When running a successful small business, there will always be room for improvement. Whether it is updating technology, purchasing new inventory, or hiring more employees, there are many ways to continually elevate your business. These initiatives will vary depending on many factors, one of them being the industry that your business is in.
In this post, we’ll provide you with specific ideas on how to spend a small business loan depending on your business’s industry.
Which Industries Can Use Working Capital Financing?
1. Restaurants and Food-Industry Businesses
As a restaurant owner, your primary goal is to serve hungry customers. With additional financing, you can pay for undertakings such as updating interior, hiring more employees, and opening another location. You could also offer new services, such as catering events, delivery services, or running a food truck.
Most recently, restaurant owners have used financing to pay for outdoor seating areas, install barriers, and invest in other COVID-19 safety measures.
Here are some guides for specific types of food-industry businesses:
- How to Use a Loan for Your Pizza Shop
- How a Brewery Can Use Financing
- 6 Ways Catering Businesses Can Spend Their Loan
- How to Use Financing for Your Deli
- 4 Ways to Use a Loan for Your Liquor Store
2. Retail Stores
Want to earn more sales at your retail store? Use your retail financing strategically! Invest in updated technology, like a new CRM system, open another store, or purchase a new line of inventory.
Below, you can find some of our suggestions for different types of retail businesses:
3. Construction Companies
Many construction business owners utilize additional financing in order to bridge the gap between payments, since most construction companies are paid at the beginning and end of a job.
With additional construction financing, you can meet payroll, update equipment, pay for raw materials, and afford emergency expenses.
As a small business owner in this industry, you likely are accustomed to the setbacks that come during slow seasons. If you apply for financing, you can save these funds for the winter months when projects are fleeting, or for when you need money to bid on jobs.
Here are some additional ideas for specific types of construction companies:
- How House-Flipping Businesses Can Use a Loan
- How to Use a Loan for Your Roofing Business
- 7 Ways Your Pawn Shop Can Utilize a Business Loan
If you want to get ahead of your competitors, consider strategic ways to use manufacturing business financing. For instance, you could:
- Expand your space in order to take on additional jobs
- Hire an experienced manager to oversee day-to-day operations, so that you can focus on other aspects of your business.
- Invest in the latest manufacturing technology
As a wholesale supplier, you’re always aiming to provide the best inventory to your customers. So, how can you take your business to the next level, securing consistent sales? Use your wholesale business financing to create new opportunities such as:
- Purchase new types of inventory
- Invest in marketing projects that will connect you with new customers
- Buy equipment that will help speed up your process
If you own a flower shop, you know that holidays like Valentine’s Day, Mother’s Day, and Easter generate significant sales. So, after you receive additional working capital, you can use this money to prepare your business for your busy season.
In addition, there are still other ways to utilize your financing, such as:
- Purchase inventory
- Provide delivery services
- Boost your marketing efforts.
7. Barber Shops
Average barber shop services won’t cut it, which is why many barbers turn to business financing to grow their business. Here are a few ways to use your working capital loan:
- Hire assistants who can help you serve more customers
- Update your interior so that your establishment is comfortable
- Pay for new tools to make your job easier
8. Transportation Businesses
- Repair existing vehicles
- Buy equipment needed for upkeep
- Purchase additional vehicles
- Hire new drivers
- Invest in marketing materials
If you own a hotel or other type of hospitality business, you could use hotel financing for expenses such as:
- Updating rooms or main areas’ décor and design
- Hiring more staff members
- Investing in new amenities
- Paying for health and safety measures
10. Medical Service Providers
Whether you own a general care doctor’s office, physical therapy clinic, home health care service, veterinary provider, or dental practice, you likely have the same priority – to keep your patients healthy. So, to give them the best possible experience, use your medical business financing to improve your practice.
Our suggestions include:
- Invest in the latest technologies
- Hire more medical staff members
- Update your waiting room
11. Gyms and Recreation Services
If you want to be the go-to spot for fitness enthusiasts, then you need to use your fitness business financing to stand out from other local workout establishments! Our top ideas include:
- Sell branded items, like t-shirts and water bottles
- Purchase state-of-the-art equipment
- Expand your business hours
12. Cleaning Services
Whether you clean homes or corporate offices, you can utilize business financing for growth. For instance, you could grow your cleaning service by:
- Paying for more vehicles to transport you from job to job
- Hiring additional service staff
- investing in branding opportunities, such as updating your website, paying for online advertisements, or purchasing ad space in a local newspaper.
13. Auto Shops
As an auto business owner, you are likely always trying to find new ways to generate sales. Even if you have a loyal customer base, you should consider how you can continue growing your operations. Here are a few common ways to use auto business financing:
- Invest in a larger auto shop space, so that you can work on more vehicles
- Pay for digital marketing efforts to recruit new customers
- Hire additional staff members
14. HVAC Businesses
If you’re running a HVAC business that’s in need of a change, you can use HVAC business financing to make your ideas a reality.
- Use your funding to pay for certifications and necessary courses
- Hire more employees so that you can take on more jobs
- Invest in a marketing agency so that they can help you promote your services
15. Child Care and Education
Ensuring the safety and happiness of the children you care for is pivotal. To make your daycare a place that parents feel comfortable leaving their children, utilize business financing!
- Invest in the latest classroom technologies, or health and safety measures to combat COVID-19
- Hire trained educators
- Expand to a new space, so you can make your daycare a great place to be!
If your business is more education-focused, such as a tutoring service, you can hire additional tutors, pay for educational tools, or open a tutoring center.
16. Grocery Stores
If you’re unsure of how to use grocery store financing, ask your customers for feedback! After hearing their suggestions, you could use your loan to:
- Hire more staff members to improve customer service
- Increase inventory
- Re-do your store layout to be more customer-friendly
Pampering your customers is your primary goal, so to make this easier, consider how you can benefit from salon financing. With additional cash flow, you could:
- Pay for beautified marketing materials
- Invest in state-of-the-art equipment
- Pay for safety measures, such as barriers and air purifying systems.
If you own a laundromat, you can use business financing to make necessary investments, such as:
- Purchase machines so you have plenty available for your customers to use
- Expand to a larger space so that patrons aren’t cramped, especially if you need to meet social distancing requirements
- Pay for new marketing initiatives so that you can increase sales
19. Landscaping and Pool Services
As a landscaping and pool service business owner, there are a wide range of ways you can invest in your company:
- Purchase or repair landscaping equipment
- Expand your pool cleaning services
- Invest in emerging technologies.
Make your customer’s memories last forever by using your financing to:
- Purchase new cameras so that your photo quality improves
- Hire an assistant to help you
- Open a studio where clients can come check out your previous work
Your goal should be to make your photography business stand out, so don’t be afraid to use your loan program for growth opportunities!
21. Consulting Businesses
It’s imperative that your clients view your consulting business as a leader in your industry. Luckily, having a business loan can help you capitalize on new opportunities. Whether you own an accounting firm, marketing service, or another type of consulting business, you can use your loan to:
- Pay for new technologies
- Provide employee training programs
- Invest in marketing materials to reach new clients
If your business is in need of additional financing, start by researching different types of loans and other financing options, which include:
- Term Loans
- Merchant Cash Advances
- Small Business Administration (SBA) Loans
- Line of Credit
- Business Credit Cards
We hope that you were able to find ideas for your business’s industry and are ready to take your business to the next level!
The article was published on Fora Financial.