Starting a small business is no easy feat, but once your company can steadily stand on its own two feet, it's time to start looking for ways to grow your small business. Many professionals turn to loans when looking to expand their operations - and with good reason.
Consider the following ways your brand can use the funds from a small business loan to grow in both size and recognition.
1. Set up for the Holidays
The holiday season requires a large monetary commitment from small-business owners. While revenues are generally higher during this time, executives must pay for temporary seasonal staff, holiday decorations and larger quantities of inventory.
2. Invest in Marketing
Marketing best practices are constantly shifting, and to stay current with the times, small-business owners must invest in their departments to help build both online and physical efforts. Consider hiring a content marketing firm with your new loan, or putting those funds toward targeting new regions.
3. Pay Off Debt
It may seem counterintuitive, but taking out a small business loan is one of the best ways to eliminate debt from older loans or credit card bills. Tackle interest rates from older loans or consolidate costs from previous bills. Fixed rate small business loans can go a long way toward reducing outstanding bills or loans.
4. Inventory Savings
Purchasing inventory in large quantities often means individual units cost less, but many small businesses can't afford to buy these items in bulk. Use your small business loan to make the initial financial commitment, then pay off your loan with the increased revenue from selling extra inventory.
5. Repairs and Equipment
Technology can have a significant impact on how smoothly your small business runs. Whether you're thinking of investing in iPads for the store or you've finally decided to overhaul your cash register system, using funds from a loan can help you get your business squared away and reduce operational costs in the long term.
6. Open a Second Location
If your store has been performing well, opening a second location may be a wise decision. As you're researching markets in new locations and finding the perfect spot, you'll want to take out a small business loan to help finance upfront costs of rent, maintenance and new inventory. This may even prove to be a critical investment should you choose to one day franchise your business.