How would you utilize a small business loan for online business if approved?

27 replies
I know that I cannot compete with ESPN, Bleacher Report, or The Athletic. I have a sports website that mainly deals with the NFL and NBA. I've been involved with internet marketing since 2013 and have made some money in the industry, but not much. I would like to know what resources can I utilize if I got approved for a small business loan from my bank. Should I invest the loan in hiring a few writers, build a better site, SEO firm consulting, etc? Any advice would be appreciated.
#approved #business #loan #online #small #utilize
Avatar of Unregistered
  • Profile picture of the author Serene Carmen
    Hi Deebee

    This is a difficult question to answer without knowing the current state of your website. Do you have organic traffic already?

    Kind regards
    Serene
    {{ DiscussionBoard.errors[11654152].message }}
    • Profile picture of the author deebee23
      It's a new site but I've been going back and forth with this since 2013. I'm ready to risk and try a different method.
      Signature

      [

      {{ DiscussionBoard.errors[11654173].message }}
      • Profile picture of the author Serene Carmen
        Hi Deebee

        I'm not sure how much you were thinking of borrowing but you can do most of the important work yourself ( i.e. keyword research and deciding on suitable content using Ubersuggest, SEMRush or similar).
        You can then hire writers to create content for you. I have had good articles from Content Wish.

        It is worth finding someone good to help you with SEO (i.e your website structure, internal links etc as well as backlinks and off page seo).
        {{ DiscussionBoard.errors[11654612].message }}
  • Profile picture of the author depotgang
    Wow I would never borrow money to start an online business. But if you do the easiest business would be some sort of arbitrage. Low risk and decent returns.

    Good luck
    Signature

    Learn how to start your own Solo Ad Business without an autoresponder or build a list. It's Fast Fun and Profitable. https://soloadmasterclass.com/

    {{ DiscussionBoard.errors[11654256].message }}
  • Profile picture of the author Jamell
    It would be smart to invest into innovation research and development. In this day and age of technology smaller brands can compete and gain market share thanks to outlets like Google face book Instagram Twitter etc .

    You can always learn SEO on your own and I do think podcasting you tubing list building will help your channel tremendously.
    {{ DiscussionBoard.errors[11654265].message }}
  • Profile picture of the author Jason Kanigan
    I would look for Alex Becker's free YT ads training (on his YT channel) and investigate whether building your audience through this method is a fit for you. Sure, you can't compete head to head with big budgets and big companies, but many people have carved out a niche with an audience who appreciate them as an individual. Becker's methods and YT costs are the cheapest I've seen, meaning you will get the most tries and the biggest bang for your buck potentially from YT. Do you know what your audience or list size needs to be for you to be profitable or increase revenue to hit your next target?

    BTW most of the time I would say stay away from loans because people typically apply them to cover ongoing operating expenses, ie. tread water to stay alive, but they're actually dropping further into the ocean and drowning--to continue my metaphor.

    In this case if you have an ongoing thing, as you say from 2013, you probably have a baseline and some understanding of how a new visitor turns into a customer. At that point renting money to use it to create a higher rate of return through a known system makes sense. (If what I just said is nonsense to you, don't do it!)
    {{ DiscussionBoard.errors[11654266].message }}
    • Profile picture of the author adammoore
      Agreed, these are some solid advice. Find a niche, or topic you are passionate about, and have actual experience with, and focus on long-tail keywords if you're just a newbie starting out, as you won't rank on keywords like "how to lose weight" without paying for promotions.
      {{ DiscussionBoard.errors[11659956].message }}
  • Profile picture of the author WF- Enzo
    Administrator
    I don't know about it, but a loan for starting a small business is a high-risk low-reward thingaboo. Just my two cents.
    Signature
    {{ DiscussionBoard.errors[11654620].message }}
  • Profile picture of the author Monetize
    Originally Posted by deebee23 View Post

    I know that I cannot compete with ESPN, Bleacher Report, or The Athletic. I have a sports website that mainly deals with the NFL and NBA. I've been involved with internet marketing since 2013 and have made some money in the industry, but not much. I would like to know what resources can I utilize if I got approved for a small business loan from my bank. Should I invest the loan in hiring a few writers, build a better site, SEO firm consulting, etc? Any advice would be appreciated.

