Building a successful company is a huge challenge for every entrepreneur in every industry. Even when you are doing everything right, growth can occur very slowly. But if you had an influx of capital to work with that could greatly boost your cash flow, you might be able to grow your business much more rapidly. This is where the power of financing can make a huge difference in your business.
With that in mind, here are four ways that businesses use loans for business growth.
- Increase Inventory and Supplies
The first and most obvious way that you could use a commercial loan is to buy more inventory and supplies. By injecting some extra cash into this aspect of your business, you can purchase higher volume at discount prices and instantly boost your profits on every sale.
The same idea applies to purchasing supplies at wholesale prices.
- Offer More Products or Services
Another great way to grow your business with additional financing is to create more products and services to offer your customers. Now, along with your core products and services, you can upsell whenever someone makes a purchase and potentially earn more dollars per customer.
You can add on some lower-priced products and services to supplement your core products. Or you can even take things to a higher level and offer premium products and services on top of your current lineup.
- Expand Your Operation
One of the biggest hindrances that block many small businesses from growing is the limitations imposed by the equipment that they have.
For instance, a small commercial floor cleaning company might start with just a single crew with one vehicle and one floor-cleaning machine, along with some brooms, mops, and buckets.
But with additional financing, you can purchase a second vehicle and floor-cleaning machine and hire a second crew. And just like that – you doubled your business’ earning power. Now you need to get out there and get more clients to keep both crews busy!
- Add More Locations
Another way to expand your operation and multiply your profits is to open up a new location. This can work equally well for retail or product-based businesses as it can for service-based businesses like the cleaning company example above.
If you sell physical products, you can simply open a new store in another part of town or even in another town completely. or with a service-based company, you can open a new office or base of operations in another city or another state and rapidly grow the size of your company.
If you’d like to explore different ways that a commercial loan can fuel your business growth, contact Jasema Capital today.