Oftentimes telling friends or family that you are starting your business can be met with skepticism, cautionary tales and sometimes downright negativity. There are often horror stories shared about people going into crippling debt and bankruptcy. While it is important to make good decisions when it comes to your business, it is also important to note that there are circumstances where it makes sense to take on debt from a Las Vegas business loan.
Every now and then there are business opportunities that are too good to pass up. That could be a product that seems poised to be a must-have item, a retail space that will allow you to have a physical storefront, or a discount on inventory that you can use. It’s important to make sure you have thought through the following things though before securing your loan:
- Determine the revenue you stand to make outweighs the cost of the loan.
- What are the true costs? Don’t forget about things like shipping costs, equipment costs, rentals, etc.
- Are you overstating potential profits?
When you run a small business, you have to wear many hats. You are the marketing team, human resources, payroll, customer service and the record keeper. For some businesses there comes a point where owners need to take off one hat and bring someone on board to help out. Sometimes the decision to bring on an expert allows for business owners to focus their time and energy on the aspects of the business they are passionate about. Other times, it allows for the business owner to hire an expert who can push their business to the next level. Some examples of this would be:
- Hiring a social media manager
- Hiring a marketing manager
- Hiring a bookkeeper
- Hiring packing helper
- Hiring order pickers
If your office is bursting at the seams, employees are crammed in like sardines or if you are ready to take your business out of your garage or extra bedroom; chances are you need a new office. While outgrowing your initial office is a good problem to have, it can be stressful. While it means business is booming, you may not have the cash on hand for a new location. Most businesses prioritize putting their profits back into the business.
A business loan can help in this department as it allows for the ability to prioritize both your business and finding a new and improved space. Make sure to answer the following questions before procuring a loan:
- Can you cover loan costs and still make a profit?
- Will a move or second location improve your bottom line?
- Have you researched the area you want to set up shop to make sure it is a good fit for you?
If a business loan still sounds good to you or if it makes sense to get a business loan after reading through the top three reasons to get a business loan then don’t be afraid to reach out to your local lender to secure a loan.