4 Reasons to take out a Café Business Loan
How your cafe business can benefit from a loan
While we know that money doesn’t grow on trees, a small business loan might be the next best thing. It can give you an instant increase in budget that could influence a variety of factors and give you a solid return on your investment. With so many costs associated with running a coffee shop, a café business loan can get you on your feet and running much faster than if you tried to do it without any cash flow.
If your coffee shop is in the red or growing at a painstakingly slow pace, look around to see if there are any aspects of your business plan that are causing your bucket (profit margin) to leak. The first step is to patch the holes. The second is to increase the water supply (money) coming in.
4 Reasons why your cafe business might need capital
Do you have all the bits and bobs needed to start a business? There are quite a few! This includes POS systems, computers, cash registers, security systems, business licenses, furniture, napkins, and everything in between. It’s a lot of cost before you can even open your doors, but don’t be tempted to cut costs. You don’t want to buy sub-par equipment that you’re struggling with from the get-go. In fact, bad equipment can lose you customers. Buy the right systems, invest in the right equipment, and be a high-quality establishment from day one.
Marketing: developing online marketing strategies to promote
It’s pretty rare that a café can open their doors and instantly be flooded with new customers. Why? Because they don’t know you exist. Investing in a marketing strategy will get you in front of the right people and immediately start generating awareness. This could include a variety of online, offline and in-store branding. If you’re wondering what platforms you should include in your marketing strategy – first determine where your ideal customers are. Start by being where they are and go from there based on what’s successful.
HR/Staffing: staffing & training, recruitment, development
A lot of effort goes into finding, training and retaining employees. Wages might seem like an easy place to cut costs but remember what you’re sacrificing: quality. Good employees are worth their weight in gold. Invest in your staff because they play a massive role in your customer service and experience. Continue to care about your people after they’re hired through training and development opportunities. If you aren’t giving them a good work environment, they’ll find somewhere else that can.
Finance: bar equipment financing
If your café hinges on having good food and coffee… buy top-of-the-line cookware and coffee machines. It’s much harder to make quality meals when you’re working with sub-par equipment. One way you can do this is by utilising an unsecured business loan to finance the investment. Prioritise your equipment because at the end of the day, it doesn’t matter how good your branding is or how awesome your staff are if the food and drinks are average.
Learn how to establish your café small business.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at February 2020. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.