With the types of business funding options available now, starting a business is easier than ever before. However, keeping it successful is still rare. Research shows that 30% of small businesses fail within the first three years. But you don’t need to let other people’s statistics become your own reality.
Start your business on the right foot by using a business loan effectively. Here’s a guide on how:
Machinery and equipment
While machinery and equipment are long-term assets of your business, investing in them is costly. However, you shouldn’t let the lack of capital deter you from investing in the right machinery as the necessary equipment will help your business run more efficiently. Hence, using your loan for business to secure upgraded equipment first is a prudent thing to do.
Tip: Efficiency is key. Looking for multi-purpose and refurbished machinery and equipment with a warranty is the smart way to go.
If you’re in the retail industry, maintaining an adequate inventory level can prove to be a major expense. Hence, you can use a business loan to stock the right level of goods to attract customers and keep them coming again.
When you’re just starting, you will have to experiment with a wider range of products to figure out what exactly works well with your target market. Additionally, this is also when you’ll be building relations with suppliers and can use cash from the loan to create a good reputation, take advantage of deals offered by them, and leverage economies of scale.
The first thing most people do when they hear about your business looks it up online. Hence, you need to have a website in place.
Using your business loan to create an easily-navigable website with comprehensive content is important. Most people make the mistake of focusing too much on the design and aesthetic, which should ideally take the back seat. A well-written website means more traffic and potential customers.
Marketing is an important factor when you’re starting your business because nobody knows about its existence at that point.
Indulging in sales promotion techniques like discounts and free samples is a great way to go. Social media is a platform that needs to be given some thought because it’s one of the most effective modern marketing tools.
However, you should not lose sight of the bigger picture and use your business loan for marketing in a measured and targeted way.
Recruitment and training
Your business is only as good as your employees. Hence, spending resources on the recruitment and selection processes is important because you want the right human capital to support you in your business endeavors.
After hiring the chosen people, you have to provide them the needed training. Not only will they feel more confident, but they will also be more productive and efficient. Good training will also boost their morale and sense of well-being.
Most of the above expenditures will be on-going expenses but building the right foundation for them is essential. It will not only affect how soon you break even, but it will also set the tone for your overall business operations.
NBFCs offer Business Loans of up to Rs.30 lakh to help you get started on your dreams. The Flexi Loan facility offered not only makes financing more convenient but also more affordable. It can help you lower your EMIs by up to 45%, charging interest only on the amount actually withdrawn. The loan application requires only two documents making the process convenient and hassle-free. The approval takes only 24 hours, making it a quick business loan with attractive business loan interest rates. Pre-approved offers make the process even quicker and easier. You can check your pre-approved offer by simply entering a few basic details.