Whether adapting to suit clients’ needs or venturing into new markets, there are many reasons for growing your business. We outline some areas to consider.
Making an informed decision
Conducting thorough market research is crucial and will help you to answer: is there demand for your product? How big is your potential marketplace? Will you be able to compete?
Only healthy, profitable firms should consider expanding. Assessing your current performance will determine whether you can withstand the pressure and upheaval of expansion.
Expanding can often mean employing additional staff and resources. Profits generated by the increased business must sustain these additional costs.
Raising business finance
Identifying the right method of finance is essential.
Bank loans, which can be taken out for a fixed-term with interest rates agreed up front, often prove to be a popular choice. Be aware that every loan application submitted
will appear on your credit file. Having a watertight business plan and valid reasons for borrowing is therefore essential. We can help by carrying out a financial assessment
before you apply.
An alternative is an overdraft; set up with an agreed amount of money and limits established upfront. Continued use may, however, cause your bank to question your profitability.
Non-repayable grants, provided by the government, local councils and charities, are available to certain firms. However, competition for them is fierce.
Managing the expansion
Having a detailed plan is essential to ensure your expansion runs smoothly.
Our top tips include:
- Creating a sound marketing plan: as your business evolves, so should your marketing plan.
- Expanding slowly, preferably in stages: a staged expansion allows for market analysis to assess the demand for increased business.
- Managing client expectations: Inform clients of expansion plans and update them with any changes and improvements you make.
- Setting achievable goals and deadlines: This will provide you with a sense of achievement, and help to boost enthusiasm amongst employees.
For help with growing your business, please contact us on 01392 211 233.