5 Ways Renovation Financing Will Help Your Business Grow
When people think of renovation financing, they often think of home loans used to make home improvements on fixer uppers. However, renovation financing is equally valuable to business owners looking to grow their companies. Like home equity loans, renovation financing can be used to improve your business so that you can make changes that you wouldn’t be able to afford otherwise.
In this blog post, we’ll review five ways that you can renovate your company using a business loan. Let’s get started:
How to Use Renovation Financing for Your Business:
1. Pursue Energy Efficiency
Per recent statistics, the average monthly cost for commercial electric bills is around $664 per month. According to the EIA, these rates could grow an additional one percent this year. Understandably, this is likely a consistent cost that you may notice is putting a huge dent in your monthly cash flow.
By carrying out business revamps using your renovation financing, you can cut down on this expense. There are many ‘green’ products available that can help you use less energy. If you’re going to start a renovation project, you might want to use energy efficient materials and equipment. It will likely pay off in the long-term!
2. Make Better Use of Your Business’s Space
Let’s face it – we’ve all been tempted to make impulse purchases based on how a store is laid out or how the products are displayed. Improving your location’s décor, changing the shelving, or re-doing the entire layout can help customers find what they are looking for. This is a smart way to utilize the working capital you recently received.
By expanding your space or re-designing the layout, you’ll be able to serve more customers. You won’t need to worry about a cramped environment, which may be lessening sales currently.
3. Enhance Your Business’s Brand Experience
As you probably know, shopping has moved from a need driven exercise to an experience driven one. For example, consider using virtual reality in-store to show customers how their interior would look if they used a certain color of paint for their walls.
Using your renovation business loan for this area could help you build an improved brand experience. In fact, around 66 percent of consumers spend more money with brands they feel loyal towards. Due to this, using your store to boost the brand experience could in-turn increase revenue.
4. Improve Employee Morale
Although your business should be customer-centric, remember to think of your employees, too. Having a store or premises that your employees feel proud of and comfortable in will likely improve their performances.
The quality of your work environment can affect your employee’s motivation. Due to this, you should consider using your renovation financing to turn a cold, outdated space into a welcoming workspace.
In your renovation plan, consider allocating money for a larger break room. In addition, you could update equipment such as employee-used refrigerators, coffee machines, or furniture.
For example, remodeling can also help with processes, making it quicker for staff to find stock or serve customers. This is beneficial, because not only is there an uplift in morale but productivity is also increased.
5. Attract Customers with a Relaunch
Using your renovation financing, you could relaunch your business to attract new and previous customers. You might consider relaunching if you’re renaming your business or rebranding, or if you’re unveiling new products or services.
Before you relaunch your company, you can utilize your working capital to pay for advertising costs. This will inform patrons that you’ve updated certain aspects of your business.
Are You Ready to Pursue a Business Renovation Loan?
Starting a business renovation project can help you expand your business. Renovation projects can be a promising way to grow your business and stand out against your competitors. From improving your brand to updating employee spaces, there are so many ways to renovate your business.
Before starting your project, create a thorough budget. This will help you ensure that your loan will cover these expenses (including closing costs). You should also verify that you’ll be able to make your loan’s monthly payments.
In addition, we suggest weighing your loan options, so that you choose the best type of financing for your company. Different lenders will offer you varying loan amounts, interest rates, and other factors, so be sure to do your research!
Are you a small business owner that has utilized your loan for a renovation project? Tell us about it in the comment section below.
Editor’s Note: This post was updated for accuracy and comprehensiveness in May 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.