“Is a small business loan right for me?” That’s a familiar question you’ve probably asked yourself many times. When in the throes of growing their businesses, it’s normal for any entrepreneur to wonder whether or not to apply for a small business loan.
It’s great being your own boss, having long-term business goals, and knowing you can’t be fired, but being a business owner can be tough too. Even if your business is prospering beyond your wildest dreams, small business owners can never stop growing their businesses.
When used correctly, a small business loan can boost businesses at any stage of growth. Truth be told, that’s how successful entrepreneurs keep their businesses on a steady progression to the next level.
Here’s how a business owner used a small business loan to propel his business forward.
Harry’s Food Truck Business Soars
From day one, everything about Harry’s mobile food truck service has prospered. He parks at farmers markets, the local town square, and local events that draw crowds.
Harry uses a mobile app to let people know where he’s scheduled to be in real time. For anyone who doesn’t have a mobile app, he can send an email when the truck relocates to different locations.
On most days, he sells out of food before 5:00 p.m. Maybe that doesn’t seem like a problem but it is. He doesn’t like turning away hungry and dissatisfied customers. He also wishes he could be at different events at the same time.
Instead of opening a brick and mortar store that adds overhead costs, Harry wants to get at least one more food truck, possibly two. That means hiring additional staff and customizing the truck to his liking.
Harry sees the need to move forward but wonders whether it’s the right time to get a small business loan. After carefully considering it and researching, he realizes that a loan is his best option.
After applying for a loan with an online lender, he’s approved for $70,000.
He purchases a truck and sets aside money to buy customer management system software. He can network his two trucks to track inventory, sales, and other aspects of his business remotely.
Because Harry has a steady income stream, he uses existing working capital to hire two employees to manage the second truck. Once he complies with local health department requirements, he has two fully functional trucks to park in high-traffic areas.
Harry decides to offer a customer loyalty program to increase sales. He’ll be able to attract new customers and keep his regular clients happy.
Furthermore, he diversifies his menu by adding more types of food to reach people from a variety of cultures. He still sells favorites like chicken and dumplings and apple pie ala mode but adds on-the-go foods like tacos, burritos, and side salads.
Once Harry launches his second truck, he’s amazed at how quickly sales skyrocket. Customers like the menu changes and Harry has enough food to last all day. Harry keeps on eye on whether to add a third truck in the near future.
One of his long-term goals is to start a franchise so he can place trucks in larger, metropolitan areas. So far, all of the changes he made have paid off handsomely.
Is a Small Business Loan Right for You?
At some point in your business’s future, you’ll need to answer this question. By being at the top in your business’s chain of command, the decision is yours.
Also, ask yourself these additional questions.
How would a small business loan keep your business humming along?
Could you achieve your business goals faster?
Bear in mind, you can be a positive influencer in your community and reap the rewards just like Harry did when he got a loan.