What to Do If Your Business Doesn't Qualify for a PPP or EIDL Pandemic Relief Loan
Unfortunately, some small businesses weren't approved for the Paycheck Protection Program (PPP) or the Economic Injury Disaster Loan (EIDL). We've got some solutions that can help you stay afloat during the coronavirus pandemic.
If you couldn't qualify for the EIDL or PPP Loans, here are some tips to keep your business in good shape while the coronavirus continues to harm the economy.
1. Consider A Revolving Line Of Credit
Revolving credit is faster and more flexible than bank installment loans. If you need to quickly access working capital, a LOC is a great option. Revolving lines of credit are typically used to help small businesses manage monthly expense of a business: covering payroll, paying off invoices, cash flow shortages, purchasing inventory or making short-term improvements. Once you're approved for a set amount, you can instantly draw what you need and pay it back as you go. In the future, this will allow you to quickly manage any bumps in the road. In order to secure a Line of Credit, you will need to have a minimum credit score of 620 and be in business for at least 6 months.
2. Sell Gift Cards
Gift cards are easy to implement and affordable for businesses of all sizes. Gift cards offer seamless convenience to givers. If business is slow, or not running, you can use social media to market them towards your audience. Instagram recently added new buttons that encourage Gift card purchases. If you target your audience properly on your social media platforms, there will be a high chance of making immediate revenue.
3. Offer Promotions On Your Most Popular Products Or Services
Consumers are currently spending less than usual in order to keep their finances in covered. When the average consumer sees a discount or promotion, they are more willing to make a purchase to save money. If you advertise a "Limited Time Offer" or "Big Savings" on your most popular products or services, you'll likely see an increase in sales. This also gives you an opportunity to build a new client base and establish new relationships. When everyday life starts getting back to normal, you can convert the promotion customers into loyal customers that will pay full price.
4. Negotiate With Your Service Providers
As they say, you'll never know until you ask. There are lots of providers (Cell phone, Landline, Internet, Credit Card Processors, etc.) that are offering discounts to small businesses that have been impacted by the coronavirus. By simply making a call and asking if they can give you a break, you can shave off some monthly expenses and use the money towards marketing or whatever you feel is best for your business.
We're all creatures of habit. We're used to our everyday routines and don't like change. Unfortunately, not adapting to change can harm your business in times like this. Get creative and think of some new products or services to offer your clients. As a business owner, your priority should be making money and the best way to do so is by thinking outside the box. Don't be scared to try something new.
6. Consider Hiring A Marketing Agency
We get it, you handle your social media accounts and send your clients emails to keep them updated with your company news. While there's nothing wrong with doing this on your own, hiring a reliable marketing agency is one of the best investments you can make, especially while times are slow and more people are online. With the right game plan, a marketing agency can create your digital footprint and get your business in front of your competitors online. Not only will this help drive more traffic to your website and social media accounts, it will increase your prospect to client probabilities.
7. Run A Virtual Event
With More people online, running a virtual event has the potential of reaching a large audience and can build your brand awareness. There are several ways to run a virtual event such as Live-streaming, Social Media Stories, Hosting Webinars or by doing Giveaways. Before running a virtual event, you should post some countdowns an/or news about the event to engage your audience before it starts. If you can run a successful Virtual Event, you'll now have an engaged audience to offer Gift Cards or Specials/Promotions to.