branding/Marketing: Unless you purposely put your business in the limelight, no one knows you exist. If marketing prowess isn’t your thing when promoting your company is a priority, you need money to hire a marketing specialist. In addition to advertising, you pay costs for marketing research, customer support, social media outreaches, and product pricing. To brand your unique service or product, you must get information to customers via emails, newspaper ads, coupons, blogs, and other types of content.
Source: fortune.com
Francisco Made the Right Move Getting a Small Business Loan
As a young child, this Hispanic entrepreneur nurtured his love for building by constructing Lego designs. He was encouraged by his father who had been a construction foreman for most of his life. Now Francisco, 20 years later, builds houses and repairs residential and commercial buildings.
Because he is a skilled craftsman, he has plenty of work scheduled months ahead. Francisco has one employee but they never seem to catch up with such a heavy workload. He realizes he needs at least one more carpenter, someone to pick up supplies, and another person to keep his books. By increasing staff, he can maximize production since he doesn’t leave the job to run errands or write checks. He also needs laser levels, moisture meters, and the latest power tools with digital controls. So far, Francisco has only depended on word of mouth advertising to get the word out about his business. To keep his business momentum going forward, he needs to set up a website, build a customer base, and reach out to the community to brand his services. He plans to meet with an innovative marketer in the community who can create content for potential customers and build relationships.
Source: microfinancesaving.com
With a doubt, Francisco knows this is the perfect time to get a small business loan to meet these growth challenges head-on. He admits it’s scary to repay a loan while he builds his business but these indicators signal it’s either now or never. With more staff to scale up production, someone actively marketing his business, and new equipment, Francisco is confident he can complete projects quicker and take on more work. He applies for a small business loan through an online lender without needing collateral to qualify. He’s happy with his decision.
A Small Business Loan May Be What Your Business Needs
What are other reasons business owners get loans? Entrepreneur lists outgrowing space, building credit and purchasing more inventory, among others.
Starting a business in your home’s basement makes sense until you bump into employees or inventory is stacked on the floor and on shelves up to the ceiling. Do you flip through equipment catalogs wishing you could buy what you need or look in the help wanted ads for the most talented people? There’s a good chance you already know what your business needs. Except, to move forward without knowing the end result feels like you’re in the dark. You aren’t by yourself. Many businesses put off getting a loan thinking they can get through a rough patch without borrowing. Competition is fierce and retaining loyal customers gets harder. They wait for the market to change or for an influx of new customers.
Source: cnn.com
When you feel like your business is about to take off, it’s on hold or you can’t keep up, it may be the perfect time to invest money into your business to keep growing. If you can see that your bottom line will increase, a small business loan seems like the next logical step. Just like Francisco, the reasons to get a loan outweighed not getting one. Sure, he wasn’t exactly comfortable launching out into the deep but he knew he’d always wonder if his business would flourish. It did.
