Laundromats have been a constant presence in our communities for so long that the struggles of running them often go overlooked. Monthly expenses are enormous, equipment is constantly in need of repair, and a less-than-perfect location can easily put an otherwise-prepared laundromat into bankruptcy.
Cash flow problems are a given for medical practices thanks to the ongoing headache that is health insurance. Doctors do not collect full payments immediately after they perform their services and when payments do finally arrive, the recipient often discovers that a patient did not pay his or her portion of the bill.
Robert Herjavec knows a thing or two business strategy. He earned his spot on Shark Tank by growing his Toronto-based Internet security firm from three workers to over 220 in just over a decade. Herjavec Group raked in approximately $150 million in revenue last year, thanks in no small part to an array of up-to-date marketing tactics.
Business problems that don’t have relatively obvious solutions are often solved by creativity. In these cases, you don’t need more people, more equipment, or more space. What you need are ideas, innovation, or simply the ability to think outside the box. Creative people can implement new methods for boosting productivity while putting themselves in the shoes of customers to understand what will please them most.
One of the most tedious yet crucial aspects of taking out small business loans is determining how much you should borrow. If you ask for too little, you won’t be able to grow your business to the extent you had in mind and prevent revenue from improving. If you ask for too much, you’ll have to dig into your personal or operational funding to pay off the debt and risk bankrupting your business.
A detailed business plan is essential for any traditional small business loan applicant. Lending institutions want to see that you intend to spend the money they are trusting you with on investments that will almost certainly increase revenue. Your business plan should therefore be similar to those of previous borrowers whose investments lead to significant success.