How to Use Grocery Store Financing
If you’ve recently reviewed your grocery store business plan and noticed that you’re having trouble paying for certain costs, it might be time to consider applying for additional working capital. Although it can be intimidating to pursue business lending, it might be necessary if you want to improve your store.
There are numerous types of financing to consider; business loans, merchant cash advances, sba loans, and credit cards, just to name a few examples. Once you review these financing options and determine which one is right for you, consider how you can utilize your funding to grow your grocery store!
6 Ways That Grocery Store Owners Can Utilize a Loan
1. Purchase Inventory
A well-stocked store will bring in flocks of customers, but bare shelves lacking in updated products will send them out the door. As a small business owner in this industry, ensuring that your store’s inventory is regularly restocked should be a top priority.
In addition, offering a wide range of products is also crucial, since your customers will want options. Many shoppers will want healthy items as well. These products might be more expensive, but you’ll attract a wider range of customers.
Although purchasing inventory can be a financial stress, with the help of working capital, it’ll enhance the quality of your grocery store!
2. Hire Employees
To successfully master grocery store management, you must hire the right employees. It’s important to have enough staff members working at your grocery store each day, in addition to having employees on-call for busy times, or if another employee calls out sick. If your business is under-staffed, or needs new, hard-working employees, this is a good way to utilize grocery store financing.
3. Update Your Interior
If your grocery store’s interior is outdated, drab, and unprofessional, customers aren’t going to want to shop there. Understandably, you have a variety of consistent costs that you need to pay for, so making interior updates might be low on your priority list. But think of it this way – if your store looks unkempt, why would customers want to shop there? Invest in interior updates so that you don’t have to worry about scaring away your loyal patrons!
4. Expand Store
Is your grocery or convenience store starting to feel cramped? Are you running out of room to display your inventory? If so, it might be time to expand. If your customers find a larger, better-stocked establishment to shop at, you may lose their business. To avoid this, use your business financing to expand your existing store, or move to a larger space!
5. Improve Technology
Make you and your employees’ day-to-day lives easier at work by investing in the latest technologies. For example, you can purchase new payment systems, inventory management software, and other necessary services. Having technology that you can rely on will make your business run smoothly, which is why you should integrate these costs into your grocery store business plan and pay for it with additional working capital.
6. Pay Rent and Other Bills
Unfortunately, rent payments, utility bills and other service fees can add up every month! Don’t let this stress you out or deter you from making essential changes to your business; apply for additional working capital so that you have cash on-hand to pay bills and afford other short-term expenses.
Conclusion: Invest in Your Grocery Store’s Future
These suggestions, in addition to having consistent cash flow, are all reasons to pursue grocery store loans or other types of financing.
Don’t fall into a rut when it comes to your small business; keep elevating your services and sales performance by improving upon the areas mentioned in this post. With business financing, you can responsibly afford to make changes to your store, and also have capital available for everyday expenses.
Editor’s Note: This post was updated for accuracy and comprehensiveness in January 2019.
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.