From loan to profit: Growing your small business
You’ve probably come across the term start-up business loan while researching funding options for your new small business. But if you’re unsure of what exactly a start-up business loan is, or how it can be the first step to growing your business, we’ve put together some information for you.
What is a startup?
A startup is a newly launched, growing venture that is fast paced and ready to meet a marketplace need. Typically known for developing an innovative product, service, process or platform. A startup is the beginning stages of becoming a business.
Getting a startup business loan
A start-up loan is available to people planning on launching a new business idea and is offered by banks and financial institutions. Local and federal governments also offer start-up business grants which can be a big advantage in the earlier stages.
Startup loans can be used for many things, but typically are to cover costs for business expenses or upfront requirements. These costs could include covering things such as:
• Developing the startup idea
• Physical premise costs. Office fit out, rent and/or equipment.
• Accounting or council fees
• Marketing costs
• Employee salaries
Types of Startup business loans
Finding the right business loan is important, and it all starts with researching and comparing your options. Depending on your business expenses and requirements there are many different type of business loans that could suit.
• Business overdraft
• Line of credit
• Secured loan
• Unsecured loan
• Fixed rate loan
• Variable rate loan
Growing your small business
A start-up loan is only the first step to building a successful start-up. Once you’ve got the funds, you need to ensure you invest your money wisely. Here are some areas you can focus on:
• Sales: For a lot of businesses, sales should be a top priority. Without customers or clients, you can’t expect to make any money. But there are two different approaches you can take. You can take the lead when it comes to getting out there and selling your product or you can hire a sales representative.
• Specialise: By specialising in a certain service or product you’ll be able to carve out your place in the market. If you’re opening an independent grocery store this might not be necessary, but if you’re opening an interior design consultancy, having a signature style will help you grow your client roster.
• Social media: Along with your website, social media is a simple, low-cost method of reaching and growing your audience. This doesn’t mean you should set up a business account on each different platform, you’ll need to put together a strategy to help you focus on the platforms most relevant to your audience. For example, Instagram would be ideal for a graphic designer, but a small lawyer’s office might get more out of Facebook.
• Customer service: Few businesses can succeed with poor customer service. Even if you have the best product or service on the market, people aren’t often willing to put up with poor customer service. Take your start-up loan and invest your money into training up your staff.
These are just a few simple ways to build a successful business. But don’t confuse simple with easy. Businesses, especially new businesses, are hard work. We’ve compiled a checklist to help you get your business started, but you are the one who needs to commit.
To get your business going, start comparing start-up business loans today.