    My advice: Don't get a business loan
    for an unprofitable website. I doubt
    a loan would be approved anyway.
    Banks don't typically loan money to
    start a business unless you have a
    phenomenal idea and business plan
    that knocks their socks off.

    Put more work into it. Hire someone
    to analyze your website and provide
    answers to the questions you have
    about what it needs. Find ways to
    monetize your site so it generates
    some income.

    You can hire writers and SEO people
    at Fiverr and other freelance sites, it
    is not that expensive that you need
    a loan for it. Whenever you have a
    few extra dollars, hire someone to
    do a project for you even if it's just
    an article or a blog post.

    If you are good at creating content
    you can do most things yourself,
    work on it for a couple of hours
    each day and soon you will have
    enough content to be considered
    as an authority site.

    Keep at it until it generates the
    passive income that you desire.
    {{ DiscussionBoard.errors[11654858].message }}
    • Profile picture of the author deebee23
      Seo people at fiverr?
      Signature

      [

      {{ DiscussionBoard.errors[11654896].message }}
      • Profile picture of the author Monetize
        Originally Posted by deebee23 View Post

        Seo people at fiverr?

        Correct. Go to Fiverr and search
        for SEO services. Or any of the
        other freelance sites.

        Good luck to you :-)
        {{ DiscussionBoard.errors[11654932].message }}
        • Profile picture of the author deebee23
          I thought Fiverr was the last place to go for SEO services?
          Signature

          [

          {{ DiscussionBoard.errors[11654990].message }}
          • Profile picture of the author Monetize
            Originally Posted by deebee23 View Post

            I thought Fiverr was the last place to go for SEO services?

            I use Fiverr for all of my outsourcing.
            As a matter of fact, I have someone
            working on a project for me right now.
            It's not SEO though, it is market
            research.
            {{ DiscussionBoard.errors[11655017].message }}
          • Profile picture of the author Serene Carmen
            I have used people from Fiverr for off page SEO (backlinks). Lots of agencies outsource to people on Fiverr anyway. Look for good reviews.
            {{ DiscussionBoard.errors[11655058].message }}
      • Profile picture of the author DABK
        Nay, nay, nay.


        If you're going to go this route, you need actual SEO, not just backlinks.


        Why don't you read the about the skyscraper technique on backlinko.com and see if you can pay someone to create you the kind of content that requires?


        Also, look into the silo structure for SEO.


        Originally Posted by deebee23 View Post

        Seo people at fiverr?
        {{ DiscussionBoard.errors[11654974].message }}
  • Profile picture of the author Skip Rozier
    The first thing you need to do is...

    Determine who you plan on serving and how (sounds like sports fans), why & how they should use your site and how you plan on getting paid and how you plan on acquiring new users (sell ads, products, etc.)

    I would start here even before you think about getting a loan.

    How are you making money now? Can that be amplified, then scaled?

    Skip
    {{ DiscussionBoard.errors[11654938].message }}
    • Profile picture of the author deebee23
      The plan to generate income is to have enough pageviews that it would allow me to generate revenue. It the end of each article, there's a call to action opt in form to join my email list. I also promote affiliate offers from Fanatics as well.
      Signature

      [

      {{ DiscussionBoard.errors[11654988].message }}
      • Profile picture of the author DABK
        This thinking will cost you lots of money.


        7000 pageviews with 3 sales of $50 each a month makes you $150 a month.


        72 pageviews with 20 sales of $50 each a month makes you $1000 a month.


        In other words, some pageviews are better than others.


        Focus on getting the right kind (buyers, not researchers and tire kickers).


