Having a small business is no easy feat, and it takes great budgeting, skill, and great services to even get you to see any profits. Although you can have maximum profits, sometimes the benefits of business loans can help expand your business tenfold. Small businesses borrow over $600 billion each year, for everything from starting their business, to expanding, advertising, and everything in between. If you’re a new business owner, or even have some projects in mind, it’s worth it to research the benefits of business loans, and see if one is right for you. Talking to a bank or credit union to see what your options are is a great first step towards finding out the benefits of business loans, and at the end of the day can help save your business.
Is It Worth It?
It’s never a good idea to get even more into debt than you already are. In the worst case scenarios, taking out an excessive amount of loans or business loans can lead to bankruptcy if you don’t have the means of paying them back. However, when it comes to owning a business, you can minimize the risk of this happening by having a solid business plan. Meeting with business consultants, having a good business partner or partners, and meeting with financial planners can all help you in preventing bankruptcy. In addition, doing market research to see if your product or service will be a success, testing out your product beforehand, and building a loyal following of customers can all help you be confident when taking out a business loan. If you’re ready to see what a business loan can help you with, here are 15 benefits of business loans. Research any projects you might need help with, have a solid plan for the money you borrow, and ask your banker lots of questions before signing off on a new loan.
1. Develop a Product
Developing a product or service takes dedication, time, and money. Loads of money goes into financing a product’s research, buying materials to test out your product, and even to take the time off your regular job to dedicate to this endevour. One of the benefits of business loans is that they can help you undertake and fund your new project, and pay for itself once your invention starts flying off the shelves!
2. Pay for Patents
It’s not enough to simply develop a product and then sell it. It takes a bit of money to file for a patent for your product and to also get the proper legal help to do so. A basic utility patent, also called a non-provisional patent, can cost anywhere between $5,000 and $15,000 to file. Filing fees are $330, the patent search fee is around $540, and this is not including examination or attorney fees. It’s always best to get a patent for your project to ensure its integrity. Business and small finance loans can help you get the money you need to file for your patient.
3. Hire Consultants
Whether you’re a new business owner, or are looking to expand into another business, the proper consultants are worth their weight in gold with the advice they can give. Hire certified financial planners to help you set up the most important part of your business plan- your budget. Business and even realtor consultants can also help make your dreams a reality. Using the benefits of business loans can help you pay for the best advice money can buy.
4. Pay for Tools
The tools of your trade are everything for your business, and using the proper tools can help you offer the best services and products to your customers. For example, if you run an auto repair service center, you’ll need to use the best tools for changing tires, doing repairs rapidly, and to ensure the safety of your shop employees. The benefits of business loans are that there’s no limit to the quality of tools you can buy. Whether you’re running a dental, tattoo, or any other shop, get the best tools for the trade.
5. Get Your Dream Shop
Business loans can help finance your dream business shop. There’s nothing wrong with setting up a traditional brick and mortar store, and a business loan can help you pay for one that has a great location, foot-traffic, and is aesthetically pleasing to future customers. Don’t skimp on any of these essential factors, and talk to a commercial realtor to help you find the right headquarters.
6. Hire Legal Help
As we mentioned earlier, you’ll need legal help from anything from filing a patent, to securing trademarks, and you might even need legal help for incidentals. For instance, if someone slips and falls in your business, the benefits of business loans is that it can help you pay for some great personal injury attorneys. Because legal problems will always arise in a business, it’s great to have some money to help finance any legal issues that can come up at any time.
7. Increase Security
One of the biggest threats to your business is that of burglary, theft, and even crimes such as arson. The benefits of business loans are that they can help you get financial help to beef-up security around your property. For instance, you can pay to get commercial fencing services to install top-of-the-line security fencing, install security cameras, and ensure your business is safe from any criminal threats and activity. It’s important to not skimp on the price of security, either. If you run a Marijuana dispensary, for instance, it’s not just essential to have high fences and proper security cameras, but also security personnel at all times to help report any suspicious activity. Personnel and advanced security systems can all help you avoid costly theft.
