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Growing a profitable small business takes hard work and strategy. One proven framework for success in the business world is using the 6 P’s in building your business. Many businesses have used these six principles, which could help you cover all critical areas and consider things you might have overlooked while preparing you to apply for SBA loans.
At Business Funding Group, LLC (BFG), we are a loan packaging firm with attorneys who specialize in helping profitable small businesses secure SBA loans without uncertainty or stress. If you are thinking about growing your business, the following could help you create a successful plan.
1. Product
The first of the six P’s is the product or service you offer and is the core of your growing business. Whether it is legal services or consumer goods sold on an e-commerce website, it is important that they meet a need or offer real value.
Ask yourself what makes your product better or different than someone else’s. Lenders and clients want to see that your business satisfactorily solves a problem.
2. Price
A successful business owner does not guess at their pricing. If your services are undervalued, cash flow could suffer. But if you overprice, customers may go elsewhere.
Focus on profit margins and customer perception. Businesses that have a clear understanding of their numbers and pricing power could justify charging more. This is also attractive to lenders.
3. Place
This is where you sell your product or offer services. You cannot expect your customers to come to you. Rather, you should sell where your customers are.
For an e-commerce business, this could mean optimizing your website, individual listings, or online storefronts. For a service-based business, it could be about securing the right office location.
An SBA loan could help fund legitimate business expenses, such as purchasing a building, optimizing systems, and more.
4. Promotion
Promoting your business involves more than just advertising—it is about connecting with your target audience. Getting noticed and staying memorable to your ideal customer may be done through:
- SEO
- Email campaigns
- Social media
- Referrals
You do not need a huge budget for marketing, but you do need a strategy. SBA loan proceeds could be used for marketing, so an SBA loan could make promotion easy and affordable.
5. People
Your business would not be the same without people, including your internal team, partners, and customer base. Building a team that is reliable and well-trained leads to a great culture and long-term success.
SBA loans could help cover hiring, training, and salaries as part of working capital.
6. Presentation
Making a great first impression matters in business. Customers form their perception of your brand based on your website, product packaging, storefront, client proposals, and their overall experience.
Getting an SBA loan to invest in upgrading branding, websites, or packaging could improve presentation and lead to business growth.
An Honorary P: Planning
Without a solid plan, your business could suffer. Planning requires thinking ahead and preparing for growth as well as unexpected obstacles and setbacks.
Always be ready for a downturn. How? We recommend saving at least six months of capital for emergencies or surprise opportunities.
As part of planning, consider making two lists—one of what could negatively impact your business and how you could address those challenges, and one with all the things that need to happen to reach your business growth goals.
Grow Your Business With the 6 P’s and Call To Apply for SBA Loans
Using the 6 P’s in building your business is a great way to assess, improve, and grow. These principles could assist you in seeing where you are and how you could get where you want to be. The right SBA loan could help you get there faster. Our team at BFG could help you at every step, from gathering required documents to signing closing documents.
Having a carefully considered business plan increases your chances of meeting your goals and prevents poor performance. Give us a call if you think an SBA loan could be a part of your business strategy that leads to growth, or feel free to fill out our simple online application.