If you’re planning on improving or growing your business, there are a number of important factors that you need to consider in order to succeed. By evaluating the core areas of your business, you can ensure that you invest in your capital wisely, reduce costs, and serve your customers better.
Although rapid growth doesn’t happen overnight, there are several steps you can take to keep your business moving forward. Here are some tips to consider if you’re determined to see your business grow.
Be Realistic About Your Capital Investments
In an ideal world, we’d all be sitting on a pot of gold that could finance our business expansion plans. In reality, many small business owners invest their own money into their business and forgo any real salary or benefits in an effort to get their company off the ground.
If you’re a brick and mortar business owner seeking to expand, you’ll need an influx of capital to fund this expansion. Since very few small business owners have the capital on hand that’s necessary to open a new storefront or upgrade machinery, a small business loan can help bridge this gap.
Other growth strategies for capital investments include:
- Adjusting your workforce to keep up with new customer needs
- Hiring a supplier to increase your inventory
- Motivating employees by focusing on professional development and team-building
- Attracting new customers with new sales and marketing strategies
- Investing time in social media to connect with existing customers
- Asking for customer reviews or conducting surveys
- Building a sales funnel, loyalty program, or email list
- Acquiring other businesses, to take advantage of competitor products that compliment your own
- Expanding internationally with online platforms and strategies
When deciding whether a small business loan is right for your expansion needs, carefully weigh the loan terms, your capital needs, the potential benefits, and your long-term business plan. Investing in a new satellite operation may seem like a smart plan now, but it’s important to evaluate the market to ensure that expansion results in expected returns on your investment.
Improve Your Bottom Line By Lowering Costs
Small businesses are constantly being squeezed by increases in expenses, so controlling costs is more important than ever. By evaluating your expenses, you can reduce your business costs and improve your bottom line.
Examples of how you can improve your bottom line include:
- Lower your office space costs by renegotiating terms with the landlord, or moving locations
- Lower staffing costs by hiring part-time employees, outsourcing human resources or marketing, or offering unpaid leaves during low business cycles
- Barter for better prices on business services or buying goods in bulk
- Negotiating better repayment terms with your suppliers
- Consolidate insurance policies or bank accounts
- Reduce credit card debt by paying off balances on business cards immediately
- Eliminate overtime and encourage employees to stick adhere to daily or weekly schedules
- Take advantage of technologies such as the cloud for business computing needs
- Moving to an online platform such as a e-commerce store to serve your customers more conveniently
Understanding your business’s cash flow can help you manage your business funds effectively. If you don’t manage your funds effectively, you’ll run into cash flow problems that can get your business into trouble. In fact, 3,580 Canadian businesses filed for bankruptcy and other insolvencies in 2018, with cash flow problems being a large contributor.
Reducing costs in your small business and creating processes that will cost you less money in the long-term doesn’t require a lot of time or even a lot of effort. In many cases, it’s about making smarter choices when deciding where to allocate your small business funds.
Take Advantage of Business Loans to Build Your Business
Start-up business owners need cash flow to help with initial expenses. The same thing is true for those who have been around for some time and have decided to take things to another level. If you need business loans to make your plans happen, get them.
Although applying for low-rate business loans might seem like the best option, there are other factors to consider:
- Loan terms – ensuring repayment periods correlate with sustainable growth
- Collateral – using capital assets to secure a higher loan amount
- Flexibility on repayments – some lenders have penalties on late payments
- Hidden fees – administration or application costs
In order to produce long-term results, make sure you partner with the right banks or lending firms. You need to provide a business plan, calculate your loan amount, fill out application forms and provide all the requirements. It is also important to ensure that your credit is in good standing so your application is easily approved.
How to Grow a Business With the Help of Thinking Capital
After preparing your business plan, calculating your loan amount, and evaluating what’s best for your company, you’re ready to apply for a small business loan. With Thinking Capital, you can get the funds you need to improve your assets, increase your market share, and grow your successful business today.
Applying for financing from Thinking Capital is a simple 3-step process. First, fill out an online application, which will take roughly 5 to 10 minutes to complete. Once you have completed the application, expect a verification call from one of our expert advisors in as little as 30 minutes. They will confirm the information you submitted in your application and ask a few additional questions to collect what they need to qualify and approve you for a small business loan. Once you’ve been approved for financing, you can expect to receive your funding in as little as 24 to 48 hours. Your funding will be deposited directly into your business bank account. You can use the funds right away to help you grow your business.
Want to grow your business?
Thinking Capital has business loan options to help you expand your business.Apply now!