8. Pay for Advertising
Perhaps one of the best ways to grow your business and make your profitable is through the use of advertising. Advertising can help you get your product and services known either locally, nationally, and even internationally with the help of some smart placement, wordage, and ad designs. An expert public relations specialist can help you promote your business by the best means possible, and can help you understand how advertising works, what platforms to advertise in, and even the time of day to place your ad. A business loan can help you hire the right public relations specialist, pay for a television or radio ad, and also help pay for you to be advertised on the internet.
9. Go Green
The green initiative is very popular with customers nowadays, and everyone is set on making their business as eco-friendly as possible to satisfy these customers. Not only will going green help you win an extra customer base, it can also help you reduce your energy bills. For instance, if you decide to install solar panels, you can save on energy bills overtime. However, it does take a bit of cash to do projects such as this. In the U.S., installing solar panels can cost anywhere between $11-$15 thousand dollars, and a business loan can help you make the transition. In addition, begin investing in eco-friendly straws, cups, takeaway boxes, or anything else that customers can physically see, and know you are serious about changing the environment.
10. Do Some Remodeling
One of the benefits of business loans is that you can use them whenever you have a project or situation come on. A remodeling project can help your business look better and can improve your business overall. No one wants to shop in a store that looks out of date, dingy and dirty. Start by adding fresh paint to your walls, remodeling your lobby or your sales floor, and even remodeling communal areas that your employees share. All of these updates can help you get more modern-day customers to shop in your store, and make the experience more pleasurable so that they return.
11. Be Prepared for Weather
There are many accidents that can happen while you’re conducting business, and even to your business itself. Unfortunately, one of these is far too common: accidents or damage resulting from inclement weather. This is especially true if your business is located in an area prone to hurricanes, tornadoes, and floods. Though you might think you can be prepared to weather-proof your business, some disasters come completely out of the blue. Earthquakes, for instance, come unexpectedly and can cost you thousands in disaster cleanup after damaging your business and your products. The benefits of business loans are that they can help you pay for these disaster cleanups, water damage restorations, and anything else that can pop up throughout the life of your business.
12. Hire an SEO Expert
Advertising is a great way to get your company’s name out there. There is another way of getting your business known to consumers also, however. This is what is known as search engine optimization, or SEO, and is a great way for people to know your company exists and is ready to serve them. SEO companies and SEO writers can be hired to spruce up your website with helpful blogs, tips, and tricks, and use these articles to increase foot traffic to your website. A business loan can help you get started in finding the right SEO company to help you.
13. Do Much Needed Repairs
Remodeling your business is a great way to invite customers into your store and help them feel comfortable while shopping. But, no amount of remodeling can fix issues that arise from failing to properly maintain your business. Some of the issues that can arise are those dealing with electricity, plumbing, air conditioning or heating, and even big issues such as leaky roofs. All of these don’t just make your place of business or office uncomfortable to be in, but it also makes it dangerous for employees and customers alike. Get a business loan to help you finance for some much-needed repairs, and avoid further damage and possible lawsuits to your business. Commercial roofing contractors can help seal up your roof to prevent further damage, plumbing, and electrician experts can fix up any issues you might still have, and other contractors are all essential in maintaining your establishment in top shape.
14. Improve Technology
Technology is improving every single day, and it might be hard for you to keep up if you’re a busy business owner. Not to worry, one of the benefits of business loans is that they can help you improve your technology from one day to the next. Improving technology isn’t just for the benefit of your customers, either. If you have employees that work handling large and sensitive amounts of customer information, a secure fiber network can help ensure that your business is running as smoothly and securely as it possibly can. If you run a restaurant, using updated POS technology can help transactions run smoothly as well as every day orders be processed in a timely manner. Technology can help make or break your business, turn customers away, or invite them in and have them be sure your business is dedicated to their safety, security, and customer service. If your shop is in need of some technological improvements, use a business loan to help.
15. Hire Great Help
A business is only as good as its best employees. Without using the best help and financing to hire the best employees, you can be sure customers will not be returning to your place of business. Use a business loan to thoroughly vet your new employees, get them benefits, and keep them happy, and keep your business popular and running efficiently. Employees are incredible assets to your business, and without them, things such as sales, customer service, customer satisfaction, stocking, and daily tasks of your business, in general, would not be possible!