Plan Ahead When Applying for A Business Loan

In order for many businesses to get off the ground, they need an influx of capital. One of the most common financing aids for small businesses is to look into getting a loan. The overall process for attaining a small business loan has become much easier over time. With traditional banks and online services who are more than willing to supply the funds.

 

Although it’s become easier to attain a small business loan, applying is still a hassle. If you do your homework and are diligent, you’ll manage to avoid these common mistakes.

 

Business Plan is Incomplete

One of the most important things to have when applying for a small business loan is a clear business plan. Some things it must include is a mission statement, executive summary, overall business concept, target audience/market, competition, team, marketing plan and of course, financials.

In some cases, financial lenders may only read your executive summary. If this is the case, then this section must fully summarize your entire business plan. Without these sections included into your business plan, it will appear incomplete and will cause the lender to lose confidence in the business and potentially you as the owner.

 

Check Your Credit Score

The first thing you need to do before you even consider looking into a small business loan, is you need to check your credit score. If everything is in order and your credit report is up to date, then you should be alright. If you have a credit score of 7o0 or above you should have little to no issues borrowing with a low interest rate! But, if your score is under 650, it may be a bit more difficult. Potentially having a high interest rate could hurt your cash flow.

 

Did You Borrow Enough?

If you’re running a start-up, you’ll always need more money thank you think. Unexpected costs could come up at any time while running a business, you need to be prepared. Raising enough capital will be the best way to cover you. Helpful tip, when discussing the exact numbers of your loan, aim for at least 7 to 9 months of just operating costs. So, take the time before going in to construct a proper budget plan.

 

While running a business, and as a business owner, it’s important to select the right financing option that works best for you and your business. If that option is a small business loan, then remember these tips in the process!

 

Be sure to visit the Bullfrog Blog often for more tips on productivity, marketing and risk mitigation. While you’re here, click below to get a quote!

A Better Marketing Plan Can Increase Your Profits

If you’re a small business owner, then you already know that you have to fight daily to get your business message out and across to consumers. Some suggest that to increase profit you just need a better marketing plan, well that’s easier said than done. You know you must reach new people outside of your initial circle for your business to grow and succeed. But what’s the best marketing plan that will help you get paid better and faster?

 

With there being more content than ever before now, and multiple ways to consume products – it can be cutthroat sometimes. A marketing plan is non-optional; you need to cut through all the noise and get your business in front of your ideal customer. If you have a clear, thought out plan and have done your research then your business will grow. Growth means more profit.

 

Create a Plan

Once you know which direction you want your business to go in, you need to create a clear and concise plan. Find time in your day to sit down and map out a business plan for the next 5 years, and break down each year with specific goals such as; income, growth, target markets/demographics, different paths, the list goes on. Once you have these questions answered, it will make it much easier for you to begin to lay out a marketing plan for your business.

 

Know Your Target Market

If you don’t know your markets, you’re going to have a problem. Your businesses success will take hard work, and it starts by doing your research. Whether you’re selling yourself, your services or a physical product, you need to know why people are going to want to buy it from you. Ask yourself, what makes you stand out over your competitors?

 

Do Your Research

Turning all your planning and research into a business that regularly gets paid more than you’re making now, you need to start by focusing on your businesses current income. The first step to increasing your income is by increasing your customer base, from there you’ll reach the next income level, and so on and so forth.

 

Easy Payment System

If you have an easy to use payment system, it’ll make it easier for your customers to give you their money – you won’t want to make that one hard or they may not have the patience and go elsewhere.

 

Set up a proper marketing plan, make it clear and concise, do your research and watch your business grow.

Be sure to visit the Bullfrog Blog often for more tips on marketing, productivity and risk mitigation.