Opening a small business takes a lot of guts and a lot of planning. If you are preparing for a retail store opening, whether it is a brick-and-mortar store or an online store, you will need to make sure that your payment processing systems, stock, and customer service systems are all in place before you launch. If you need financial help, a small business loan can often help with the financial aspect of a store launch. For new retail store owners who are intending to open soon, here are some ways to allocate your SBA loan by percentage for a successful store launch.
40 percent to marketing
Marketing will make or break any business. If you are able to get your store in front of the eyes of your ideal target audience, you will find that your store has a lot of visitors. Many of those visitors can be enticed into becoming customers with the right merchandise and price point. Use around 40 percent of your loan to doing the appropriate market research for the right consumer for your products and services. Use the marketing budget to hook this audience into a soft launch by displaying your products and allowing pre-orders, if applicable.
40 percent for the products themselves
No store can be successful without the right products. Whether you are opening a clothing store, a cosmetics store, or an electronics store, your products will be the bread and butter of your business. Use another 40 percent of your small business loan budget to get the right kinds of products. The products that you manufacture or purchase from vendors will need to be inspected for quality, and you should have tested samples well in advance of your store opening. Being able to stand by your product and having high-quality offerings will limit the number of chargebacks that you see.
20 percent to web development
One of the areas that you do not want to skimp on is web development. Marketing campaigns, customer communications, store sales, and store files will all be necessary components for smooth business operation. Spend money on a good web developer and a secure website where you can operate your business on a 24/7 schedule. Have the backup set in place so that you can understand and access the order system and payment system for ease of use. With a good, clean, and easy-to-use website, your business will see an increase in customer traffic.
First, talk to a bank who offers sba loans to see if your small business qualifies, and then keep these allocation tips in mind to make sure you stay within your budget.
When it comes to keeping your business afloat, there aren't many things more important than looking after your finances. If you aren't careful, financial problems can get out of hand quickly, which can affect your ability to stay in business at all. I run a small business out of my home, and I can tell you that careful attention to your books can make a world of difference. Check out this website for more information about financial considerations, spending, and monitoring your bottom line. I'm not a professional accountant or anything, but by making a few moves in the right direction, you can solidify your business and avoid financial disaster.