Mistakes To Avoid With Your Bounce Back Loan

Your bounce back loan got approved. Now, what mistakes should you avoid with the money? In this blog, I talk about the mistakes to avoid with your bounce back loan
(Check out the Mistakes To Avoid With Your Bounce Back Loan) Let’s be honest, the last year has been really tough for business. A lot of people have needed funding from the Government just to survive.  A lot was out of our control including the right to even operate in some circumstances. Sadly Ive heard of lots of people taking a bounce back loan and using them badly.  In fact Ive heard of people spending on stuff like new cars, houses and stuff their business simple did not need. Making financial mistakes now could cause big issues for your business once back to normal in a few months. Now is the time to full assess your current financial situation and make a plan.

Here are the key mistakes to avoid with your Bounce Back Loan.

  • Firstly, business owners get a bounce back loan into their business bank account, and then they just withdraw it all into their personal account.
This loan is your business’s money, not your money. What you should be doing is using that money to invest in things like marketing, to get more leads and more sales, and recycle that money, then you can start taking it out of your business. You can use a bounce back loan to pay yourself incrementally throughout the year.  But not in a lump sum the moment you receive it.
  • Dont take out the money in one big chunk, you shouldn’t be using it to buy new laptops, new vans, and stuff like that, that aren’t really going to generate new leads and sales.
The bounce back loans purpose is to keep your business trading, the bounce back loan is also there to make sure that you start getting your business back on track and getting more customers into your business.

What you should be using it for is marketing.

You should be learning things like Facebook ads, Google ads, email marketing & social media. The market dictates right now that you need to market more than ever before, is going to be harder to get customers for the next few months. Because of that, you need to stand out by marketing your business more effectively than other people.   One of the biggest issues with marketing is targeting the wrong people, make sure you define a customer avatar.  Ive written a detailed blog on exactly the steps to do that here. So the biggest mistake is don’t waste money on stuff you dont need.  Get it focused on your marketing. We should not forget that the purpose of a bounce back loan is to keep your business trading and make sure you get your business back on track. The Bounce Back Loan is for your business’s money NOT your own spending money. Check out the latest funding updates on Bounce Back Loans here. Been declined a bounce back loan? Check out this post on what to do next.
James Nicholson 30 Lead Gen Strategies
James Nicholson 30 Lead Gen Strategies
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