We are more than two years into the Covid-19 pandemic, and the effects on many small businesses have been catastrophic. If your company is still managing to stay afloat, you might just need a small push to get through the next few months until life resumes to a pre-Covid routine.
Entrepreneurs and small businesses are facing a different type of challenge than large companies and corporations. At some point, you can't keep taking money from your savings and putting it into your business, hoping to stay afloat until normalcy resumes. You have to think about your future, both personal and professional, and your retirement.
If this sounds anything like your situation, you should do two things; meet with a financial advisor and take out a small business loan.
The Advantage of Meeting with a Financial Advisor
Even if you think you have it figured out and believe you can meet payroll and put away money for your future, talking with a financial professional is a smart plan.
While it can be difficult to come to grips with the idea of meeting with a financial advisor and letting an "outsider" go over your financial details, the sooner you do, the better off you will be. There are several reasons for this:
- Your focus should be on your business: You should not take time out of your day to worry about whether to invest in a specific fund or what's the most financially sound decision to make when it comes to making office purchases. Your focus should be on running your business, finding new opportunities, and turning a profit.
- Trust their expertise: No one knows your business as you do. Whether you've learned the profession in school or through experience, you should know it inside and out. The same can be said about the financial advisor. Their entire focus is on creating a strategically sound, based on experience, for setting you up to save money. When you work with a professional, they've seen it all and will develop several tracks that you can follow.
How to Find a Financial Advisor
Finding the right financial advisor is extremely important. You don't have to go with the first name you hear. Find someone that you can trust, whether it's from a recommendation from a friend or family or you find them listed on a reliable website. Set up a meeting and talk with them before making a commitment. Make sure that they understand your situation and have a realistic plan to help you out.
Why a Business Loan Might Be the Solution You Need
Some business owners are nervous about taking out a business loan and putting their company into debt. In some cases, this is a legitimate fear, and you should consult your financial advisor to see if the loan is the right option for you.
However, there are plenty of situations where a business loan can not only rescue your company but help take it to the next level.
The best reasons to take out a business loan are when it can be used to expand your business. Some examples are putting extra money in your marketing budget, buying a larger space for your business, or hiring new personnel. All of these can directly impact your growth, making the loan a smart investment.
If you're going to use the loan as a bridge until things settle down, make sure that you have a solid business plan going forward. The worst thing to do is take out a loan only to discover that you won't be able to make your payments in the short or long term.
How to Find the Best Business Loan
It seems like everyone is offering business loans. I get text messages every week from companies that seemingly want to give me money. Whether you choose to go through a bank, a credit card, or a lender, there are a few factors that you should consider.
You don't have to take the first offer. Find out what the rates are and if they charge any service fees. Whether your loan is for six months, three years, or five years, you should understand exactly how much it will cost you in the long run. You don't want to have to worry about hidden fees like processing each payment or early repayment fees.
No matter how nice the lender's website is, you should research the company. Find out if it has a good reputation, try and get references where possible so you can be confident that you're dealing with a legitimate and trustworthy lender.
Take Your Business to the Next Level
Getting a firm grip on your company's financial future is an important step in ensuring long term success. It's always a good idea to "stay in your lane," focus on what you know best and allow other experts to step in and guide you to making the best choices for your company.
This article was written in cooperation with Expert Editors