If you were one of the many business owners who secured a small business loan in 2021, the next – and most important – part is how you invest it. While any extra influx of cash is a good thing, being strategic with your funds will deliver you the best results.
The Three Key Areas
For any business to grow, you must invest in aspects of the brand that will allow you to scale, streamline your efficiencies and increase your revenue. When looking at the best places to invest, you should be considering:
Shoring Up The Fundamentals
Your business needs a solid foundation to operate from and that means investing in your own fundamentals. For example, take a look at your production and your product cycles. If you are facing limitations on ordering or delivery, invest capital into increasing those production times. Remember, recurring revenue models need consistent inventory updates. You need to stay focused on selling through your goods so new collections can drop, so market to cultivate high sell-through rates before the next collection.
And when it comes to marketing, be sure you’re laying up to create an omnichannel strategy. You need to diversify your loan investments across various marketing channels and launch those marketing activations in a sequence.
Lastly, you need to ensure your consumer actually gets their product and in a timely manner. Take a look at your third-party logistics and ask:
- Who’s doing the shipping?
- Who’s managing customer service?
- Staff up to make marketing investments worthwhile
- Invest in ways to get your product to the customer most efficiently
Once you have the fundamentals handled, you can look into investing in other areas, such as hiring and capacity-building, expanding product ranges, etc.
At Scaling Retail, we help brands allocate funding to increase revenue, launch and grow successfully in an ever-evolving retail world. Send us an email to [email protected] to start the conversation.