Business loan

[charl12dance]

Hi Everyone,

I have just been approved for a £10000 business loan and I’m wanting some advice as to what to invest the money in. I’ve been in business 14 months and I am covering all my outgoing costs, but if I have a bad month I now have a back up to cover costs if needed. I’m thinking about snow and the dreaded January.

I don’t have a website so this is a must for me now. Also no heating in my salon and the electric radiators I bought last year take ages to heat up. So I want to invest in some new cost effective heating. Also new training and equipment is something I am looking into. Any advice/ideas would be greatly appreciated.

Thanks in advance x

 

[Glou.life]

Hi Everyone,

I have just been approved for a £10000 business loan and I’m wanting some advice as to what to invest the money in. I’ve been in business 14 months and I am covering all my outgoing costs, but if I have a bad month I now have a back up to cover costs if needed. I’m thinking about snow and the dreaded January.

I don’t have a website so this is a must for me now. Also no heating in my salon and the electric radiators I bought last year take ages to heat up. So I want to invest in some new cost effective heating. Also new training and equipment is something I am looking into. Any advice/ideas would be greatly appreciated.

Thanks in advance x

You could do your own website with create.net iv been using them for years and it's so simple to use and you will save a fortune.
So you could use the money saved to invest in the heating as that will be essential.
What do you offer already in the salon x

 

[charl12dance]

You could do your own website with create.net iv been using them for years and it's so simple to use and you will save a fortune.
So you could use the money saved to invest in the heating as that will be essential.
What do you offer already in the salon x

Thank you for your reply. Ok I shall look into create.net thank you for the advice. So at the moment I offer all level 2 beauty treatments, Swedish, aroma, IHM, reflexology, Thai massage, tanning and lashes. I also have some ladies renting rooms off me they offer sports massage, meditation massage, Bowen technique, reiki x

 

[BannerPenguin]

As a web designer myself who has built many websites (even for users on here) paying for a decent website will give you a return. Slump on it and you’ll skimp on your results so it’s a personal choice as some people just want a presence so to speak.

What I would say though is I would not be taking a £10k loan. Of course this is your choice but you don’t sound financially in a place where this is a good idea. If you aren’t covering bills on a bad month then this is only going to add mass amounts of pressure financially.

IF you decide to take the loan despite my advice, make sure you’re a limited company and you aren’t personally responsible for the loan and it’s just a business loan to the limited company. Not worth the risk otherwise.

Heating is all well and good but how long is your lease? It’s the building owner who benefits the most out of this.

You need to look at what’s actually going to increase profit in the business. New equipment/training doesn’t lead to more footfall. Better marketing does and improving your current offering. A lot of people make the mistake of blowing all their budgets on learning something or buying something and have no money to promote it.

Just my 2p worth

 

[squidgernetball]

Great advice from @BannerPenguin. I would have a website as a priority. Good online presence can have a knock on effect in the salon. The first thing we do is google something or someone - businesses need to be there, whatever your size, and a good site, with good SEO can bring clients to your door. As for the heating, unless you own the building, don’t go mad. Good plug in radiators with timers can help.

While a loan can help you get to where you’re going, the pressure to repay can be immense. I have only paid for machines on a loan. They then pay for themselves if you get it right. Do you actually NEED this loan? Can you manage without it? Just because someone will lend it doesn’t mean you should borrow it.

If the answer is a resounding Yes, then I would do a website, some good rads with timers and make sure your advertising, leaflets, Facebook etc are all fabulous. And anything that you can I’d put by for those snowy days.
I have grown a business by paying as I go. Apart from machines that have been a well considered investment, I haven’t borrowed money for my business. I had no backing, no rich family, I have earned and paid and earned and paid. The fact that you’re here asking for advice makes me concerned that you’re borrowing £10,000 and you don’t really know why.

Best of luck

Vic x

 

[charl12dance]

As a web designer myself who has built many websites (even for users on here) paying for a decent website will give you a return. Slump on it and you’ll skimp on your results so it’s a personal choice as some people just want a presence so to speak.

What I would say though is I would not be taking a £10k loan. Of course this is your choice but you don’t sound financially in a place where this is a good idea. If you aren’t covering bills on a bad month then this is only going to add mass amounts of pressure financially.

IF you decide to take the loan despite my advice, make sure you’re a limited company and you aren’t personally responsible for the loan and it’s just a business loan to the limited company. Not worth the risk otherwise.

Heating is all well and good but how long is your lease? It’s the building owner who benefits the most out of this.

You need to look at what’s actually going to increase profit in the business. New equipment/training doesn’t lead to more footfall. Better marketing does and improving your current offering. A lot of people make the mistake of blowing all their budgets on learning something or buying something and have no money to promote it.

Just my 2p worth

Thank you for your response. I have been in touch with a few web designers and I am just waiting on quotes. I agree, I think a professional website will give the return I am looking for.

If my business was not financially secure I wouldn’t not of qualified for the loan in the first place. They have seen my accounts for the past 14 months and received a financial forecast for the next 12 months along with other paperwork. I am covering bills, I was just referring to the bad snow days last year. If this was to happen again the loan would help out while I made the money back.

I am a limited company already. I have a long term lease and I am only looking at heating that I would be able to take with me if I decide to move on in the future. I am just after ideas of what heating people currently have before I make my decision. Thank you again.

 

[charl12dance]

Great advice from @BannerPenguin. I would have a website as a priority. Good online presence can have a knock on effect in the salon. The first thing we do is google something or someone - businesses need to be there, whatever your size, and a good site, with good SEO can bring clients to your door. As for the heating, unless you own the building, don’t go mad. Good plug in radiators with timers can help.

While a loan can help you get to where you’re going, the pressure to repay can be immense. I have only paid for machines on a loan. They then pay for themselves if you get it right. Do you actually NEED this loan? Can you manage without it? Just because someone will lend it doesn’t mean you should borrow it.

If the answer is a resounding Yes, then I would do a website, some good rads with timers and make sure your advertising, leaflets, Facebook etc are all fabulous. And anything that you can I’d put by for those snowy days.
I have grown a business by paying as I go. Apart from machines that have been a well considered investment, I haven’t borrowed money for my business. I had no backing, no rich family, I have earned and paid and earned and paid. The fact that you’re here asking for advice makes me concerned that you’re borrowing £10,000 and you don’t really know why.

Best of luck

Vic x

Thanks for your reply. I know why I am taking out the loan it is to move my business further. I want a website and more marketing, a better heating system and my product and equipment to enhance my business.

I was just asking for advice incase I had missed a good investment idea that maybe an experienced business owner might see and I have missed x