5 Ways to Invest Your Business Loan in a Productive Fashion

4 replies
If you have ever thought about getting business loan, but aren’t exactly sure where to invest the money, then you are in luck. A lot of small business owners and entrepreneurs struggle with this problem. Some people even have checklists of things they would do when the money came in. However, not everybody is able to efficiently utilize their capital and invest it smartly. Just like every other person, you may have fantasized about the day when your loan got approved and the money was handed over.

There could be number of places where that could be spent, and they may not all be productive investments. Sometimes, when people get big loans or grants approve, they can be misled by their instincts. You may want to go on a splurge or hand out bonuses to everyone on a whim. Well, this is where you have to check yourself.
Remember that once the money is spent, there will be no coming back from it. You will be left with a fledgling business and huge amounts of debts to cover. Hence, think every move through carefully and only invest the capital where there is a chance of considerable returns. Experts recommend that in order to invest a business loan in a productive fashion, one has to be flexible and willing to try out new things. Here are five ways that can help set you on course:

1. Allocate more money for your marketing budget
There are a lot of small scale businesses and startups that haven’t been able to expand or grow due to lack of marketing. A business load can help you employ new techniques and strategies that were previously put on hold since the capital requires was inadequate. Hire a content writer, graphic designer or SEO consult to spur your digital marketing campaign and reach out to more people.
It is actually a very wise investment, since if your business grows and becomes popular amongst consumers, you will be able to benefit from a good return on investment and even pay back the loan in due time.

2. Avoid spending the entirety of the loan in one place
This is the golden rule of business. You know how they say, ‘don’t put all your eggs in one basket’, this is exactly how it is. If you are partnering up with a brand or investing in another venture, avoid investing the entire amount of money and keep at least 15 percent back.
You do not want to end up nothing if that investment goes bad or the venture fails.

3. Hire more people
When you bring in another set of hands to work, you are not only cutting down on your workload but also benefiting from their expertise. Your business capacity will grow by hiring more people and revenue are eventually going to increase.

4. Take a risk and expand
Just like with any other move, there will be risks and rewards in investment as well. You must be prepared for everything, however, cut down on the chance of potential losses and put your money where it will be worth it. Growth is highly important, and you can productively invest the loan in expanding the space or acquiring another small scale business.

5. Increase productivity
Get the latest technology and set up a more efficient network to work faster and increase the average productivity.
#business #fashion #invest #loan #productive #ways
  • Profile picture of the author Catherine Bueno
    Hello there,

    This is a really helpful post for people, thanks a lot! Yes, getting a business loan can be really OVERWHELMING, but to think that it is money you have not yet earned, using it wisely is the best thing to do. These tips you have shared are a great reminder to all of us to spend loaned money on worthy investments that are likely to generate income and make us debt-free.

    Sometimes, you just have to give up travel and leisure for a limited period, until you are able to pay your debt completely. It's just sad that some people don't realize this and still live a lavish lifestyle using money they have not earned yet... Well, who are we to take charge of their lives?! Ha! LOL

    Anyway, thanks a lot bud. Wishing you all the best!
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  • Profile picture of the author mbfashion
    You have to be very cautious when funding your fashion business. A loan may seem tempting, but even a loan that has low interest rates can be a bad idea. One of the key questions to ask your loan provider is when do repayments start? If repayments start the following month after you have received the loan you need to think about the viability of this e.g. will you be making money so soon after you receive the loan. Fashion is a very competitive business and so making a return on your investment ROI after the first month may be a little bit too ambitious.

    Manufacture is a key component to building a fashion brand and this needs to be accounted for financially. Before making these decisions you should seek some advice

    Let us know if you need any further information.
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  • Profile picture of the author aizaku
    i'd prefer not to start out in debt.

    the internet provides great way to test market demand with a low overhead

    without making a substantial financial commitment

    -Ike Paz
    >> 2018 Money Making Method Video Guides [NO OPTIN] <<
    80% Of These Proven Guides Are Free... ]
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  • Profile picture of the author onegoodman
    I would agree with aizaku, I would rather getting more investors in over getting a business loan, but either way, expanding your business is very important part, people tend to spend less time investing on marketing, or expansion, yet would expect some how more results
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