If you’re looking to expand your business, congratulations! Once your business reaches a certain point where it is ready for growth, there’s nothing that should stop you! From launching more product lines, to expanding to new premises and hiring more employees, there are so many ways you can develop your company and continue its success.
The Coronavirus brought on many challenges for businesses. However, one positive of the pandemic was that it gave us more time to think and make plans for the future. As we move into a post-pandemic period, now is a good time to put your business expansion plans into action.
However, achieving business expansion requires substantial upfront capital. This is a luxury not all businesses have, but just because you don’t have the money readily available, doesn’t mean your expansion plans should be put on hold. You’ll be happy to know there are lots of alternative ways to raise the funds you need to grow your business.
Previously, businesses had to rely on banks for traditional loan products, but the rise of the alternative finance market has increased access to smaller UK businesses. This means that you now have more choice than ever before when it comes to funding your business’s growth.
Before determining what funding you’ll need, you should be sure to forecast how much your business’s expansion will cost. There are lots of associated costs to consider, and it's always better to overestimate than under budget.
Consider Crowdfunding Options
Crowdfunding can be a great way to raise funds for business ventures like expansion. It is a relatively low risk way of boosting your business funds, but it is not always the easiest to secure. In order to succeed at crowdfunding, you need to create a solid pitch that will make people want to support your business. Take potential investors on a journey in which they are able to clearly feel your business goals.
There are three main types of crowdfunding, debt-based, equity and rewards. Take some time to find out which option is best for your business. For example, if you aren’t willing to give up partial ownership, equity-based crowdfunding isn’t the solution for you.
Alternative Ways To Secure Assets
It’s likely that your expansion will require new equipment and machinery. One way you can keep costs down is by using asset finance. Instead of buying the assets that you need outright, which will cost you a huge amount of money, you can go down the route of equipment leasing.
With leasing, you get access to the equipment that you need using what is essentially a rental agreement. You then make small, manageable monthly payments during a period known as the lease term. Once the term has finished, you can then choose to buy the equipment or return it.
Find The Right Loan Product For Your Business
Lots of business owners feel nervous about taking out loans to fund their firms. While it is important to do careful research before entering into any borrowing agreement, business finance can provide a helpful way of accessing immediate funds.
There are lots of different types of loans available for businesses, and these days you don’t have to rely on banks for capital. Lots of alternative finance providers exist, offering competitive interest rates and flexible repayment terms.
With so many options available, it can be difficult to know what the right choice is for your business, which is why a business finance broker can be helpful in recommending the most suitable solution.
Research Business Grants You May Be Eligible For
You might be eligible for a small business grant which can help to cover certain expansion expenditure. It can be a good idea to find out whether your business could benefit from a grant, and how you can go about making an application.
Whilst grants are great ways of raising funds, they tend to be very competitive with strict qualifying criteria. If you have adverse credit, it may be tricky for you to apply. With that being said, it is definitely worth having a look at which grants and financial support are offered in your region.
Without continual growth and progress, such words as improvement, achievement, and success have no meaning. - Benjamin Franklin
Build Bigger Businesses
This is an exciting time for UK business owners. After what has been a long and hard period of adapting to continual change, there are now lots of new opportunities to take hold of! It is not easy running a small business, but if you do your due diligence and carefully research before choosing a funding route, your expansion is sure to be a success. Good luck business builders!
