How To Properly Use Loans To Fund Business Staffing
Leading your business from a startup to a thriving company you can retire on can mean struggling through some financial mud along the way. To grow as a business you need more space, inventory, and staff, and you need more money to get those things. When your working capital is holding back your growth which is holding back your working capital, business loans can be the cycle break that you need and get your business staffing to the right level.
Examine Your Needs
The more closely you examine your current needs, the easier it will be to determine how much to borrow and how to budget that money. Your list could include the job titles of the positions you need to be filled, the supplies or products you need to carry more of or even how much square footage you need in a new location. The more detailed your list is, the easier it will be to make a plan for growth.
Make a Plan for Growth
For instance, if your cash register lines are too long and it is driving away business, then your needs will probably include another point-of-sale unit, a cashier, and space for a second line to form. You can then determine how much you will need to pay that cashier, including any taxes and insurance added by increasing business staffing, how much a new POS setup will cost, and how much you will need to rearrange shelving and counters. You should also factor in how long it will take projected sales to catch up to those costs to get the total amount you need for a loan.
Find a Lender
The first place you should go for a loan is the bank where you have the longest working relationship. Your lender will need to see banking records and credit reports to determine whether to lend you the funding that you ask for, so it is a good idea to make sure those things are in order before you apply. When you sit down with a loan officer, you will probably be presented with options such as loan programs through the Small Business Administration which will make it easier for you to take out a bigger loan than if you try it by yourself.
When your business needs staff to keep up with growth, but your working capital is not growing as fast as you need, a loan can be a good way to jumpstart the process. By determining what your business staffing and funding needs are, making a solid plan for how to spend the money and finding the right lender, you can better meet your growth goals.