As a business owner, growth may be a factor that you are focused on – but how do you make it happen? If your brand is thriving and you’re hoping to take the next step towards growth, you’re going to need funds to help you. Thankfully, there is a range of interesting options for you to consider, to help your business expand and reach its full potential. Read on to find out more about your finance options!
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Benefits of business growth
When you run a business, you will be striving for success – and with this, often comes growth. If your company is doing well, there may come a time when you’d like to open other premises or move to a larger space, you may want to diversify and sell other products and services. There are lots of benefits that come with growing your business, such as increased sales and profits, meaning more money to put back into the brand. It also helps you to reach a wider target market and helps you to expand your existing customer base. Growing your business shows customers that you are doing well, and therefore it gives you a better chance of being seen as a reputable brand within your industry. Generally, growth can help you to boost your business in terms of profits, and customers and put you ahead of your competition.
Financing growth
It won’t come as a surprise to many business owners that you need funds to be able to grow. If you’ve been in business a long time, you may have the capital built up to help yourself. But if not, there are finance options that can help you achieve your goals – we’ll look at these options in more detail below.
Start-up loans
If you run a small business, from your home or office space, and you work for yourself or have minimal staff, a start-up loan could be just what you need to give your brand a boost. It can be difficult to leap from working on a smaller scale, but when you have a start-up loan to help, you can secure premises, employ staff, and improve your processes so that you can reach more of your target market. Applying for a start-up loan allows you to make that crucial next step.
Business loans
There is a huge range of business loans available to suit your brand. The most common are loans that you can apply for with your bank. If you have been in business for over 2 years, you can use the additional finance to help with whatever you need – stock, technology, premises, or training new employees. You can use these loans for anything you want within your business, and your bank can offer you varying rates when it comes to interest and fees. You can also apply for business loans from alternative online lenders. They tend to be more flexible and could be a better choice for newer businesses.
Personal savings
Whilst using your personal savings to grow your business means that you won’t have a debt to pay back, it can cause a few issues. Whether you’re happy to use your personal savings to give your business that extra boost is a personal choice, but there are a few factors to consider. If your business does not thrive, you have potentially lost your hard-earned cash. It is unlikely that your savings will be able to cover as much as a loan from a bank or lender would unless you have a large lump sum of money to spend – which again, could be risky. If you need a bit of extra cash to get you to where you want to be, you could use your savings for this. But if you’re using a large amount, be wary. You’ll need to be sure that your business is going to thrive so you can make your money back.
Venture capital
This is another good option that can help you take the next step when it comes to growing your business. It’s a process that involves investors putting money into your business to help you with long-term growth and make a return. This can work well for both established and growing companies, as some investors are open to helping new businesses – even if you don’t have proof of trading in the past. If you have a great business plan and an idea of how you would like to progress, there is bound to be an investor to suit your needs.