The Definitive Checklist Of What To Do (And What Not To Do) With Your Bounce Back Loan

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The government’s Bounce Back Loan scheme (which, at the Entrepreneur’s Circle, we’re calling a ‘Bounce Forward Loan’) allows any UK business to borrow up to £50,000 (capped at 25% of their turnover), with no interest payments and no capital repayments due for 12 months.

This means you can get a big chunk of free money into your bank account.

And then, after the initial 12 months is over, the loan is repaid over a five-year term at 2.5% interest – which is a far lower rate than any small business would be able to borrow at, in a normal market.

This gives every business in the UK the opportunity to address what, for many, has been a massive ongoing, underlying problem for some time; they are under-capitalised.

What I mean by this, is that the business owner has to find a way to pay for everything (including driving their growth), from the revenues that are coming in this week, or this month.

This can be a struggle, as many business owners haven’t got the available capital to invest in growing their business.

Until now.

This guide is intended to help you make the right decisions, and do the right things with the monies you get from your Bounce Forward loan.

And bounce forward you can, when you have a decent-sized chunk of capital to make it happen!

In the past, have you ever found yourself thinking: ‘If only I had £10,000, I could do all these things…’

Well, now you can have that ten grand, and plenty more besides.

And remember, it’s completely free for twelve months!

Used wisely, your Bounce Forward Loan could (should!) be used to create additional income, which, in many cases, would enable you to pay it all back in full, before the monthly repayments even start.

Just think about that for a moment.

Before we get into the checklist, and the ways you can make that happen, it’s important to understand the difference between ‘good’ debt and ‘bad’ debt…

Good Debt v Bad Debt

There are many people who abhor the thought of any debt (although, interestingly, few of them are super successful!).

But business debt and consumer debt are very, very different.

Borrowing money to buy a depreciating asset, like a car, say, or a hot tub, is ‘bad’ debt. It puts a drain on your finances for the medium term, while also taking money out of your pocket.

However, borrowing money to acquire income-producing assets is ‘good’ debt, because those income-producing assets put money into your pocket.

These are the first and most important principles when it comes to investing your Bounce Forward loan:

  • Invest it in things that will put money into your bank account
  • Invest it in things that will help you grow
  • Invest it in things that will get you more customers and more sales

Because when you do that, it’s ‘good’ debt, as you’re using other peoples’ money to grow your business, and make more profit.

Smart move!

Almost every successful business in history has used other peoples’ money at some point to catapult itself forward. They’ve taken on debt, or raised capital from shareholders, to invest in income-producing assets.

A Bounce Forward Loan is your chance to do the same.

Do not waste your Bounce Forward loan on acquiring unnecessary things which will take money out of your bank account!

Instead, use your new capital to acquire assets that put money into your bank account.

Those assets could be physical things, like new kit, or equipment that enables you to expand or grow your capacity. Here, that expanded capacity will put money into your bank account – meaning it’s ‘good’ debt.

Or, they could be intangible things, like, for example, marketing campaigns or marketing systems which help you crack the Rhythmic Acquisition of Customers. In this case, effective marketing systems which bring in new customers consistently and predictably, put money into your bank account – so again, this is ‘good’ debt

Now we’re clear that the Bounce Forward Loan is an amazing, unique opportunity, lets dive into the Checklist to help ensure that you invest your capital wisely.

1. Recognise This Is A Once In A Lifetime Opportunity. Do NOT treat this like any kind of normal situation!

This is your chance to have up to £50,000 of capital to invest in your business, completely FREE for a year.

Do not waste this opportunity.

Any entrepreneur worth his or her salt, can invest £50k so that it returns £60k, £90k, £150k, or even £500k, if they use it wisely.

So, think very, very carefully about how you’re going to invest your loan, to get the maximum value possible from the funds.

And remember, you don’t have to spend it all at once. Don’t forget, the money could simply sit in your bank account until you’ve worked out how to deploy it, so that it generates the best possible return for you.

2. Get Clear On Where You Want To Be. This is not a theoretical question, or even a rhetorical one.

Please, please, please give real thought as to what you want your business to look like in one or two years’ time – because then, you can use your Bounce Forward Loan to help you get there.

Before you invest any of your Bounce Forward capital, you need to have a clear answer to the following 4 questions:

  • How much will your personal salary from the business be each month, when your business is ‘successful’?

(Remember that YOU get to define what success means, no-one else)

  • What will your revenue/sales need to be, in order to fund that salary?
  • How many customers will you need to be serving, to generate that revenue?
  • What level of additional resources, equipment, or staff, will you need to service that number of customers?

These are really, really important questions, and when you understand your answers properly, they will significantly improve your ability to use your Bounce Forward loan effectively, so that it moves you towards where you want to be.

3. Study The Entrepreneurs Marketing System (EMS)

The EMS is a rock-solid, tried and tested, completely proven system for growing any business to the place where its owner wants it to be.

It provides a structure and a step-by-step plan which encompasses all aspects of growing any business, and I urge you to study it carefully.

It’s available in the Entrepreneur’s Circle Vault, and it contains many tools and templates which, when used properly, can be transformational for almost any business.

The EMS contains 11 foundation blocks. These all need to be properly in place for you to grow sustainably. As the name suggests, these blocks provide the foundation for growth.

Using some of your Bounce Forward monies to get all the foundation blocks implemented properly in your business, could be a super smart thing to do.