        Originally Posted by deebee23 View Post

        The plan to generate income is to have enough pageviews that it would allow me to generate revenue. It the end of each article, there's a call to action opt in form to join my email list. I also promote affiliate offers from Fanatics as well.
        {{ DiscussionBoard.errors[11655037].message }}
      • Profile picture of the author tnob
        Originally Posted by deebee23 View Post

        The plan to generate income is to have enough pageviews that it would allow me to generate revenue. It the end of each article, there's a call to action opt in form to join my email list. I also promote affiliate offers from Fanatics as well.
        Side note, just saw an article that Fanatics is valued at $12.8B
        {{ DiscussionBoard.errors[11656118].message }}
      • Profile picture of the author Skip Rozier
        Ok, I see what you're saying now.

        How do you plan to get "enough" page views? What I'm
        really asking is...
        • Why would I want to visit your site? What makes your site better or different than the other million sports sites out there?
        • What value are you delivering by email?
        • Why would I, as a sports fan, be interested in your affiliate offers?

        I'm not trying to be cruel, I just think these are things you need to ask. Personally, I think it's a real crap shoot to hope people
        click on your affiliate offers just because they're on your site.

        Hope this helps you!

        Good Luck

        Skip
        {{ DiscussionBoard.errors[11656717].message }}
  • Profile picture of the author SiteCheckerPro
    You just described elements of a good SEO that must be followed. Content+Good Website+Promotion.
    {{ DiscussionBoard.errors[11654939].message }}
  • Profile picture of the author Claude Whitacre
    I think the premise that you need a loan is faulty.

    For internet marketing, you just need to learn, not invest.

    Learn how to do copywriting. Learn how to build a website that sells. Learn how to buy ads.

    it takes research and time...but not money.
    Signature
    One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

    "Be kind. For everyone you meet is fighting a hard battle".....Ian Maclaren
    {{ DiscussionBoard.errors[11654942].message }}
  • Profile picture of the author Johns09007
    [DELETED]
    {{ DiscussionBoard.errors[11655043].message }}
  • Profile picture of the author savidge4
    Originally Posted by deebee23 View Post

    I know that I cannot compete with ESPN, Bleacher Report, or The Athletic. I have a sports website that mainly deals with the NFL and NBA. I've been involved with internet marketing since 2013 and have made some money in the industry, but not much. I would like to know what resources can I utilize if I got approved for a small business loan from my bank. Should I invest the loan in hiring a few writers, build a better site, SEO firm consulting, etc? Any advice would be appreciated.
    Im going to say this now, so that maybe you dont waste your time. You will not get a "business loan" from your bank. Loan 101 suggests there needs to be an asset to counterbalance the loan itself. With a car loan, there is a car. With a home loan, there is the home. With a business loan there needs to be an asset of value to displace the risk of the loan itself... and your model simply does not have that.

    Could you possibly get a "Personal Loan" from your bank to pursue this? Of course the answer to this is dependent on you and your current situation.

    In the world of banks and other financial institutions "Youtube" is not considered a business. Websites without actual assets fall into that same category. Basically anytime that "Views" is the vehicle for income, you will fall outside of the realm of quote unquote "A Business". I personally dont make the rules, I just do my best to know them and follow and break them as often as possible.

    I am in agreement with other that have commented that you at this time do not need a "loan". You can take this seriously "Full Time" in all of the hours in the day outside a steady job that will pay the bills until this venture has legs and you can afford to leave said steady job.

    Keep this in mind... You are NOT creating a business, you are building a machine that creates cash flow. As I am reading your description of the business at face value and between the lines as it were, there is simply NO capital investment ( IE no inventory, no building, no office etc )

    A simple DBA or LLC if you like and report any and all income on your personal 1040 Schedule C and call it a day - Not a business, but an additional way that YOU produce income.

