If you’re lucky enough to get funding, there are important decisions to be made about what to do with the funding to maximize the capital. Funding is difficult to come by, especially for small businesses and those with a less than stellar credit score. Here are three options to consider:
1) Ramp Up Production
You want your business to grow and an influx of capital presents a great opportunity to do so. Maybe you have some existing debts, why not grow the business and use the increased profits to pay off your debt?
You could hire a person to help with administrative tasks, freeing up more of your time to grow your business. Or, consider using the funding to create a more streamlined production process. This can create increased turnover of products and allow your business to make more sales.
2) Purchase Inventory
If you have orders you can’t afford to fill, or could save money by buying in a larger quantity than you usually do, purchasing inventory is a great use of your funding. Customers never want to see that an item is out of stock and driving down your own cost by buying in large quantities can increase profits dramatically.
Acquiring new customers is no easy feat. A well-executed marketing campaign can provide excellent return on investment. On top of securing new customers, brand recognition will improve and existing customers can be more easily retained. For those who aren’t struggling with debt or a lack of inventory, marketing is a fantastic use of your funding.