For a business owner, not having sufficient working capital can pose a big problem. You can’t expect to meet costs not just during the start-up phase but even after the business has been established. This article discusses tips on how to properly utilize the business budget.
Do not overlook business marketing.
Keeping up with your competitors in the market is important if you want your company to survive. To get the best results, you can combine direct mail marketing with online advertising techniques.
See to it that your marketing budget will not go to waste by determining your target market. Yes, even with a limited budget, you need to look for cost-effective and efficient strategies to promote your business.
Be realistic with your expectations.
Setting long term goals is important but in order to achieve big accomplishments, you need to set short term goals as well. For instance, what do you plan to achieve in the next five months after setting up your business? How do you intend to reach this goal? How much do you plan to spend for that time period? Set realistic expectations and work towards accomplishing them. Make sure you set aside time every 30 -60 days to review your marketing plan. Ideally monthly is the best, just make sure that all marketing you do can be quantified. Is it effective, if not why? Should it be modified or dropped.
Allocate your finances efficiently.
If your working capital is insufficient, you can apply for a business loan from a bank or a private lender. First start your search with local banks. A lot of people go first to the internet and completely ignore options that right in their own backyard. Apply for a business loan from the bank where you have your savings or checking account. Some credit unions also have some small business financing available. Don’t overlook them! Get to know your prospective lender’s requirements before submitting your loan application.
Another option is to look for alternative financing options. Alternative financing can be anything from factoring your accounts receivables to applying for a business equipment lease. Instead of purchasing machinery and paying for them in cash, you can “lease” or pay for them in installments. Business equipment leasing does not require a large down payment, so you can spend your working capital on other business expenses or save it for later use.
Irish Taylor is a business loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.