    I believe I read that the only affiliate program you are currently involved with is Fanatics? I am thinking "Sports" and am wondering why not a online gambling affiliate... why not a seats.com type of affiliate? Why not a section dedicated to "Tailgating" with Amazon affiliations?

    You just need to slow down a bit.. pace yourself for the long haul and BUILD your machine that generates cash - with every waking available hour of your time outside of the activity ( Job ) that supplies the comfort and lifestyle you currently maintain.

    I hope that helps, and best of luck!
    Signature
    Success is an ACT not an idea
    {{ DiscussionBoard.errors[11655051].message }}
    • Profile picture of the author deebee23
      Originally Posted by savidge4 View Post

      Im going to say this now, so that maybe you dont waste your time. You will not get a "business loan" from your bank. Loan 101 suggests there needs to be an asset to counterbalance the loan itself. With a car loan, there is a car. With a home loan, there is the home. With a business loan there needs to be an asset of value to displace the risk of the loan itself... and your model simply does not have that.

      Could you possibly get a "Personal Loan" from your bank to pursue this? Of course the answer to this is dependent on you and your current situation.

      In the world of banks and other financial institutions "Youtube" is not considered a business. Websites without actual assets fall into that same category. Basically anytime that "Views" is the vehicle for income, you will fall outside of the realm of quote unquote "A Business". I personally dont make the rules, I just do my best to know them and follow and break them as often as possible.

      I am in agreement with other that have commented that you at this time do not need a "loan". You can take this seriously "Full Time" in all of the hours in the day outside a steady job that will pay the bills until this venture has legs and you can afford to leave said steady job.

      Keep this in mind... You are NOT creating a business, you are building a machine that creates cash flow. As I am reading your description of the business at face value and between the lines as it were, there is simply NO capital investment ( IE no inventory, no building, no office etc )

      A simple DBA or LLC if you like and report any and all income on your personal 1040 Schedule C and call it a day - Not a business, but an additional way that YOU produce income.

      I believe I read that the only affiliate program you are currently involved with is Fanatics? I am thinking "Sports" and am wondering why not a online gambling affiliate... why not a seats.com type of affiliate? Why not a section dedicated to "Tailgating" with Amazon affiliations?

      You just need to slow down a bit.. pace yourself for the long haul and BUILD your machine that generates cash - with every waking available hour of your time outside of the activity ( Job ) that supplies the comfort and lifestyle you currently maintain.

      I hope that helps, and best of luck!
      I got Amazon affiliates as well. When it comes to gambling affiliates, I'm not well verse in that space. I recently put in for my LLC and will be getting my business license soon.
      Signature

      [

      {{ DiscussionBoard.errors[11655052].message }}
  • Profile picture of the author tnob
    If you qualify for an SBA loan, you could look into acquiring an existing profit generating business. Otherwise, I agree with others that you should not get a loan for this.
    {{ DiscussionBoard.errors[11655750].message }}
  • Profile picture of the author allegandro
    What I would do is use the money for "Proof of life"

    Even when you have a "bad" website or you need a lot of things to be optimized, I would find my first paying clients.

    Because if you use it for all others, you run out of funds and the bank would say: "Nice website, but not clients so bye-bye"
    But what if you could go back to the bank and say: "look, I got 10 clients, with no optimalisation, an outdated website, and so on. But can you imagine what I could do with a nice website, a real back-office, and a sales team?"

    This will be much more interesting for an investor to invest in.
    Signature
    Struggeling with multiple supplier feeds?
    DoeeX solves it!
    {{ DiscussionBoard.errors[11656967].message }}
  • Profile picture of the author Jefay
    I am waiting for my loan approval too, and I am thinking about building a new website and SEO for it. I think it is a great investment. I have also got a small loan from maybeloan which will let me pay for website and maybe some SEO too short-time. I think it is pretty cool and worth it, I just cant' wait to deploy everything
    {{ DiscussionBoard.errors[11657570].message }}
Avatar of Unregistered

Trending Topics