How to Use Working Capital for Your Mom and Pop Business
As a mom and pop business owner, you likely gain customers due to your personalized service. Many patrons abandon large corporations for independently owned businesses because of the intimacy and reliability they can provide. In order to continue providing excellent customer service, you should consider applying for additional working capital.
By receiving small business financing, you can upgrade different areas of your business. In this post, we’ll reveal five ways that your mom and pop business can use working capital to pursue growth.
How to Use a Business Loan in Honor of National Mom and Pop Business Owners Day
1. Increase Advertising
Owning a mom and pop shop is rewarding, but it can be difficult to spread the word about your business. That’s why you should expand your customer base by using working capital for advertising projects. These opportunities could be paying for online campaigns, printed flyers, or social media marketing. By capitalizing on advertising efforts, you’ll be able to generate additional sales.
2. Expand Your Business
If your business is a success, it may be time to consider expanding. Whether that means growing your existing location or opening a new establishment, it could translate into more opportunities. Of course, expansion projects are often pricey, which is why having additional working capital could be necessary.
3. Saving Money for Emergency Costs
As a small business owner, sometimes you have to learn to expect the unexpected. That means having funds available in case your business experiences hard times. These unfortunate situations could be equipment breaking suddenly or having inventory and rent costs raised. Whatever it may be, you’ll have peace of mind knowing that your business has cash saved for last-minute needs.
4. Invest in Technology
It’s important that you’re running a small business that adapts to new trends. While it may be tempting to stick to the way you’ve been doing things, your business may suffer as result. That’s why it can be advantageous to utilize business financing to pay for updated technologies. These technologies can include CRM services or cyber security measures, just to name a few examples.
Although these technological advances may depend on your business’s industry, your business’s operations will probably benefit from modernized technology.
5. Hire More Employees
Even the most talented mom and pop business owners need a little help. That’s why you should consider hiring extra employees to work at your mom and pop business. You’ll have more people on-staff to serve your customers, so you can focus on other areas of your company.
Conclusion: Invest in Your Mom and Pop Business
While celebrating National Mom and Pop Business Owners Day, reflect on how you can continue to improve your business. By applying for alternative financing, you can prepare for the future and evolve with your customer base. If you’re a mom and pop business owner, make sure to let us know in the comment section below!
Editor’s Note: This post was updated for accuracy and comprehensiveness in March 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.