If you haven't updated your business in some time, perhaps by purchasing new equipment or renovating a facility, you need to ask yourself if you're keeping up with your competitors. Sometimes, change comes quickly, and business owners need to be ready to finance a new direction. In a piece for the Small Business Administration's blog, Tim Berry recommends that owners take a "fresh look" at their market and the place their business has in it.
According to Berry, it's important to distinguish between "taking a fresh look" and doing formal research. The fresh look approach simply involves casual data gathering, perhaps from customers or people in non-competing businesses.
The importance comes from looking at the market with fresh eyes without assuming that what they already know still holds. Even a strategy from just a few years ago could suddenly prove to be the wrong decision in the new economy.
"The importance comes from looking at the market with fresh eyes."
This can also involve thinking about the current customer attitudes toward your business, especially if you haven't done this in a while. Though the SBA loan programs available are great for developing businesses, there could be a need for new changes that keep the company up-to-date. At the same time, newer businesses can also look for financial packages that will help them last into the future by preparing for different conditions.
Rejuvenating Your Ohio Business
In a pamphlet on starting a corporation in Ohio, Secretary of State Jon Husted lists some of the things that new corporations need to understand to successfully create a corporation. Some of the circumstances the document refers to include situations that might change the nature of a business.
For example, if a corporation merges with another business entity, the company needs to submit the correct certificate and filing fee with the Secretary. For a conversion, the Ohio Revised Code has to give approval, as long as the action falls within the boundaries of the law. In either of these cases, the business might need to update itself in some way to reflect the new ownership.
The 504 Loan
Obtaining a 504 loan from the SBA gives business owners options for how to improve their venture: In addition to new land and equipment purchases, this program also allows for building renovations, improvements and landscaping. This can also apply when an applicant wishes to purchase an existing building for commercial purposes.
Our website lists a series of ways that businesses can be disqualified from the 504 loan, something which owners may need to consult once again if the mission of the business has changed. Some of these exclusions are life insurance companies, non-profit businesses and businesses located in foreign countries. In some cases, though, there may be exceptions, requiring an expert to help owners find the appropriate commercial lending.
Growth Capital has solutions for SBA 504 loans, as well as other SBA programs. You can learn more by contacting us today.