Think about your expenses. You have rent or mortgage payments, office supplies, utilities, payroll, travel, insurance, taxes. The list goes on and on. The larger that you grow the more expensive it will get to run your company. So how do you take a small business loan of just a few thousand dollars and use it to create a big business out of the small operation you’re running now? It’s a lot easier than you think. You just need to follow a few basic rules.

To begin with, its credit, not money, that makes the world go around. When you have good credit and can get your hands on business capital funding at any time, you can turn your small business into a large company that will bring you the elusive profits you’ve been looking for all these years. Begin by doubling your efforts in areas that seem to be working well. If you’re getting a certain response rate from a specific type of advertising, spend twice as much on it and see if the response doubles. Don’t use your own money, use the bank’s. Then use your extra profits to pay them back.

Try this exercise. Take $10,000 and place it into a bank account that offers a reasonable interest rate. A simple savings account will do. Don’t lock the money up in a CD just yet because you may need it if things don’t go well. Borrow against it, just the amount of the deposit, no more. Then use the borrowed money to increase your efforts as described in the previous paragraph. This is known as using business working capital to finance your efforts.

Once you’ve made back the money you’ve borrowed, pay back the loan and double down, making your investment and matching security $20,000. Keep doing this and eventually you will own a company that has $100,000 in liquid assets and working capital of the same amount to run day to day operations. All you need to make it a reality is the original $10,000 and a firm grasp on what is working for you and what isn’t. 

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