4. Create Assets And Systems

It’s no fun in business when the first of the month comes around and all your scoreboards are reset to zero, meaning you have to start from scratch to generate this month’s income, from this month’s sales.

That’s hard.

Life is much, much, better when you have marketing systems in place that deliver you a consistent, rhythmic, predictable flow of new leads and customers arriving each month, automatically.

Having these systems in place for the start of every month means that your existing marketing procedures will bring you the customers that you need, so it’s a great idea to use your Bounce Forward monies to get these assets and systems in place.

One example of a successful marketing system, for instance, could be a well-structured Google Ads campaign that delivers you between 25 and 30 new enquiries every week, at a cost per lead of £9.60.

The numbers will, of course, vary from business to business, but the principles won’t.

Another marketing asset might be a Facebook ad campaign, or a leaflet drop that, when delivered to 10,000 homes, generates 35 phone calls from people who want what you’re selling.

Using your newly acquired capital to put assets and systems in place, is the absolute smartest thing you could do with your funds.

Spending it on one-off, or ad hoc things, which don’t systematically put money in your bank account, month after month after month, will be less than optimal, and potentially, a complete waste of this once in a lifetime opportunity.

5. Get The Right Customer Relationship Management (CRM) Tool

Anyone looking to build a sustainable business which will pay him or her a meaningful salary each month, will need a system to look after his or her customers.

This means you need a good CRM. There are lots of good choices when it comes to choosing a CRM system, and it doesn’t really matter which one you choose – but make sure you get one, and make sure you get it implemented properly. Using some of your Bounce Forward money to do this, would be super smart.

I’ve said many times that I’d rather have my electricity cut, than lose Infusionsoft, my CRM system. Everything that we do hangs on Infusionsoft, and it pays back my investment many, many times over every single month.

It’s not just the CRM system which is important either. Get other tools which will help you attract more customers, convert more customers, and get customers to spend more with you. Things like BombBomb, the video emailing service, or Wicked Reports, for example. And start investing in the best things to get you where you want to be!

Do the right thing. Stop being cheap.

6. Get A Kick Ass Follow-Up System In Place

Newsflash: Most businesses don’t need more leads. They just need to look after the leads they’re already generating, much better, in order to produce the income that they want and need.

This means that your Follow-Up System is a top contender for some of the investment from your newly acquired capital.

If your Follow-Up System is sub-optimal, then you’re throwing away a big chunk of the money you’re spending to generate those leads in the first place.

Once someone’s sent you an enquiry, you should have automated systems in place to keep in touch with them through interesting, creative, and useful ways, for months and years to come. And when you do, you’ll bank the sales from those leads and prospects, down the road in the future.

Without these systems in place, however, you’re always chasing new leads, and not monetising existing ones, so get them sorted.

7. Get Yourself A Sales Function

This is a biggie – and for many businesses, it’s what’s stopping you from breaking through to a whole new level of sales and profits.

For starters, just ringing up everyone who’s sent you an enquiry, and asking them how you can help, can be transformational for many businesses.

These are not cold calls.

You can either employ someone to do this (it might only be for a couple of afternoons a week to begin with), and their job may solely be to come in and ring up your potential customers.

It’s almost impossible, in a properly set up business, for this approach to not deliver a significant return on investment.

Yet most people don’t do it, because they haven’t got the available capital or cash to invest.

Now you do.

So, think very, very carefully about investing in your sales infrastructure, as it will relieve you of the job of following up with every single lead.

8. Liberate Yourself Many of the things in this Checklist require work.

And you have no capacity to do more work – because every minute of your day is already counted for, right?

So, you’re stuck.

Until you can bring in the right help.

Often, the smart thing is to bring in people (either on a part-time, full-time, or outsourced basis) to do your existing work, so that you can be freed up (liberated!) to focus on the stuff which brings in the money and the growth (i.e. the marketing, and the other things in this Checklist).

Getting you freed up from the ‘day-to-day’ work will be critical if you’re looking to make real progress in profits and salary.

And using your newly acquired capital to employ others, so that you can do more of the growth-producing things, can be super, super smart.

Investing in staff, so that you can focus your time and energy on doing the things which will best get you where you want to be, is, when you think about it, common sense.

I’ve said for many years that, ‘if you haven’t got an assistant, you are one.’

That is never truer than now, as we emerge from lockdown, and you’re sat on a few thousand pounds of cash in your bank, and a shedload of opportunity!

Use that money to help you make more money!

Liberate yourself from all the £10 an hour jobs that you do, so you can focus on the big stuff; the stuff that can change your business and your life. The things that will make you more money.

This one is a big deal!

Bottle it, and you massively inhibit your ability to make big change happen.

9. Get A Coach

These are unprecedented times and this is a unique, once in a lifetime opportunity for you.

You don’t want to mess it up, so get yourself some proper help and support. You don’t have to travel this path alone.

Get the right coach alongside you.

Working with you.

Helping you to prioritise and plan.

Holding you accountable, to make sure you achieve the goals that matter to you most.

Someone who has been there and done it.

Someone who knows how to execute all the things in this list – because they’ve done it before.

Someone who will work with you one-on-one.

Someone you can talk to, who’ll encourage you, and support you, and when needed, give you a kick up the bum!

Investing a small chunk of your Bounce Forward loan to get a top-class coach on your team will significantly increase your chances of making the most of this genuinely life-changing opportunity.

Don’t waste it!

 Written by: Kevin Cope

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