If you’re considering obtaining a small company loan, you may intend to use the money to purchase goods or recruit more employees. There are, however, other methods for a company to use money to reach new heights of success, some of which you may not have considered.
In reality, the most unusual company ventures often out to be the most profitable. To get you started, we’ve compiled a list of five innovative ways to leverage small company loans from clients who have utilized a Kabbage line of credit.
Take another look at your insurance policy.
Almost every small company owner thinks about health insurance for themselves and their workers. However, if your company grows, you may want to consider investing in other kinds of business insurance. These kinds of insurance may be well worth the cost with a financial infusion:While you may buy separate policies for liability, property, and vehicles, a business owner’s policy (BOP) can save you money and provide more coverage. Business interruption insurance, property insurance, car coverage, crime insurance, and liability insurance are all included in a complete BOP.
Liability insurance for professionals
This kind of coverage, often known as errors and omissions insurance, offers protection and damages for failing to or poorly providing professional services. Independent consultants, experts, and contractors, such as attorneys, hair stylists, accountants, consultants, real estate brokers, and technology suppliers, benefit from professional liability insurance.
Compensation for employees
If you have employees, you’ll need workers’ compensation insurance to provide pay replacement and medical benefits in the event that they are hurt on the job. This kind of insurance may shield your company from costly legal ramifications.
Don’t forget to prepare for company continuity.
Of course, being prepared entails much more than purchasing insurance. It’s tough to prepare for all of the “what ifs” when you’re developing a company. However, terrible things may happen at any time, from natural catastrophes to information technology issues, and they can put your company on hold.
Surprisingly, business owners are less inclined to invest in business continuity than they are in other areas of their company. According to a Regus study of small companies, almost half of them had no IT business continuity strategy in place, and just 43% had a workspace continuity plan.
If anything unexpected happens, investing in business continuity planning may actually rescue your company. This begins with establishing a structure for informing consumers and resuming supply of your goods and services after a catastrophe. Emergency contact details, backup supplies, and a comprehensive recovery strategy are all included. FEMA (Federal Emergency Management Agency) has a number of resources to assist you in getting started.
As previously said, technology disaster recovery is an essential part of virtually any organization’s business continuity strategy. Working with an IT professional who can assist you in developing a detailed IT strategy that explains exactly how your company will:
*Reduce the amount of downtime in your business.
*Reduce the possibility of delays.
*Ensure that backup mechanisms are secure and reliable.
*Re-establish activities as soon as feasible.
Conducting market research
Prior to your launch, you most likely performed preliminary market research to better understand your client base, learn about your competitors, and decide the appropriate pricing for your goods and services. Market research, on the other hand, becomes more useful as your company grows. While it isn’t usually the most popular method to spend company money, if done correctly, it may result in a significant quantity of new business.
When creating a new product or service, market research may be very beneficial. It may also help you prepare for a change in the sector or test different price systems. In a nutshell, market research allows you to learn what your target market thinks of you and what you offer. You may choose between two kinds of market research methods: primary and secondary.
Primary research allows you to learn about your consumers and market for yourself. Focus groups, surveys, and questionnaires may all be used to achieve this. For company owners, there are a variety of alternatives for doing primary research, including low-cost online survey platforms like SurveyMonkey. Consider running polls and surveys on social media platforms like Facebook and LinkedIn to reach your consumers in their natural environment.
A third party acquires secondary research. There are a plethora of secondary research resources accessible on the Internet on your rivals, your local area, your industry, and more. While this information is available, finding and processing it may take some time. It’s possible that you don’t have the time to do DIY research. If this is the case, it may be beneficial to engage a market research firm or a consultant to assist you in analyzing a particular kind of data that you need in order to take your company to the next level.
If you’re interested in learning more about market research, we’ve put up a “What is Market Research?” page. Download a copy of the Hot Sheet.
Dealing with public relations on the ground
A solid public relations plan may significantly boost your company’s success. Being able to issue press releases on a regular basis may help you create a lot of buzz online, which is crucial for attracting new clients. Offline public relations, on the other hand, are often required to really get your name out there. Events, sponsorships, and collaborations may all help you reach out to your local community. This may be something you wish to do on your own or with the assistance of other companies and/or non-profits.
Investing in local public relations may result in media appearances that provide important exposure and attract new consumers in droves. However, it’s essential to remember that public relations may be difficult, and it’s frequently best left to the professionals. A competent PR firm with extensive industry and local media connections may be the most advantageous method to create value from your company investment–and a business loan is an excellent way to fund a PR agency to help you demonstrate actual results.
Investing in your health and well-being
Your and your workers’ productivity is critical to the survival and growth of your company. If you’re unable to work because you’ve acquired a severe case of carpal tunnel syndrome as a result of years of handling data input on your own, it may put your company in jeopardy. There may be no greater investment than in health to keep your company running smoothly. A good place to start is with ergonomic seats and workstations. The importance of lighting and air quality cannot be overstated. Lifting belts or even a forklift may help prevent expensive back injuries.
